<SEC-DOCUMENT>0000950123-06-013535.txt : 20120822
<SEC-HEADER>0000950123-06-013535.hdr.sgml : 20120822

<ACCEPTANCE-DATETIME>20061106110330

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000950123-06-013535

CONFORMED SUBMISSION TYPE:	N-2/A

PUBLIC DOCUMENT COUNT:		10

FILED AS OF DATE:		20061106

DATE AS OF CHANGE:		20061107


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			GABELLI EQUITY TRUST INC

		CENTRAL INDEX KEY:			0000794685

		IRS NUMBER:				222736509

		STATE OF INCORPORATION:			MD

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		N-2/A

		SEC ACT:		1933 Act

		SEC FILE NUMBER:	333-137298

		FILM NUMBER:		061189082



	BUSINESS ADDRESS:	

		STREET 1:		ONE CORP CENTER

		CITY:			RYE

		STATE:			NY

		ZIP:			10580

		BUSINESS PHONE:		9149215070




FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			GABELLI EQUITY TRUST INC

		CENTRAL INDEX KEY:			0000794685

		IRS NUMBER:				222736509

		STATE OF INCORPORATION:			MD

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		N-2/A

		SEC ACT:		1940 Act

		SEC FILE NUMBER:	811-04700

		FILM NUMBER:		061189083



	BUSINESS ADDRESS:	

		STREET 1:		ONE CORP CENTER

		CITY:			RYE

		STATE:			NY

		ZIP:			10580

		BUSINESS PHONE:		9149215070



</SEC-HEADER>

<DOCUMENT>
<TYPE>N-2/A
<SEQUENCE>1
<FILENAME>y26698a2nv2za.htm
<DESCRIPTION>AMENDMENT NO. 2 TO FORM N-2
<TEXT>
<HTML>
<HEAD>
<TITLE>N-2/A</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Washington, D.C.
    20549</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt"><FONT style="white-space: nowrap">Form&#160;N-2</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT face="wingdings">o</FONT>&#160;
</TD>
    <TD align="left">
    Registration Statement under the Securities Act of 1933
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT face="wingdings">&#254;</FONT>&#160;
</TD>
    <TD align="left">
    Pre-Effective Amendment No.&#160;2
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT face="wingdings">o</FONT>&#160;
</TD>
    <TD align="left">
    Post-Effective Amendment No.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and/or
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT face="wingdings">&#254;</FONT>&#160;
</TD>
    <TD align="left">
    Registration Statement under the Investment Company Act of 1940
    Amendment No.&#160;39
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (Check Appropriate Box&#160;or Boxes)
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">THE GABELLI EQUITY TRUST
    INC.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Exact Name of Registrant as
    Specified in Charter)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>One Corporate Center<BR>
    Rye, New York
    <FONT style="white-space: nowrap">10580-1422</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Address of Principal Executive
    Offices)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Registrant&#146;s Telephone Number, Including Area Code:
    <FONT style="white-space: nowrap">(800)&#160;422-3554</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Bruce N. Alpert</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Gabelli Equity Trust Inc.</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>One Corporate Center</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Rye, New York
    <FONT style="white-space: nowrap">10580-1422</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="white-space: nowrap">(914)&#160;921-5100</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Name and Address of Agent for
    Service)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Copies to:</I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">James E.
    McKee,&#160;Esq.</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">Rose F.
    DiMartino,&#160;Esq.</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">Sarah E.
    Cogan,&#160;Esq.</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">The Gabelli Equity Trust
    Inc.</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">Willkie Farr&#160;&#38;
    Gallagher LLP</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">Simpson Thacher&#160;&#38;
    Bartlett LLP</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">One Corporate Center</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">787 Seventh Ave.</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">425 Lexington Ave.</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">Rye, New York
    <FONT style="white-space: nowrap">10580-1422</FONT></FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">New York, New York
    10019</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">New York, NY 10017</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <B><FONT style="font-size: 9pt">(914)
    <FONT style="white-space: nowrap">921-5100</FONT></FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B><FONT style="font-size: 9pt">(212) 728-8000</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 9pt">(212) 455-2000 </FONT></B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approximate date of proposed public
    offering:</B>&#160;&#160;As soon as practicable after the
    effective date of this Registration Statement.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any securities being registered on this form will be offered
    on a delayed or continuous basis in reliance on Rule&#160;415
    under the Securities Act of 1933, as amended, other than
    securities offered in connection with a dividend reinvestment
    plan, check the following
    box.&#160;&#160;<FONT face="wingdings">o
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is proposed that this filing will become effective (check
    appropriate box)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT face="wingdings">&#254;</FONT>&#160;
</TD>
    <TD align="left">
    When declared effective pursuant to section&#160;8(c).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If appropriate, check the following box:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT face="wingdings">o</FONT>&#160;
</TD>
    <TD align="left">
    This [post-effective] amendment designates a new effective date
    for a previously filed [post-effective amendment] [registration
    statement].
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT face="wingdings">o</FONT>&#160;
</TD>
    <TD align="left">
    This form is filed to register additional securities for an
    offering pursuant to Rule&#160;462(b) under the Securities Act
    and the Securities Act registration statement number of the
    earlier effective registration statement for the same offering
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF
    1933</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="44%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000003">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000003">
    <B>Amount of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Amount<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registration<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Title of Securities</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Being Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Offering Price</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Offering Price(1)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Fee(2)</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <U><FONT style="font-size: 10pt">&#160;&#160;&#160;&#160;&#160;</FONT></U><FONT style="font-size: 10pt">%
    Series&#160;F Cumulative Preferred Stock
    </FONT>
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <FONT style="font-size: 10pt">5,000,000
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <FONT style="font-size: 10pt">$25
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <FONT style="font-size: 10pt">$125,000,000
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <FONT style="font-size: 10pt">$13,375.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000003">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;
</TD>
    <TD align="left">    Estimated solely for the purpose of calculating the registration
    fee.
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (2)&#160;
</TD>
    <TD align="left">    $107.00 was previously wired to the Securities and Exchange
    Commission account at Mellon Bank, Pittsburgh, Pennsylvania in
    connection with the initial filing of this registration
    statement. An additional $13,268.00 was wired to the Securities
    and Exchange Commission&#146;s account in payment of the
    additional registration fee due in connection with this filing
    of the Registration Statement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>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&#160;8(a)
    of the Securities Act of 1933 or until the Registration
    Statement shall become effective on such date as the Securities
    and Exchange Commission, acting pursuant to said
    section&#160;8(a), may determine.</B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CROSS-REFERENCE
    SHEET</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>N-2 Item Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Location in Part A (Caption)</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">PART&#160;A</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1.&#160;&#160;Outside Front Cover
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Outside Front Cover Page
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2.&#160;&#160;Cover Pages, Other
    Offering Information
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Outside Front Cover Page; Inside
    Front Cover Page
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3.&#160;&#160;Fee Table and
    Synopsis
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Summary
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4.&#160;&#160;Financial Highlights
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Financial Highlights
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5.&#160;&#160;Plan of Distribution
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Outside Front Cover Page; Summary;
    Underwriting
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">6.&#160;&#160;Selling Shareholders
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Not Applicable
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7.&#160;&#160;Use of Proceeds
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Use of Proceeds; Investment
    Objectives and Policies
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">8.&#160;&#160;General Description
    of the Registrant
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Outside Front Cover Page; Summary;
    The Fund; Investment Objectives and Policies; Risk
    Factors&#160;&#38; Special Considerations; How the Fund Manages
    Risk; Description of the Series&#160;F Preferred; Anti-Takeover
    Provisions of the Fund&#146;s Charter and By-Laws
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">9.&#160;&#160;Management
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Outside Front Cover Page; Summary;
    Management of the Fund; Custodian, Transfer Agent, Auction Agent
    and Dividend-Disbursing Agent
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -18pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">10.&#160;Capital Shares, Long-Term
    Debt, and Other Securities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Outside Front Cover Page; Summary;
    Investment Objectives and Policies; Description of the
    Series&#160;F Preferred; Description of Capital Stock and Other
    Securities; Taxation Policies; Authorized and Outstanding
    Shares; Taxation
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">11.&#160;Defaults and Arrears on
    Senior Securities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Not Applicable
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">12.&#160;Legal Proceedings
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Management of Fund
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -18pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">13.&#160;Table of Contents of the
    Statement of Additional Information
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Table of Contents of the Statement
    of Additional Information
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>N-2 Item&#160;Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Location in Statement of Additional Information</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">PART&#160;B</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">14.&#160;Cover Page
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Outside Front Cover Page
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15.&#160;Table of Contents
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Outside Front Cover Page
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">16.&#160;General Information and
    History
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Not Applicable
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">17.&#160;Investment Objectives and
    Policies
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Investment Objectives and
    Policies; Investment Restrictions
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">18.&#160;Management
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Management of the Fund
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -18pt; margin-left: 18pt">
    <FONT style="font-size: 10pt">19.&#160;Control Persons and
    Principal Holders of Securities
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Not Applicable
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20.&#160;Investment Advisory and
    Other Services
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Management of the Fund
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">21.&#160;Portfolio Managers
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Management of the Fund
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">22. Brokerage Allocation and Other
    Practices
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Portfolio Transactions
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">23.&#160;Tax Status
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Taxation
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">24.&#160;Financial Statements
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Financial Statements
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;C</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Information required to be included in Part&#160;C is set forth
    under the appropriate Item, so numbered, in Part&#160;C to this
    Registration Statement.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD>
<FONT style="font-size: 10pt; color: #E8112D">The information in
this Prospectus is not complete and may be changed. We may not
sell these securities until the Registration Statement filed
with the Securities and Exchange Commission is effective. This
Prospectus is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any state where
the offer or sale is not permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="color: #E8112D">SUBJECT TO COMPLETION DATED
    NOVEMBER&#160;6, 2006</FONT></B>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PROSPECTUS</B>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 15pt">$125,000,000</FONT></B>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">The Gabelli Equity Trust
    Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">5,000,000&#160;Shares,&#160;&#160;%
    Series&#160;F Cumulative Preferred Stock<BR>
    (Liquidation Preference $25 Per Share)</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=72 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Gabelli Equity Trust Inc. (the &#147;Fund&#148;) is a
    non-diversified, closed-end management investment company
    registered under the Investment Company Act of 1940, as amended
    (the &#147;1940 Act&#148;). The Fund&#146;s primary investment
    objective is to achieve long-term growth of capital by investing
    primarily in a portfolio of equity securities consisting of
    common stock, preferred stock, convertible or exchangeable
    securities and warrants and rights to purchase such securities.
    Income is a secondary investment objective. Gabelli Funds, LLC
    (the &#147;Investment Adviser&#148;) serves as investment
    adviser to the Fund. Under normal market conditions, the Fund
    will invest at least 80% of the value of its total assets in
    equity securities. The Fund was organized as a Maryland
    corporation on May&#160;20, 1986 and commenced its investment
    operations on August&#160;21, 1986. An investment in the Fund is
    not appropriate for all investors. We cannot assure you that the
    Fund&#146;s investment objectives will be achieved.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus describes the Fund&#146;s&#160;&#160;%
    Series&#160;F Cumulative Preferred Stock (the
    &#147;Series&#160;F Preferred&#148;), liquidation preference
    $25&#160;per share. Distributions on the Series&#160;F Preferred
    are cumulative from their original issue date at the annual rate
    of&#160;&#160;% of the liquidation preference of $25&#160;per
    share and are payable quarterly on March&#160;26, June&#160;26,
    September&#160;26, and December 26 of each year, commencing on
    December&#160;26, 2006.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=72 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Investing in the Series&#160;F Preferred involves risks that
    are described in the &#147;Risk Factors and Special
    Considerations&#148; section beginning on page&#160;21 of this
    prospectus.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this prospectus is truthful or
    complete. Any representation to the contrary is a criminal
    offense.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Series&#160;F<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Preferred<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Public Offering Price&#160;(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Underwriting Discount&#160;(2)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Proceeds to the Fund (before
    expenses)&#160;(3)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Plus accumulated distributions, if any,
    from&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The Fund and the Investment Adviser have agreed to indemnify the
    underwriters against certain liabilities, including liabilities
    under the Securities Act of 1933, as amended.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Offering expenses payable by the Fund (excluding underwriting
    discount) are estimated at $500,000.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=72 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 15pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    <B><FONT style="font-size: 15pt">Citigroup</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    <B><FONT style="font-size: 15pt">Merrill Lynch&#160;&#38;
    Co.</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -15pt; margin-left: 15pt">
    <B><FONT style="font-size: 15pt">A.G. Edwards&#160;&#38;
    Sons</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    <B><FONT style="font-size: 15pt">Gabelli&#160;&#38; Company,
    Inc. </FONT></B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;F Preferred being offered by this prospectus is
    being offered by the underwriters listed in this prospectus,
    subject to prior sale, when, as and if accepted by them and
    subject to certain conditions. The Fund expects that delivery of
    any Series&#160;F Preferred will be made in book-entry form
    through The Depository Trust Company on or
    about&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A preliminary application has been made to list the
    Series&#160;F Preferred on the New York Stock Exchange (the
    &#147;NYSE&#148;). Subject to notice of issuance, trading of the
    Series&#160;F Preferred on the NYSE is expected to commence
    within 30&#160;days from the date of this prospectus. Prior to
    this offering, there has been no public market for the
    Series&#160;F Preferred. See &#147;Underwriting.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The net proceeds of the offering are estimated at approximately
    $&#160;&#160;&#160;&#160;&#160;, after deduction of the
    estimated underwriting discounts and estimated offering expenses
    payable by the Fund. The Fund intends to use the net proceeds to
    redeem shares of the Series&#160;B Preferred, of which there are
    currently 4,950,000&#160;shares outstanding with a liquidation
    preference of $25&#160;per share. If the amount raised in the
    offering exceeds the amount of Series&#160;B Preferred
    outstanding, the excess amount will be invested in accordance
    with the investment objectives and policies of the Fund. The
    Fund intends to redeem shares of Series&#160;B Preferred (and,
    if there are excess proceeds, invest those proceeds in
    accordance with the Fund&#146;s investment objectives and
    policies) within three months of the completion of the offering;
    however, changes in market conditions, including, in particular,
    factors affecting interest rates and the securities in which the
    Fund invests, could result in this period being as long as six
    months. See &#147;Use of Proceeds.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund expects that distributions made on the Series&#160;F
    Preferred will consist of (i)&#160;long-term capital gain (gain
    from the sale of a capital asset held longer than
    12&#160;months), (ii)&#160;qualified dividend income (dividend
    income from certain domestic and foreign corporations, provided
    certain holding period and other requirements are met by both
    the Fund and the shareholder), and (iii)&#160;investment company
    taxable income (other than qualified dividend income, including
    interest income, short-term capital gain and income from certain
    hedging and interest rate transactions). For individuals, the
    maximum federal income tax rate on long-term capital gain is
    currently 15%, on qualified dividend income is 15%, and on
    ordinary income (such as distributions from investment company
    taxable income that are not eligible for treatment as qualified
    dividend income) is currently 35%. These tax rates are scheduled
    to apply through 2010. We cannot assure you, however, as to what
    percentage of future distributions made on the Series&#160;F
    Preferred will consist of long-term capital gain, which is
    currently taxed at lower rates for individuals than ordinary
    income, and qualified dividend income, which is currently
    eligible to be taxed at the lower long-term capital gain rates.
    For a more detailed discussion, see &#147;Taxation.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to be issued, the Series&#160;F Preferred must receive
    a rating of &#147;Aaa&#148; by Moody&#146;s Investors Service,
    Inc. (&#147;Moody&#146;s&#148;). In order to keep this rating,
    the Fund will be required to maintain a minimum discounted asset
    coverage with respect to its outstanding Series&#160;F Preferred
    under guidelines established by Moody&#146;s. See
    &#147;Description of the Series&#160;F Preferred&#151;Rating
    Agency Guidelines.&#148; The Fund is also required to maintain a
    minimum asset coverage by the 1940 Act. If the Fund fails to
    maintain any of these minimum asset coverage requirements, the
    Fund may at its option (and in certain circumstances must)
    require, in accordance with its charter (together with any
    amendments or supplements thereto, including any articles
    supplementary, the &#147;Charter&#148;) and the requirements of
    the 1940 Act, that some or all of its outstanding preferred
    stock, including the Series&#160;F Preferred, be redeemed.
    Otherwise, prior
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2011 the Series&#160;F Preferred will be redeemable at the
    option of the Fund only to the extent necessary for the Fund to
    continue to qualify for tax treatment as a regulated investment
    company. Subject to certain notice and other requirements
    (including those set forth in Section&#160;23(c) of the 1940
    Act), the Fund, at its option, may redeem the Series&#160;F
    Preferred beginning
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2011. In the event the Fund redeems the Series&#160;F Preferred,
    such redemption will be for cash at a redemption price equal to
    $25&#160;per share plus accumulated but unmade distributions
    (whether or not earned or declared).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus concisely sets forth important information about
    the Fund that you should know before deciding whether to invest
    in Series&#160;F Preferred. You should read this prospectus and
    retain it for future reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has also filed with the Securities and Exchange
    Commission a Statement of Additional Information (the
    &#147;SAI&#148;),
    dated&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006, which contains additional information about the Fund. The
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SAI is incorporated by reference in its entirety into this
    prospectus. You can review the table of contents of the SAI that
    is filed with this prospectus. You may request a free copy of
    the SAI by writing to the Fund at its address at One Corporate
    Center, Rye, New York
    <FONT style="white-space: nowrap">10580-1422</FONT>
    or calling the Fund toll-free at
    <FONT style="white-space: nowrap">(800)&#160;422-3554.</FONT>
    You can also call the toll-free number to request copies of the
    Fund&#146;s annual and semi-annual reports, to request other
    information about the Fund, or to make stockholder inquiries.
    The SAI and the Fund&#146;s reports are also available at the
    website http://www.gabelli.com. You may also obtain the SAI and
    reports, proxy and information statements and other information
    regarding registrants, including the Fund, that file
    electronically with the Securities and Exchange Commission on
    the Securities and Exchange Commission&#146;s web site
    (http://www.sec.gov).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Series&#160;F Preferred 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.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information contained in or
    incorporated by reference into this prospectus. Neither the
    fund&#160;nor the underwriters have authorized any other person
    to provide you with different information. If anyone provides
    you with different or inconsistent information, you should not
    rely on it. Neither the fund nor the underwriters are making an
    offer to sell these securities in any jurisdiction where the
    offer or sale is not permitted.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=72 -->

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>TABLE OF CONTENTS</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'><FONT style="font-size: 10pt">Summary</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">1
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'><FONT style="font-size: 10pt">Financial
    Highlights</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">12
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'><FONT style="font-size: 10pt">Use of
    Proceeds</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">15
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'><FONT style="font-size: 10pt">The Fund</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">15
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'><FONT style="font-size: 10pt">Capitalization</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">16
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'><FONT style="font-size: 10pt">Investment
    Objectives and Policies</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">16
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'><FONT style="font-size: 10pt">Risk Factors and
    Special Considerations</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">21
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'><FONT style="font-size: 10pt">How the Fund
    Manages Risk</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">28
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'><FONT style="font-size: 10pt">Management of the
    Fund</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">29
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'><FONT style="font-size: 10pt">Portfolio
    Transactions</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">32
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'><FONT style="font-size: 10pt">Dividends and
    Distributions</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">33
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'><FONT style="font-size: 10pt">Description of the
    Series&#160;F Preferred</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">33
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'><FONT style="font-size: 10pt">Description of
    Capital Stock and Other Securities</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">41
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'><FONT style="font-size: 10pt">Taxation</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">42
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'><FONT style="font-size: 10pt">Anti-Takeover
    Provisions of the Fund&#146;s Charter and By-Laws</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">45
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'><FONT style="font-size: 10pt">Custodian, Transfer
    Agent, Auction Agent and Dividend-Disbursing Agent</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">46
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'><FONT style="font-size: 10pt">Underwriting</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">48
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'><FONT style="font-size: 10pt">Legal
    Matters</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">49
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'><FONT style="font-size: 10pt">Experts</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">50
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'><FONT style="font-size: 10pt">Additional
    Information</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">50
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'><FONT style="font-size: 10pt">Privacy Principles
    of the Fund</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">50
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#123'><FONT style="font-size: 10pt">Table of Contents
    of the Statement of Additional Information</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">52
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#124'><FONT style="font-size: 10pt">Appendix
    A&#151;Corporate Bond Ratings</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">A-1
    </FONT>
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y26698a2exv99w2wawiv.htm">EX-99.2.A.IV: ARTICLES SUPPLEMENTARY FOR SERIES D</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y26698a2exv99w2wawv.htm">EX-99.2.A.V:  ARTICLES SUPPLEMENTARY FOR SERIES E</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y26698a2exv99w2wawvi.htm">EX-99.2.A.VI: ARTICLES SUPPLEMENTARY FOR SERIES F</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y26698a2exv99w2wh.htm">EX-99.2.H: FORM OF UNDERWRITING AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y26698a2exv99w2wlwi.htm">EX-99.2.L.I: OPINION AND CONSENT OF WILLKIE FARR & GALLAGHER LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y26698a2exv99w2wlwii.htm">EX-99.2.L.II: OPINION AND CONSENT OF VENABLE LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y26698a2exv99w2wn.htm">EX-99.2.N: CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    i
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This is only a summary. This summary does not contain all of the
    information that you should consider before investing in the
    Fund&#146;s Series&#160;F Preferred, in particular the risks
    associated with such an investment. For a more detailed
    discussion of these risks, see &#147;Risk Factors and Special
    Considerations.&#148; You should review the more detailed
    information contained in this prospectus, the Statement of
    Additional Information (the &#147;SAI&#148;), and the
    Fund&#146;s Articles&#160;Supplementary for the&#160;&#160;%
    Series&#160;F Cumulative Preferred Stock (the
    &#147;Series&#160;F Articles&#160;Supplementary&#148;) on file
    with the Securities and Exchange Commission (the
    &#147;Commission&#148;).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Gabelli Equity Trust Inc. (the &#147;Fund&#148;) is a
    non-diversified, closed-end management investment company
    organized as a Maryland corporation on May&#160;20, 1986.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s outstanding shares of common stock, par value
    $0.001&#160;per share, are listed and traded on the New York
    Stock Exchange (the &#147;NYSE&#148;) under the symbol
    &#147;GAB.&#148; As of September&#160;30, 2006, the net assets
    of the Fund attributable to its common stock were
    $1,458,720,807. As of September&#160;30, 2006, the Fund had
    outstanding 167,642,009&#160;shares of common stock;
    4,950,000&#160;shares of 7.20% Tax Advantaged Series&#160;B
    Cumulative Preferred Stock, liquidation preference $25&#160;per
    share (the &#147;Series&#160;B Preferred&#148;);
    5,200&#160;shares of Series&#160;C Auction Rate Cumulative
    Preferred Stock, liquidation preference $25,000&#160;per share
    (the &#147;Series&#160;C Auction Rate Preferred&#148;);
    2,949,700&#160;shares of 5.875% Series&#160;D Cumulative
    Preferred Stock, liquidation preference $25&#160;per share (the
    &#147;Series&#160;D Preferred&#148;); and 2,000&#160;shares of
    Series&#160;E Auction Rate Cumulative Preferred Stock,
    liquidation preference $25,000&#160;per share (the
    &#147;Series&#160;E Auction Rate Preferred&#148;). The Fund
    completed its redemption of 100% of its outstanding 7.25% Tax
    Advantaged Cumulative Preferred Stock (the &#147;Series&#160;A
    Preferred&#148;) on June&#160;17, 2003. The Fund&#146;s
    outstanding Series&#160;B Preferred became redeemable at the
    option of the Fund beginning June&#160;20, 2006 and the Fund
    redeemed 25% of its then outstanding Series&#160;B Preferred on
    June&#160;26, 2006. The Series&#160;B Preferred, the
    Series&#160;C Auction Rate Preferred, the Series&#160;D
    Preferred and the Series&#160;E Auction Rate Preferred
    (collectively, the &#147;Existing Preferred&#148;) have the same
    seniority with respect to distributions and liquidation
    preference.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Offering</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund offers by this prospectus $125,000,000
    of&#160;&#160;&#160;&#160;&#160;% Series&#160;F Cumulative
    Preferred Stock (the &#147;Series&#160;F Preferred&#148;). The
    Series&#160;F Preferred is being offered by a group of
    underwriters led by Citigroup Global Markets Inc. and Merrill
    Lynch, Pierce, Fenner&#160;&#38; Smith Incorporated, as joint
    book running managers, and together with A.G. Edwards&#160;&#38;
    Sons, Inc. and Gabelli&#160;&#38; Company, Inc., as
    representatives of the other underwriters named herein. Upon
    issuance, the Series&#160;F Preferred will have equal seniority
    with respect to distributions and liquidation preference to the
    Fund&#146;s Existing Preferred. See &#147;Description of the
    Series&#160;F Preferred.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is offering 5,000,000&#160;shares
    of&#160;&#160;&#160;&#160;&#160;% Series&#160;F Cumulative
    Preferred Stock, par value $0.001&#160;per share, liquidation
    preference $25&#160;per share, at a purchase price of
    $25&#160;per share. Distributions on the shares of Series&#160;F
    Preferred will accumulate from the date on which such stock is
    issued. A preliminary application has been made to list the
    Series&#160;F Preferred on the NYSE. Subject to notice of
    issuance, trading of the Series&#160;F Preferred on the NYSE
    will commence within 30&#160;days from the date of this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, investors in Series&#160;F Preferred will not receive
    certificates representing ownership of their stock. The
    Depository Trust Company (&#147;DTC&#148;), any successor or its
    nominee for the account of the investor&#146;s broker-dealer
    will maintain record ownership of the preferred stock in
    book-entry form. An investor&#146;s broker-dealer, in turn, will
    maintain records of that investor&#146;s beneficial ownership of
    preferred stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Objectives</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s primary investment objective is to achieve
    long-term growth of capital by investing primarily in a
    portfolio of equity securities consisting of common stock,
    preferred stock, convertible or exchangeable
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    securities and warrants and rights to purchase such securities
    selected by the Investment Adviser. Income is a secondary
    investment objective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under normal market conditions, the Fund will invest at least
    80% of the value of its total assets in equity securities (the
    &#147;80% Policy&#148;). The 80% Policy may be changed without
    stockholder approval. The Fund will provide stockholders with
    notice at least 60&#160;days prior to the implementation of any
    change in the 80% Policy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser selects investments on the basis of
    fundamental value and, accordingly, the Fund typically invests
    in the securities of companies that are believed by the
    Investment Adviser to be priced lower than justified in relation
    to their underlying assets. Other important factors in the
    selection of investments include favorable price/earnings and
    debt/equity ratios and strong management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund seeks to achieve its secondary investment objective of
    income, in part, by investing up to 10% of its total assets in a
    portfolio consisting primarily of high-yielding, fixed-income
    securities, such as corporate bonds, debentures, notes,
    convertible securities, preferred stocks and domestic and
    foreign government obligations. Fixed-income securities
    purchased by the Fund may be rated as low as C by Moody&#146;s
    or D by Standard&#160;&#38; Poor&#146;s Ratings Services
    (&#147;S&#38;P&#148;) or may be unrated securities considered to
    be of equivalent quality. Securities that are rated C by
    Moody&#146;s are the lowest rated class and can be regarded as
    having extremely poor prospects of ever obtaining
    investment-grade standing. Debt rated D by S&#38;P is in default
    or is expected to default upon maturity of payment date. These
    debt securities, which are often referred to in the financial
    press as &#147;junk bonds,&#148; are predominantly speculative
    and involve major risk exposure to adverse conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No assurance can be given that the Fund&#146;s investment
    objectives will be achieved. See &#147;Investment Objectives and
    Policies.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dividends
    and Distributions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions on the Series&#160;F Preferred, at the annual rate
    of&#160;&#160;&#160;&#160;&#160;% of its $25&#160;per share
    liquidation preference, are cumulative from the original issue
    date and are payable, when, as and if declared by the Board of
    Directors of the Fund (the &#147;Board&#148;), out of funds
    legally available therefor, quarterly on March&#160;26,
    June&#160;26, September&#160;26, and December 26 of each year,
    commencing on December&#160;26, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Preferred Stock Distributions.</I>&#160;&#160;In accordance
    with the Charter (together with any amendments or supplements
    thereto, including any articles supplementary, the
    &#147;Charter&#148;), all preferred stock of the Fund must have
    the same seniority with respect to distributions. Accordingly,
    no full distribution will be declared or paid on any series of
    preferred stock of the Fund for any dividend period, or part
    thereof, unless full cumulative dividends and distributions due
    through the most recent dividend payment dates for all series of
    outstanding preferred stock of the Fund are declared and paid.
    If full cumulative distributions due have not been declared and
    made on all outstanding preferred stock of the Fund ranking on a
    parity with the Series&#160;F Preferred as to distributions, any
    distributions on such preferred stock (including any outstanding
    Series&#160;F Preferred) will be made as nearly pro rata as
    possible in proportion to the respective amounts of
    distributions accumulated but unmade on each such series of
    preferred stock on the relevant dividend payment date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that for any calendar year the total distributions
    on shares of the Fund&#146;s preferred stock exceed the
    Fund&#146;s ordinary income and net capital gain allocable to
    such shares, the excess distributions will generally be treated
    as a tax-free return of capital (to the extent of the
    stockholder&#146;s tax basis in the shares). The amount treated
    as a tax-free return of capital will reduce a stockholder&#146;s
    adjusted tax basis in the preferred stock, thereby increasing
    the stockholder&#146;s potential gain or reducing the potential
    loss on the sale of the shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Common Stock Distributions.</I>&#160;&#160;In order to allow
    its common stockholders to realize a predictable, but not
    assured, level of cash flow and some liquidity periodically on
    their investment without having to sell shares, the Fund has
    adopted a managed distribution policy, which may be changed at
    any time by the Board, of paying a minimum annual distribution
    of 10% of the average net asset value of the Fund to common
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    stockholders. In the event the Fund does not generate a total
    return from dividends and interest received and net realized
    capital gains in an amount equal to or in excess of its stated
    distribution in a given year, the Fund may return capital as
    part of such distribution, which may have the effect of
    decreasing the asset coverage per share with respect to the
    Fund&#146;s Series&#160;F Preferred (as well as the Existing
    Preferred). Any return of capital should not be considered by
    investors as yield or total return on their investment in the
    Fund. For the fiscal year ended December&#160;31, 2005, the Fund
    made distributions of $0.85&#160;per share of common stock, none
    of which constituted a return of capital. The Fund has made
    distributions of $0.58 per share of common stock for the current
    year through September&#160;30, 2006. The Fund has made
    quarterly distributions with respect to its common stock since
    1987. A portion of the distributions to common stockholders
    during nine of the twenty fiscal years since the Fund&#146;s
    inception has constituted a return of capital. The composition
    of each distribution is estimated based on the earnings of the
    Fund as of the record date for each distribution. The actual
    composition of each of the current year&#146;s distributions
    will be based on the Fund&#146;s investment activity through
    December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Treatment of Preferred Share Distributions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund expects that distributions made on the Series&#160;F
    Preferred will consist of (i)&#160;long-term capital gain (gain
    from the sale of a capital asset held longer than
    12&#160;months), (ii)&#160;qualified dividend income (dividend
    income from certain domestic and foreign corporations, provided
    certain holding period and other requirements are met by both
    the Fund and the shareholder), and (iii)&#160;investment company
    taxable income (other than qualified dividend income, including
    interest income, short-term capital gain and income from certain
    hedging and interest rate transactions). For individuals, the
    maximum federal income tax rate on long-term capital gain is
    currently 15%, on qualified dividend income is 15%, and on
    ordinary income (such as distributions from investment company
    taxable income that are not eligible for treatment as qualified
    dividend income) is currently 35%. These tax rates are scheduled
    to apply through 2010. During the three year period from
    <FONT style="white-space: nowrap">2003-2005,</FONT>
    approximately 91% of the Fund&#146;s distributions to common and
    preferred stockholders consisted of long-term capital gain and
    the remaining 9% distributed to stockholders constituted
    qualified dividend income taxable at the 15% rate for
    individuals. During 2005, approximately 89% of the Fund&#146;s
    distributions to common and preferred stockholders consisted of
    long-term capital gain and the remaining 11% distributed to
    stockholders constituted qualified dividend income taxable at
    the 15% rate for individuals. We cannot assure you, however, as
    to what percentage of future distributions made on the
    Series&#160;F Preferred will consist of long-term capital gain,
    which is currently taxed at lower rates for individuals than
    ordinary income; and qualified dividend income, which is
    currently eligible to be taxed at the lower long-term capital
    gain rates. For a more detailed discussion, see
    &#147;Taxation.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rating
    and Asset Coverage Requirements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to be issued, the Series&#160;F Preferred must receive
    a rating of &#147;Aaa&#148; from Moody&#146;s. The Series&#160;F
    Articles&#160;Supplementary setting forth the rights and
    preferences of the Series&#160;F Preferred contain certain tests
    that the Fund must satisfy to obtain and maintain a rating of
    &#147;Aaa&#148; from Moody&#146;s on the Series&#160;F
    Preferred. See &#147;Description of the Series&#160;F
    Preferred&#151;Rating Agency Guidelines.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Asset Coverage Requirements.</I>&#160;&#160;Under the asset
    coverage tests to which the Series&#160;F Preferred is subject,
    the Fund is required to maintain (i)&#160;assets having in the
    aggregate a discounted value greater than or equal to a Basic
    Maintenance Amount (as described under &#147;Description of the
    Series&#160;F Preferred&#151;Rating Agency Guidelines&#148;) for
    each such series calculated pursuant to the applicable rating
    agency guidelines and (ii)&#160;an asset coverage of at least
    200% (or such higher or lower percentage as may be required at
    the time under the Investment Company Act of 1940 (the
    &#147;1940 Act&#148;)) with respect to all outstanding preferred
    stock of the Fund, including the Series&#160;F Preferred. See
    &#147;Description of the Series&#160;F Preferred&#151;Asset
    Maintenance Requirements.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund estimates that if the shares offered hereby had been
    issued and sold as of September&#160;30, 2006, the asset
    coverage under the 1940 Act would have been approximately 389%
    immediately following such issuance (and after giving effect to
    the deduction of the estimated underwriting discounts of
    $3,937,500 and
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    estimated offering expenses for such shares of $500,000). The
    asset coverage would have been computed as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="18%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">Value of Fund assets less
    liabilities and indebtedness not constituting senior securities
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">$1,956,775,807
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=223 length=0 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">&#160;=
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <DIV style="font-size: 0pt; margin-left: 0%; width: 70%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=72 length=60 -->
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">=
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">389%
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">Senior securities representing
    indebtedness plus
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">$502,492,500
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">aggregate involuntary liquidation
    preference of each class of senior security which is stock
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;F Articles&#160;Supplementary, which contain the
    technical provisions of the various components of the asset
    coverage tests, will be filed as an exhibit to this registration
    statement and may be obtained through the web site of the
    Commission (http://www.sec.gov).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Redemption</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mandatory Redemption.</I>&#160;&#160;The Series&#160;F
    Preferred may be subject to mandatory redemption by the Fund to
    the extent the Fund fails to maintain the asset coverage
    requirements described above in accordance with the rating
    agency guidelines or the 1940 Act and does not cure such failure
    by the applicable cure date. If the Fund redeems preferred stock
    mandatorily, it may, but is not required to, redeem a sufficient
    number of such shares so that after the redemption the Fund
    exceeds the asset coverage required by the guidelines of each of
    the applicable rating agencies and the 1940 Act by 10%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to the Series&#160;F Preferred, any such redemption
    will be made for cash at a redemption price equal to
    $25&#160;per share, plus an amount equal to accumulated and
    unmade distributions (whether or not earned or declared) to the
    redemption date. See &#147;Description of the Series&#160;F
    Preferred&#151;Redemption.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of a mandatory redemption, such redemption will be
    made from the Series&#160;F Preferred or other preferred stock
    of the Fund in such proportions as the Fund may determine,
    subject to the limitations of the Charter, the 1940 Act and
    Maryland law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Optional Redemption.</I>&#160;&#160;Subject to the
    limitations of the Charter, the 1940 Act and Maryland law, the
    Fund may, at its option, redeem the Series&#160;F Preferred as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Commencing&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2011 and at any time thereafter, the Fund at its option may
    redeem the Series&#160;F Preferred, in whole or in part, for
    cash at a redemption price per share equal to $25, plus an
    amount equal to accumulated and unmade distributions (whether or
    not earned or declared) to the redemption date. If fewer than
    all of the shares of the Series&#160;F Preferred are to be
    redeemed, such redemption will be made pro rata in accordance
    with the number of such shares held. Prior
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2011, the Series&#160;F Preferred will be subject to optional
    redemption by the Fund at the redemption price only to the
    extent necessary for the Fund to continue to qualify for tax
    treatment as a regulated investment company. See
    &#147;Description of the Series&#160;F
    Preferred&#151;Redemption&#151;Optional Redemption of the
    Series&#160;F Preferred.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Series&#160;A Preferred, Series&#160;B Preferred, Series&#160;C
    Auction Rate Preferred, Series&#160;D Preferred, and
    Series&#160;E Auction Rate Preferred. The Fund redeemed 100% of
    its outstanding Series&#160;A Preferred on June&#160;17, 2003.
    The Fund&#146;s outstanding Series&#160;B Preferred became
    redeemable at the option of the Fund beginning June&#160;20,
    2006 and the Fund redeemed 25% of its then outstanding
    Series&#160;B Preferred on June&#160;26, 2006. The Fund
    generally may redeem the outstanding Series&#160;C Auction Rate
    Preferred, in whole or in part, at any time other than during a
    non-call period. The Fund&#146;s outstanding Series&#160;D
    Preferred will be redeemable at the option of the Fund beginning
    October&#160;7, 2008. The Fund generally may redeem the
    outstanding Series&#160;E Auction Rate Preferred, in whole or in
    part, at any time other than during a non-call period. Such
    redemptions are subject to the limitations of the Charter, the
    1940 Act and Maryland law. See &#147;Description of the
    Series&#160;F Preferred&#151;Redemption.&#148;
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At all times, holders of the Fund&#146;s outstanding preferred
    stock (including the Series&#160;F Preferred), voting together
    as a single class, will be entitled to elect two members of the
    Board, and holders of the preferred stock and common stock,
    voting together as a single class, will elect the remaining
    directors. However, upon a failure by the Fund to make
    distributions on any of its shares of preferred stock in an
    amount equal to two full years of distributions, holders of the
    preferred stock, voting together as a single class, will have
    the right to elect additional directors that would then
    constitute a simple majority of the Board until all cumulative
    distributions on all shares of preferred stock have been made or
    provided for. Holders of outstanding shares of Series&#160;F
    Preferred and any other preferred stock will vote separately as
    a class on certain other matters as required under the Charter,
    the 1940 Act and Maryland law. Except as otherwise indicated in
    this prospectus and as otherwise required by applicable law,
    holders of Series&#160;F Preferred will be entitled to one vote
    per share on each matter submitted to a vote of stockholders and
    will vote together with holders of common stock and any other
    preferred stock as a single class. See &#147;Description of the
    Series&#160;F Preferred&#151;Voting Rights.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidation
    Preference</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The liquidation preference of the Series&#160;F Preferred is
    $25. Upon liquidation, holders of the Series&#160;F Preferred
    will be entitled to receive the liquidation preference with
    respect to their shares of preferred stock plus an amount equal
    to accumulated but unmade distributions with respect to such
    shares (whether or not earned or declared) to the date of
    liquidation. See &#147;Description of the Series&#160;F
    Preferred&#151;Liquidation Rights.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Use of
    Proceeds</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The net proceeds of the offering are estimated at approximately
    $&#160;&#160;&#160;&#160;&#160;, after deduction of the
    estimated underwriting discounts and estimated offering expenses
    payable by the Fund. The Fund intends to use the net proceeds to
    redeem shares of the Series&#160;B Preferred, of which there are
    currently 4,950,000&#160;shares outstanding with a liquidation
    preference of $25&#160;per share. If the amount raised in the
    offering exceeds the amount of Series&#160;B Preferred
    outstanding, the excess amount will be invested in accordance
    with the investment objectives and policies of the Fund. The
    Fund intends to redeem shares of Series&#160;B Preferred (and,
    if there are excess proceeds, invest those proceeds in
    accordance with the Fund&#146;s investment objectives and
    policies) within three months of the completion of the offering;
    however, changes in market conditions, including, in particular,
    factors affecting interest rates and the securities in which the
    Fund invests, could result in this period being as long as six
    months. See &#147;Use of Proceeds.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Listing
    of the Series&#160;F Preferred</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following its issuance, the Series&#160;F Preferred is expected
    to be listed on the NYSE. However, during an initial period
    which is not expected to exceed 30&#160;days after the date of
    its initial issuance, the Series&#160;F Preferred will not be
    listed on any securities exchange and consequently may be
    illiquid during that period. Prior to this offering, there has
    been no public market for the Series&#160;F Preferred. There can
    be no assurance that a secondary market will provide owners with
    liquidity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Special
    Characteristics and Risks</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Risk is inherent in all investing. Therefore, before investing
    in the Series&#160;F Preferred you should consider the risks
    carefully. See &#147;Risk Factors and Special
    Considerations.&#148; Primary risks specially associated with an
    investment in the Series&#160;F Preferred include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market price for the Series&#160;F Preferred will be
    influenced by changes in interest rates, the perceived credit
    quality of the Series&#160;F Preferred and other factors. See
    &#147;Risk Factors and Special Considerations&#151;Risks
    Associated with the Series&#160;F Preferred&#151;Fluctuations in
    Market Price.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, there has been no public market for the
    Series&#160;F Preferred. A preliminary application has been made
    to list the Series&#160;F Preferred on the NYSE. However, during
    an initial period which
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    is not expected to exceed 30&#160;days after the date of its
    issuance, the Series&#160;F Preferred will not be listed on any
    securities exchange. During such
    <FONT style="white-space: nowrap">30-day</FONT>
    period, the underwriters may make a market in the Series&#160;F
    Preferred; however, they have no obligation to do so.
    Consequently, the Series&#160;F Preferred may be illiquid during
    such period. No assurances can be provided that listing on any
    securities exchange or market making by the underwriters will
    result in the market for Series&#160;F Preferred being liquid at
    any time. See &#147;Risk Factors and Special
    Considerations&#151;Risks Associated with the Series&#160;F
    Preferred&#151;Illiquidity Risk.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You will have no right to require the Fund to repurchase or
    redeem your shares of Series&#160;F Preferred at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The credit rating on the Series&#160;F Preferred could be
    reduced or withdrawn while an investor holds shares, and the
    credit rating does not eliminate or mitigate the risks of
    investing in the Series&#160;F Preferred. A reduction or
    withdrawal of the credit rating would likely have an adverse
    effect on the market value of the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may not meet the asset coverage requirements or earn
    sufficient income from its investments to make distributions on
    the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The value of the Fund&#146;s investment portfolio may decline,
    reducing the asset coverage for the Series&#160;F Preferred.
    Further, if an issuer of a common stock in which the Fund
    invests experiences financial difficulties or if an
    issuer&#146;s preferred stock or debt security is downgraded or
    defaults or if an issuer in which the Fund invests is affected
    by other adverse market factors, there may be a negative impact
    on the income and asset value of the Fund&#146;s investment
    portfolio. In such circumstances, the Fund may be forced to
    mandatorily redeem shares of the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund generally may redeem the Series&#160;F Preferred at any
    time
    after&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2011 and may at any time redeem shares of Series&#160;F
    Preferred to meet regulatory or rating agency requirements. The
    Series&#160;F Preferred is subject to redemption under specified
    circumstances and investors may not be able to reinvest the
    proceeds of any such redemption in an investment providing the
    same or a better rate than that of the Series&#160;F Preferred.
    Subject to such circumstances, the Series&#160;F Preferred is
    perpetual.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;F Preferred is not an obligation of the Fund.
    The Series&#160;F Preferred is junior in respect of
    distributions and liquidation preference to any indebtedness
    incurred by the Fund. Although unlikely, precipitous declines in
    the value of the Fund&#146;s assets could result in the Fund
    having insufficient assets to redeem all of the Series&#160;F
    Preferred for the full redemption price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund currently uses, and intends to continue to use,
    financial leverage for investment purposes by issuing preferred
    stock. It is currently anticipated that, taking into account the
    Series&#160;F Preferred, the amount of leverage will represent
    approximately 26% of the Fund&#146;s &#147;managed assets&#148;
    (as defined below). If the proposed spin-off of a portion of the
    Fund&#146;s assets (see &#147;Additional Information&#148;) were
    to occur, subject to receipt of regulatory and shareholder
    approval, the amount of leverage as a percentage of Fund total
    assets would increase because the Fund&#146;s managed assets
    would decrease by the amount contributed to the spin-off fund.
    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 greater loss and the likelihood of higher
    volatility of the net asset value of the Fund and the asset
    coverage for the Series&#160;F Preferred. Such volatility may
    increase the likelihood of the Fund having to sell investments
    in order to meet its obligations to make distributions on the
    preferred stock, or to redeem preferred stock when it may be
    disadvantageous to do so. Also, if the Fund is utilizing
    leverage, a decline in net asset value could affect the ability
    of the Fund to make common stock distributions and such a
    failure to make distributions could result in the Fund ceasing
    to qualify as a regulated investment company under the Internal
    Revenue Code of 1986, as amended (the &#147;Code&#148;). See
    &#147;Taxation.&#148; As used in this prospectus, the
    Fund&#146;s &#147;managed assets&#148; include the aggregate net
    asset value of the Fund&#146;s common stock plus assets
    attributable to its outstanding preferred stock, with no
    deduction for the liquidation preference of such preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because the fee paid to the Investment Adviser will be
    calculated on the basis of the Fund&#146;s assets, which include
    for this purpose assets attributable to the aggregate net asset
    value of the common stock plus assets
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    attributable to any outstanding senior securities, with no
    deduction for the liquidation preference of any preferred stock,
    the fee may be higher when leverage in the form of preferred
    stock is utilized, giving the Investment Adviser an incentive to
    utilize such leverage. However, the Investment Adviser has
    agreed to reduce the management fee on the incremental assets
    attributable to the Existing Preferred and the Series&#160;F
    Preferred during the fiscal year if the total return of the net
    asset value of the common stock, including distributions and
    advisory fees subject to reduction for that year, does not
    exceed the stated dividend rate or corresponding swap rate of
    each particular series of preferred stock for the period. In
    other words, if the effective cost of the leverage for any
    series of preferred stock exceeds the total return (based on net
    asset value) on the Fund&#146;s common stock, the Investment
    Adviser will waive that portion of its management fee on the
    incremental assets attributable to the leverage for that series
    of preferred stock to mitigate the negative impact of the
    leverage on the common stockholder&#146;s total return. This fee
    waiver is voluntary and may be discontinued at any time. The
    Fund&#146;s total return on the net asset value of the common
    stock is monitored on a monthly basis to assess whether the
    total return on the net asset value of the common stock exceeds
    the stated dividend rate or corresponding swap rate of each
    particular series of preferred stock for the period. The test to
    confirm the accrual of the management fee on the assets
    attributable to each particular series of preferred stock is
    annual. The Fund will accrue for the management fee on these
    assets during the fiscal year if it appears probable that the
    Fund will incur the management fee on those additional assets.
    See &#147;Risk Factors and Special Considerations&#151;Risks
    Associated with the Series&#160;F Preferred&#151;Leverage
    Risk.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Restrictions imposed on the declaration and payment of dividends
    or other distributions to the holders of the common stock and
    preferred stock, both by the 1940 Act and by requirements
    imposed by rating agencies, might impair the Fund&#146;s ability
    to maintain its qualification as a regulated investment company
    for federal income tax purposes. While the Fund intends to
    redeem shares of its preferred stock (including the
    Series&#160;F Preferred) to the extent necessary to enable the
    Fund to distribute its income as required to maintain its
    qualification as a regulated investment company under the Code,
    there can be no assurance that such actions can be effected in
    time to meet the Code requirements. See &#147;Taxation&#148; in
    the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has adopted a policy, which may be changed at any time
    by the Board, of paying a minimum annual distribution of 10% of
    the average net asset value of the Fund to common stockholders.
    In the event the Fund does not generate a total return from
    dividends and interest received and net realized capital gains
    in an amount equal to or in excess of its stated distribution in
    a given year, the Fund may return capital as part of such
    distribution, which may have the effect of decreasing the asset
    coverage per share with respect to the Series&#160;F Preferred
    (as well as the Existing Preferred). Any return of capital
    should not be considered by investors as yield or total return
    on their investment in the Fund. For the fiscal year ended
    December&#160;31, 2005, the Fund made distributions of
    $0.85&#160;per share of common stock, none of which constituted
    a return of capital. The Fund has made distributions of
    $0.58&#160;per share of common stock for the current year
    through September&#160;30, 2006. The Fund has made quarterly
    distributions with respect to its common stock since 1987. A
    portion of the distributions to holders of common stock during
    nine of the twenty fiscal years since the Fund&#146;s inception
    has constituted a return of capital. The composition of each
    distribution is estimated based on the earnings of the Fund as
    of the record date for each distribution. The actual composition
    of each of the current year&#146;s distributions will be based
    on the Fund&#146;s investment activity through December&#160;31,
    2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a non-diversified, closed-end management investment company
    under the 1940 Act, the Fund may invest a greater portion of its
    assets in a more limited number of issuers than may a
    diversified fund, and accordingly, an investment in the Fund
    may, under certain circumstances, present greater risk to an
    investor than an investment in a diversified company. See
    &#147;Risk Factors and Special Considerations&#151;Risks of
    Investing in the Fund&#151;Non-Diversified Status.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may invest up to 25% of its assets in the securities of
    companies principally engaged in a single industry. In the event
    the Fund makes substantial investments in a single industry, the
    Fund would become more susceptible to adverse economic or
    regulatory occurrences affecting that industry. See &#147;Risk
    Factors and Special Considerations&#151;Risks of Investing in
    the Fund&#151;Industry Concentration Risk.&#148;
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has entered into an interest rate swap transaction with
    respect to its outstanding Series&#160;C Auction Rate Preferred
    and may enter into an interest rate swap or cap transaction with
    respect to all or a portion of its outstanding Series&#160;E
    Auction Rate Preferred. The use of interest rate swaps and caps
    is a highly specialized activity that involves certain risks to
    the Fund including, among others, counterparty risk and early
    termination risk. See &#147;How the Fund Manages
    Risk&#151;Interest Rate Transactions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may invest up to 35% of its total assets in securities
    of foreign issuers. Investing in securities of foreign companies
    (or foreign governments), which are generally denominated in
    foreign currencies, may involve certain risks and opportunities
    not typically associated with investing in domestic companies
    and could cause the Fund to be affected favorably or unfavorably
    by changes in currency exchange rates and revaluation of
    currencies. See &#147;Risk Factors and Special
    Considerations&#151;Risks of Investing in the Fund&#151;Foreign
    Securities.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may invest up to 10% of its total assets in
    fixed-income securities rated in the lower rating categories of
    recognized statistical rating agencies, also sometimes referred
    to as &#147;junk bonds.&#148; Such securities are subject to
    greater risks than investment grade securities, which reflect
    their speculative character, including (i)&#160;greater
    volatility; (ii)&#160;greater credit risk;
    (iii)&#160;potentially greater sensitivity to general economic
    or industry conditions; (iv)&#160;potential lack of attractive
    resale opportunities (illiquidity); and (v)&#160;additional
    expenses to seek recovery from issuers who default. Fixed-income
    securities purchased by the Fund may be rated as low as C by
    Moody&#146;s or D by S&#38;P or may be unrated securities
    considered to be of equivalent quality. Securities that are
    rated C by Moody&#146;s are the lowest rated class and can be
    regarded as having extremely poor prospects of ever obtaining
    investment-grade standing. Debt rated D by S&#38;P is in default
    or is expected to default upon maturity of payment date. See
    &#147;Risk Factors and Special Considerations&#151;Risks of
    Investing in the Fund&#151;Lower Rated Securities.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may participate in certain derivative transactions.
    Such transactions entail certain execution, market, liquidity,
    hedging and tax risks. Participation in the options or futures
    markets and in currency exchange transactions involves
    investment risks and transaction costs to which the Fund would
    not be subject absent the use of these strategies. If the
    Investment Adviser&#146;s prediction of movements in the
    direction of the securities, foreign currency or interest rate
    markets is inaccurate, the consequences to the Fund may leave it
    in a worse position than if such strategies were not used. See
    &#147;Risk Factors and Special Considerations&#151;Risks of
    Investing in the Fund&#151;Special Risks of Derivative
    Transactions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is subject to management risk because it is an actively
    managed portfolio. The Investment Adviser will 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. See &#147;Risk Factors and Special
    Considerations&#151;Risks of Investing in the
    Fund&#151;Management Risk.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser is dependent upon the expertise of
    Mr.&#160;Mario J. Gabelli in providing advisory services with
    respect to the Fund&#146;s investments. If the Investment
    Adviser were to lose the services of Mr.&#160;Gabelli, its
    ability to service the Fund could be adversely affected. There
    can be no assurance that a suitable replacement could be found
    for Mr.&#160;Gabelli in the event of his death, resignation,
    retirement or inability to act on behalf of the Investment
    Adviser. See &#147;Risk Factors and Special
    Considerations&#151;Risks of Investing in the
    Fund&#151;Dependence on Key Personnel.&#148; The Fund&#146;s
    Charter and By-Laws include provisions that could limit the
    ability of other entities or persons to acquire control of the
    Fund or convert the Fund to an open-end fund. See
    &#147;Anti-Takeover Provisions of the Fund&#146;s Charter and
    By-Laws.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has qualified, and intends to remain qualified, for
    federal income tax purposes as a regulated investment company.
    Qualification requires, among other things, compliance by the
    Fund with certain distribution requirements. Statutory
    limitations on distributions on the common stock if the Fund
    fails to satisfy the 1940 Act&#146;s asset coverage requirements
    could jeopardize the Fund&#146;s ability to meet such
    distribution requirements. The Fund presently intends, however,
    to purchase or redeem preferred stock to the extent necessary in
    order to maintain compliance with such asset coverage
    requirements. See &#147;Taxation&#148; for a more complete
    discussion of these and other federal income tax considerations.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Management
    and Fees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Gabelli Funds, LLC serves as the Fund&#146;s investment adviser.
    The Investment Adviser&#146;s fee is computed weekly and paid
    monthly at the annual rate of 1.00% of the Fund&#146;s average
    weekly net assets plus assets attributable to any outstanding
    senior securities, with no deduction for the liquidation
    preference of any outstanding preferred stock. The fee paid by
    the Fund may be higher when leverage in the form of preferred
    stock is utilized, giving the Investment Adviser an incentive to
    utilize such leverage. However, the Investment Adviser has
    agreed to reduce the management fee on the incremental assets
    attributable to the Existing Preferred and the Series&#160;F
    Preferred during the fiscal year if the total return of the net
    asset value of the common stock, including distributions and
    advisory fees subject to reduction for that year, does not
    exceed the stated dividend rate or corresponding swap rate of
    each particular series of preferred stock for the period. In
    other words, if the effective cost of the leverage for any
    series of preferred stock exceeds the total return (based on net
    asset value) on the Fund&#146;s common stock, the Investment
    Adviser will waive that portion of its management fee on the
    incremental assets attributable to the leverage for that series
    of preferred stock to mitigate the negative impact of the
    leverage on the common stockholder&#146;s total return. This fee
    waiver is voluntary and may be discontinued at any time. The
    Fund&#146;s total return on the net asset value of the common
    stock is monitored on a monthly basis to assess whether the
    total return on the net asset value of the common stock exceeds
    the stated dividend rate or corresponding swap rate of each
    particular series of preferred stock for the period. The test to
    confirm the accrual of the management fee on the assets
    attributable to each particular series of preferred stock is
    annual. The Fund will accrue for the management fee on these
    assets during the fiscal year if it appears probable that the
    Fund will incur the management fee on those additional assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2005, the Fund&#146;s total
    return on the net asset value of the common stock exceeded the
    stated dividend rate or net swap expense of the Series&#160;C
    Auction Rate Preferred and Series&#160;E Auction Rate Preferred.
    Thus, management fees were accrued on these assets. The
    Fund&#146;s total return on the net asset value of the common
    stock did not exceed the stated dividend rate or net swap
    expense of the Series&#160;B Preferred and Series&#160;D
    Preferred. Thus, management fees with respect to the liquidation
    value of those preferred stock assets were reduced by
    $2,387,425. See &#147;Risk Factors and Special
    Considerations&#151;Risks Associated with the Series&#160;F
    Preferred&#151;Leverage Risk.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A discussion regarding the basis for the Board&#146;s approval
    of the investment advisory contract of the Fund is available in
    the Fund&#146;s semi-annual report to shareholders dated
    June&#160;30, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Over the past several years, the staff of the Commission (the
    &#147;Staff&#148;), the staff of the New York Attorney
    General&#146;s office (the &#147;NYAG&#148;) and officials of
    other states have been conducting industry-wide inquiries into,
    and bringing enforcement and other proceedings regarding,
    trading abuses involving open-end investment companies. The
    Investment Adviser and its affiliates have received information
    requests and subpoenas from the Staff and the NYAG in connection
    with these inquiries and have been complying with these requests
    for documents and testimony. The Investment Adviser has
    implemented additional compliance policies and procedures in
    response to recent industry initiatives and its internal reviews
    of its mutual fund practices in a variety of areas. For further
    details regarding the Investment Adviser&#146;s review in
    connection with these requests, see &#147;Management of the
    Fund&#151;Regulatory Matters.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Repurchase
    of Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Board has authorized the Fund to repurchase
    shares of its common stock in the open market when the shares
    are trading at a discount of 10% or more from net asset value.
    Such repurchases are subject to certain notice and other
    requirements under the 1940 Act. Through September&#160;30,
    2006, the Fund has not repurchased shares of its common stock
    under this authorization.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-takeover
    Provisions of the Fund&#146;s Charter and By-Laws</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain provisions of the Fund&#146;s Charter and By-Laws may be
    regarded as &#147;anti-takeover&#148; provisions. Pursuant to
    these provisions, only one of the three classes of directors is
    elected each year, and the affirmative
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    vote of the holders of
    66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%
    of the Fund&#146;s outstanding shares of each class (voting
    separately) is required to authorize the conversion of the Fund
    from a closed-end to an open-end investment company or generally
    to authorize any of the following transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;the merger or consolidation of the Fund with any entity;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;the issuance of any securities of the Fund for cash to
    any entity or person;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;the sale, lease or exchange of all or any substantial
    part of the assets of the Fund to any entity or person (except
    assets having an aggregate fair market value of less than
    $1,000,000);&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;the sale, lease or exchange to the Fund, in exchange
    for its securities, of any assets of any entity or person
    (except assets having an aggregate fair market value of less
    than $1,000,000);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    if such person or entity is directly, or indirectly through
    affiliates, the beneficial owner of more than 5% of the
    outstanding shares of any class of capital stock of the Fund.
    However, such vote would not be required when, under certain
    conditions, the Board approves the transaction. The overall
    effect of these provisions is to render more difficult the
    accomplishment of a merger with, or the assumption of control
    by, a principal stockholder, or the conversion of the Fund to
    open-end status. These provisions may have the effect of
    depriving Fund stockholders of an opportunity to sell their
    stock at a premium above the prevailing market price. See
    &#147;Anti-Takeover Provisions of the Fund&#146;s Charter and
    By-Laws.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Custodian,
    Transfer Agent, Auction Agent and Dividend Disbursing
    Agent</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mellon Trust of New England, N.A. (the &#147;Custodian&#148;),
    located at 135&#160;Santilli Highway, Everett, Massachusetts
    02149, serves as the custodian of the Fund&#146;s assets
    pursuant to a custody agreement. Under the custody agreement,
    the Custodian holds the Fund&#146;s assets in compliance with
    the 1940 Act. For its services, the Custodian receives a monthly
    fee based upon the month end value of the total assets of the
    Fund, plus certain charges for securities transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Computershare Trust Company, N.A. (&#147;Computershare&#148;),
    located at 250&#160;Royall Street, Canton, Massachusetts 02021,
    serves as the Fund&#146;s dividend disbursing agent, as agent
    under the Fund&#146;s automatic dividend reinvestment and
    voluntary cash purchase plan (the &#147;Plan&#148;) and as
    transfer agent and registrar with respect to the common stock of
    the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Computershare will serve as the transfer agent, registrar,
    dividend disbursing agent and redemption agent with respect to
    the Series&#160;F Preferred. Computershare currently serves in
    such capacities with respect to the Series&#160;B Preferred and
    the Series&#160;D Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bank of New York, located at 100&#160;Church Street, New
    York, New York 10286, serves as the auction agent, transfer
    agent, registrar, dividend disbursing agent and redemption agent
    with respect to the Series&#160;C Auction Rate Preferred and the
    Series&#160;E Auction Rate Preferred.
</DIV>


<!-- link1 "Interest Rate Transactions" -->


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Interest
    Rate Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has entered into an interest rate swap transaction with
    respect to its outstanding Series&#160;C Auction Rate Preferred,
    and may enter into an interest rate swap or cap transaction with
    respect to all or a portion of its outstanding Series&#160;E
    Auction Rate Preferred. Through these transactions the Fund may,
    for example, obtain the equivalent of a fixed rate for the
    Series&#160;C Auction Rate Preferred or the Series&#160;E
    Auction Rate Preferred (collectively, the &#147;Auction Rate
    Preferred&#148;) that is lower than the Fund would have to pay
    if it issued fixed rate preferred stock. 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. Swap
    agreements may involve, to varying degrees, elements of
    marketing and counterparty risk, and exposure to loss in excess
    of the related amounts reflected in the Fund&#146;s Statement of
    Assets and Liabilities.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In an interest rate swap, the Fund would agree to pay to the
    other party to the interest rate swap (which is known as the
    &#147;counterparty&#148;) periodically a fixed rate payment in
    exchange for the counterparty agreeing to pay to the Fund
    periodically a variable rate payment that is intended to
    approximate the Fund&#146;s variable rate payment obligation on
    a series of the Auction Rate Preferred. In an interest rate cap,
    the Fund would pay a premium to the counterparty to the interest
    rate cap and, to the extent that a specified variable rate index
    exceeds a predetermined fixed rate, the Fund would receive from
    the counterparty payments of the difference based on the
    notional amount of such cap. Interest rate swap and cap
    transactions introduce additional risk because the Fund would
    remain obligated to pay preferred stock distributions when due
    in accordance with the Articles Supplementary of each of the
    series of Auction Rate Preferred even if the counterparty
    defaulted. If there is a default by the counterparty to a swap
    contract, the Fund will be limited to contractual remedies
    pursuant to the agreements related to the transaction. There is
    no assurance that the swap contract counterparties will be able
    to meet their obligations pursuant to a swap contract or that,
    in the event of a default, the Fund will succeed in pursuing
    contractual remedies. The Fund assumes the risk that it may be
    delayed in or prevented from obtaining payments owed to it
    pursuant to a swap contract. The creditworthiness of the swap
    contract counterparties is closely monitored in order to
    minimize this risk. Depending on the general state of short-term
    interest rates and the returns on the Fund&#146;s portfolio
    securities at that point in time, such a default could
    negatively affect the Fund&#146;s ability to make distributions
    on its auction rate preferred stock. In addition, at the time an
    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 Fund&#146;s ability to make distributions on its auction
    rate preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A sudden and dramatic decline in interest rates may result in a
    significant decline in the asset coverage. If the Fund fails to
    maintain the required asset coverage on its outstanding
    preferred stock or fails to comply with other covenants, the
    Fund may, at its option (and in certain circumstances must)
    require, consistent with its Charter and the requirements of the
    1940 Act, that some or all of its outstanding shares of
    preferred stock (including the Series&#160;F Preferred) be
    redeemed. Such redemption likely would result in the Fund
    seeking to terminate early all or a portion of any swap or cap
    transaction. Early termination of a swap could require the Fund
    to make a termination payment to the counterparty.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund intends to segregate cash or liquid securities having a
    value at least equal to the value of the Fund&#146;s net payment
    obligations under any swap transaction, marked to market daily.
    See &#147;How the Fund Manages Risk&#151;Interest Rate
    Transactions.&#148;
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    HIGHLIGHTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table below sets forth selected financial data for the
    periods presented. The per share operating performance and
    ratios for the fiscal periods ended December&#160;31, 2005,
    2004, 2003, 2002 and 2001, have been audited by
    PricewaterhouseCoopers LLP, the Fund&#146;s Independent
    Registered Public Accounting Firm, as stated in its report which
    is incorporated by reference into the SAI. The per share
    operating performance and ratios for the six months ended
    June&#160;30, 2006 are unaudited and are as stated in the
    Fund&#146;s semi-annual report which is incorporated by
    reference into the SAI. The following information should be read
    in conjunction with the Financial Statements and Notes thereto,
    which are incorporated by reference into the SAI.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Six Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>June&#160;30, 2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2001</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">Selected data for a share of common
    stock outstanding throughout each period:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">OPERATING PERFORMANCE:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Net asset value, beginning of period
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Net investment income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Net realized and unrealized gain
    (loss) on investments
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.77
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.63
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.65
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.16
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Total from investment operations
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.58
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.08
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">DISTRIBUTIONS TO PREFERRED
    SHAREHOLDERS<SUP style="font-size: 85%; vertical-align: text-top">a</SUP>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Net investment income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.02
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">e</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Net realized gain on investments
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.05
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">e</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.14
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.14
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.14
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.16
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.11
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Total distributions to preferred
    shareholders
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.07
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.15
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.14
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.14
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.17
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.12
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">NET INCREASE (DECREASE) IN NET
    ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS RESULTING FROM
    OPERATIONS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.51
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.75
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.20
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">DISTRIBUTIONS TO COMMON
    SHAREHOLDERS:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Net investment income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.10
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">e</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.08
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.05
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.06
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Net realized gain on investments
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.24
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">e</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.77
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.79
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.68
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.90
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.02
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Return of capital
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.04
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">e</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Total distributions to common
    shareholders
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.38
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.85
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.80
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.69
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.95
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1.08
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">CAPITAL SHARE TRANSACTIONS:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Increase (decrease) in net asset
    value from common share transactions
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Decrease in net asset value from
    shares issued in rights offering
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.15
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.62
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Increase in net asset value from
    repurchase of preferred shares
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Offering costs for preferred shares
    charged to paid-in capital
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.02
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.05
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Offering costs for issuance of
    rights charged to paid-in capital
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Total capital share transactions
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.15
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">f</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.64
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">NET ASSET VALUE ATTRIBUTABLE TO
    COMMON SHAREHOLDERS, END OF PERIOD
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Net Asset Value Total Return+
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.81
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39.90
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21.00
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.68
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Market Value, End of Period
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Total Investment Return++
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.93
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.66
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.04
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.58
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (28.36
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.32
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD style="border-top: 3px double #000003">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Six Months Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>June&#160;30, 2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2001</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">RATIOS AND SUPPLEMENTAL DATA:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Net assets including liquidation
    value of preferred shares, end of period (in 000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,802,858
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,764,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,638,225
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,514,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,271,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,465,369
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Net assets attributable to common
    shares, end of period (in 000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,425,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,345,891
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,219,483
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,094,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    842,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,166,171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Ratio of net investment income to
    average net assets attributable to common shares
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.82
</TD>
<TD nowrap align="left" valign="bottom">
    %<SUP style="font-size: 85%; vertical-align: text-top">g</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.27
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.64
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.67
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.99
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.81
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Ratio of operating expenses to
    average net assets attributable to common shares net of fee
    reduction<SUP style="font-size: 85%; vertical-align: text-top">b</SUP>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.45
</TD>
<TD nowrap align="left" valign="bottom">
    %<SUP style="font-size: 85%; vertical-align: text-top">g</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.39
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.57
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.62
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.19
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.12
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">RATIOS AND SUPPLEMENTAL DATA:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Ratio of operating expenses to
    average net assets including liquidation value of preferred
    shares net of fee
    reduction<SUP style="font-size: 85%; vertical-align: text-top">b</SUP>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.12
</TD>
<TD nowrap align="left" valign="bottom">
    %<SUP style="font-size: 85%; vertical-align: text-top">g</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.04
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.14
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.14
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.87
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.95
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    <FONT style="font-size: 8pt">Portfolio turnover rate
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">PREFERRED STOCK:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">7.25% CUMULATIVE PREFERRED STOCK
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Liquidation value, end of period
    (in&#160;000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    134,198
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    134,198
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Total shares outstanding (in
    000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Liquidation preference per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Average market
    value<SUP style="font-size: 85%; vertical-align: text-top">c</SUP>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Asset coverage per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    74.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    122.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">7.20% CUMULATIVE PREFERRED STOCK
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Liquidation value, end of period
    (in&#160;000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    123,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    165,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    165,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    165,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    165,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    165,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Total shares outstanding (in
    000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Liquidation preference per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Average market
    value<SUP style="font-size: 85%; vertical-align: text-top">c</SUP>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26.57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Asset coverage per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    119.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    97.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    90.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    74.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    122.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">AUCTION RATE SERIES&#160;C
    CUMULATIVE PREFERRED STOCK
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Liquidation value, end of period
    (in&#160;000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    130,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    130,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    130,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    130,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    130,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Total shares outstanding (in
    000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Liquidation preference per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Average market
    value<SUP style="font-size: 85%; vertical-align: text-top">c</SUP>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Asset coverage per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    119,397
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105,353
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    97,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    90,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    74,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">5.875% SERIES&#160;D CUMULATIVE
    PREFERRED STOCK
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Liquidation value, end of period
    (in&#160;000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,743
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,743
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,743
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Total shares outstanding (in
    000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Liquidation preference per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Average market
    value<SUP style="font-size: 85%; vertical-align: text-top">c</SUP>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24.82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Asset coverage per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    119.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    97.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    90.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">AUCTION RATE SERIES&#160;E
    CUMULATIVE PREFERRED STOCK
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Liquidation value, end of period
    (in&#160;000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Total shares outstanding (in
    000&#146;s)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Liquidation preference per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Average market
    value<SUP style="font-size: 85%; vertical-align: text-top">c</SUP>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 25pt">
    <FONT style="font-size: 8pt">Asset coverage per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    119,397
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105,353
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    97,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    90,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 8pt">ASSET
    COVERAGE<SUP style="font-size: 85%; vertical-align: text-top">d</SUP>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    478
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    421
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    391
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    361
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    296
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    490
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    + </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on net asset value per share, adjusted for reinvestment of
    distributions, at prices dependent upon the relationship of the
    net asset value per share and the market value per share on the
    ex-dividend dates, including the effect of shares issued
    pursuant to 2001 and 2005 rights offerings, assuming full
    subscription by shareholder. Total return for the period of less
    than one year is not annualized.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    ++ </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on market value per share, adjusted for reinvestment of
    distributions, including the effect of shares issued pursuant to
    2001 and 2005 rights offerings, assuming full subscription by
    shareholder. Total return for the period of less than one year
    is not annualized.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    Calculated based upon average common shares outstanding on the
    record dates throughout the periods.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (b) </TD>
    <TD></TD>
    <TD valign="bottom">
    The ratios do not include a reduction of expenses for custodian
    fee credits on cash balances maintained with the custodian.
    Including such custodian fee credits for the six months ended
    June&#160;30, 2006 and the years ended December&#160;31, 2002
    and 2001, the ratios of operating expenses to average net assets
    attributable to common </TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    shares net of fee reduction would have been 1.44%, 1.19% and
    1.11%, respectively, and the ratios of operating expenses to
    average total net assets including liquidation value of
    preferred shares net of fee reduction would have been 1.12%,
    0.87%, and 0.94%, respectively. For the fiscal years ended
    December&#160;31, 2005, 2004 and 2003, the effect of the
    custodian fee credits was minimal.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (c) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on weekly prices.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (d) </TD>
    <TD></TD>
    <TD valign="bottom">
    Asset coverage is calculated by combining all series of
    preferred stock.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (e) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on fiscal year to date book income. Amounts are subject to
    change and recharacterization at fiscal year-end.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (f) </TD>
    <TD></TD>
    <TD valign="bottom">
    Amount represents less than $0.005&#160;per share.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (g) </TD>
    <TD></TD>
    <TD valign="bottom">
    Annualized.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The net proceeds of the offering are estimated at approximately
    $&#160;&#160;&#160;&#160;&#160;, after deduction of the
    estimated underwriting discounts and estimated offering expenses
    payable by the Fund. The Fund intends to use the net proceeds to
    redeem shares of the Series&#160;B Preferred, of which there are
    currently 4,950,000&#160;shares outstanding with a liquidation
    preference of $25&#160;per share. If the amount raised in the
    offering exceeds the amount of Series&#160;B Preferred
    outstanding, the excess amount will be invested in accordance
    with the investment objectives and policies of the Fund. The
    Fund intends to redeem shares of Series&#160;B Preferred (and,
    if there are excess proceeds, invest those proceeds in
    accordance with the Fund&#146;s investment objectives and
    policies) within three months of the completion of the offering;
    however, changes in market conditions, including, in particular,
    factors affecting interest rates and the securities in which the
    Fund invests, could result in this period being as long as six
    months.
</DIV>
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    FUND</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is a non-diversified, closed-end management investment
    company registered under the 1940 Act. The Fund was organized as
    a Maryland corporation on May&#160;20, 1986. The Fund commenced
    its investment operations on August&#160;21, 1986. The
    Fund&#146;s principal office is located at One Corporate Center,
    Rye, New York
    <FONT style="white-space: nowrap">10580-1422.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of September&#160;30, 2006, the Fund had
    167,642,009&#160;shares of common stock outstanding. Pursuant to
    an amendment to the Fund&#146;s Articles of Incorporation that
    was approved by stockholders in 2004, the Board may increase or
    decrease the aggregate number of shares of stock of the Fund or
    the number of shares of stock of any class or series that the
    Fund has authority to issue without stockholder approval. The
    Fund is currently authorized to issue 252,000,000&#160;shares of
    common stock, par value $0.001&#160;per share. The common stock
    currently trades on the NYSE under the symbol &#147;GAB.&#148;
    Prior to its redemption on June&#160;17, 2003, the Series&#160;A
    Preferred was listed and traded on the NYSE under the symbol
    &#147;GAB Pr.&#148; The Series&#160;B Preferred is listed and
    traded on the NYSE under the symbol &#147;GAB PrB&#148; and
    Series&#160;D Preferred is listed and traded on the NYSE under
    the symbol &#147;GAB PrD&#148;. The Series&#160;C and
    Series&#160;E Auction Rate Preferred are not traded on any
    exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides information about the Fund&#146;s
    outstanding stock as of September&#160;30, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="71%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Amount<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Amount<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title Of Class</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Authorized&#160;*</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Outstanding&#160;*</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Common Stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    252,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,642,009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;A Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,367,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;B Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,600,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,950,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;C Auction Rate
    Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;D Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,949,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;E Auction Rate
    Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Preferred Stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,024,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Does not include the Series&#160;F Preferred being offered
    pursuant to this prospectus.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAPITALIZATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the unaudited capitalization of
    the Fund as of September&#160;30, 2006, and its adjusted
    capitalization assuming the Series&#160;F Preferred offered in
    this prospectus had been issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of September&#160;30, 2006</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As Adjusted</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Preferred stock, $0.001&#160;par
    value per share, 18,000,000&#160;shares authorized as of
    September&#160;30, 2006 and 23,000,000&#160;shares &#147;As
    Adjusted&#148; (the &#147;Actual&#148; column reflects the
    Fund&#146;s outstanding capitalization as of September&#160;30,
    2006; the &#147;As Adjusted&#148; column assumes the issuance of
    5,000,000&#160;shares of Series&#160;F Preferred, $25
    liquidation preference)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    377,492,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    502,492,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Shareholders&#146; equity
    applicable to common stock:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Common stock, $0.001&#160;par
    value per share; 252,000,000&#160;shares authorized as of
    September&#160;30, 2006; and 247,000,000&#160;shares &#147;As
    Adjusted&#148;; 167,642,009&#160;shares outstanding
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,642
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,642
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Paid-in surplus&#160;*
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,069,995,506
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,065,558,006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Distribution in excess of net
    investment income and net realized gains on investments
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,800,361
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,800,361
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Net unrealized appreciation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    396,358,020
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    396,358,020
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Net assets attributable to common
    stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,458,720,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,454,283,307
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Liquidation preference of
    preferred stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    377,492,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    502,492,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Net assets, plus the liquidation
    preference of preferred stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,836,213,307
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,956,775,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Paid-in surplus, as adjusted, reflects a deduction for the
    estimated underwriting discounts of $3,937,500 and estimated
    offering expenses of the Series&#160;F Preferred issuance of
    $500,000.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For financial reporting purposes, the Fund is required to deduct
    the liquidation preference of its outstanding preferred stock
    from &#147;net assets,&#148; so long as the senior securities
    have redemption features that are not solely within the control
    of the Fund. For all regulatory purposes, the Fund&#146;s
    preferred stock will be treated as equity (rather than debt).
</DIV>
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    OBJECTIVES AND POLICIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Objectives</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s primary investment objective is to achieve
    long-term growth of capital by investing primarily in a
    portfolio of equity securities consisting of common stock,
    preferred stock, convertible or exchangeable securities and
    warrants and rights to purchase such securities selected by the
    Investment Adviser. Income is a secondary investment objective.
    The investment objectives of long-term growth of capital and
    income are fundamental policies of the Fund. These fundamental
    policies and the investment limitations described in the SAI
    under the caption &#147;Investment Restrictions&#148; cannot be
    changed without the approval of the holders of a majority of the
    Fund&#146;s outstanding shares of preferred stock voting as a
    separate class and the approval of the holders of a majority of
    the Fund&#146;s outstanding voting securities. Such majority
    votes require, in each case, the lesser of (i)&#160;67% of the
    Fund&#146;s applicable shares represented at a meeting at which
    more than 50% of the Fund&#146;s applicable shares outstanding
    are represented, whether in person or by proxy, or
    (ii)&#160;more than 50% of the outstanding shares of the
    applicable class.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under normal market conditions, the Fund will invest at least
    80% of the value of its total assets in equity securities. The
    80% Policy may be changed without stockholder approval. The Fund
    will provide stockholders with notice at least 60&#160;days
    prior to the implementation of any change in the 80% Policy.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser selects investments on the basis of
    fundamental value and, accordingly, the Fund typically invests
    in the securities of companies that are believed by the
    Investment Adviser to be priced lower than justified in relation
    to their underlying assets. Other important factors in the
    selection of investments include favorable price/earnings and
    debt/equity ratios and strong management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund seeks to achieve its secondary investment objective of
    income, in part, by investing up to 10% of its total assets in
    fixed-income securities rated as low as C by Moody&#146;s or D
    by S&#38;P or may be unrated securities considered to be of
    equivalent quality. Securities that are rated C by Moody&#146;s
    are the lowest rated class and can be regarded as having
    extremely poor prospects of ever obtaining investment-grade
    standing. Debt rated D by S&#38;P is in default or is expected
    to default upon maturity of payment date. These debt securities,
    which are often referred to in the financial press as &#147;junk
    bonds,&#148; are predominantly speculative and involve major
    risk exposure to adverse conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No assurance can be given that the Fund&#146;s investment
    objectives will be achieved.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Methodology of the Fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In selecting securities for the Fund, the Investment Adviser
    normally will consider the following factors, among others:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Investment Advisers&#146; own evaluations of the private
    market value, cash flow, earnings per share and other
    fundamental aspects of the underlying assets and business of the
    company;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the potential for capital appreciation of the securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the interest or dividend income generated by the securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the prices of the securities relative to other comparable
    securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    whether the securities are entitled to the benefits of call
    protection or other protective covenants;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the existence of any anti-dilution protections or guarantees of
    the security;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the diversification of the portfolio of the Fund as to issuers.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser&#146;s investment philosophy with respect
    to equity securities is to identify assets that are selling in
    the public market at a discount to their private market value.
    The Investment Adviser defines private market value as the value
    informed purchasers are willing to pay to acquire assets with
    similar characteristics. The Investment Adviser also normally
    evaluates an issuer&#146;s free cash flow and long-term earnings
    trends. Finally, the Investment Adviser looks for a catalyst,
    something indigenous to the company, its industry or country,
    that will surface additional value.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Investment Practices</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Foreign Securities.</I>&#160;&#160;The Fund may invest up to
    35% of its total assets in foreign securities. Among the foreign
    securities in which the Fund may invest are those issued by
    companies located in developing countries, which are countries
    in the initial stages of their industrialization cycles.
    Investing in the equity and debt markets of developing countries
    involves exposure to economic structures that are generally less
    diverse and less mature, and to political systems that may have
    less stability, than those of developed countries. The markets
    of developing countries historically have been more volatile
    than the markets of the more mature economies of developed
    countries, but often have provided higher rates of return to
    investors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may also invest in the debt securities of foreign
    governments. Although such investments are not a principal
    strategy of the Fund, there is no independent limit on its
    ability to invest in the debt securities of foreign governments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Temporary Defensive Investments.</I>&#160;&#160;Subject to
    the Fund&#146;s investment restrictions, when a temporary
    defensive period is believed by the Investment Adviser to be
    warranted (&#147;temporary defensive periods&#148;), the Fund
    may, without limitation, hold cash or invest its assets in
    securities of United States government
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    sponsored instrumentalities, in repurchase agreements in respect
    of those instruments, and in certain high-grade commercial paper
    instruments. During temporary defensive periods the Fund may
    also invest in money market mutual funds that invest primarily
    in securities of United States government sponsored
    instrumentalities and repurchase agreements in respect of those
    instruments. Under current law, in the absence of an exemptive
    order, such money market mutual funds will not be affiliated
    with the Investment Adviser. Obligations of certain agencies and
    instrumentalities of the United States government, such as the
    Government National Mortgage Association, are supported by the
    &#147;full faith and credit&#148; of the United States
    government; others, such as those of the Export-Import Bank of
    the United States, are supported by the right of the issuer to
    borrow from the United States Treasury; others, such as those of
    the Federal National Mortgage Association, are supported by the
    discretionary authority of the United States government to
    purchase the agency&#146;s obligations; and still others, such
    as those of the Student Loan Marketing Association, are
    supported only by the credit of the instrumentality. No
    assurance can be given that the United States government would
    provide financial support to United States government sponsored
    instrumentalities if it is not obligated to do so by law. During
    temporary defensive periods, the Fund may be less likely to
    achieve its secondary investment objective of income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Lower Rated Securities.</I>&#160;&#160;The Fund may invest up
    to 10% of its total assets in fixed-income securities rated in
    the lower rating categories of recognized statistical rating
    agencies, including securities rated as low as C by Moody&#146;s
    or D by S&#38;P or may be unrated securities considered to be of
    equivalent quality. Securities that are rated C by Moody&#146;s
    are the lowest rated class and can be regarded as having
    extremely poor prospects of ever obtaining investment-grade
    standing. Debt rated D by S&#38;P is in default or is expected
    to default upon maturity of payment date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, lower rated securities and unrated securities of
    comparable quality offer a higher current yield than is offered
    by higher rated securities, but also (i)&#160;will likely have
    some quality and protective characteristics that, in the
    judgment of the ratings organizations, are outweighed by large
    uncertainties or major risk exposures to adverse conditions and
    (ii)&#160;are predominantly speculative with respect to the
    issuer&#146;s capacity to pay interest and repay principal in
    accordance with the terms of the obligation. The market values
    of certain of these securities also tend to be more sensitive to
    individual corporate developments and changes in economic
    conditions than higher quality bonds. In addition, such lower
    rated securities and comparable unrated securities generally
    present a higher degree of credit risk. The risk of loss due to
    default by these issuers is significantly greater because such
    lower rated securities and unrated securities of comparable
    quality generally are unsecured and frequently are subordinated
    to the prior payment of senior indebtedness. In light of these
    risks, the Investment Adviser, in evaluating the
    creditworthiness of an issue, whether rated or unrated, will
    take various factors into consideration, which may include, as
    applicable, the issuer&#146;s operating history, financial
    resources, its sensitivity to economic conditions and trends,
    the market support for the facility financed by the issue, the
    perceived ability and integrity of the issuer&#146;s management
    and regulatory matters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the market value of securities in lower rated
    categories is more volatile than that of higher quality
    securities, and the markets in which such lower rated or unrated
    securities are traded are more limited than those in which
    higher rated securities are traded. The existence of limited
    markets may make it more difficult for the Fund to obtain
    accurate market quotations for purposes of valuing its portfolio
    and calculating its net asset value. Moreover, the lack of a
    liquid trading market may restrict the availability of
    securities for the Fund to purchase and may also have the effect
    of limiting the ability of the Fund to sell securities at their
    fair value to respond to changes in the economy or the financial
    markets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Lower rated debt obligations also present risks based on payment
    expectations. If an issuer calls the obligation for redemption
    (often a feature of fixed income securities), the Fund may have
    to replace the security with a lower yielding security,
    resulting in a decreased return for investors. Also, in the
    event of rising interest rates, as the principal values of bonds
    move inversely with movements in interest rates, the value of
    the securities held by the Fund may decline proportionately more
    than a portfolio consisting of higher rated securities.
    Investments in zero coupon bonds may be more speculative and
    subject to greater fluctuations in value due to changes in
    interest rates than bonds that pay interest currently.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of its investments in lower grade fixed-income
    securities, the Fund may invest in securities of issuers in
    default. The Fund will only make an investment in securities of
    issuers in default when the Investment Adviser believes that
    such issuers will honor their obligations or emerge from
    bankruptcy protection and that the value of these securities
    will appreciate. By investing in the securities of issuers in
    default, the Fund bears the risk that these issuers will not
    continue to honor their obligations or emerge from bankruptcy
    protection or that the value of the securities will not
    appreciate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Futures Contracts and Options on Futures.</I>&#160;&#160;On
    behalf of the Fund, the Investment Adviser may, subject to the
    Fund&#146;s investment restrictions and guidelines of the Board,
    purchase and sell financial futures contracts and options
    thereon which are traded on a commodities exchange or board of
    trade for certain hedging, yield enhancement and risk management
    purposes. These futures contracts and related options may be on
    debt securities, financial indices, securities indices, United
    States government securities and foreign currencies. A financial
    futures contract is an agreement to purchase or sell an agreed
    amount of securities or currencies at a set price for delivery
    in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser has claimed an exclusion from the
    definition of the term &#147;commodity pool operator&#148; under
    the Commodity Exchange Act and therefore is not subject to the
    registration requirements under the Commodity Exchange Act.
    Accordingly, the Fund&#146;s investments in derivative
    instruments are not limited by or subject to regulation under
    the Commodity Exchange Act or otherwise regulated by the
    Commodity Futures Trading Commission. Nevertheless, the
    Fund&#146;s investment restrictions place certain limitations
    and prohibitions on its ability to purchase or sell commodities
    or commodity contracts. In addition, investment in futures
    contracts and related options generally will be limited by the
    rating agency guidelines applicable to any of the Fund&#146;s
    outstanding preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Forward Currency Exchange Contracts.</I>&#160;&#160;Subject
    to guidelines of the Board, the Fund may enter into forward
    foreign currency exchange contracts to protect the value of its
    portfolio against future changes in the level of currency
    exchange rates. The Fund may enter into such contracts on a
    &#147;spot,&#148; i.e., cash, basis at the rate then prevailing
    in the currency exchange market or on a forward basis, by
    entering into a forward contract to purchase or sell currency. A
    forward contract on foreign currency is an obligation to
    purchase or sell a specific currency at a future date, which may
    be any fixed number of days agreed upon by the parties from the
    date of the contract at a price set on the date of the contract.
    The Fund&#146;s dealings in forward contracts generally will be
    limited to hedging involving either specific transactions or
    portfolio positions. The Fund does not have an independent
    limitation on its investments in foreign currency futures
    contracts and options on foreign currency futures contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Repurchase Agreements.</I>&#160;&#160;The Fund may enter into
    repurchase agreements with banks and non-bank dealers of United
    States government securities which are listed as reporting
    dealers of the Federal Reserve Bank and which furnish collateral
    at least equal in value or market price to the amount of their
    repurchase obligation. In a repurchase agreement, the Fund
    purchases a debt security from a seller who undertakes to
    repurchase the security at a specified resale price on an agreed
    future date. Repurchase agreements are generally for one
    business day and generally will not have a duration of longer
    than one week. The Commission has taken the position that, in
    economic reality, a repurchase agreement is a loan by a fund to
    the other party to the transaction secured by securities
    transferred to the fund. The resale price generally exceeds the
    purchase price by an amount which reflects an agreed -upon
    market interest rate for the term of the repurchase agreement.
    The Fund&#146;s risk is primarily that, if the seller defaults,
    the proceeds from the disposition of the underlying securities
    and other collateral for the seller&#146;s obligation may be
    less than the repurchase price. If the seller becomes insolvent,
    the Fund might be delayed in or prevented from selling the
    collateral. In the event of a default or bankruptcy by a seller,
    the Fund will promptly seek to liquidate the collateral. To the
    extent that the proceeds from any sale of the collateral upon a
    default in the obligation to repurchase is less than the
    repurchase price, the Fund will experience a loss. If the
    financial institution that is a party to the repurchase
    agreement petitions for bankruptcy or becomes subject to the
    United States Bankruptcy Code, the law regarding the rights of
    the Fund is unsettled. As a result, under extreme circumstances,
    there may be a restriction on the Fund&#146;s ability to sell
    the collateral and the Fund could suffer a loss.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Loans of Portfolio Securities.</I>&#160;&#160;To increase
    income, the Fund may lend its portfolio securities to securities
    broker-dealers or financial institutions if (i)&#160;the loan is
    collateralized in accordance with applicable regulatory
    requirements and (ii)&#160;no loan will cause the value of all
    loaned securities to exceed 20% of the value of its total
    assets. If the borrower fails to maintain the requisite amount
    of collateral, the loan automatically terminates and the Fund
    could use the collateral to replace the securities while holding
    the borrower liable for any excess of replacement cost over the
    value of the collateral. As with any extension of credit, there
    are risks of delay in recovery and in some cases even loss of
    rights in collateral should the borrower of the securities fail
    financially.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While these loans of portfolio securities will be made in
    accordance with guidelines approved by the Fund&#146;s Board,
    there can be no assurance that borrowers will not fail
    financially. On termination of the loan, the borrower is
    required to return the securities to the Fund, and any gain or
    loss in the market price during the loan would inure to the
    Fund. If the counterparty to the loan petitions for bankruptcy
    or becomes subject to the United States Bankruptcy Code, the law
    regarding the Fund&#146;s rights is unsettled. As a result,
    under these circumstances, there may be a restriction on the
    Fund&#146;s ability to sell the collateral and it would suffer a
    loss.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Borrowing.</I>&#160;&#160;The Fund may borrow money in
    accordance with its investment restrictions, including as a
    temporary measure for extraordinary or emergency purposes. It
    may not borrow for investment purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Leveraging.</I>&#160;&#160;As provided in the 1940 Act, and
    subject to compliance with the Fund&#146;s investment
    limitations, the Fund may issue senior securities representing
    stock, such as preferred stock, so long as immediately following
    such issuance of stock, its total assets exceed 200% of the
    amount of such stock. The use of leverage magnifies the impact
    of changes in net asset value. For example, a fund that uses 33%
    leverage will show a 1.5% increase or decline in net asset value
    for each 1% increase or decline in the value of its total
    assets. In addition, if the cost of leverage exceeds the return
    on the securities acquired with the proceeds of leverage, the
    use of leverage will diminish, rather than enhance, the return
    to the Fund. The use of leverage generally increases the
    volatility of returns to the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Further information on the investment objectives and policies of
    the Fund is set forth in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Investment Restrictions.</I>&#160;&#160;The Fund has adopted
    certain investment restrictions as fundamental policies of the
    Fund. Under the 1940 Act, a fundamental policy may not be
    changed without the vote of a majority, as defined in the 1940
    Act, of the outstanding voting securities of the Fund (voting
    together as a single class). In addition, pursuant to the
    Fund&#146;s respective Articles&#160;Supplementary of the
    Series&#160;B, C, D, E, and F Preferred, a majority, as defined
    in the 1940 Act, of the outstanding preferred stock of the Fund
    (voting separately as a single class) is also required to change
    a fundamental policy, as defined in the 1940 Act. The
    Fund&#146;s investment restrictions are more fully discussed
    under &#147;Investment Restrictions&#148; in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Portfolio Turnover.</I>&#160;&#160;The Fund does not engage
    in the trading of securities for the purpose of realizing
    short-term profits, but adjusts its portfolio as it deems
    advisable in view of prevailing or anticipated market conditions
    to accomplish its investment objectives. A high rate of
    portfolio turnover involves correspondingly greater brokerage
    commission expenses than a lower rate, and such expenses must be
    borne by the Fund and its stockholders. High portfolio turnover
    may also result in the realization of substantial net short-term
    capital gains and any distributions resulting from such gains
    will be taxable at ordinary income rates for United States
    federal income tax purposes. The Fund&#146;s portfolio turnover
    rates for the fiscal years ended December&#160;31, 2004 and 2005
    were 28.6% and 22.4%, respectively. The portfolio turnover rate
    is calculated by dividing the lesser of sales or purchases of
    portfolio securities by the average monthly value of a
    fund&#146;s portfolio securities. For purposes of this
    calculation, portfolio securities exclude purchases and sales of
    debt securities having a maturity at the date of purchase of one
    year or less.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS AND SPECIAL CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Investors should consider the following risk factors and special
    considerations associated with investing in the Fund:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Associated with the Series&#160;F Preferred</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are a number of risks associated with an investment in the
    Series&#160;F Preferred:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market price for the Series&#160;F Preferred will be
    influenced by changes in interest rates, the perceived credit
    quality of the Series&#160;F Preferred and other factors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A preliminary application has been made to list the
    Series&#160;F Preferred on the NYSE. Prior to this offering,
    there has been no public market for the Series&#160;F Preferred.
    However, during an initial period which is not expected to
    exceed 30&#160;days after the date of its issuance, the
    Series&#160;F Preferred will not be listed on any securities
    exchange. During such
    <FONT style="white-space: nowrap">30-day</FONT>
    period, the underwriters may make a market in the Series&#160;F
    Preferred; however, they have no obligation to do so.
    Consequently, the Series&#160;F Preferred may be illiquid during
    such period. No assurances can be provided that listing on any
    securities exchange or market making by the underwriters will
    result in the market for Series&#160;F Preferred being liquid at
    any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The credit rating on the Series&#160;F Preferred could be
    reduced or withdrawn while an investor holds shares, and the
    credit rating does not eliminate or mitigate the risks of
    investing in the Series&#160;F Preferred. A reduction or
    withdrawal of the credit rating would likely have an adverse
    effect on the market value of the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may not meet the asset coverage requirements or earn
    sufficient income from its investments to make distributions on
    the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The value of the Fund&#146;s investment portfolio may decline,
    reducing the asset coverage for the Series&#160;F Preferred.
    Further, if an issuer of a common stock in which the Fund
    invests experiences financial difficulties or if an
    issuer&#146;s preferred stock or debt security is downgraded or
    defaults or if an issuer in which the Fund invests is affected
    by other adverse market factors, there may be a negative impact
    on the income received from
    <FONT style="white-space: nowrap">and/or</FONT> asset
    value of the Fund&#146;s investment portfolio. In such
    circumstances, the Fund may be forced to mandatorily redeem
    shares of the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund generally may redeem the Series&#160;F Preferred at any
    time
    after&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2011 and may at any time redeem shares of Series&#160;F
    Preferred to meet regulatory or rating agency requirements. The
    Series&#160;F Preferred is subject to redemption under specified
    circumstances and investors may not be able to reinvest the
    proceeds of any such redemption in an investment providing the
    same or a better rate than that of the Series&#160;F Preferred.
    Subject to such circumstances, the Series&#160;F Preferred is
    perpetual.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Series&#160;F Preferred is not an obligation of the Fund.
    The Series&#160;F Preferred would be junior in respect of
    distributions and liquidation preference to any indebtedness
    incurred by the Fund. Although unlikely, precipitous declines in
    the value of the Fund&#146;s assets could result in the Fund
    having insufficient assets to redeem all of the Series&#160;F
    Preferred for the full redemption price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Leverage Risk.</I>&#160;&#160;The Fund uses financial
    leverage for investment purposes by issuing preferred stock. It
    is currently anticipated that taking into account the
    Series&#160;F Preferred being offered in this prospectus, the
    amount of leverage will represent approximately 26% of the
    Fund&#146;s total assets. If the proposed spin-off of a portion
    of the Fund&#146;s assets (see &#147;Additional
    Information&#148;) were to occur, subject to regulatory and
    shareholder approval, the amount of leverage as a percentage of
    Fund total assets would increase because the Fund&#146;s managed
    assets would decrease by the amount contributed to the spin-off
    fund. 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 greater loss and the likelihood of higher
    volatility of the net asset value of the Fund and the asset
    coverage for the Series&#160;F Preferred. Such volatility may
    increase the likelihood of the Fund having to sell investments
    in order to meet its obligations to make distributions on the
    preferred stock, or to redeem preferred stock, when it may be
    disadvantageous to do so. Also, if the Fund
</DIV>

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    <BR>
    21
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    is utilizing leverage, a decline in net asset value could affect
    the ability of the Fund to make common stock distributions and
    such a failure to pay dividends or make distributions could
    result in the Fund ceasing to qualify as a regulated investment
    company under the Code. See &#147;Taxation.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because the fee paid to the Investment Adviser will be
    calculated on the basis of the Fund&#146;s net assets, which
    include for this purpose assets attributable to the aggregate
    net asset value of the common stock plus assets attributable to
    any outstanding preferred stock with no deduction for the
    liquidation preference of any preferred stock, the fee may be
    higher when leverage in the form of preferred stock is utilized,
    giving the Investment Adviser an incentive to utilize such
    leverage. However, the Investment Adviser has agreed to reduce
    the management fee on the incremental assets attributable to the
    Existing Preferred and the Series&#160;F Preferred during the
    fiscal year if the total return of the net asset value of the
    common stock, including distributions and advisory fees subject
    to reduction for that year, does not exceed the stated dividend
    rate or corresponding swap rate of each particular series of
    preferred stock for the period. In other words, if the effective
    cost of the leverage for any series of preferred stock exceeds
    the total return (based on net asset value) on the Fund&#146;s
    common stock, the Investment Adviser will waive that portion of
    its management fee on the incremental assets attributable to the
    leverage for that series of preferred stock to mitigate the
    negative impact of the leverage on the common stockholder&#146;s
    total return. This fee waiver is voluntary and may be
    discontinued at any time. The Fund&#146;s total return on the
    net asset value of common stock is monitored on a monthly basis
    to assess whether the total return on the net asset value of the
    common stock exceeds the stated dividend rate or corresponding
    swap rate of each particular series of preferred stock for the
    period. The test to confirm the accrual of the management fee on
    the assets attributable to each particular series of preferred
    stock is annual. The Fund will accrue for the management fee on
    these assets during the fiscal year if it appears probable that
    the Fund will incur the management fee on those additional
    assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2005, the Fund&#146;s total
    return on the net asset value of the common stock exceeded the
    stated dividend rate or net swap expense of the Series&#160;C
    Auction Rate Preferred and Series&#160;E Auction Rate Preferred.
    Thus, management fees were accrued on these assets. The
    Fund&#146;s total return on the net asset value of the common
    stock did not exceed the stated dividend rate or net swap
    expense of the Series&#160;B Preferred and Series&#160;D
    Preferred. Thus, management fees with respect to the liquidation
    value of those preferred assets were reduced by $2,387,425.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Restrictions on Dividends and Other
    Distributions.</I>&#160;&#160;Restrictions imposed on the
    declaration and payment of dividends or other distributions to
    the holders of the common stock and preferred stock (including
    the Series&#160;F Preferred), both by the 1940 Act and by
    requirements imposed by rating agencies, might impair the
    Fund&#146;s ability to maintain its qualification as a regulated
    investment company for federal income tax purposes. While the
    Fund intends to redeem its preferred stock (including the
    Series&#160;F Preferred) to the extent necessary to enable the
    Fund to distribute its income as required to maintain its
    qualification as a regulated investment company under the Code,
    there can be no assurance that such actions can be effected in
    time to meet the Code requirements. See &#147;Taxation&#148; in
    the SAI.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks of
    Investing in the Fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Common Stock Distribution Policy Risk.</I>&#160;&#160;The
    Fund has adopted a policy, which may be changed at any time by
    the Board, of paying a minimum annual distribution of 10% of the
    average net asset value of the Fund to common stockholders. In
    the event the Fund does not generate a total return from
    dividends and interest received and net realized capital gains
    in an amount equal to or in excess of its stated distribution in
    a given year, the Fund may return capital as part of such
    distribution, which may have the effect of decreasing the asset
    coverage per share with respect to the Series&#160;F Preferred
    (as well as the Existing Preferred). Any return of capital
    should not be considered by investors as yield or total return
    on their investment in the Fund. For the fiscal year ended
    December&#160;31, 2005, the Fund made distributions of
    $0.85&#160;per share of common stock, none of which constituted
    a return of capital. The Fund has made distributions of
    $0.58&#160;per share of common stock for the current year
    through September&#160;30, 2006. The Fund has made quarterly
    distributions with respect to its common stock since 1987. A
    portion of the distributions to holders of common stock during
    nine of the twenty fiscal years since the Fund&#146;s inception
    has constituted a return of capital. The composition
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of each distribution is estimated based on the earnings of the
    Fund as of the record date for each distribution. The actual
    composition of each of the current year&#146;s common stock
    distributions will be based on the Fund&#146;s investment
    activity through December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Value Investing Risk.</I>&#160;&#160;The Fund invests in
    dividend-paying common and preferred stocks that the Investment
    Adviser believes are undervalued or inexpensive relative to
    other investments. These types of securities may present risks
    in addition to the general risks associated with investing in
    common and preferred stocks. These securities generally are
    selected on the basis of an issuer&#146;s fundamentals relative
    to current market price. Such securities are subject to the risk
    of mis-estimation of certain fundamental factors. In addition,
    during certain time periods market dynamics may strongly favor
    &#147;growth&#148; stocks of issuers that do not display strong
    fundamentals relative to market price based upon positive price
    momentum and other factors. Disciplined adherence to a
    &#147;value&#148; investment mandate during such periods can
    result in significant underperformance relative to overall
    market indices and other managed investment vehicles that pursue
    growth style investments
    <FONT style="white-space: nowrap">and/or</FONT>
    flexible equity style mandates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Non-Diversified Status.</I>&#160;&#160;The Fund is classified
    as a &#147;non-diversified&#148; investment company under the
    1940 Act, which means it is not limited by the 1940 Act as to
    the proportion of its assets that may be invested in the
    securities of a single issuer. However, the Fund has in the past
    conducted and intends to conduct its operations so as to qualify
    as a &#147;regulated investment company,&#148; or
    &#147;RIC,&#148; for purposes of the Code, which will relieve it
    of any liability for federal income tax to the extent its
    earnings are distributed to stockholders. To qualify as a
    &#147;regulated investment company,&#148; among other
    requirements, the Fund will limit its investments so that, with
    certain exceptions, at the close of each quarter of the taxable
    year:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    not more than 25% of the value of its total assets will be
    invested in the securities (other than United States government
    securities or the securities of other RICs) of a single issuer,
    or of any two or more issuers that the Fund controls and which
    are determined to be engaged in the same, similar or related
    trades or businesses or in the securities of one or more
    qualified publicly traded partnerships (as defined in the
    Code);&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    at least 50% of the value of the Fund&#146;s assets will be
    represented by cash, securities of other regulated investment
    companies, United States government securities 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 assets and not more than 10% of the outstanding
    voting securities of such issuer.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a non-diversified investment company, the Fund may invest in
    the securities of individual issuers to a greater degree than a
    diversified investment company. As a result, the Fund may be
    more vulnerable to events affecting a single issuer and
    therefore subject to greater volatility than a fund that is more
    broadly diversified. Accordingly, an investment in the Fund may
    present greater risk to an investor than an investment in a
    diversified company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Market Value and Net Asset Value.</I>&#160;&#160;The Fund is
    a non-diversified, closed-end management investment company.
    Shares of closed-end funds are bought and sold in the securities
    markets and may trade at either a premium to or discount from
    net asset value. Listed shares of closed-end investment
    companies often trade at discounts from net asset value. This
    characteristic of stock of a closed-end fund is a risk separate
    and distinct from the risk that its net asset value will
    decrease. The Fund cannot predict whether its listed stock will
    trade at, below or above net asset value. Since inception, the
    Fund&#146;s shares of common stock have traded at both premiums
    to and discounts from net asset value. As of September&#160;30,
    2006, the shares traded at a premium of 0.69%. Stockholders
    desiring liquidity may, subject to applicable securities laws,
    trade their Fund stock on the NYSE or other markets on which
    such stock may trade at the then-current market value, which may
    differ from the then-current net asset value. Stockholders will
    incur brokerage or other transaction costs to sell stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Industry Concentration Risk.</I>&#160;&#160;The Fund may
    invest up to 25% of its total assets in securities of a single
    industry. Should the Fund choose to do so, the net asset value
    of the Fund will be more susceptible to factors affecting those
    particular types of companies, which, depending on the
    particular industry, may include, among others: governmental
    regulation; inflation; cost increases in raw materials, fuel and
    other operating expenses;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    technological innovations that may render existing products and
    equipment obsolete; and increasing interest rates resulting in
    high interest costs on borrowings needed for capital investment,
    including costs associated with compliance with environmental
    and other regulations. In such circumstances the Fund&#146;s
    investments may be subject to greater risk and market
    fluctuation than a fund that had securities representing a
    broader range of industries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Special Risks Related to Preferred
    Securities.</I>&#160;&#160;There are special risks associated
    with the Fund&#146;s investing in preferred securities,
    including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    <I>Deferral.</I>&#160;&#160;Preferred securities may include
    provisions that permit the issuer, at its discretion, to defer
    dividends or distributions for a stated period without any
    adverse consequences to the issuer. If the Fund owns a preferred
    security that is deferring its dividends or distributions, the
    Fund may be required to report income for tax purposes although
    it has not yet received such income.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    <I>Non-Cumulative Dividends.</I>&#160;&#160;Some preferred
    securities are non-cumulative, meaning that the dividends do not
    accumulate and need not ever be paid. A portion of the portfolio
    may include investments in non-cumulative preferred securities,
    whereby the issuer does not have an obligation to make up any
    arrearages to its shareholders. Should an issuer of a
    non-cumulative preferred security held by the Fund determine not
    to pay dividends or distributions on such security, the
    Fund&#146;s return from that security may be adversely affected.
    There is no assurance that dividends or distributions on
    non-cumulative preferred securities in which the Fund invests
    will be declared or otherwise made payable.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    <I>Subordination.</I>&#160;&#160;Preferred securities are
    subordinated to bonds and other debt instruments in an
    issuer&#146;s capital structure in terms of priority to
    corporate income and liquidation payments, and therefore will be
    subject to greater credit risk than more senior debt security
    instruments.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    <I>Liquidity.</I>&#160;&#160;Preferred securities may be
    substantially less liquid than many other securities, such as
    common stocks or U.S.&#160;Government securities.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    <I>Limited Voting Rights.</I>&#160;&#160;Generally, preferred
    security holders (such as the Fund) have no voting rights with
    respect to the issuing company unless preferred dividends have
    been in arrears for a specified number of periods, at which time
    the preferred security holders may be entitled to elect a number
    of trustees to the issuer&#146;s board. Generally, once all the
    arrearages have been paid, the preferred security holders no
    longer have voting rights.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    <I>Special Redemption&#160;Rights.</I>&#160;&#160;In certain
    varying circumstances, an issuer of preferred securities may
    redeem the securities prior to a specified date. For instance,
    for certain types of preferred securities, a redemption may be
    triggered by a change in federal income tax or securities laws.
    A redemption by the issuer may negatively impact the return of
    the security held by the Fund.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Market Disruption Risk.</I>&#160;&#160;Certain events have a
    disruptive effect on the securities markets, such as terrorist
    attacks, war and other geopolitical events. The Fund cannot
    predict the effects of similar events in the future on the
    U.S.&#160;economy. Lower rated securities and securities of
    issuers with smaller market capitalizations tend to be more
    volatile than higher rated securities and securities of issuers
    with larger market capitalizations so that these events and any
    actions resulting from them may have a greater impact on the
    prices and volatility of lower rated securities and securities
    of issuers with smaller market capitalizations than on higher
    rated securities and securities of issuers with larger market
    capitalization.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest Rate Transactions.</I>&#160;&#160;The Fund has
    entered into an interest rate swap transaction with respect to
    its outstanding Series&#160;C Auction Rate Preferred and may
    enter into an interest rate swap or cap transaction with respect
    to its outstanding Series&#160;E Auction Rate Preferred. The use
    of interest rate swaps and caps is a highly specialized activity
    that involves certain risks to the Fund including, among others,
    counterparty risk and early termination risk. See &#147;How the
    Fund Manages Risk&#151;Interest Rate Transactions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Foreign Securities.</I>&#160;&#160;The Fund may invest up to
    35% of its total assets in securities of foreign issuers.
    Investments in the securities of foreign issuers involve certain
    considerations and risks not ordinarily
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    associated with investments in securities of domestic issuers.
    Foreign companies are not generally subject to uniform
    accounting, auditing and financial standards and requirements
    comparable to those applicable to United States companies.
    Foreign securities exchanges, brokers and listed companies may
    be subject to less government supervision and regulation than
    exists in the United States. Dividend and interest income may be
    subject to withholding and other foreign taxes, which may
    adversely affect the net return on such investments. There may
    be difficulty in obtaining or enforcing a court judgment abroad
    and it may be difficult to effect repatriation of capital
    invested in certain countries. With respect to certain
    countries, there are also risks of expropriation, confiscatory
    taxation, political or social instability or diplomatic
    developments that could affect assets of the Fund held in
    foreign countries. Dividend income the Fund receives from
    foreign securities may not be eligible for the special tax
    treatment applicable to qualified dividend income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There may be less publicly available information about a foreign
    company than a United States company. Foreign securities markets
    may have substantially less volume than United States securities
    markets and some foreign company securities are less liquid than
    securities of otherwise comparable United States companies. A
    portfolio of foreign securities may also be adversely affected
    by fluctuations in the rates of exchange between the currencies
    of different nations and by exchange control regulations.
    Foreign markets also have different clearance and settlement
    procedures that could cause the Fund to encounter difficulties
    in purchasing and selling securities on such markets and may
    result in the Fund missing attractive investment opportunities
    or experiencing loss. In addition, a portfolio that includes
    foreign securities can expect to have a higher expense ratio
    because of the increased transaction costs on non-United States
    securities markets and the increased costs of maintaining the
    custody of foreign securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund also may purchase sponsored American Depositary
    Receipts (&#147;ADRs&#148;) or United States dollar denominated
    securities of foreign issuers. ADRs are receipts issued by
    United States banks or trust companies in respect of securities
    of foreign issuers held on deposit for use in the United States
    securities markets. While ADRs may not necessarily be
    denominated in the same currency as the securities into which
    they may be converted, many of the risks associated with foreign
    securities may also apply to ADRs. In addition, the underlying
    issuers of certain depositary receipts, particularly unsponsored
    or unregistered depositary receipts, are under no obligation to
    distribute shareholder communications to the holders of such
    receipts, or to pass through to them any voting rights with
    respect to the deposited securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Smaller Companies.</I>&#160;&#160;The Fund may invest in
    smaller companies which may benefit from the development of new
    products and services. These smaller companies may present
    greater opportunities for capital appreciation, and may also
    involve greater investment risk than larger, more established
    companies. For example, smaller companies may have more limited
    product lines, market or financial resources and their
    securities may trade less frequently and in lower volume than
    the securities of larger, more established companies. As a
    result, the prices of the securities of such smaller companies
    may fluctuate to a greater degree than the prices of securities
    of other issuers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Investment Companies.</I>&#160;&#160;The Fund may invest in
    the securities of other investment companies to the extent
    permitted by law. To the extent the Fund invests in the common
    equity of investment companies, the Fund will bear its ratable
    share of any such investment company&#146;s expenses, including
    management fees. The Fund will also remain obligated to pay
    management fees to the Investment Adviser with respect to the
    assets invested in the securities of other investment companies.
    In these circumstances holders of the Fund&#146;s common stock
    will be subject to duplicative investment expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Lower Rated Securities.</I>&#160;&#160;The Fund may invest up
    to 10% of its total assets in fixed-income securities rated in
    the lower rating categories of recognized statistical rating
    agencies. These high yield securities, also sometimes referred
    to as &#147;junk bonds,&#148; generally pay a premium above the
    yields of United States government securities or debt securities
    of investment grade issuers because they are subject to greater
    risks than these securities. These risks, which reflect their
    speculative character, include the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    greater volatility;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    greater credit risk;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    potentially greater sensitivity to general economic or industry
    conditions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    potential lack of attractive resale opportunities
    (illiquidity);&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    additional expenses to seek recovery from issuers who default.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market value of lower rated securities may be more volatile
    than the market value of higher rated securities and generally
    tends to reflect the market&#146;s perception of the
    creditworthiness of the issuer and short-term market
    developments to a greater extent than more highly rated
    securities, which primarily reflect fluctuations in general
    levels of interest rates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ratings are relative and subjective, and are not absolute
    standards of quality. Securities ratings are based largely on
    the issuer&#146;s historical financial condition and the rating
    agencies&#146; analysis at the time of rating. Consequently, the
    rating assigned to any particular security is not necessarily a
    reflection of the issuer&#146;s current financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a part of its investment in lower rated fixed-income
    securities, the Fund may invest in the securities of issuers in
    default. The Fund will invest in securities of issuers in
    default only when the Investment Adviser believes that such
    issuers will honor their obligations and emerge from bankruptcy
    protection and that the value of such issuers&#146; securities
    will appreciate. By investing in the securities of issuers in
    default, the Fund bears the risk that these issuers will not
    continue to honor their obligations or emerge from bankruptcy
    protection or that the value of these securities will not
    appreciate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Special Risks of Derivative
    Transactions.</I>&#160;&#160;Participation in the options or
    futures markets and in currency exchange transactions involves
    investment risks and transaction costs to which the Fund would
    not be subject absent the use of these strategies. If the
    Investment Adviser&#146;s prediction of movements in the
    direction of the securities, foreign currency or interest rate
    markets is inaccurate, the consequences to the Fund may leave it
    in a worse position than if such strategies were not used. Risks
    inherent in the use of options, foreign currency, futures
    contracts and options on futures contracts, securities indices
    and foreign currencies include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    dependence on the Investment Adviser&#146;s ability to predict
    correctly movements in the direction of interest rates,
    securities prices and currency markets;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    imperfect correlation between the price of options and futures
    contracts and options thereon and movements in the prices of the
    securities or currencies being hedged;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the fact that skills needed to use these strategies are
    different from those needed to select portfolio securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the possible absence of a liquid secondary market for any
    particular instrument at any time;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the possible need to defer closing out certain hedged positions
    to avoid adverse tax consequences;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the possible inability of the Fund to purchase or sell a
    security at a time that otherwise would be favorable for it to
    do so, or the possible need for the Fund to sell a security at a
    disadvantageous time due to a need for the Fund to maintain
    &#147;cover&#148; or to segregate securities in connection with
    the hedging techniques.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Futures Transactions.</I>&#160;&#160;Futures and options on
    futures entail certain risks, including but not limited to the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    no assurance that futures contracts or options on futures can be
    offset at favorable prices;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    possible reduction of the returns of the Fund due to the use of
    hedging;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    possible reduction in value of both the securities hedged and
    the hedging instrument;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    possible lack of liquidity due to daily limits or price
    fluctuations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    imperfect correlation between the contracts and the securities
    being hedged;&#160;and
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    losses from investing in futures transactions that are
    potentially unlimited and the segregation requirements for such
    transactions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a further description, see &#147;Investment Objectives and
    Policies&#151;Investment Practices&#148; in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Forward Currency Exchange Contracts.</I>&#160;&#160;The use
    of forward currency contracts may involve certain risks,
    including the failure of the counterparty to perform its
    obligations under the contract and that the use of forward
    contracts may not serve as a complete hedge because of an
    imperfect correlation between movements in the prices of the
    contracts and the prices of the currencies hedged or used for
    cover. For a further description of such investments, see
    &#147;Investment Objectives and Policies&#151;Investment
    Practices&#148; in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Counterparty Risk.</I>&#160;&#160;The Fund will be subject to
    credit risk with respect to the counterparties to the derivative
    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 bankruptcy or other reorganization
    proceedings. The Fund may obtain only a limited recovery or may
    obtain no recovery in such circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Loans of Portfolio Securities.</I>&#160;&#160;Consistent with
    applicable regulatory requirements and the Fund&#146;s
    investment restrictions, the Fund may lend its portfolio
    securities to securities broker-dealers or financial
    institutions, provided that such loans are callable at any time
    by the Fund (subject to notice provisions described in the SAI)
    and are at all times secured by cash or cash equivalents, which
    are maintained in a segregated account pursuant to applicable
    regulations and that are at least equal to the market value,
    determined daily, of the loaned securities. The advantage of
    such loans is that the Fund continues to receive the income on
    the loaned securities while at the same time earning interest on
    the cash amounts deposited as collateral, which will be invested
    in short-term obligations. The Fund will not lend its portfolio
    securities if such loans are not permitted by the laws or
    regulations of any state in which its shares are qualified for
    sale. The Fund&#146;s loans of portfolio securities will be
    collateralized in accordance with applicable regulatory
    requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a further description of such loans of portfolio securities,
    see &#147;Investment Objective and Policies&#151;Certain
    Investment Practices&#151;Loans of Portfolio Securities.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Management Risk.</I>&#160;&#160;The Fund is subject to
    management risk because it is an actively managed portfolio. The
    Investment Adviser will 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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Dependence on Key Personnel.</I>&#160;&#160;Mario J. Gabelli
    serves as the Fund&#146;s portfolio manager. The Investment
    Adviser is dependent upon the expertise of Mr.&#160;Gabelli in
    providing advisory services with respect to the Fund&#146;s
    investments. If the Investment Adviser were to lose the services
    of Mr.&#160;Gabelli, its ability to service the Fund could be
    adversely affected. There can be no assurance that a suitable
    replacement could be found for Mr.&#160;Gabelli in the event of
    his death, resignation, retirement or inability to act on behalf
    of the Investment Adviser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Anti-takeover Provisions of the Fund&#146;s Charter and
    By-Laws.</I>&#160;&#160;The Fund&#146;s Charter and By- Laws
    include provisions that could limit the ability of other
    entities or persons to acquire control of the Fund or convert
    the Fund to an open-end fund. See &#147;Anti-Takeover Provisions
    of the Fund&#146;s Charter and By-Laws.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Status as A Regulated Investment Company.</I>&#160;&#160;The
    Fund has qualified, and intends to remain qualified, for federal
    income tax purposes as a regulated investment company.
    Qualification requires, among other things, compliance by the
    Fund with certain distribution requirements. Statutory
    limitations on distributions on the common stock if the Fund
    fails to satisfy the 1940 Act&#146;s asset coverage requirements
    could jeopardize the Fund&#146;s ability to meet such
    distribution requirements. The Fund presently intends, however,
    to purchase or redeem preferred stock to the extent necessary in
    order to maintain compliance with such asset coverage
    requirements. See &#147;Taxation&#148; for a more complete
    discussion of these and other federal income tax considerations.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">HOW THE
    FUND&#160;MANAGES RISK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Restrictions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has adopted certain investment limitations, some of
    which are fundamental policies of the Fund, designed to limit
    investment risk and maintain portfolio diversification. Under
    the 1940 Act, a fundamental policy may not be changed without
    the vote of a majority, as defined in the 1940 Act, of the
    outstanding voting securities of the Fund (voting together as a
    single class). In addition, pursuant to the
    Articles&#160;Supplementary of each of the series of preferred
    stock, a majority, as defined in the 1940 Act, of the
    outstanding shares of preferred stock of the Fund (voting
    separately as a single class) is also required to change a
    fundamental policy. The Fund may become subject to guidelines
    that are more limiting than its current investment restrictions
    in order to obtain and maintain ratings from Moody&#146;s and
    S&#38;P on its preferred stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Interest
    Rate Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has entered into an interest rate swap transaction with
    respect to its outstanding Series&#160;C Auction Rate Preferred.
    The Fund may enter into interest rate swap or cap transactions
    with respect to all or a portion of its outstanding
    Series&#160;E Auction Rate Preferred. Through these transactions
    the Fund may, for example, obtain the equivalent of a fixed rate
    for a series of the Auction Rate Preferred that is lower than
    the Fund would have to pay if it issued fixed rate preferred
    stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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. In an interest rate swap, the Fund would agree to
    pay to the other party to the interest rate swap (which is known
    as the &#147;counterparty&#148;) periodically a fixed rate
    payment in exchange for the counterparty agreeing to pay to the
    Fund periodically a variable rate payment that is intended to
    approximate the Fund&#146;s variable rate payment obligation on
    a series of the Auction Rate Preferred. In an interest rate cap,
    the Fund would pay a premium to the counterparty to the interest
    rate cap and, to the extent that a specified variable rate index
    exceeds a predetermined fixed rate, would receive from the
    counterparty payments of the difference based on the notional
    amount of such cap. Interest rate swap and cap transactions
    introduce additional risk because the Fund would remain
    obligated to pay preferred stock dividends or distributions when
    due in accordance with the Articles&#160;Supplementary of the
    relevant series of the Auction Rate Preferred even if the
    counterparty defaulted. Depending on the general state of
    short-term interest rates and the returns on the Fund&#146;s
    portfolio securities at that point in time, such a default could
    negatively affect the Fund&#146;s ability to make dividend or
    distribution payments on the Auction Rate Preferred. In
    addition, at the time an 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 Fund&#146;s ability to make dividend or
    distribution payments on the Auction Rate Preferred. To the
    extent there is a decline in interest rates, the value of the
    interest rate swap or cap could decline, resulting in a decline
    in the asset coverage for the Auction Rate Preferred. A sudden
    and dramatic decline in interest rates may result in a
    significant decline in the asset coverage. Under the
    Articles&#160;Supplementary for each series of the preferred
    stock (including the Series&#160;F Preferred ), if the Fund
    fails to maintain the required asset coverage on the outstanding
    preferred stock or fails to comply with other covenants, the
    Fund may, at its option (and in certain circumstances will be
    required to), mandatorily redeem some or all of these shares.
    The Fund generally may redeem either or both series of the
    Auction Rate Preferred, in whole or in part, at its option at
    any time (usually on a dividend or distribution payment date),
    other than during a non-call period. Such redemption would
    likely result in the Fund seeking to terminate early all or a
    portion of any swap or cap transaction. Early termination of a
    swap could result in a termination payment by the Fund to the
    counterparty, while early termination of a cap could result in a
    termination payment to the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    receiving or paying, as the case may be, only the net amount of
    the two payments. The Fund intends to segregate cash or liquid
    securities having a value at least equal to the value of the
    Fund&#146;s net payment obligations under any swap transaction,
    marked to market daily. The Fund will monitor any such swap with
    a view to ensuring that the Fund remains in compliance with all
    applicable regulatory investment policy and tax requirements.
</DIV>
<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT
    OF THE FUND</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board (who, with its officers, are described in the SAI) has
    overall responsibility for the management of the Fund. The Board
    decides upon matters of general policy and reviews the actions
    of the Investment Adviser.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Management</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Gabelli Funds, LLC, located at One Corporate Center, Rye, New
    York
    <FONT style="white-space: nowrap">10580-1422,</FONT>
    serves as the investment adviser to the Fund pursuant to an
    investment advisory agreement (described below in
    &#147;&#151;Advisory Agreement&#148;). The Investment Adviser
    was organized in 1999 and is the successor to Gabelli Funds,
    Inc., which was organized in 1980. As of June&#160;30, 2006, the
    Investment Adviser acted as registered investment adviser to 27
    management investment companies with aggregate net assets of
    $13.5&#160;billion. The Investment Adviser, together with other
    affiliated investment advisers, had assets under management
    totaling approximately $26.8&#160;billion as of June&#160;30,
    2006. GAMCO Asset Management Inc., an affiliate of the
    Investment Adviser, acts as investment adviser for individuals,
    pension trusts, profit sharing trusts and endowments, and as a
    sub-adviser to management investment companies having aggregate
    assets of $12.3&#160;billion under management as of
    June&#160;30, 2006. Gabelli Securities, Inc., an affiliate of
    the Investment Adviser, acts as investment adviser for
    investment partnerships and entities having aggregate assets of
    approximately $500&#160;million under management as of
    June&#160;30, 2006. Gabelli Fixed Income LLC, an affiliate of
    the Investment Adviser, acts as investment adviser for separate
    accounts having aggregate assets of approximately
    $55&#160;million under management as of June&#160;30, 2006.
    Gabelli Advisers, Inc., an affiliate of the Investment Adviser,
    acts as investment manager to the Westwood Funds having
    aggregate assets of approximately $400&#160;million under
    management as of June&#160;30, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser is a wholly-owned subsidiary of GAMCO
    Investors, Inc., a New York corporation whose Class&#160;A
    Common Stock is traded on the NYSE under the symbol
    &#147;GBL.&#148; Mr.&#160;Mario J. Gabelli may be deemed a
    &#147;controlling person&#148; of the Investment Adviser on the
    basis of his ownership of a majority of the stock of GGCP, Inc.,
    which owns a majority of the capital stock of GAMCO Investors,
    Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser has sole investment discretion for the
    Fund&#146;s assets under the supervision of the Fund&#146;s
    Board and in accordance with the Fund&#146;s stated policies.
    The Investment Adviser will select investments for the Fund and
    will place purchase and sale orders on behalf of the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser is obligated to pay expenses associated
    with providing the services contemplated by the Advisory
    Agreement, including compensation of and office space for its
    officers and employees connected with investment and economic
    research, trading and investment management and administration
    of the Fund (but excluding costs associated with the calculation
    of the net asset value), and the fees of all Directors of the
    Fund who are affiliated with the Investment Adviser. The Fund
    pays all other expenses incurred in its operation including,
    among other things, offering expenses, expenses for legal and
    Independent Registered Public Accounting Firm services, rating
    agency fees, costs of printing proxies, stock certificates and
    stockholder reports, charges of the custodian, any subcustodian,
    auction agent, transfer agent(s) and dividend disbursing agent
    expenses in connection with its respective automatic dividend
    reinvestment and voluntary cash purchase plan, Commission fees,
    fees and expenses of unaffiliated directors, accounting and
    pricing costs, including costs of calculating the net asset
    value of the Fund, membership fees in trade associations,
    fidelity bond coverage for its officers and employees,
    directors&#146; and officers&#146; errors and omission insurance
    coverage, interest, brokerage costs, taxes, stock exchange
    listing fees and expenses, expenses of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    qualifying its shares for sale in various states, litigation and
    other extraordinary or non-recurring expenses, and other
    expenses properly payable by the Fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Advisory
    Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the Fund&#146;s Investment Advisory Agreement
    (the &#147;Advisory Agreement&#148;), the Investment Adviser
    manages the portfolio of the Fund in accordance with its stated
    investment objectives and policies, makes investment decisions
    for the Fund, places orders to purchase and sell securities on
    behalf of the Fund and manages the Fund&#146;s other business
    and affairs, all subject to the supervision and direction of its
    Board. In addition, under the Advisory Agreement, the Investment
    Adviser oversees the administration of all aspects of the
    Fund&#146;s business and affairs and provides, or arranges for
    others to provide, at the Investment Adviser&#146;s expense,
    certain enumerated services, including maintaining the
    Fund&#146;s books and records, preparing reports to its
    stockholders and supervising the calculation of the net asset
    value of its stock. All expenses of computing the Fund&#146;s
    net asset value, including any equipment or services obtained
    solely for the purpose of pricing shares of stock or valuing the
    Fund&#146;s investment portfolio, will be an expense of the Fund
    under the Advisory Agreement unless the Investment Adviser
    voluntarily assumes responsibility for such expense. During
    fiscal 2005, the Fund reimbursed the Investment Adviser $45,000
    in connection with the cost of computing the Fund&#146;s net
    asset value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Advisory Agreement combines investment advisory and
    administrative responsibilities in one agreement. For services
    rendered by the Investment Adviser on behalf of the Fund under
    the Advisory Agreement, the Fund pays the Investment Adviser a
    fee computed weekly and paid monthly at the annual rate of 1.00%
    of the Fund&#146;s average weekly net assets plus the
    liquidation value of any outstanding preferred stock. The
    Investment Adviser has agreed to reduce the management fee on
    the incremental assets attributable to the Existing Preferred
    and the Series&#160;F Preferred during the fiscal year if the
    total return of the net asset value of the common stock,
    including distributions and management fees subject to reduction
    for that year, does not exceed the stated dividend rate or
    corresponding swap rate of each particular series of preferred
    stock for the period. In other words, if the effective cost of
    the leverage for any series of preferred stock exceeds the total
    return (based on net asset value) on the Fund&#146;s common
    stock, the Investment Adviser will waive that portion of its
    management fee on the incremental assets attributable to the
    leverage for that series of preferred stock to mitigate the
    negative impact of the leverage on the common stockholder&#146;s
    total return. This fee waiver is voluntary and may be
    discontinued at any time. The Fund&#146;s total return on the
    net asset value of its common stock is monitored on a monthly
    basis to assess whether the total return on the net asset value
    of its common stock exceeds the stated dividend rate or
    corresponding swap rate of each particular series of outstanding
    preferred stock for the period. The test to confirm the accrual
    of the management fee on the assets attributable to each
    particular series of preferred stock is annual. The Fund will
    accrue for the management fee on these assets during the fiscal
    year if it appears probable that the Fund will incur the
    management fee on those assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2005, the Fund&#146;s total
    return on the net asset value of the common stock exceeded the
    stated dividend rate or net swap expense of the Series&#160;C
    Auction Rate Preferred and Series&#160;E Auction Rate Preferred.
    Thus, management fees were accrued on these assets. The
    Fund&#146;s total return on the net asset value of the common
    stock did not exceed the stated dividend rate or net swap
    expense of the Series&#160;B Preferred and Series&#160;D
    Preferred. Thus, management fees with respect to the liquidation
    value of those preferred assets were reduced by $2,387,425.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Advisory Agreement provides that in the absence of willful
    misfeasance, bad faith, gross negligence or reckless disregard
    of its obligations and duties thereunder, the Investment Adviser
    is not liable for any error of judgment or mistake of law or for
    any loss suffered by the Fund. As part of the Advisory
    Agreement, the Fund has agreed that the name &#147;Gabelli&#148;
    is the Investment Adviser&#146;s property, and that in the event
    the Investment Adviser ceases to act as an investment adviser to
    the Fund, the Fund will change its name to one not including
    &#147;Gabelli.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to its terms, the Advisory Agreement will remain in
    effect with respect to the Fund from year to year if approved
    annually (i)&#160;by the Fund&#146;s Board or by the holders of
    a majority of the Fund&#146;s outstanding voting securities and
    (ii)&#160;by a majority of the Directors who are not
    &#147;interested persons&#148; (as defined in the 1940 Act) of
    any party to the Advisory Agreement, by vote cast in person at a
    meeting called for the purpose of voting on such approval.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A discussion regarding the basis of the Board&#146;s approval of
    the Advisory Agreement is available in the Fund&#146;s
    semi-annual report to shareholders for the six months ended
    June&#160;30, 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Selection
    of Securities Brokers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Advisory Agreement contains provisions relating to the
    selection of securities brokers to effect the portfolio
    transactions of the Fund. Under those provisions, the Investment
    Adviser may (i)&#160;direct Fund portfolio brokerage to
    Gabelli&#160;&#38; Company, Inc. or other broker-dealer
    affiliates of the Investment Adviser and (ii)&#160;pay
    commissions to brokers other than Gabelli&#160;&#38; Company,
    Inc. that are higher than might be charged by another qualified
    broker to obtain brokerage
    <FONT style="white-space: nowrap">and/or</FONT>
    research services considered by the Investment Adviser to be
    useful or desirable for its investment management of the Fund
    <FONT style="white-space: nowrap">and/or</FONT> its
    other advisory accounts or those of any investment adviser
    affiliated with it. The SAI contains further information about
    the Advisory Agreement, including a more complete description of
    the advisory and expense arrangements, exculpatory and brokerage
    provisions, as well as information on the brokerage practices of
    the Fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Managers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mario J. Gabelli is currently and has been responsible for the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    management of the Fund since its formation. Mr.&#160;Gabelli has
    served as Chief Investment Officer&#151;Value Portfolios of the
    Investment Adviser and its predecessor since 1980.
    Mr.&#160;Gabelli also serves as Portfolio Manager for several
    other funds in the Gabelli fund family. Because of the diverse
    nature of Mr.&#160;Gabelli&#146;s responsibilities, he will
    devote less than all of his time to the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    management of the Fund. Over the past five years,
    Mr.&#160;Gabelli has served as Chairman of the Board and Chief
    Executive Officer of GAMCO Investors, Inc.; Chief Investment
    Officer&#151;Value Portfolios of GAMCO Asset Management Inc;
    Vice Chairman of the Board of LGL Group, Inc. (until 2004), a
    diversified manufacturing company; and Chairman of the Board of
    Lynch Interactive Corporation, a multimedia and communications
    services company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, as of September&#160;30, 2006, Mr.&#160;Caesar
    M.P. Bryan managed approximately $93&#160;million of the
    Fund&#146;s assets. Mr.&#160;Bryan has been a Senior Vice
    President and Portfolio Manager with GAMCO Asset Management Inc.
    (a wholly-owned subsidiary of GAMCO Investors, Inc.) and
    Portfolio Manager of the GAMCO Gold Fund, Inc. since May 1994
    and the GAMCO International Growth Fund, Inc. since June 1995,
    Co-Portfolio Manager of the GAMCO Global Opportunity Fund since
    May 1998, Gold Companies Portfolio Manager of the Gabelli Global
    Gold, Natural Resources&#160;&#38; Income Trust since March
    2005, and a member of the GAMCO Global Growth Fund portfolio
    management team since September 2000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SAI provides additional information about the Portfolio
    Managers&#146; compensation, other accounts managed by the
    Portfolio Managers and the Portfolio Managers&#146; ownership of
    securities in the Fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Sub-Administrator</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PFPC, Inc. (&#147;PFPC&#148;), located at 400 Bellevue Parkway,
    Wilmington, Delaware, 19809, serves as the Fund&#146;s
    sub-administrator. For these services and the related expenses
    borne by PFPC, the Investment Adviser pays a prorated monthly
    fee at the annual rate of 0.0275% of the first $10&#160;billion
    of the aggregate average net assets of the Fund and all other
    funds advised by the Investment Adviser and administered by
    PFPC, 0.0125% of the aggregate average net assets exceeding
    $10&#160;billion, and 0.01% of the aggregate average net assets
    in excess of $15&#160;billion.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

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    <B><FONT style="font-family: 'Times New Roman', Times">Regulatory
    Matters</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund received the following information from the Investment
    Adviser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Over the past several years, the staff of the Commission (the
    &#147;Staff&#148;), the staff of the New York Attorney
    General&#146;s office (the &#147;NYAG&#148;) and officials of
    other states have been conducting industry-wide inquiries into,
    and bringing enforcement and other proceedings regarding,
    trading abuses involving open-end investment companies. The
    Investment Adviser and its affiliates have received information
    requests and subpoenas from the Staff and the NYAG in connection
    with these inquiries and have been complying with these requests
    for documents and testimony. The Investment Adviser has
    implemented additional compliance policies and procedures in
    response to recent industry initiatives and its internal reviews
    of its mutual fund practices in a variety of areas. The
    Investment Adviser has not found any information that it
    believes would be material to the ability of the Investment
    Adviser to fulfill its obligations under the Advisory Agreement.
    More specifically, the Investment Adviser has found no evidence
    of arrangements for trading in the Gabelli mutual funds after
    the 4:00&#160;p.m. pricing time and no evidence of improper
    short-term trading in these funds by its investment
    professionals or senior executives. The Investment Adviser did
    find that one investor, who had been engaged in short-term
    trading in one of the Gabelli mutual funds (the prospectus of
    which did not at that time impose limits on short-term trading)
    and who had subsequently made an investment in a hedge fund
    managed by an affiliate of the Investment Adviser, was banned
    from the mutual fund only after certain other investors were
    banned. The Investment Adviser believes that this relationship
    was not material to the Investment Adviser. The Investment
    Adviser also found that certain discussions took place in 2002
    and 2003 between the Investment Adviser&#146;s staff and
    personnel of an investment advisor regarding possible frequent
    trading in certain Gabelli domestic equity funds. In June 2006,
    the Investment Adviser began discussions with the Staff
    regarding a possible resolution of their inquiry. Since these
    discussions are ongoing, the Investment Adviser cannot determine
    whether they will ultimately result in a settlement of this
    matter and, if so, what the terms of the settlement might be.
    There can be no assurance that any resolution of this matter
    will not have a material adverse impact on the Investment
    Adviser or on its ability to fulfill its obligations under the
    Advisory Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser was informed by the Staff that they may
    recommend to the Commission that the Investment Adviser be held
    accountable for the actions of two of the seven closed-end funds
    managed by the Investment Adviser relating to Section&#160;19(a)
    and
    <FONT style="white-space: nowrap">Rule&#160;19a-1</FONT>
    of the 1940 Act. These provisions require registered investment
    companies to provide written statements to shareholders when a
    distribution is made from a source other than net investment
    income. While the two funds sent annual statements containing
    the required information and
    <FONT style="white-space: nowrap">Form&#160;1099-DIV</FONT>
    statements as required by the IRS, the funds did not send
    written statements to shareholders with each distribution in
    2002 and 2003. The closed-end funds managed by the Investment
    Adviser changed their notification procedures in 2004 and the
    Investment Adviser believes that all of the funds have been in
    compliance with Section&#160;19(a) and
    <FONT style="white-space: nowrap">Rule&#160;19a-1</FONT>
    of the 1940 Act since that time. The Staff&#146;s notice to the
    Investment Adviser did not relate to the Fund. The Staff
    indicated that they may recommend to the Commission that
    administrative remedies be sought, including a monetary penalty.
    The Investment Adviser cannot predict whether an administrative
    proceeding will be instituted and, if so, what the ultimate
    resolution might be. The Investment Adviser currently expects
    that any resolution of this matter will not have a material
    effect on the Investment Adviser&#146;s ability to fulfill its
    obligations under the Advisory Agreement. If the Commission were
    to revoke the exemptive order that the Fund relies upon to make
    distributions of capital gains more frequently than annually,
    the Board may consider whether to modify or possibly eliminate
    the Fund&#146;s current distribution policy.
</DIV>
<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PORTFOLIO
    TRANSACTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Principal transactions are not entered into with affiliates of
    the Fund. However, Gabelli&#160;&#38; Company, Inc., an
    affiliate of the Investment Adviser, may execute portfolio
    transactions on stock exchanges and in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    markets on an agency basis and receive a stated commission
    therefore. For a more detailed discussion of the Fund&#146;s
    brokerage allocation practices, see &#147;Portfolio
    Transactions&#148; in the SAI.
</DIV>

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    <BR>
    32
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<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDENDS
    AND DISTRIBUTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has a policy, which may be modified at any time by the
    Board, of paying a minimum annual distribution of 10% of the
    average net asset value of the Fund to common stockholders. The
    Fund&#146;s current quarterly distribution level is
    $0.19&#160;per share. The Board paid a distribution of
    $0.20&#160;per share for the third quarter of 2006, consisting
    of the $0.19&#160;per share quarterly distribution plus an
    additional $0.01&#160;per share. Each year the Fund pays an
    adjusting distribution in the fourth quarter of an amount
    sufficient to pay 10% of the average net asset value of the
    Fund, as of the last day of the four preceding calendar
    quarters, or to satisfy the minimum distribution requirements of
    the Code, whichever is greater. Each quarter, the Board reviews
    the amount of any potential distribution and the income, capital
    gain or capital available. This policy permits common
    stockholders to realize a predictable, but not assured, level of
    cash flow and some liquidity periodically with respect to their
    shares of common stock without having to sell their shares. The
    Fund may retain for reinvestment, and pay the resulting federal
    income taxes on, its net capital gain, if any, although the Fund
    reserves the authority to distribute its net capital gain in any
    year. However, to avoid paying income tax at the corporate
    level, the Fund intends to distribute substantially all of its
    investment company taxable income and net capital gain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If, for any calendar year, the total quarterly distributions and
    the amount of distributions on any preferred stock issued by the
    Fund exceed investment company taxable income and net capital
    gain, the excess will generally be treated as a tax-free return
    of capital up to the amount of a stockholder&#146;s tax basis in
    the stock. Any distributions to the holders of preferred stock
    which constitute tax-free return of capital will reduce a
    stockholder&#146;s tax basis in such preferred stock, thereby
    increasing such stockholder&#146;s potential gain or reducing
    his or her potential loss on the sale of the preferred stock.
    Any amounts distributed to a preferred stockholder in excess of
    the basis in the preferred stock will generally be taxable to
    the stockholder as capital gain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event the Fund distributes amounts in excess of its
    investment company taxable income and net capital gain, such
    distributions will decrease the Fund&#146;s total assets and,
    therefore, have the likely effect of increasing its expense
    ratio, as the Fund&#146;s fixed expenses will become a larger
    percentage of the Fund&#146;s average net assets. In addition,
    in order to make such distributions, the Fund might have to sell
    a portion of its investment portfolio at a time when independent
    investment judgment might not dictate such action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund, along with other closed-end registered investment
    companies advised by the Investment Adviser, has obtained an
    exemption from Section&#160;19(b) of the 1940 Act and
    <FONT style="white-space: nowrap">Rule&#160;19b-1</FONT>
    thereunder permitting it to make periodic distributions of
    long-term capital gains provided that any distribution policy of
    the Fund with respect to its common stock calls for periodic
    (e.g., quarterly or semi-annually, but in no event more
    frequently than monthly) distributions in an amount equal to a
    fixed percentage of the Fund&#146;s average net asset value over
    a specified period of time or market price per share of common
    stock at or about the time of distribution or payment of a fixed
    dollar amount. The exemption also permits the Fund to make
    distributions with respect to its preferred stock in accordance
    with such stock&#146;s terms.
</DIV>
<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF THE SERIES&#160;F PREFERRED</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund offers by this prospectus $125,000,000 of Series&#160;F
    Preferred. The following is a brief description of the terms of
    the Series&#160;F Preferred. This description does not purport
    to be complete and is qualified by reference to the Fund&#146;s
    Charter, including the provisions of the
    Articles&#160;Supplementary establishing the Series&#160;F
    Preferred. For complete terms of the Series&#160;F Preferred,
    including definitions of terms used in this prospectus, please
    refer to the actual terms of the Series&#160;F Preferred, which
    are set forth in the Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under its Charter, the Fund is authorized to issue up to
    270,000,000&#160;shares of capital stock. As of November&#160;6,
    2006, 18,000,000&#160;shares of the Fund&#146;s capital stock
    have been classified by the Board as
</DIV>

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    <BR>
    33
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    preferred stock, par value $0.001&#160;per share. Up to
    7,000,000 authorized and unissued shares of the Fund, previously
    classified as common stock, par value $0.001&#160;per share, may
    be reclassified and authorized for issuance as Series&#160;F
    Preferred prior to the completion of this offering. No
    fractional shares of Series&#160;F Preferred will be issued. The
    Board reserves the right to issue additional shares of preferred
    stock, including Series&#160;F Preferred, from time to time,
    subject to the restrictions in the Fund&#146;s Charter and the
    1940 Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If and when issued, the Series&#160;F Preferred will have a
    liquidation preference of $25&#160;per share. Upon a
    liquidation, each holder of Series&#160;F Preferred will be
    entitled to receive out of the assets of the Fund available for
    distribution to stockholders (after payment of claims of the
    Fund&#146;s creditors but before any distributions with respect
    to common stock or any other shares of the Fund ranking junior
    to the Series&#160;F Preferred as to liquidation payments) an
    amount per share equal to such share&#146;s liquidation
    preference plus any accumulated but unpaid distributions
    (whether or not earned or declared, excluding interest thereon)
    to the date of distribution and such stockholders shall be
    entitled to no further participation in any distribution or
    payment in connection with such liquidation. The Series&#160;F
    Preferred will rank on a parity with any other series of
    preferred stock (including the Existing Preferred) of the Fund
    as to the payment of distributions and the distribution of
    assets upon liquidation. The Series&#160;F Preferred carries one
    vote per share on all matters on which such stock is entitled to
    vote. The Series&#160;F Preferred will, upon issuance, be fully
    paid and nonassessable and will have no preemptive, exchange or
    conversion rights. The Board may by resolution classify or
    reclassify any authorized but unissued capital shares of the
    Fund from time to time by setting or changing the preferences,
    conversion or other rights, voting powers, restrictions,
    limitations as to distributions or terms or conditions of
    redemption. The Fund will not issue any class of stock senior to
    the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rating
    Agency Guidelines</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon issuance, the Series&#160;F Preferred will be rated
    &#147;Aaa&#148; by Moody&#146;s. The Fund is required under
    Moody&#146;s guidelines to maintain assets having in the
    aggregate a discounted value at least equal to the Basic
    Maintenance Amount (as defined below) for its outstanding
    preferred stock, including any outstanding Series&#160;F
    Preferred, with respect to the guidelines Moody&#146;s has
    established for determining discounted value. To the extent any
    particular portfolio holding does not satisfy the applicable
    rating agency&#146;s guidelines, all or a portion of such
    holding&#146;s value will not be included in the calculation of
    discounted value (as defined by such rating agency). The
    Moody&#146;s guidelines also impose certain diversification
    requirements and industry concentration limitations on the
    Fund&#146;s overall portfolio, and apply specified discounts to
    securities held by the Fund (except certain money market
    securities). The &#147;Basic Maintenance Amount,&#148; if
    Moody&#146;s is then rating the Fund, is equal to (i)&#160;the
    sum of (a)&#160;the aggregate liquidation preference of any
    preferred stock then outstanding plus (to the extent not
    included in the liquidation preference of such preferred stock)
    an amount equal to the aggregate accumulated but unpaid
    distributions (whether or not earned or declared) in respect of
    such preferred stock, (b)&#160;the total principal of any debt
    (plus accrued and projected interest), (c)&#160;certain Fund
    expenses and (d)&#160;certain other current liabilities
    (excluding any unmade distributions on the shares of common
    stock) less (ii)&#160;the Fund&#146;s (a)&#160;cash and
    (b)&#160;assets consisting of indebtedness which (y)&#160;mature
    prior to or on the date of redemption or repurchase of the
    preferred stock and are United States government securities or
    evidences of indebtedness rated at least &#147;Aaa,&#148;
    <FONT style="white-space: nowrap">&#147;P-1&#148;,</FONT>
    &#147;VMIG-1&#148; or &#147;MIG-1&#148; by Moody&#146;s or
    &#147;AAA,&#148;
    <FONT style="white-space: nowrap">&#147;SP-1+&#148;</FONT>
    or
    <FONT style="white-space: nowrap">&#147;A-1+&#148;</FONT>
    by S&#38;P and (z)&#160;is held by the Fund for distributions,
    the redemption or repurchase of preferred stock or the
    Fund&#146;s liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Fund does not timely cure a failure to maintain a
    discounted value of its portfolio equal to the Basic Maintenance
    Amount in accordance with the requirements of the applicable
    rating agency or agencies then rating the Series&#160;F
    Preferred at the request of the Fund, the Fund may, and in
    certain circumstances will be required to, mandatorily redeem
    preferred stock, including the Series&#160;F Preferred, as
    described below under &#147;&#151;Redemption.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may, but is not required to, adopt any modifications to
    the rating agency guidelines that may hereafter be established
    by Moody&#146;s (or such other rating agency then rating the
    Series&#160;F Preferred at the request of the Fund). Failure to
    adopt any such modifications, however, may result in a change in
    the relevant
</DIV>

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    <BR>
    34
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    rating agency&#146;s ratings or a withdrawal of such ratings
    altogether. In addition, any rating agency providing a rating
    for the Series&#160;F Preferred at the request of the Fund may,
    at any time, change or withdraw any such rating. The Board,
    without further action by the stockholders, may amend, alter,
    add to or repeal certain of the definitions and related
    provisions that have been adopted by the Fund pursuant to the
    rating agency guidelines if the Board determines that such
    modification is necessary to prevent a reduction in rating of
    the preferred stock by Moody&#146;s, is in the best interests of
    the holders of common stock and is not adverse to the holders of
    preferred stock in view of advice to the Fund by Moody&#146;s
    (or such other rating agency then rating the Series&#160;F
    Preferred at the request of the Fund), and that such
    modification would not adversely affect, as the case may be,
    Moody&#146;s then current rating of the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described by Moody&#146;s, the rating assigned to the
    Series&#160;F Preferred is an assessment of the capacity and
    willingness of the Fund to pay the obligations of the
    Series&#160;F Preferred. The rating on the Series&#160;F
    Preferred is not a recommendation to purchase, hold or sell
    shares of Series&#160;F Preferred, inasmuch as the rating does
    not comment as to market price or suitability for a particular
    investor. The rating agency guidelines also do not address the
    likelihood that an owner of Series&#160;F Preferred will be able
    to sell such shares on an exchange or otherwise. The rating is
    based on current information furnished to Moody&#146;s by the
    Fund and the Investment 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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Moody&#146;s guidelines will apply to the Series&#160;F
    Preferred only so long as Moody&#146;s is rating such stock at
    the request of the Fund. The Fund will pay fees to Moody&#146;s
    for rating the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Asset
    Maintenance Requirements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the requirements summarized under
    &#147;&#151;Rating Agency Guidelines&#148; above, the Fund must
    also satisfy asset maintenance requirements under the 1940 Act
    with respect to its preferred stock. The 1940 Act requirements
    are summarized below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund will be required under the Series&#160;F
    Articles&#160;Supplementary to determine whether it has, as of
    the last business day of each March, June, September and
    December of each year, an &#147;asset coverage&#148; (as defined
    in the 1940 Act) of at least 200% (or such higher or lower
    percentage as may be required at the time under the 1940 Act)
    with respect to all outstanding senior securities of the Fund
    that are stock, including any outstanding Series&#160;F
    Preferred. If the Fund fails to maintain the asset coverage
    required under the 1940 Act on such dates and such failure is
    not cured within 60 calendar days, in the case of the
    Series&#160;F Preferred, the Fund may, and in certain
    circumstances will be required to, mandatorily redeem the number
    of shares of preferred stock sufficient to satisfy such asset
    coverage. See &#147;&#151;Redemption&#148; below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund estimates that if the stock offered hereby had been
    issued and sold as of September&#160;30, 2006, the asset
    coverage under the 1940 Act would have been approximately 389%
    immediately following such issuance (and after giving effect to
    the deduction of the estimated underwriting discounts of
    $3,937,500 and estimated offering expenses for such stock of
    $500,000). The asset coverage would have been computed as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">Value of Fund assets less
    liabilities and indebtedness
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">not constituting senior
    securities<BR>
    <DIV style="font-size: 3pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=208 iwidth=240 length=0 -->
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    =
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,956,775,807<BR>
    <DIV style="font-size: 3pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=203 iwidth=62 length=0 -->
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Senior securities representing
    indebtedness
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    502,492,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    =
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    389%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">aggregate involuntary plus
    liquidation preference of each class of senior security which is
    stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions
    on the Series&#160;F Preferred</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon issuance of the Series&#160;F Preferred (if issued),
    holders of shares of Series&#160;F Preferred will be entitled to
    receive, when, as and if declared by the Board out of funds
    legally available therefor, cumulative cash distributions, at
    the annual rate of&#160;&#160;% (computed on the basis of a
    <FONT style="white-space: nowrap">360-day</FONT> year
    consisting of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months) of the liquidation preference of $25 per share, payable
    quarterly on March&#160;26, June&#160;26, September 26 and
    December 26 of each year or, if any such day is not a business
    day, the immediately succeeding business
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    day. Such distributions will commence on December&#160;26, 2006
    and will be payable to the persons in whose names the shares of
    Series&#160;F Preferred are registered at the close of business
    on the fifth preceding business day.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions on the shares of Series&#160;F Preferred will
    accumulate from the date on which such shares are issued.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Restrictions
    on Dividends and Other Distributions for the Series&#160;F
    Preferred</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the 1940 Act, the Fund may not (i)&#160;declare any
    dividend and distribution (except a dividend payable in stock of
    the issuer) or other distributions upon any of its outstanding
    shares of common stock, or purchase any such shares of common
    stock, if, at the time of the declaration, distribution or
    purchase, as applicable (and after giving effect thereto), asset
    coverage with respect to the Fund&#146;s outstanding senior
    securities representing stock, including the Series&#160;F
    Preferred, would be less than 200%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    So long as any Series&#160;F Preferred is outstanding, the Fund
    may not pay any dividend or distribution (other than a dividend
    or distribution paid in common stock or in options, warrants or
    rights to subscribe for or purchase common stock) in respect of
    the common stock or call for redemption, redeem, purchase or
    otherwise acquire for consideration any common stock (except by
    conversion into or exchange for shares of the Fund ranking
    junior to the Series&#160;F Preferred as to the payment of
    dividends or distributions and the distribution of assets upon
    liquidation), unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Fund has declared and paid (or provided to the relevant
    dividend disbursing agent) all cumulative distributions on the
    Fund&#146;s outstanding preferred stock, including the
    Series&#160;F Preferred, due on or prior to the date of such
    common stock dividend or distribution;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Fund has redeemed the full number of shares of Series&#160;F
    Preferred to be redeemed pursuant to any mandatory redemption
    provision in the Fund&#146;s Charter;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    after making the distribution, the Fund meets applicable asset
    coverage requirements described above under &#147;&#151;Rating
    Agency Guidelines&#148; and &#147;&#151;Asset Maintenance
    Requirements.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No full distribution will be declared or made on the
    Series&#160;F Preferred for any dividend period, or part
    thereof, unless full cumulative distributions due through the
    most recent dividend payment dates therefor for all outstanding
    series of preferred stock of the Fund ranking on a parity with
    the Series&#160;F Preferred as to distributions have been or
    contemporaneously are declared and made. If full cumulative
    distributions due have not been made on all outstanding
    preferred stock of the Fund ranking on a parity with the
    Series&#160;F Preferred as to the payment of distributions, any
    distributions being paid on the preferred stock (including the
    Series&#160;F Preferred) will be paid as nearly pro rata as
    possible in proportion to the respective amounts of
    distributions accumulated but unmade on each such series of
    preferred stock on the relevant dividend payment date. While the
    Fund&#146;s investment restrictions currently do not permit the
    Fund to borrow money for investment purposes, the Fund&#146;s
    obligation to make distributions on the Series&#160;F Preferred
    will be subordinate to its obligations to pay interest and
    principal, when due, on any of the Fund&#146;s senior securities
    representing debt.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Redemption</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mandatory Redemption&#160;Relating to Asset Coverage
    Requirements.</I>&#160;&#160;The Fund may, at its option,
    consistent with its Charter and the 1940 Act, and in certain
    circumstances will be required to, mandatorily redeem preferred
    stock (including, at its discretion the Series&#160;F Preferred)
    in the event that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Fund fails to maintain the asset coverage requirements for
    the Series&#160;F Preferred specified under the 1940 Act on a
    quarterly valuation date and such failure is not cured on or
    before 60&#160;days following such failure;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Fund fails to maintain the asset coverage requirements as
    calculated in accordance with the applicable rating agency
    guidelines as of the last Valuation Date of any calendar month,
    and such failure is not cured on or before ten business days
    after such Valuation Date.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The redemption price for the Series&#160;F Preferred subject to
    mandatory redemption will be $25&#160;per share plus an amount
    equal to any accumulated but unmade distributions (whether or
    not earned or declared) to the date fixed for redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of shares of preferred stock that will be redeemed in
    the case of a mandatory redemption will equal the minimum number
    of outstanding shares of preferred stock, the redemption of
    which, if such redemption had occurred immediately prior to the
    opening of business on the applicable cure date, would have
    resulted in the relevant asset coverage requirement having been
    met or, if the required asset coverage cannot be so restored,
    all of the shares of preferred stock. In the event that shares
    of preferred stock are redeemed due to a failure to satisfy the
    1940 Act asset coverage requirements, the Fund may, but is not
    required to, redeem a sufficient number of shares of preferred
    stock so that the Fund&#146;s assets exceed the asset coverage
    requirements under the 1940 Act after the redemption by 10%
    (that is, 220% asset coverage). In the event that shares of
    preferred stock are redeemed due to a failure to satisfy
    applicable rating agency guidelines, the Fund may, but is not
    required to, redeem a sufficient number of shares of preferred
    stock so that the Fund&#146;s discounted portfolio value (as
    determined in accordance with the applicable rating agency
    guidelines) after redemption exceeds the asset coverage
    requirements of each applicable rating agency by up to 10% (that
    is, 110% rating agency asset coverage).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Fund does not have funds legally available for the
    redemption of, or is otherwise unable to redeem, all the shares
    of preferred stock to be redeemed on any redemption date, the
    Fund will redeem on such redemption date that number of shares
    for which it has legally available funds, or is otherwise able
    to redeem, from the holders whose shares are to be redeemed
    ratably on the basis of the redemption price of such shares, and
    the remainder of those shares to be redeemed will be redeemed on
    the earliest practicable date on which the Fund will have funds
    legally available for the redemption of, or is otherwise able to
    redeem, such shares upon written notice of redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If fewer than all shares of the Fund&#146;s outstanding
    preferred stock are to be redeemed, the Fund, at its discretion,
    and subject to the limitations of the Charter, the 1940 Act and
    Maryland law, will select the one or more series of preferred
    stock from which shares will be redeemed and the amount of
    preferred stock to be redeemed from each such series. If fewer
    than all of the shares of a series of preferred stock are to be
    redeemed, such redemption will be made as among the holders of
    that series pro rata in accordance with the respective number of
    shares of such series held by each such holder on the record
    date for such redemption (or by such other equitable method as
    the Fund may determine). If fewer than all shares of the
    preferred stock held by any holder are to be redeemed, the
    notice of redemption mailed to such holder will specify the
    number of shares to be redeemed from such holder, which may be
    expressed as a percentage of shares held on the applicable
    record date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Optional Redemption&#160;of the Series&#160;F
    Preferred.</I>&#160;&#160;Prior
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2011 the shares of Series&#160;F Preferred are not subject to
    optional redemption by the Fund unless such redemption is
    necessary, in the judgment of the Fund, to maintain the
    Fund&#146;s status as a regulated investment company under the
    Code. Commencing
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2011 and thereafter, the Fund may at any time redeem shares of
    Series&#160;F Preferred in whole or in part for cash at a
    redemption price per share equal to $25&#160;per share plus
    accumulated and unmade distributions (whether or not earned or
    declared) to the redemption date. Such redemptions are subject
    to the notice requirements set forth below under
    &#147;&#151;Redemption&#160;Procedures&#148; and the limitations
    of the Charter, the 1940 Act and Maryland Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Redemption&#160;Procedures.</I>&#160;&#160;A notice of
    redemption with respect to an optional redemption by the Fund
    will be given to the holders of record of preferred stock
    selected for redemption not less than 15&#160;days (subject to
    NYSE requirements) nor more than 40&#160;days prior to the date
    fixed for redemption. Preferred stockholders may receive shorter
    notice in the event of a mandatory redemption. Each notice of
    redemption will state (i)&#160;the redemption date,
    (ii)&#160;the number or percentage of shares of preferred stock
    to be redeemed (which may be expressed as a percentage of such
    shares outstanding), (iii)&#160;the CUSIP number(s) of such
    shares, (iv)&#160;the redemption price (specifying the amount of
    accumulated distributions to be included therein), (v)&#160;the
    place or places where such shares are to be redeemed,
    (vi)&#160;that distributions on the shares to be redeemed will
    cease to
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    accumulate on such redemption date, (vii)&#160;the provision of
    the Series&#160;F Articles&#160;Supplementary under which the
    redemption is being made and (viii)&#160;any conditions
    precedent to such redemption. No defect in the notice of
    redemption or in the mailing thereof will affect the validity of
    the redemption proceedings, except as required by applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of Series&#160;F Preferred will not have the right
    to redeem any of their shares at their option.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidation
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon a liquidation, dissolution or winding up of the affairs of
    the Fund (whether voluntary or involuntary), holders of
    Series&#160;F Preferred then outstanding will be entitled to
    receive out of the assets of the Fund available for distribution
    to stockholders, after satisfying claims of creditors but before
    any distribution or payment of assets is made to holders of the
    common stock or any other class of stock of the Fund ranking
    junior to the Series&#160;F Preferred as to liquidation
    payments, a liquidation distribution in the amount of
    $25&#160;per share, plus an amount equal to all unmade
    distributions accumulated to and including the date fixed for
    such distribution or payment (whether or not earned or declared
    by the Fund but excluding interest thereon), and such holders
    will be entitled to no further participation in any distribution
    or payment in connection with any such liquidation, dissolution
    or winding up. If, upon any liquidation, dissolution or winding
    up of the affairs of the Fund, whether voluntary or involuntary,
    the assets of the Fund available for distribution among the
    holders of all outstanding shares of preferred stock of the Fund
    ranking on a parity with the Series&#160;F Preferred as to
    payment upon liquidation will be insufficient to permit the
    payment in full to such holders of the Series&#160;F Preferred
    and other parity preferred stock of the amounts due upon
    liquidation with respect to such shares, then such available
    assets will be distributed among the holders of the
    Series&#160;F Preferred and such other parity preferred stock
    ratably in proportion to the respective preferential amounts to
    which they are entitled. Unless and until the liquidation
    payments due to holders of the Series&#160;F Preferred and such
    other parity preferred stock have been paid in full, no
    dividends or distributions will be made to holders of the common
    stock or any other stock of the Fund ranking junior to the
    Series&#160;F Preferred and other parity preferred stock as to
    liquidation and junior to any senior securities representing
    debt.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise stated in this prospectus, specified in the
    Fund&#146;s Charter or resolved by the Board or as otherwise
    required by applicable law, holders of the Series&#160;F
    Preferred shall be entitled to one vote per share held on each
    matter submitted to a vote of the stockholders of the Fund and
    will vote together with holders of shares of common stock and of
    any other preferred stock then outstanding as a single class.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the election of the Fund&#146;s directors
    (each, a &#147;Director&#148;), holders of the outstanding
    shares of Series&#160;F Preferred and the other series of
    preferred stock, voting together as a single class, will be
    entitled at all times to elect two of the Fund&#146;s Directors,
    and the remaining directors will be elected by holders of shares
    of common stock and holders of Series&#160;F Preferred, and
    other series of preferred stock, voting together as a single
    class. In addition, if (i)&#160;at any time dividends and
    distributions on outstanding shares of Series&#160;F Preferred
    <FONT style="white-space: nowrap">and/or</FONT> any
    other preferred stock are unpaid in an amount equal to at least
    two full years&#146; dividends and distributions thereon and
    sufficient cash or specified securities have not been deposited
    with the applicable paying agent for the payment of such
    accumulated dividends and distributions or (ii)&#160;at any time
    holders of any other series of preferred stock are entitled to
    elect a majority of the Directors of the Fund under the 1940 Act
    or the applicable Articles&#160;Supplementary creating such
    shares, then the number of Directors constituting the Board
    automatically will be increased by the smallest number that,
    when added to the two Directors elected exclusively by the
    holders of the Series&#160;F Preferred and other series of
    preferred stock as described above, would then constitute a
    simple majority of the Board as so increased by such smallest
    number. Such additional Directors will be elected by the holders
    of the outstanding shares of Series&#160;F Preferred and the
    other series of preferred stock, voting together as a single
    class, at a special meeting of stockholders which will be called
    as soon as practicable and will be held not less than ten nor
    more than twenty days after the mailing date of the meeting
    notice. If the Fund fails to send such meeting notice or to call
    such a special meeting, the meeting may be called by any
    preferred stockholder on like notice. The terms
</DIV>

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    <BR>
    38
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of office of the persons who are Directors at the time of that
    election will continue. If the Fund thereafter pays, or declares
    and sets apart for payment in full, all dividends and
    distributions payable on all outstanding shares of preferred
    stock for all past dividend periods or the holders of other
    series of preferred stock are no longer entitled to elect such
    additional directors, the additional voting rights of the
    holders of the preferred stock as described above will cease,
    and the terms of office of all of the additional Directors
    elected by the holders of the preferred stock (but not of the
    Directors with respect to whose election the holders of shares
    of common stock were entitled to vote or the two Directors the
    holders of shares of preferred stock have the right to elect as
    a separate class in any event) will terminate automatically.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    So long as shares of Series&#160;F Preferred are outstanding,
    the Fund will not, without the affirmative vote of the holders
    of a majority (as defined in the 1940 Act) of the shares of
    preferred stock outstanding at the time (including the
    Series&#160;F Preferred), and present and voting on such matter,
    voting separately as one class, amend, alter or repeal the
    provisions of the Fund&#146;s Charter whether by merger,
    consolidation or otherwise, so as to materially adversely affect
    any of the rights, preferences or powers expressly set forth in
    the Charter with respect to such shares of preferred stock,
    unless the Fund obtains written confirmation from Moody&#146;s,
    or any such other rating agency then rating the Series&#160;F
    Preferred that such amendment, alteration or repeal would not
    impair the rating then assigned by such rating agency to the
    Series&#160;F Preferred, in which case the vote or consent of
    the holders of the Series&#160;F Preferred is not required.
    Also, to the extent permitted under the 1940 Act, in the event
    shares of more than one series of preferred stock are
    outstanding, the Fund will not approve any of the actions set
    forth in the preceding sentence which materially adversely
    affect the rights, preferences or powers expressly set forth in
    the Charter with respect to such shares of a series of preferred
    stock differently than those of a holder of shares of any other
    series of preferred stock without the affirmative vote of the
    holders of at least a majority of the shares of preferred stock
    of each series materially adversely affected and outstanding at
    such time (each such materially adversely affected series voting
    separately as a class to the extent its rights are affected
    differently). For purposes of this paragraph, no matter shall be
    deemed to adversely affect any right, preference or power unless
    such matter (i)&#160;adversely alters or abolishes any
    preferential right of such series; (ii)&#160;creates, adversely
    alters or abolishes any right in respect of redemption of such
    series; or (iii)&#160;creates or adversely alters (other than to
    abolish) any restriction on transfer applicable to such series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Charter and applicable provisions of the 1940 Act or
    Maryland law, the affirmative vote of a majority of the votes
    entitled to be cast by holders of outstanding shares of the
    preferred stock (including the Series&#160;F Preferred), voting
    together as a single class, will be required to approve any plan
    of reorganization adversely affecting the preferred stock. The
    approval of
    66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%
    of each class, voting separately, of the Fund&#146;s outstanding
    voting stock is required to authorize the conversion of the Fund
    from a closed-end to an open-end investment company. The
    approval of a majority (as that term is defined in the 1940 Act)
    of the Fund&#146;s outstanding preferred stock and a majority
    (as that term is defined in the 1940 Act) of the Fund&#146;s
    outstanding voting securities are required to approve any action
    requiring a vote of security holders under Section&#160;13(a) of
    the 1940 Act (other than a conversion of the Fund from a
    closed-end to open-end investment company), including, among
    other things, changes in the Fund&#146;s investment objectives
    or changes in the investment restrictions described as
    fundamental policies under &#147;Investment Objectives and
    Policies&#148; in this prospectus and the SAI, &#147;How the
    Fund Manages Risk&#151;Investment Restrictions&#148; in this
    prospectus and &#147;Investment Restrictions&#148; in the SAI.
    For purposes of this paragraph, except as otherwise required
    under the 1940 Act, the majority of the outstanding preferred
    stock means, in accordance with Section&#160;2(a)(42) of the
    1940 Act, the vote, at the annual or a special meeting of the
    stockholders of the Fund duly called (i)&#160;of
    66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%
    or more of the shares of preferred stock present at such
    meeting, if the holders of more than 50% of the outstanding
    shares of preferred stock are present or represented by proxy,
    or (ii)&#160;more than 50% of the outstanding shares of
    preferred stock, whichever is less. The class vote of holders of
    shares of the preferred stock described above in each case will
    be in addition to a separate vote of the requisite percentage of
    common stock, and any other preferred stock, voting together as
    a single class, that may be necessary to authorize the action in
    question.
</DIV>

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    <BR>
    39
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The calculation of the elements and definitions of certain terms
    of the rating agency guidelines may be modified by action of the
    Board without further action by the stockholders if the Board
    determines that such modification is necessary to prevent a
    reduction in rating of the shares of preferred stock by
    Moody&#146;s (or such other rating agency then rating the
    Series&#160;F Preferred at the request of the Fund), as the case
    may be, or is in the best interests of the holders of shares of
    common stock and is not adverse to the holders of preferred
    stock in view of advice to the Fund by the relevant rating
    agencies that such modification would not adversely affect its
    then-current rating of the preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing voting provisions will not apply to any
    Series&#160;F Preferred if, at or prior to the time when the act
    with respect to which such vote otherwise would be required will
    be effected, such stock will have been redeemed or called for
    redemption and sufficient cash or cash equivalents provided to
    the applicable paying agent to effect such redemption. The
    holders of Series&#160;F Preferred will have no preemptive
    rights or rights to cumulative voting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limitation
    on Issuance of Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    So long as the Fund has preferred stock outstanding, subject to
    receipt of approval from the rating agencies of each series of
    preferred stock outstanding, and subject to compliance with the
    Fund&#146;s investment objectives, policies and restrictions,
    the Fund may issue and sell shares of one or more other series
    of additional preferred stock provided that the Fund will,
    immediately after giving effect to the issuance of such
    additional preferred stock and to its receipt and application of
    the proceeds thereof (including, without limitation, to the
    redemption of preferred stock to be redeemed out of such
    proceeds), have an &#147;asset coverage&#148; for all senior
    securities of the Fund which are stock, as defined in the 1940
    Act, of at least 200% of the sum of the liquidation preference
    of the shares of preferred stock of the Fund then outstanding
    and all indebtedness of the Fund constituting senior securities
    and no such additional preferred stock will have any preference
    or priority over any other preferred stock of the Fund upon the
    distribution of the assets of the Fund or in respect of the
    payment of dividends or distributions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund does not currently intend to offer additional shares of
    preferred stock. However, the Fund will monitor market
    conditions, including, among other things, interest rates and
    the asset levels of the Fund, and will consider from time to
    time whether to offer additional preferred stock or securities
    representing indebtedness and may issue such additional
    securities if the Board concludes that such an offering would be
    consistent with the Fund&#146;s Charter and applicable law, and
    in the best interest of existing common stockholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Repurchase
    of the Series&#160;F Preferred</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is a non-diversified, closed-end management investment
    company and, as such, holders of the Series&#160;F Preferred do
    not and will not have the right to require the Fund to
    repurchase their preferred stock. The Fund, however, may
    repurchase Series&#160;F Preferred when it is deemed advisable
    by the Board in compliance with the requirements of the 1940 Act
    and regulations thereunder and other applicable requirements.
    Unlike a redemption of the Series&#160;F Preferred, where
    stockholders are subject to the redemption terms, in a
    repurchase offer the Fund is purchasing stock on an exchange or
    otherwise (through private transactions or tender offers)
    soliciting repurchases, and stockholders may choose whether or
    not to sell.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus will serve as notice that the Fund may from time
    to time purchase shares of Series&#160;F Preferred when such
    shares are trading below the $25&#160;per share liquidation
    preference.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Book-Entry</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares of the Series&#160;F Preferred will initially be held in
    the name of Cede&#160;&#38; Co. as nominee for DTC. The Fund
    will treat Cede&#160;&#38; Co. as the holder of record of the
    Series&#160;F Preferred for all purposes. In accordance with the
    procedures of DTC, however, purchasers of the Series&#160;F
    Preferred will be deemed the beneficial owners of stock
    purchased for purposes of dividends and distributions, voting
    and liquidation rights.
</DIV>

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    <BR>
    40
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certificates for Series&#160;F Preferred will not be issued.
    Purchasers of the Series&#160;F Preferred may establish direct
    (registered) ownership of their shares by contacting the
    Transfer Agent.
</DIV>
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF CAPITAL STOCK AND OTHER SECURITIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to an amendment to the Fund&#146;s Articles of
    Incorporation that was approved by stockholders in 2004, the
    Board may increase or decrease the aggregate number of shares of
    stock of the Fund or the number of shares of any class or series
    that the Fund has authority to issue without stockholder
    approval. The Fund is currently authorized to issue
    252,000,000&#160;shares of common stock, par value
    $0.001&#160;per share. Holders of the Fund&#146;s common stock
    are entitled to one vote per share held. Holders of shares of
    common stock are entitled to share equally in distributions
    authorized by the Board payable to the holders of such shares
    and in the net assets of the Fund available on liquidation for
    distribution to holders of such shares. The shares of common
    stock have noncumulative voting rights and no conversion,
    preemptive or other subscription rights, and are not redeemable.
    In the event of liquidation, each share of common stock is
    entitled to its proportion of the Fund&#146;s assets after
    payment of debts and expenses and the amounts payable to holders
    of the Fund preferred stock ranking senior to the shares of
    common stock as described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s outstanding common stock is listed and traded on
    the NYSE under the symbol &#147;GAB&#148;. The average weekly
    trading volume of the common stock on the NYSE during the period
    from January&#160;1, 2005 through December&#160;31, 2005 was
    523,176&#160;shares. The average weekly trading volume of the
    common stock on the NYSE during the period from January&#160;1,
    2006 through September&#160;30, 2006 was 1.02&#160;million
    shares. The Fund&#146;s shares of common stock have traded in
    the market at both premiums to and discounts from net asset
    value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may repurchase shares of its common stock from time to
    time as and when it deems such repurchase advisable, subject to
    maintaining required asset coverage for each series of
    outstanding preferred stock. The Board has adopted a policy to
    authorize such repurchases when the shares are trading at a
    discount of 10% or more from net asset value. The policy does
    not limit the amount of common stock that can be repurchased.
    The percentage of the discount from net asset value at which
    share repurchases will be authorized may be changed at any time
    by the Board. Through September&#160;30, 2006, the Fund has not
    repurchased shares of its common stock under this authorization.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders whose common stock is registered in their own name
    will have all distributions reinvested pursuant to the
    Fund&#146;s Automatic Dividend Reinvestment and Voluntary Cash
    Purchase Plan (the &#147;Plan&#148;) unless they specifically
    elect to opt out of the Plan. For a more detailed discussion of
    the Plan, see &#147;Automatic Dividend Reinvestment and
    Voluntary Cash Purchase Plan&#148; in the SAI.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Preferred
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of November&#160;6, 2006, 18,000,000&#160;shares of the
    Fund&#146;s capital stock have been classified by the Board as
    preferred stock, par value $0.001&#160;per share. Up to
    7,000,000 authorized and unissued shares of the Fund, previously
    classified as common stock, par value $0.001&#160;per share, may
    be reclassified and authorized for issuance as Series&#160;F
    Preferred prior to the completion of this offering. The terms of
    each series of preferred stock may be fixed by the Board and may
    materially limit
    <FONT style="white-space: nowrap">and/or</FONT>
    qualify the rights of the holders of the Fund&#146;s common
    stock. As of September&#160;30, 2006, the Fund had 4,950,000
    outstanding shares of Series&#160;B Preferred, 5,200 outstanding
    shares of Series&#160;C Auction Rate Preferred, 2,949,700
    outstanding shares of Series&#160;D Preferred and 2,000
    outstanding shares of Series&#160;E Auction Rate Preferred,
    which, along with the Series&#160;F Preferred being issued in
    connection with this prospectus, are senior securities of the
    Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions on the Series&#160;B Preferred accumulate at an
    annual rate of 7.20% of the liquidation preference of
    $25&#160;per share, are cumulative from the date of original
    issuance thereof, and are payable quarterly on March&#160;26,
    June&#160;26, September 26 and December 26 of each year. The
    Fund is required to meet
</DIV>

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    <BR>
    41
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    similar asset coverage requirements with respect to the
    Series&#160;B Preferred as are described in this prospectus for
    the Series&#160;F Preferred. The Series&#160;B Preferred is
    rated &#147;Aaa&#148; by Moody&#146;s. The Fund&#146;s
    outstanding Series&#160;B Preferred became redeemable at the
    liquidation preference plus accumulated but unpaid dividends
    (whether or not earned or declared) at the option of the Fund
    beginning June&#160;20, 2006. The Series&#160;B Preferred is
    listed and traded on the NYSE under the symbol &#147;GAB
    PrB&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions on the Series&#160;C Auction Rate Preferred
    accumulate at a variable rate set at a weekly auction. The Fund
    is required to meet certain asset coverage requirements with
    respect to the Series&#160;C Auction Rate Preferred. The
    Series&#160;C Auction Rate Preferred is rated &#147;Aaa&#148; by
    Moody&#146;s and &#147;AAA&#148; by S&#38;P. The liquidation
    preference of the Series&#160;C Auction Rate Preferred is
    $25,000. The Fund generally may redeem the outstanding
    Series&#160;C Auction Rate Preferred, in whole or in part, at
    any time other than during a non-call period. The Series&#160;C
    Auction Rate Preferred is not traded on any exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions on the Series&#160;D Preferred accumulate at an
    annual rate of 5.875% of the liquidation preference of
    $25&#160;per share, are cumulative from the date of original
    issuance thereof, and are payable quarterly on March&#160;26,
    June&#160;26, September 26 and December 26 of each year. The
    Fund is required to meet similar asset coverage requirements
    with respect to the Series&#160;D Preferred as are described in
    this prospectus for the Series&#160;F Preferred. The
    Series&#160;D Preferred is rated &#147;Aaa&#148; by
    Moody&#146;s. The Fund&#146;s outstanding Series&#160;D
    Preferred is redeemable at the liquidation preference plus
    accumulated but unpaid dividends (whether or not earned or
    declared) at the option of the Fund beginning October&#160;7,
    2008. The Series&#160;D Preferred is listed and traded on the
    NYSE under the symbol &#147;GAB PrD&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions on the Series&#160;E Auction Rate Preferred
    accumulate at a variable rate set at a weekly auction. The Fund
    is required to meet certain asset coverage requirements with
    respect to the Series&#160;E Auction Rate Preferred. The
    Series&#160;E Auction Rate Preferred is rated &#147;Aaa&#148; by
    Moody&#146;s and &#147;AAA&#148; by S&#38;P. The liquidation
    preference of the Series&#160;E Auction Rate Preferred is
    $25,000. The Fund generally may redeem the outstanding
    Series&#160;E Auction Rate Preferred, in whole or in part, at
    any time other than during a non-call period. The Series&#160;E
    Auction Rate Preferred is not traded on any exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows (i)&#160;the classes of capital stock
    authorized, (ii)&#160;the number of shares authorized in each
    class and (iii)&#160;the number of shares outstanding in each
    class as of September&#160;30, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="64%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title of Class:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount Authorized*</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount Outstanding*</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Common Stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    252,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167,642,009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;A Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,367,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;B Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,600,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,950,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;C Auction Rate
    Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;D Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,949,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;E Auction Rate
    Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Preferred Stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,024,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Does not include the Series&#160;F Preferred being offered
    pursuant to this prospectus.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a description of the terms and limitations of the
    Series&#160;F Preferred with respect to liquidation rights,
    dividends and distributions, the rights of holders of the
    Fund&#146;s preferred stock to receive distributions, and
    selection of Directors to the Fund&#146;s Board, see
    &#147;Description of the Series&#160;F Preferred.&#148;
</DIV>
<A name='114'>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TAXATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion is a brief summary of certain United
    States federal income tax considerations affecting the Fund and
    its stockholders. The discussion reflects applicable tax laws of
    the United States as of the date of this prospectus, which tax
    laws may be changed or subject to new interpretations by the
    courts or the Internal Revenue Service (the &#147;IRS&#148;)
    retroactively or prospectively. No attempt is made to present a
    detailed explanation of all United States federal, state, local
    and foreign tax concerns affecting the Fund and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    42
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    its stockholders (including stockholders owning large positions
    in the Fund), and the discussion set forth herein does not
    constitute tax advice. Investors are urged to consult their own
    tax advisers to determine the tax consequences to them of
    investing in the Fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of the Fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has elected to be treated and has qualified, and
    intends to continue to qualify, as a regulated investment
    company under Subchapter M of the Code. Accordingly, the Fund
    must, among other things, (i)&#160;derive in each taxable year
    at least 90% of its gross income from (a)&#160;dividends,
    interest (including tax-exempt interest), payments with respect
    to certain securities loans, and gains from the sale or other
    disposition of stock, securities or foreign currencies, or other
    income (including but not limited to gain from options, futures
    and forward contracts) derived with respect to its business of
    investing in such stock, securities or currencies and
    (b)&#160;net income derived from interests in certain publicly
    traded partnerships that are treated as partnerships for United
    States federal income tax purposes and that derive less than 90%
    of their gross income from the items described in (a)&#160;above
    (each a &#147;Qualified Publicly Traded Partnership&#148;); and
    (ii)&#160;diversify its holdings so that, at the end of each
    quarter of each taxable year (a)&#160;at least 50% of the value
    of the Fund&#146;s total assets is represented by cash and cash
    items, United States government securities, the securities of
    other regulated investment companies 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, (b)&#160;not more than 25% of the
    value of the Fund&#146;s total assets is invested in the
    securities of (I)&#160;any one issuer (other than United States
    government securities and the securities of other regulated
    investment companies), (II)&#160;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)&#160;any one or more Qualified Publicly Traded
    Partnerships.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s investments in partnerships, including in
    Qualified Publicly Traded Partnerships, may result in the Fund
    being subject to state, local or foreign income, franchise or
    withholding tax liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a regulated investment company, the Fund generally is not
    subject to United States federal income tax on income and gains
    that it distributes each taxable year to stockholders, if it
    distributes at least 90% of the sum of the Fund&#146;s
    (i)&#160;investment company taxable income (which includes,
    among other items, dividends, interest and the excess of any net
    short-term capital gains over net long-term capital losses and
    other taxable income other than any net capital gain (as defined
    below) reduced by deductible expenses) determined without regard
    to the deduction for dividends and distributions paid and
    (ii)&#160;its net tax-exempt interest (the excess of its gross
    tax-exempt interest over certain disallowed deductions). The
    Fund intends to distribute at least annually substantially all
    of such income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 during each calendar year an amount at
    least equal to the sum of (i)&#160;98% of its ordinary income
    (not taking into account any capital gains or losses) for the
    calendar year, (ii)&#160;98% of its capital gains in excess of
    its capital losses (adjusted for certain ordinary losses) for a
    one-year period generally ending on October&#160;31 of the
    calendar year (unless an election is made to use the Fund&#146;s
    fiscal year), and (iii)&#160;certain undistributed amounts from
    previous years on which the Fund paid no United States federal
    income tax. While the Fund intends to distribute any income and
    capital gains 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 gains 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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If for any taxable year the Fund does not qualify as a regulated
    investment company, all of its taxable income (including its net
    capital gain) will be subject to tax at regular corporate rates
    without any deduction for distributions to stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has a policy, which may be modified at any time by its
    Board, of paying a minimum annual distribution of 10% of the
    average net asset value of the Fund, paid quarterly, to holders
    of shares of common
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    43
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    stock. In the event that the Fund&#146;s investment company
    taxable income and net capital gain exceed the total of its
    quarterly distributions and the total amount of distributions on
    any preferred stock issued by the Fund, in order to avoid paying
    income tax at the corporate level, the Fund intends to pay such
    excess once a year. If, for any calendar year, the total
    quarterly distributions and the total amount of distributions on
    any preferred stock issued by the Fund exceed both current
    earnings and profits and accumulated earnings and profits, the
    excess will generally be treated as a tax-free return of capital
    up to the amount of a stockholder&#146;s tax basis in the stock.
    The amount treated as a tax-free return of capital will reduce a
    stockholder&#146;s tax basis in the stock, thereby increasing
    such stockholder&#146;s potential gain or reducing the potential
    loss on the sale of the stock. Any amounts distributed to a
    stockholder in excess of the basis in the stock will be taxable
    to the stockholder as capital gain. The Fund&#146;s distribution
    policy may cause it to make taxable distributions to
    stockholders in excess of the minimum amounts of such taxable
    distributions it would be required to make in order to avoid
    liability for federal income tax. In certain situations, this
    excess distribution may cause stockholders to be liable for
    taxes for which they would not otherwise be liable if the Fund
    paid only that amount required to avoid liability for federal
    income tax.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of Stockholders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based in part on the Fund&#146;s inability to voluntarily redeem
    the Series&#160;F Preferred
    until&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2011 the Fund intends to take the position that under present
    law the Series&#160;F Preferred will constitute equity, rather
    than debt of the Fund for Federal income tax purposes. It is
    possible, however, that the IRS could take a contrary position
    asserting, for example, that the Series&#160;F Preferred
    constitutes debt of the Fund. The Fund believes this position,
    if asserted, would be unlikely to prevail. If that position were
    upheld, distributions on the Series&#160;F Preferred would be
    considered interest, taxable as ordinary income regardless of
    the taxable income of the Fund. The following discussion assumes
    the Series&#160;F Preferred is treated as equity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions paid to you by the Fund from its investment
    company taxable income which includes the excess of net
    short-term capital gains over net long-term capital losses
    (together referred to hereinafter as &#147;ordinary income
    dividends&#148;) are generally taxable to you as ordinary income
    to the extent of the Fund&#146;s earnings and profits. Such
    distributions (if designated by the Fund) may, however, qualify
    (provided holding periods and other requirements are met by both
    the Fund and the stockholder) (i)&#160;for the dividends
    received deduction in the case of corporate stockholders to the
    extent that the Fund&#146;s income consists of dividend income
    from United States corporations, and (ii)&#160;for taxable years
    through December&#160;31, 2010, as qualified dividend income
    eligible for the reduced maximum Federal rate to individuals of
    generally 15% (currently 5% for individuals in lower tax
    brackets) to the extent that the Fund receives qualified
    dividend income. Qualified dividend income is, in general,
    dividend income from taxable domestic corporations and certain
    foreign corporations (e.g., generally, foreign corporations
    incorporated in a possession of the United States or in certain
    countries with a qualified comprehensive tax treaty with the
    United States, or whose stock with respect to which such
    dividend is paid is readily tradable on an established
    securities market in the United States). Distributions made to
    you from an excess of net long-term capital gains over net
    short-term capital losses (&#147;capital gain dividends&#148;),
    including capital gain dividends credited to you but retained by
    the Fund, are taxable to you as long-term capital gains if they
    have been properly designated by the Fund, regardless of the
    length of time you have owned Fund stock. The maximum Federal
    tax rate on net long-term capital gain of individuals is reduced
    generally from 20% to 15% (currently 5% for individuals in lower
    brackets) for such gain realized before January&#160;1, 2011.
    Distributions in excess of the Fund&#146;s earnings and profits
    will first reduce the adjusted tax basis of your stock and,
    after such adjusted tax basis is reduced to zero, will
    constitute capital gains to you (assuming the stock is held as a
    capital asset). Generally, not later than 60&#160;days after the
    close of its taxable year, the Fund will provide you with a
    written notice designating the amount of any qualified dividend
    income or capital gain dividends and other distributions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the sale, exchange, redemption or other disposition of
    Series&#160;F Preferred stock, you will generally realize a
    taxable gain or loss equal to the difference between
    (1)&#160;the amount of cash and the fair market value of other
    property received and (2)&#160;your adjusted tax basis in the
    stock. Such gain or loss will generally be a capital gain or
    loss, and will be long-term capital gain or loss if the stock
    has been held for more than one
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    44
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    year at the time of sale. Any loss upon the sale or exchange of
    Fund stock held for six months or less will be treated as
    long-term capital loss to the extent of any capital gain
    dividends received (including amounts credited as an
    undistributed capital gain dividend) by you. A loss realized on
    a sale or exchange of stock of the Fund will be disallowed if
    other substantially identical Fund stock is acquired (whether
    through the automatic reinvestment of dividends or otherwise)
    within a
    <FONT style="white-space: nowrap">61-day</FONT>
    period beginning 30&#160;days before and ending 30&#160;days
    after the date that the stock is disposed of. In such case, the
    basis of the stock acquired will be adjusted to reflect the
    disallowed loss. Present law taxes both long-term and short-term
    capital gains of corporations at the rates applicable to
    ordinary income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Fund pays you a dividend or makes a distribution in
    January that was declared in the previous October, November or
    December to stockholders of record on a specified date in one of
    such months, then such dividend or distribution will be treated
    for tax purposes as being paid by the Fund and received by you
    on December&#160;31 of the year in which the dividend or
    distribution was declared.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is required in certain circumstances to backup withhold
    on taxable dividends or distributions and certain other payments
    paid to non-corporate holders of the Fund&#146;s stock who do
    not furnish the Fund with their correct taxpayer identification
    number (in the case of individuals, their social security
    number) and certain certifications, or who are otherwise subject
    to backup withholding. Backup withholding is not an additional
    tax. Any amounts withheld from payments made to you may be
    refunded or credited against your United States federal income
    tax liability, if any, provided that the required information is
    furnished to the IRS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The foregoing is a general and abbreviated summary of the
    provisions of the code and the treasury regulations in effect as
    they directly govern the taxation of the Fund and its
    stockholders. These provisions are subject to change by
    legislative or administrative action, and any such change may be
    retroactive. A more complete discussion of the tax rules
    applicable to the Fund and its stockholders can be found in the
    SAI that is incorporated by reference into this Prospectus.
    Stockholders are urged to consult their tax advisers regarding
    specific questions as to United States federal, foreign, state,
    local income or other taxes.</B>
</DIV>
<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANTI-TAKEOVER
    PROVISIONS OF THE FUND&#146;S CHARTER AND<BR>
    BY-LAWS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund presently has provisions in its Charter and By-Laws
    which could have the effect of limiting, in each case:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the ability of other entities or persons to acquire control of
    the Fund;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Fund&#146;s freedom to engage in certain
    transactions;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the ability of the Fund&#146;s Directors or stockholders to
    amend the Charter and By-Laws or effectuate changes in the
    Fund&#146;s management.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These provisions may be regarded as &#147;anti-takeover&#148;
    provisions. The Board of the Fund is divided into three classes,
    each having a term of three years. Each year the term of one
    class of Directors will expire. Accordingly, only those
    Directors in one class may be changed in any one year, and it
    would require a minimum of two years to change a majority of the
    Board. Such system of electing Directors may have the effect of
    maintaining the continuity of management and, thus, make it more
    difficult for the stockholders of the Fund to change the
    majority of Directors. A Director of the Fund may be removed
    only for cause and by a vote of a majority of the votes entitled
    to be cast for the election of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the affirmative vote of the holders of
    66<FONT style="vertical-align: top; font-size: 70&#37;">2</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%
    of the Fund&#146;s outstanding shares of each class (voting
    separately) is required to authorize the conversion of the Fund
    from a closed-end to an open-end investment company or generally
    to authorize any of the following transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the merger or consolidation of the Fund with any entity;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    45
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the issuance of any securities of the Fund for cash to any
    entity or person;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the sale, lease or exchange of all or any substantial part of
    the assets of the Fund to any entity or person (except assets
    having an aggregate fair market value of less than
    $1,000,000);&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the sale, lease or exchange to the Fund, in exchange for its
    securities, of any assets of any entity or person (except assets
    having an aggregate fair market value of less than $1,000,000);
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    if such person or entity is directly, or indirectly through
    affiliates, the beneficial owner of more than 5% of the
    outstanding shares of any class of capital stock of the Fund.
    However, such vote would not be required when, under certain
    conditions, the Board approves the transaction. Further, unless
    a higher percentage is provided for under the Charter, the
    affirmative vote of a majority (as defined in the 1940 Act) of
    the votes entitled to be cast by holders of outstanding shares
    of the Fund&#146;s preferred stock, voting as a separate class,
    will be required to approve any plan of reorganization adversely
    affecting such stock or any action requiring a vote of security
    holders under Section&#160;13(a) of the 1940 Act, including,
    among other things, changing the Fund&#146;s subclassification
    as a closed-end investment company, changing the Fund&#146;s
    investment objectives or changing its fundamental investment
    restrictions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Maryland corporations that are subject to the Securities
    Exchange Act of 1934 and have at least three outside directors,
    such as the Fund, may by board resolution elect to become
    subject to certain corporate governance provisions set forth in
    the Maryland corporate law, even if such provisions are
    inconsistent with the corporation&#146;s charter and by-laws.
    Accordingly, notwithstanding the Fund&#146;s Charter or By-Laws,
    under Maryland law the Board may elect by resolution to, among
    other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    require that special meetings of stockholders be called only at
    the request of stockholders entitled to cast at least a majority
    of the votes entitled to be cast at such meeting;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    reserve for the Board the right to fix the number of Fund
    Directors;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    provide that Directors are subject to removal only by the vote
    of the holders of two-thirds of the stock entitled to
    vote;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    retain for the Board sole authority to fill vacancies created by
    the death, removal or resignation of a Director, with any
    Director so appointed to serve for the balance of the unexpired
    term rather than only until the next annual meeting of
    stockholders.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board may make any of the foregoing elections without
    amending the Fund&#146;s Charter or By-Laws and without
    stockholder approval. Though a corporation&#146;s charter or a
    resolution by its board may prohibit its directors from making
    the elections set forth above, the Fund&#146;s Board currently
    is not prohibited from making any such elections.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provisions of the Charter and By-Laws and Maryland law
    described above could have the effect of depriving the owners of
    stock in the Fund of opportunities to sell their shares at a
    premium over prevailing market prices, by discouraging a third
    party from seeking to obtain control of the Fund in a tender
    offer or similar transaction. The overall effect of these
    provisions is to render more difficult the accomplishment of a
    merger or the assumption of control by a principal stockholder.
    The Board has determined that the foregoing voting requirements,
    which are generally greater than the minimum requirements under
    Maryland law and the 1940 Act, are in the best interests of the
    stockholders generally.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Charter and By-Laws of the Fund are on file with the
    Commission.
</DIV>
<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CUSTODIAN,
    TRANSFER AGENT, AUCTION AGENT AND<BR>
    DIVIDEND-DISBURSING AGENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mellon Trust of New England, N.A., located at 135 Santilli
    Highway, Everett, Massachusetts 02149, serves as the custodian
    of the Fund&#146;s assets pursuant to a custody agreement. Under
    the custody agreement, the Custodian holds the Fund&#146;s
    assets in compliance with the 1940 Act. For its services, the
    Custodian
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    46
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    receives a monthly fee based upon the month end value of the
    total assets of the Fund, plus certain charges for securities
    transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Computershare, located at 250 Royall Street, Canton,
    Massachusetts 02021, serves as the Fund&#146;s dividend
    disbursing agent, as agent under the Fund&#146;s Plan and as
    transfer agent and registrar with respect to the common stock of
    the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Along with the Series&#160;B Preferred and Series&#160;D
    Preferred, Computershare will also serve as the Fund&#146;s
    transfer agent, registrar, dividend disbursing agent and
    redemption agent with respect to the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bank of New York, located at 100 Church Street, New York,
    New York 10286, serves as the auction agent, transfer agent,
    registrar, dividend disbursing agent and redemption agent with
    respect to the Series&#160;C Auction Rate Preferred and the
    Series&#160;E Auction Rate Preferred.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    47
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Citigroup Global Markets Inc. and Merrill Lynch, Pierce,
    Fenner&#160;&#38; Smith Incorporated are acting as joint
    book-running managers and, together with A.G. Edwards&#160;&#38;
    Sons, Inc. and Gabelli and Company, Inc., are acting as
    representatives of the underwriters named below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the terms and conditions stated in the underwriting
    agreement dated the date of this prospectus, each underwriter
    named below has agreed to purchase, and the Fund has agreed to
    sell to that underwriter, the number of shares of Series&#160;F
    Preferred set forth opposite the underwriter&#146;s name.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="84%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of Series F<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Underwriter</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Preferred Shares</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Citigroup Global Markets Inc.&#160;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -52pt; margin-left: 52pt">
    <FONT style="font-size: 10pt">Merrill Lynch, Pierce,
    Fenner&#160;&#38; Smith<BR>
    Incorporated
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A.G. Edwards&#160;&#38; Sons,
    Inc.&#160;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Gabelli&#160;&#38; Company,
    Inc.&#160;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Total
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriting agreement provides that the obligations of the
    underwriters to purchase the shares included in this offering
    are subject to the approval of certain legal matters by counsel
    and to certain other conditions. The underwriters are obligated
    to purchase all of the Series&#160;F Preferred shares, if they
    purchase any such shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows the sales load that the Fund will pay
    to the underwriters in connection with this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="19%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Sales Load Paid by the Fund</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Per Share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Total
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters propose to initially offer some of the
    Series&#160;F Preferred directly to the public at the public
    offering price set forth on the cover page of this prospectus
    and some of the Series&#160;F Preferred to certain dealers at
    the public offering price less a concession not in excess of
    $0.50 per share. The sales load that the Fund will pay of
    $&#160;&#160;&#160;&#160;&#160;&#160;per share is equal
    to&#160;&#160;&#160;&#160;&#160;% of the initial offering price.
    The underwriters may allow, and the dealers may reallow, a
    discount not in excess of
    $&#160;&#160;&#160;&#160;&#160;&#160;per share of Series&#160;F
    Preferred on sales to other dealers. After the initial offering,
    the public offering price and concession may be changed.
    Investors must pay for any Series&#160;F Preferred purchased in
    the initial public offering on or
    before&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the offering, there has been no public market for the
    Series&#160;F Preferred. A preliminary application has been made
    to list the Series&#160;F Preferred on the NYSE. However, during
    an initial period that is not expected to exceed 30&#160;days
    after the date of this prospectus, the Series&#160;F Preferred
    will not be listed on any securities exchange. During such
    <FONT style="white-space: nowrap">30-day</FONT>
    period, the underwriters intend to make a market in the
    Series&#160;F Preferred; however, they have no obligation to do
    so. Consequently, an investment in the Series&#160;F Preferred
    may be illiquid during such period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the offering, Citigroup Global Markets Inc.
    and Merrill Lynch, Pierce, Fenner&#160;&#38; Smith Incorporated,
    on behalf of the underwriters, may purchase and sell the
    Series&#160;F Preferred in the open market. These transactions
    may include syndicate covering and stabilizing transactions.
    Syndicate covering transactions involve purchases of the
    Series&#160;F Preferred in the open market after the
    distribution has been completed in order to cover syndicate
    short positions. Stabilizing transactions consist of certain
    bids or purchases of shares made for the purpose of preventing
    or retarding a decline in the market price of the shares while
    the offering is in progress.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    48
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters may impose a penalty bid. Penalty bids permit
    the underwriters to reclaim a selling concession from a
    syndicate member when Citigroup Global Markets Inc. and Merrill
    Lynch, Pierce, Fenner&#160;&#38; Smith Incorporated repurchase
    shares of Series&#160;F Preferred originally sold by that
    syndicate member in order to cover syndicate short positions or
    make stabilizing purchases.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any of these activities may have the effect of preventing or
    retarding a decline in the market price of Series&#160;F
    Preferred. They may also cause the price of Series&#160;F
    Preferred to be higher than the price that would otherwise exist
    in the open market in the absence of these transactions. The
    underwriters may conduct these transactions on the NYSE or in
    the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market, or otherwise. If the underwriters commence any of these
    transactions, they may discontinue them at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We estimate that total expenses for this offering (excluding
    underwriting discounts) will be $500,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund anticipates that, from time to time, certain
    underwriters may act as brokers or dealers in connection with
    the Fund&#146;s execution of the Fund&#146;s portfolio
    transactions after they have ceased to be underwriters and,
    subject to certain restrictions, may act as brokers while they
    are underwriters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain underwriters have performed investment banking and
    advisory services for the Fund and the Investment Adviser from
    time to time, for which they have received customary fees and
    expenses. The underwriters and their affiliates may from time to
    time engage in transactions with, and perform services for, the
    Fund and the Investment Adviser in the ordinary course of their
    business. An affiliate of Citigroup Global Markets Inc. is the
    counterparty to the Fund in an interest rate swap transaction
    with an aggregate notional value of $130&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Gabelli&#160;&#38; Company, Inc. is a wholly-owned subsidiary of
    Gabelli Securities, Inc., which is a majority-owned subsidiary
    of the parent company of the Investment Adviser, which is, in
    turn, indirectly majority-owned by Mario J. Gabelli. As a result
    of these relationships, Mr.&#160;Gabelli, the Fund&#146;s
    Chairman and Chief Investment Officer, may be deemed to be a
    &#147;controlling person&#148; of Gabelli&#160;&#38; Company,
    Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the underwriting agreement, the Fund and the Investment
    Adviser have agreed to indemnify the underwriters against
    certain liabilities, including liabilities arising under the
    Securities Act of 1933, as amended, or to contribute to payments
    the underwriters may be required to make for any of those
    liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A prospectus in electronic format may be available on the
    websites maintained by one or more of the underwriters. The
    representatives may agree to allocate a number of shares of
    Series&#160;F Preferred to underwriters for sale to their online
    brokerage account holders. The representatives will allocate
    shares of Series&#160;F Preferred to underwriters that may make
    Internet distributions on the same basis as other allocations.
    In addition, Series&#160;F Preferred may be sold by the
    underwriters to securities dealers who resell Series&#160;F
    Preferred to online brokerage account holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The principal business address of Citigroup Global Markets Inc.
    is 388 Greenwich Street, New York, New York 10013. The principal
    business address of Merrill Lynch, Pierce, Fenner&#160;&#38;
    Smith Incorporated is 4 World Financial Center, New York, New
    York 10080. The principal business address of A.G.
    Edwards&#160;&#38; Sons, Inc. is One North Jefferson Avenue,
    St.&#160;Louis, Missouri 63101. The principal business address
    of Gabelli&#160;&#38; Company, Inc. is One Corporate Center,
    Rye, New York
    <FONT style="white-space: nowrap">10580-1422.</FONT>
</DIV>
<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain legal matters will be passed on by Willkie
    Farr&#160;&#38; Gallagher LLP, 787 Seventh Avenue, New York, New
    York 10019, counsel to the Fund in connection with the offering
    of the Series&#160;F Preferred, and by Simpson
    Thacher&#160;&#38; Bartlett, LLP, 425&#160;Lexington Avenue New
    York, New York 10017, counsel to the underwriters. Counsel for
    the Fund and for the underwriters will rely, as to certain
    matters of Maryland law, on Venable LLP, 1800&#160;Mercantile
    Bank and Trust Building, 2&#160;Hopkins Plaza, Baltimore,
    Maryland 21201.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    49
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='119'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The audited financial statements of the Fund as of
    December&#160;31, 2005, have been incorporated by reference into
    the SAI in reliance on the report of PricewaterhouseCoopers LLP,
    an independent registered public accounting firm, given on the
    authority of that firm as experts in accounting and auditing.
    The report of PricewaterhouseCoopers LLP is incorporated by
    reference into the SAI. PricewaterhouseCoopers LLP is located at
    300&#160;Madison Avenue, New York, New York 10017.
</DIV>
<A name='120'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ADDITIONAL
    INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board has approved, subject to shareholder and other
    regulatory approvals, the contribution of a portion of the
    Fund&#146;s assets to a newly formed non-diversified, closed-end
    investment company, The Gabelli Global Healthcare&#160;&#38;
    WellnessRx Trust (the &#147;Healthcare&#160;&#38; WellnessRx
    Trust&#148;). All of the Healthcare&#160;&#38; WellnessRx
    Trust&#146;s common stock would then be distributed to the
    common stockholders of the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund would contribute to the Healthcare&#160;&#38;
    WellnessRx Trust approximately $60&#160;million to
    $100&#160;million of its cash
    <FONT style="white-space: nowrap">and/or</FONT>
    securities and would then distribute all of the shares of the
    Healthcare&#160;&#38; WellnessRx Trust pro rata to the common
    stockholders of the Fund. The Healthcare&#160;&#38; WellnessRx
    Trust will seek to have its shares listed on the NYSE.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The transaction is expected to be voted upon at the Fund&#146;s
    Annual Meeting of Shareholders in May 2007. The Board will
    determine the amount of capital to be distributed, the number of
    shares to be distributed, and the record and distribution dates,
    which will be announced at a later time. The distribution will
    be made only by means of a prospectus. The transaction will not
    be concluded unless shareholder approval has been obtained and
    all required regulatory approvals, including by the Commission
    or its staff, have been obtained.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    * * *
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is subject to the informational requirements of the
    Securities Exchange Act of 1934, as amended, and the 1940 Act
    and in accordance therewith files reports and other information
    with the Commission. Reports, proxy statements and other
    information filed by the Fund with the Commission pursuant to
    the informational requirements of the Securities Exchange Act of
    1934 and the 1940 Act can be inspected and copied at the public
    reference facilities maintained by the Commission,
    450&#160;Fifth Street, N.W., Washington,&#160;D.C. 20549. The
    Commission maintains a web site at http://www.sec.gov containing
    reports, proxy and information statements and other information
    regarding registrants, including the Fund, that file
    electronically with the Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s common stock, Series&#160;B Preferred and
    Series&#160;D Preferred are listed on the NYSE. Reports, proxy
    statements and other information concerning the Fund and filed
    with the Commission by the Fund will be available for inspection
    at the NYSE, 20&#160;Broad Street, New York, New York 10005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus constitutes part of a Registration Statement
    filed by the Fund with the Commission under the Securities Act
    of 1933 and the 1940 Act. This prospectus omits certain of the
    information contained in the Registration Statement, and
    reference is hereby made to the Registration Statement and
    related exhibits for further information with respect to the
    Fund and the preferred stock offered hereby. Any statements
    contained herein concerning the provisions of any document are
    not necessarily complete, and, in each instance, reference is
    made to the copy of such document filed as an exhibit to the
    Registration Statement or otherwise filed with the Commission.
    Each such statement is qualified in its entirety by such
    reference. The complete Registration Statement may be obtained
    from the Commission upon payment of the fee prescribed by its
    rules and regulations or free of charge through the
    Commission&#146;s web site (http://www.sec.gov).
</DIV>
<A name='121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRIVACY
    PRINCIPLES OF THE FUND</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is committed to maintaining the privacy of its
    stockholders and to safeguarding their non-public personal
    information. The following information is provided to help you
    understand what personal information
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    50
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the Fund collects, how the Fund protects that information and
    why, in certain cases, the Fund may share information with
    select other parties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, the Fund does not receive any non-public personal
    information relating to its stockholders, although certain
    non-public personal information of its stockholders may become
    available to the Fund. The Fund does not disclose any non-public
    personal information about its stockholders or former
    stockholders to anyone, except as permitted by law or as is
    necessary in order to service stockholder accounts (for example,
    to a transfer agent or third party administrator).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund restricts access to non-public personal information
    about its stockholders 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 stockholders.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    51
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='123'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#201'><FONT style="font-size: 10pt">The Fund</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">S-1</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#202'><FONT style="font-size: 10pt">Investment
    Objectives and Policies</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">S-1</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#203'><FONT style="font-size: 10pt">Investment
    Restrictions</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#204'><FONT style="font-size: 10pt">Management of the
    Fund</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#205'><FONT style="font-size: 10pt">Portfolio
    Transactions</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">S-20</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#206'><FONT style="font-size: 10pt">Taxation</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#207'><FONT style="font-size: 10pt">Automatic Dividend
    Reinvestment and Voluntary Cash Purchase Plan</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#208'><FONT style="font-size: 10pt">Additional
    Information Concerning the Series&#160;F Preferred</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#209'><FONT style="font-size: 10pt">Moody&#146;s
    Guidelines</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#210'><FONT style="font-size: 10pt">Net Asset
    Value</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">S-37</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#211'><FONT style="font-size: 10pt">Beneficial
    Owners</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">S-38</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#212'><FONT style="font-size: 10pt">General
    Information</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">S-39</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#213'><FONT style="font-size: 10pt">Financial
    Statements</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">S-41</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#214'><FONT style="font-size: 10pt">Glossary</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">S-42</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No person has been authorized to give any information or to make
    any representations in connection with this offering other than
    those contained in this prospectus in connection with the offer
    contained herein, and, if given or made, such other information
    or representations must not be relied upon as having been
    authorized by the Fund, the Investment Adviser or the
    underwriters. Neither the delivery of this prospectus nor any
    sale made hereunder will, under any circumstances, create any
    implication that there has been no change in the affairs of the
    Fund since the date hereof or that the information contained
    herein is correct as of any time subsequent to its date. This
    prospectus does not constitute an offer to sell or a
    solicitation of an offer to buy any securities other than the
    securities to which it relates. This prospectus does not
    constitute an offer to sell or the solicitation of an offer to
    buy such securities in any circumstance in which such an offer
    or solicitation is unlawful.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    52
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='124'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;A&#151;CORPORATE
    BOND RATINGS<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MOODY&#146;S
    INVESTORS SERVICE, INC.</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aaa Bonds that are rated Aaa are judged to be of the best
    quality. They carry the smallest degree of investment risk and
    are generally referred to as &#147;gilt edge.&#148; Interest
    payments are protected by a large or exceptionally stable margin
    and principal is secure. While the various protective elements
    are likely to change, such changes as can be visualized are most
    unlikely to impair the fundamentally strong position of such
    issues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aa Bonds that are rated Aa are judged to be of high quality by
    all standards. Together with the Aaa group they comprise what
    are generally known as high grade bonds. They are rated lower
    than the best bonds because margins of protection may not be as
    large as in Aaa securities or fluctuation of protective elements
    may be of greater amplitude or there may be other elements
    present that make the long-term risk appear somewhat larger than
    in Aaa Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Bonds that are rated A possess many favorable investment
    attributes and are to be considered as upper-medium-grade
    obligations. Factors giving security to principal and interest
    are considered adequate, but elements may be present that
    suggest a susceptibility to impairment some time in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Baa Bonds that are rated Baa are considered as medium-grade
    obligations, i.e., they are neither highly protected nor poorly
    secured. Interest payments and principal security appear
    adequate for the present, but certain protective elements may be
    lacking or may be characteristically unreliable over any great
    length of time. Such bonds lack outstanding investment
    characteristics and in fact have speculative characteristics as
    well.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ba Bonds that are rated Ba are judged to have speculative
    elements; their future cannot be considered as well assured.
    Often the protection of interest and principal payments may be
    very moderate and thereby not well safeguarded during both good
    and bad times over the future. Uncertainty of position
    characterizes bonds in this class.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    B Bonds that are rated B generally lack characteristics of the
    desirable investment. Assurance of interest and principal
    payments or of maintenance of other terms of the contract over
    any long period of time may be small. Moody&#146;s applies
    numerical modifiers (1,&#160;2, and 3)&#160;with respect to the
    bonds rated Aa through B. The modifier 1 indicates that the
    company ranks in the higher end of its generic rating category;
    the modifier 2 indicates a mid-range ranking; and the modifier 3
    indicates that the company ranks in the lower end of its generic
    rating category.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Caa Bonds that are rated Caa are of poor standing. These issues
    may be in default or there may be present elements of danger
    with respect to principal or interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ca Bonds that are rated Ca represent obligations that are
    speculative in a high degree. Such issues are often in default
    or have other marked shortcomings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C Bonds that are rated C are the lowest rated class of bonds,
    and issues so rated can be regarded as having extremely poor
    prospects of ever attaining any real investment standing.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-1
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STANDARD&#160;&#38;
    POOR&#146;S RATINGS SERVICES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    AAA&#151;This is the highest rating assigned by S&#38;P to a
    debt obligation and indicates an extremely strong capacity to
    pay interest and repay principal. AA Debt rated AA has a very
    strong capacity to pay interest and repay principal and differs
    from AAA issues only in small degree.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A&#151;Principal and interest payments on bonds in this category
    are regarded as safe. Debt rated A has a strong capacity to pay
    interest and repay principal although they are somewhat more
    susceptible to the adverse effects of changes in circumstances
    and economic conditions than debt in higher rated categories.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    BBB&#151;This is the lowest investment grade. Debt rated BBB has
    an adequate capacity to pay interest and repay principal.
    Whereas it normally exhibits adequate protection parameters,
    adverse economic conditions or changing circumstances are more
    likely to lead to a weakened capacity to pay interest and repay
    principal for debt in this category than in higher rated
    categories.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Speculative Grade&#151;Debt rated BB, CCC, CC, and C are
    regarded, on balance, as predominantly speculative with respect
    to capacity to pay interest and repay principal in accordance
    with the terms of the obligation. BB indicates the lowest degree
    of speculation, and C the highest degree of speculation. While
    such debt will likely have some quality and protective
    characteristics, these are outweighed by large uncertainties or
    major exposures to adverse conditions. Debt rated C 1 is
    reserved for income bonds on which no interest is being paid and
    debt rated D is in payment default.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In July 1994, S&#38;P initiated an &#147;r&#148; symbol to its
    ratings. The &#147;r&#148; symbol is attached to derivatives,
    hybrids and certain other obligations that S&#38;P believes may
    experience high variability in expected returns due to noncredit
    risks created by the terms of the obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    AA to CCC may be modified by the addition of a plus or minus
    sign to show relative standing within the major categories.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;NR&#148; indicates that no public rating has been
    requested, that there is insufficient information on which to
    base a rating, or that S&#38;P does not rate a particular type
    of obligation as a matter of policy.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-2
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="y26698a2y2669800.gif" alt="[GABELLI LOGO]" >
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 24pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Gabelli Equity Trust&#160;Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">5,000,000&#160;Shares,&#160;&#160;%
    Series&#160;F Cumulative Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">(Liquidation Preference $25 Per
    Share)</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=72 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PROSPECTUS</B>
</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=72 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 15pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Citigroup</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 15pt">Merrill Lynch&#160;&#38;
    Co.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 15pt">A.G. Edwards</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 15pt">Gabelli&#160;&#38; Company,
    Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=0 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE INFORMATION IN THIS STATEMENT OF ADDITIONAL INFORMATION IS
    NOT COMPLETE AND MAY BE CHANGED. THE FUND&#160;MAY NOT SELL
    THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE
    SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS STATEMENT
    OF ADDITIONAL INFORMATION 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.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STATEMENT
    OF ADDITIONAL INFORMATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Gabelli Equity Trust Inc. (the &#147;Fund&#148;) is a
    non-diversified, closed-end management investment company
    registered under the Investment Company Act of 1940, as amended
    (the &#147;1940 Act&#148;). The Fund&#146;s primary investment
    objective is to achieve long-term growth of capital by investing
    primarily in a portfolio of equity securities consisting of
    common stock, preferred stock, convertible or exchangeable
    securities and warrants and rights to purchase such securities.
    Income is a secondary investment objective. The Fund commenced
    investment operations on August&#160;21, 1986. Gabelli Funds,
    LLC (the &#147;Investment Adviser&#148;) serves as investment
    adviser to the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Statement of Additional Information (the &#147;SAI&#148;)
    is not a prospectus, but should be read in conjunction with the
    prospectus for the Fund
    dated&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006 (the &#147;Prospectus&#148;). Investors should obtain and
    read the Prospectus prior to purchasing the&#160;&#160;%
    Series&#160;F Cumulative Preferred Stock (the
    &#147;Series&#160;F Preferred&#148;). A copy of the Prospectus
    may be obtained, without charge, by calling the Fund at
    800-GABELLI
    <FONT style="white-space: nowrap">(800-422-3554)</FONT>
    or
    <FONT style="white-space: nowrap">(914)&#160;921-5100.</FONT>
    This SAI incorporates by reference the entire Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Prospectus and this SAI omit certain of the information
    contained in the registration statement filed with the
    Securities and Exchange Commission (the &#147;Commission&#148;),
    450&#160;Fifth Street, N.W., Washington,&#160;D.C. The
    registration statement may be obtained from the Commission upon
    payment of the fee prescribed, or inspected at the
    Commission&#146;s office or via its website (http://www.sec.gov)
    at no charge.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Statement of Additional Information is
    dated&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">The Fund
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">S-1</FONT>
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Investment Objectives and Policies
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">S-1</FONT>
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Investment Restrictions
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">S-8
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Management of the Fund
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">S-10
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Portfolio Transactions
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">S-20</FONT>
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Taxation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">S-21
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Automatic Dividend Reinvestment
    and Voluntary Cash Purchase Plan
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">S-26
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Additional Information Concerning
    the Series&#160;F Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">S-27
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Moody&#146;s Guidelines
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">S-27
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Net Asset Value
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">S-37</FONT>
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Beneficial Owners
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">S-38</FONT>
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">General Information
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">S-39</FONT>
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Financial Statements
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">S-41</FONT>
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Glossary
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt"><FONT style="white-space: nowrap">S-42</FONT>
    </FONT>
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No person has been authorized to give any information or to make
    any representations in connection with this offering other than
    those contained in this prospectus in connection with the offer
    contained herein, and, if given or made, such other information
    or representations must not be relied upon as having been
    authorized by the Fund, the Investment Adviser or the
    underwriters. Neither the delivery of this prospectus nor any
    sale made hereunder will, under any circumstances, create any
    implication that there has been no change in the affairs of the
    Fund since the date hereof or that the information contained
    herein is correct as of any time subsequent to its date. This
    prospectus does not constitute an offer to sell or a
    solicitation of an offer to buy any securities other than the
    securities to which it relates. This prospectus does not
    constitute an offer to sell or the solicitation of an offer to
    buy such securities in any circumstance in which such an offer
    or solicitation is unlawful.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Prospectus and this SAI omit certain information contained
    in the registration statement filed with the Commission,
    Washington D.C. The registration statement may be obtained from
    the Commission upon payment of the fee prescribed, or inspected
    at the Commission&#146;s office at no charge. This Statement of
    Additional Information is
    dated&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-i
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='201'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    FUND</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund was incorporated in Maryland on May&#160;20, 1986 and
    is a non-diversified, closed-end management investment company
    registered under the 1940 Act. The common stock of the Fund is
    listed on the New York Stock Exchange (the &#147;NYSE&#148;)
    under the symbol &#147;GAB.&#148; The Fund&#146;s 7.20% Tax
    Advantaged Series&#160;B Cumulative Preferred Stock (the
    &#147;Series&#160;B Preferred&#148;) is listed and traded on the
    NYSE under the symbol &#147;GAB PrB&#148;. The Fund&#146;s
    5.875% Series&#160;D Cumulative Preferred Stock (the
    &#147;Series&#160;D Preferred&#148;) is listed and traded on the
    NYSE under the symbol &#147;GAB PrD&#148;.
</DIV>
<A name='202'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    OBJECTIVES AND POLICIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Objectives</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s primary investment objective is to achieve
    long-term growth of capital by investing primarily in a
    portfolio of equity securities consisting of common stock,
    preferred stock, convertible or exchangeable securities and
    warrants and rights to purchase such securities selected by the
    Investment Adviser. Income is a secondary investment objective.
    Under normal market conditions, the Fund will invest at least
    80% of the value of its total assets in equity securities. See
    &#147;Investment Objectives and Policies&#148; in the Prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Practices</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Special Situations.</I>&#160;&#160;Although the Fund
    typically invests in the securities of companies on the basis of
    fundamental value, the Fund from time to time may, as a
    non-principal investment strategy, invest in companies that are
    determined by the Investment Adviser to possess &#147;special
    situation&#148; characteristics. In general, a special situation
    company is a company whose securities are expected to increase
    in value solely by reason of a development particularly or
    uniquely applicable to the company. Developments that may create
    special situations include, among others, a liquidation,
    reorganization, recapitalization or merger, material litigation,
    technological breakthrough or new management or management
    policies. The principal risk associated with investments in
    special situation companies is that the anticipated development
    thought to create the special situation may not occur and the
    investment therefore may not appreciate in value or may decline
    in value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Options.</I>&#160;&#160;The Fund may, subject to guidelines
    of the Board of Directors (the &#147;Board&#148;), purchase or
    sell (i.e., write) options on securities, securities indices and
    foreign currencies which are listed on a national securities
    exchange or in the United States
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    (&#147;OTC&#148;) markets as a means of achieving additional
    return or of hedging the value of the Fund&#146;s portfolio.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may write covered call options on common stocks that it
    owns or has an immediate right to acquire through conversion or
    exchange of other securities in an amount not to exceed 25% of
    total assets or invest up to 10% of its total assets in the
    purchase of put options on common stocks that the Fund owns or
    may acquire through the conversion or exchange of other
    securities that it owns.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A call option is a contract that gives the holder of the option
    the right to buy from the writer (seller) of the call option, in
    return for a premium paid, the security or currency underlying
    the option at a specified exercise price at any time during the
    term of the option. The writer of the call option has the
    obligation, upon exercise of the option, to deliver the
    underlying security or currency upon payment of the exercise
    price during the option period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A put option is the reverse of a call option, giving the holder
    the right, in return for a premium, to sell the underlying
    security or currency to the writer, at a specified price, and
    obligating the writer to purchase the underlying security or
    currency from the holder at that price. The writer of the put,
    who receives the premium, has the obligation to buy the
    underlying security or currency upon exercise, at the exercise
    price during the option period.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Fund has written an option, it may terminate its
    obligation by effecting a closing purchase transaction. This is
    accomplished by purchasing an option of the same series as the
    option previously written. There can be no assurance that a
    closing purchase transaction can be effected when the Fund so
    desires.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An exchange-traded option may be closed out only on an exchange
    which provides a secondary market for an option of the same
    series. Although the Fund will generally purchase or write only
    those options for which there appears to be an active secondary
    market, there is no assurance that a liquid secondary market on
    an exchange will exist for any particular option.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A call option is &#147;covered&#148; if the Fund owns the
    underlying instrument covered by the call or has an absolute and
    immediate right to acquire that instrument without additional
    cash consideration upon conversion or exchange of another
    instrument held in its portfolio (or for additional cash
    consideration held in a segregated account by its custodian). A
    call option is also covered if the Fund holds a call on the same
    instrument as the call written where the exercise price of the
    call held is (i)&#160;equal to or less than the exercise price
    of the call written or (ii)&#160;greater than the exercise price
    of the call written if the difference is maintained by the Fund
    in cash, U.S.&#160;Government Obligations (as defined under
    &#147;Investment Restrictions&#148;) or other high-grade
    short-term obligations in a segregated account with its
    custodian. A put option is &#147;covered&#148; if the Fund
    maintains cash or other high grade short-term obligations with a
    value equal to the exercise price in a segregated account with
    its custodian, or else holds a put on the same instrument as the
    put written where the exercise price of the put held is equal to
    or greater than the exercise price of the put written. If the
    Fund has written an option, it may terminate its obligation by
    effecting a closing purchase transaction. This is accomplished
    by purchasing an option of the same series as the option
    previously written. However, once the Fund has been assigned an
    exercise notice, the Fund will be unable to effect a closing
    purchase transaction. Similarly, if the Fund is the holder of an
    option it may liquidate its position by effecting a closing sale
    transaction. This is accomplished by selling an option of the
    same series as the option previously purchased. There can be no
    assurance that either a closing purchase or sale transaction can
    be effected when the Fund so desires.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund will realize a profit from a closing transaction if the
    price of the transaction is less than the premium received from
    writing the option or is more than the premium paid to purchase
    the option; the Fund will realize a loss from a closing
    transaction if the price of the transaction is more than the
    premium received from writing the option or is less than the
    premium paid to purchase the option. Since call option prices
    generally reflect increases in the price of the underlying
    security, any loss resulting from the repurchase of a call
    option may also be wholly or partially offset by unrealized
    appreciation of the underlying security. Other principal factors
    affecting the market value of a put or call option include
    supply and demand, interest rates, the current market price and
    price volatility of the underlying security and the time
    remaining until the expiration date. Gains and losses on
    investments in options depend, in part, on the ability of the
    Investment Adviser to predict correctly the effect of these
    factors. The use of options cannot serve as a complete hedge
    since the price movement of securities underlying the options
    will not necessarily follow the price movements of the portfolio
    securities subject to the hedge.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An option position may be closed out only on an exchange which
    provides a secondary market for an option of the same series or
    in a private transaction. Although the Fund will generally
    purchase or write only those options for which there appears to
    be an active secondary market, there is no assurance that a
    liquid secondary market on an exchange will exist for any
    particular option. In such event it might not be possible to
    effect closing transactions in particular options, so the Fund
    would have to exercise its options in order to realize any
    profit and would incur brokerage commissions upon the exercise
    of call options and upon the subsequent disposition of
    underlying securities for the exercise of put options. If the
    Fund, as a covered call option writer, is unable to effect a
    closing purchase transaction in a secondary market, it will not
    be able to sell the underlying security until the option expires
    or until the Fund delivers the underlying security upon exercise
    or otherwise covers the position.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to options on securities, the Fund may also purchase
    and sell call and put options on securities indices. A stock
    index reflects in a single number the market value of many
    different stocks.
</DIV>

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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Relative values are assigned to the stocks included in an index
    and the index fluctuates with changes in the market values of
    the stocks. The options give the holder the right to receive a
    cash settlement during the term of the option based on the
    difference between the exercise price and the value of the
    index. By writing a put or call option on a securities index,
    the Fund is obligated, in return for the premium received, to
    make delivery of this amount. The Fund may offset its position
    in the stock index options prior to expiration by entering into
    a closing transaction on an exchange, or it may let the option
    expire unexercised.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may also buy or sell put and call options on foreign
    currencies. A put option on a foreign currency gives the
    purchaser of the option the right to sell a foreign currency at
    the exercise price until the option expires. A call option on a
    foreign currency gives the purchaser of the option the right to
    purchase the currency at the exercise price until the option
    expires. Currency options traded on U.S.&#160;or other exchanges
    may be subject to position limits which may limit the ability of
    the Fund to reduce foreign currency risk using such options.
    <FONT style="white-space: nowrap">Over-the-counter</FONT>
    options differ from exchange-traded options in that they are
    two-party contracts with price and other terms negotiated
    between buyer and seller and generally do not have as much
    market liquidity as exchange-traded options.
    <FONT style="white-space: nowrap">Over-the-counter</FONT>
    options are illiquid securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Use of options on securities indices entails the risk that
    trading in the options may be interrupted if trading in certain
    securities included in the index is interrupted. The Fund will
    not purchase these options unless the Investment Adviser is
    satisfied with the development, depth and liquidity of the
    market and the Investment Adviser believes the options can be
    closed out.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Price movements in the portfolio of the Fund may not correlate
    precisely with the movements in the level of an index and,
    therefore, the use of options on indexes cannot serve as a
    complete hedge and will depend, in part, on the ability of the
    Investment Adviser to predict correctly movements in the
    direction of the stock market generally or of a particular
    industry. Because options on securities indexes require
    settlement in cash, the Fund may be forced to liquidate
    portfolio securities to meet settlement obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although the Investment Adviser will attempt to take appropriate
    measures to minimize the risks relating to the Fund&#146;s
    writing of put and call options, there can be no assurance that
    the Fund will succeed in any option writing program it
    undertakes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Futures Contracts and Options on Futures.</I>&#160;&#160;A
    &#147;sale&#148; of a futures contract (or a &#147;short&#148;
    futures position) means the assumption of a contractual
    obligation to deliver the assets underlying the contract at a
    specified price at a specified future time. A
    &#147;purchase&#148; of a futures contract (or a
    &#147;long&#148; futures position) means the assumption of a
    contractual obligation to acquire the assets underlying the
    contract at a specified price at a specified future time.
    Certain futures contracts, including stock and bond index
    futures, are settled on a net cash payment basis rather than by
    the sale and delivery of the assets underlying the futures
    contracts. No consideration will be paid or received by the Fund
    upon the purchase or sale of a futures contract. Initially, the
    Fund will be required to deposit with the broker an amount of
    cash or cash equivalents equal to approximately 1% to 10% of the
    contract amount (this amount is subject to change by the
    exchange or board of trade on which the contract is traded and
    brokers or members of such board of trade may charge a higher
    amount). This amount is known as &#147;initial margin&#148; and
    is in the nature of a performance bond or good faith deposit on
    the contract. Subsequent payments, known as &#147;variation
    margin,&#148; to and from the broker will be made daily as the
    price of the index or security underlying the futures contracts
    fluctuates. At any time prior to the expiration of a futures
    contract, the Fund may close the position by taking an opposite
    position, which will operate to terminate its existing position
    in the contract.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An option on a futures contract gives the purchaser the right,
    in return for the premium paid, to assume a position in a
    futures contract at a specified exercise price at any time prior
    to the expiration of the option. Upon exercise of an option, the
    delivery of the futures positions by the writer of the option to
    the holder of the option will be accompanied by delivery of the
    accumulated balance in the writer&#146;s futures margin account
    attributable to that contract, which represents the amount by
    which the market price of the futures contract exceeds, in the
    case of a call, or is less than, in the case of a put, the
    exercise price of the option on the futures contract. The
    potential loss related to the purchase of an option on futures
    contracts is limited to the premium paid for the option (plus
    transaction costs). Because the value of the option purchased is
    fixed at the
</DIV>

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    <BR>
    S-3
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    point of sale, there are no daily cash payments by the purchaser
    to reflect changes in the value of the underlying contract;
    however, the value of the option does change daily and that
    change would be reflected in the net assets of the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Futures and options on futures entail certain risks, including
    but not limited to the following: no assurance that futures
    contracts or options on futures can be offset at favorable
    prices, possible reduction of the yield of the Fund due to the
    use of hedging, possible reduction in value of both the
    securities hedged and the hedging instrument, possible lack of
    liquidity due to daily limits on price fluctuations, imperfect
    correlation between the contracts and the securities being
    hedged, losses from investing in futures transactions that are
    potentially unlimited and the segregation requirements described
    below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event the Fund sells a put option or enters into long
    futures contracts, under current interpretations of the 1940
    Act, an amount of cash, obligations of the U.S.&#160;government
    and its agencies and instrumentalities or other liquid
    securities equal to the market value of the contract must be
    deposited and maintained in a segregated account with the
    custodian of the Fund to collateralize the positions, thereby
    ensuring that the use of the contract is unleveraged. For short
    positions in futures contracts and sales of call options, the
    Fund may establish a segregated account (not with a futures
    commission merchant or broker) with cash or liquid securities
    that, when added to amounts deposited with a futures commission
    merchant or a broker as margin, equal the market value of the
    instruments or currency underlying the futures contract or call
    option or the market price at which the short positions were
    established.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest Rate Futures Contracts and Options
    Thereon.</I>&#160;&#160;The Fund may purchase or sell interest
    rate futures contracts to take advantage of, or to protect the
    Fund, against fluctuations in interest rates affecting the value
    of debt securities which the Fund holds or intends to acquire.
    For example, if interest rates are expected to increase, the
    Fund might sell futures contracts on debt securities the values
    of which historically have a high degree of positive correlation
    to the values of the Fund&#146;s portfolio securities. Such a
    sale would have an effect similar to selling an equivalent value
    of the Fund&#146;s portfolio securities. If interest rates
    increase, the value of the Fund&#146;s portfolio securities will
    decline, but the value of the futures contracts to the Fund will
    increase at approximately an equivalent rate, thereby keeping
    the net asset value of the Fund from declining as much as it
    otherwise would have. The Fund could accomplish similar results
    by selling debt securities with longer maturities and investing
    in debt securities with shorter maturities when interest rates
    are expected to increase. However, since the futures market may
    be more liquid than the cash market, the use of futures
    contracts as a risk management technique allows the Fund to
    maintain a defensive position without having to sell its
    portfolio securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Similarly, the Fund may purchase interest rate futures contracts
    when it is expected that interest rates may decline. The
    purchase of futures contracts for this purpose constitutes a
    hedge against increases in the price of debt securities (caused
    by declining interest rates) which the Fund intends to acquire.
    Since fluctuation in the value of appropriately selected futures
    contracts should approximate those of the debt securities that
    will be purchased, the Fund can take advantage of the
    anticipated rise in the cost of the debt securities without
    actually buying them. Subsequently, the Fund can make its
    intended purchase of the debt securities in the cash market and
    concurrently liquidate its futures position. To the extent the
    Fund enters into futures contracts for this purpose, it will
    maintain, in a segregated asset account with the Fund&#146;s
    custodian, assets sufficient to cover the Fund&#146;s
    obligations with respect to such futures contracts, which will
    consist of cash or other liquid securities from its portfolio in
    an amount equal to the difference between the fluctuating market
    value of such futures contracts and the aggregate value of the
    initial margin deposited by the Fund with its custodian with
    respect to such futures contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchase of a call option on a futures contract is similar
    in some respects to the purchase of a call option on an
    individual security. Depending on the pricing of the option
    compared to either the price of the futures contract upon which
    it is based or the price of the underlying debt securities, it
    may or may not be less risky than ownership of the futures
    contract or underlying debt securities. As with the purchase of
    futures contracts, when the Fund is not fully invested it may
    purchase a call option on a futures contract to hedge against a
    market advance due to declining interest rates.
</DIV>

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    <BR>
    S-4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchase of a put option on a futures contract is similar to
    the purchase of protective put options on portfolio securities.
    The Fund will purchase a put option on a futures contract to
    hedge the Fund&#146;s portfolio against the risk of rising
    interest rates and consequent reduction in the value of
    portfolio securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The writing of a call option on a futures contract constitutes a
    partial hedge against declining prices of the securities which
    are deliverable upon exercise of the futures contract. If the
    futures price at expiration of the option is below the exercise
    price, the Fund will retain the full amount of the option
    premium, which provides a partial hedge against any decline that
    may have occurred in the Fund&#146;s portfolio holdings. The
    writing of a put option on a futures contract constitutes a
    partial hedge against increasing prices of the securities that
    are deliverable upon exercise of the futures contract. If the
    futures price at expiration of the option is higher than the
    exercise price, the Fund will retain the full amount of the
    option premium, which provides a partial hedge against any
    increase in the price of debt securities that the Fund intends
    to purchase. If a put or call option the Fund has written is
    exercised, the Fund will incur a loss which will be reduced by
    the amount of the premium it received. Depending on the degree
    of correlation between changes in the value of its portfolio
    securities and changes in the value of its futures positions,
    the Fund&#146;s losses from options on futures it has written
    may to some extent be reduced or increased by changes in the
    value of its portfolio securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Currency Futures and Options
    Thereon.</I>&#160;&#160;Generally, foreign currency futures
    contracts and options thereon are similar to the interest rate
    futures contracts and options thereon discussed previously. By
    entering into currency futures and options thereon, the Fund
    will seek to establish the rate at which it will be entitled to
    exchange U.S.&#160;dollars for another currency at a future
    time. By selling currency futures, the Fund will seek to
    establish the number of dollars it will receive at delivery for
    a certain amount of a foreign currency. In this way, whenever
    the Fund anticipates a decline in the value of a foreign
    currency against the U.S.&#160;dollar, the Fund can attempt to
    &#147;lock in&#148; the U.S.&#160;dollar value of some or all of
    the securities held in its portfolio that are denominated in
    that currency. By purchasing currency futures, the Fund can
    establish the number of dollars it will be required to pay for a
    specified amount of a foreign currency in a future month. Thus,
    if the Fund intends to buy securities in the future and expects
    the U.S.&#160;dollar to decline against the relevant foreign
    currency during the period before the purchase is effected, the
    Fund can attempt to lock in the price in U.S.&#160;dollars of
    the securities it intends to acquire.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchase of options on currency futures will allow the Fund,
    for the price of the premium and related transaction costs it
    must pay for the option, to decide whether or not to buy (in the
    case of a call option) or to sell (in the case of a put option)
    a futures contract at a specified price at any time during the
    period before the option expires. If the Investment Adviser, in
    purchasing an option, has been correct in its judgment
    concerning the direction in which the price of a foreign
    currency would move as against the U.S.&#160;dollar, the Fund
    may exercise the option and thereby take a futures position to
    hedge against the risk it had correctly anticipated or close out
    the option position at a gain that will offset, to some extent,
    currency exchange losses otherwise suffered by the Fund. If
    exchange rates move in a way the Fund did not anticipate,
    however, the Fund will have incurred the expense of the option
    without obtaining the expected benefit; any such movement in
    exchange rates may also thereby reduce, rather than enhance, the
    Fund&#146;s profits on its underlying securities transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Securities Index Futures Contracts and Options
    Thereon.</I>&#160;&#160;Purchases or sales of securities index
    futures contracts are used for hedging purposes to attempt to
    protect the Fund&#146;s current or intended investments from
    broad fluctuations in stock or bond prices. For example, the
    Fund may sell securities index futures contracts in anticipation
    of or during a market decline to attempt to offset the decrease
    in market value of the Fund&#146;s securities portfolio that
    might otherwise result. If such decline occurs, the loss in
    value of portfolio securities may be offset, in whole or part,
    by gains on the futures position. When the Fund is not fully
    invested in the securities market and anticipates a significant
    market advance, it may purchase securities index futures
    contracts in order to gain rapid market exposure that may, in
    part or entirely, offset increases in the cost of securities
    that the Fund intends to purchase. As such purchases are made,
    the corresponding positions in securities index futures
    contracts will be closed out. The Fund may write put and call
    options on securities index futures contracts for hedging
    purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Limitations on the Purchase and Sale of Futures Contracts and
    Options on Futures Contracts.</I>&#160;&#160;The Investment
    Adviser has claimed an exclusion from the definition of the term
    &#147;commodity pool operator&#148; under
</DIV>

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    <BR>
    S-5
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the Commodity Exchange Act and therefore is not subject to
    registration under the Commodity Exchange Act. Accordingly, the
    Fund&#146;s investments in derivative instruments described in
    the Prospectus and this SAI are not limited by or subject to
    regulation under the Commodity Exchange Act or otherwise
    regulated by the Commodity Futures Trading Commission.
    Nevertheless, the Fund&#146;s investment restrictions place
    certain limitations and prohibitions on the Fund&#146;s ability
    to purchase or sell commodities or commodity contracts. See
    &#147;Investment Restrictions.&#148; Under these restrictions,
    the Fund may not enter into futures contracts or options on
    futures contracts unless (i)&#160;the aggregate initial margins
    and premiums do not exceed 5% of the fair market value of the
    Fund&#146;s total assets and (ii)&#160;the aggregate market
    value of the Fund&#146;s outstanding futures contracts and the
    market value of the currencies and futures contracts subject to
    outstanding options written by the Fund, as the case may be, do
    not exceed 50% of the market value of the Fund&#146;s total
    assets. In addition, investment in futures contracts and related
    options generally will be limited by the Rating Agency
    Guidelines (as defined in the Glossary) applicable to any of the
    Fund&#146;s Outstanding Preferred Stock (as defined in the
    Glossary).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Forward Currency Exchange Contracts.</I>&#160;&#160;The Fund
    may engage in currency transactions other than on futures
    exchanges to protect against future changes in the level of
    future currency exchange rates. The Fund will conduct such
    currency exchange transactions either on a spot, i.e., cash,
    basis at the rate then prevailing in the currency exchange
    market or on a forward basis, by entering into forward contracts
    to purchase or sell currency. A forward contract on foreign
    currency involves an obligation to purchase or sell a specific
    currency at a future date, which may be any fixed number of days
    agreed upon by the parties from the date of the contract, at a
    price set on the date of the contract. The risk of shifting of a
    forward currency contract will be substantially the same as a
    futures contract having similar terms. The Fund&#146;s dealing
    in forward currency exchange will be limited to hedging
    involving either specific transactions or portfolio positions.
    Transaction hedging is the purchase or sale of forward currency
    with respect to specific receivables or payables of the Fund
    generally arising in connection with the purchase or sale of its
    portfolio securities and accruals of interest receivable and
    Fund expenses. Position hedging is the forward sale of currency
    with respect to portfolio security positions denominated or
    quoted in that currency or in a currency bearing a high degree
    of positive correlation to the value of that currency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may not position hedge with respect to a particular
    currency for an amount greater than the aggregate market value
    (determined at the time of making any sale of forward currency)
    of the securities held in its portfolio denominated or quoted
    in, or currently convertible into, such currency. If the Fund
    enters into a position hedging transaction, the Fund&#146;s
    custodian or subcustodian will place cash or other liquid
    securities in a segregated account of the Fund in an amount
    equal to the value of the Fund&#146;s total assets committed to
    the consummation of the given forward contract. If the value of
    the securities placed in the segregated account declines,
    additional cash or securities will be placed in the account so
    that the value of the account will, at all times, equal the
    amount of the Fund&#146;s commitment with respect to the forward
    contract.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At or before the maturity of a forward sale contract, the Fund
    may either sell a portfolio security and make delivery of the
    currency, or retain the security and offset its contractual
    obligations to deliver the currency by purchasing a second
    contract pursuant to which the Fund will obtain, on the same
    maturity date, the same amount of the currency which it is
    obligated to deliver. If the Fund retains the portfolio security
    and engages in an offsetting transaction, the Fund, at the time
    of execution of the offsetting transaction, will incur a gain or
    a loss to the extent that movement has occurred in forward
    contract prices. Should forward prices decline during the period
    between the Fund&#146;s entering into a forward contract for the
    sale of a currency and the date it enters into an offsetting
    contract for the purchase of the currency, the Fund will realize
    a gain to the extent the price of the currency it has agreed to
    purchase is less than the price of the currency it has agreed to
    sell. Should forward prices increase, the Fund will suffer a
    loss to the extent the price of the currency it has agreed to
    purchase exceeds the price of the currency it has agreed to
    sell. Closing out forward purchase contracts involves similar
    offsetting transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The cost to the Fund of engaging in currency transactions varies
    with factors such as the currency involved, the length of the
    contract period and the market conditions then prevailing.
    Because forward transactions in currency exchange are usually
    conducted on a principal basis, no fees or commissions are
    involved. The use of foreign currency contracts does not
    eliminate fluctuations in the underlying prices of the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-6
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    securities, but it does establish a rate of exchange that can be
    achieved in the future. In addition, although forward currency
    contracts limit the risk of loss due to a decline in the value
    of the hedged currency, they also limit any potential gain that
    might result if the value of the currency increases.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a decline in any currency is generally anticipated by the
    Investment Adviser, the Fund may not be able to contract to sell
    the currency at a price above the level to which the currency is
    anticipated to decline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Special Risk Considerations Relating to Futures and Options
    Thereon.</I>&#160;&#160;The Fund&#146;s ability to establish and
    close out positions in futures contracts and options thereon
    will be subject to the development and maintenance of liquid
    markets. Although the Fund generally will purchase or sell only
    those futures contracts and options thereon for which there
    appears to be a liquid market, there is no assurance that a
    liquid market on an exchange will exist for any particular
    futures contract or option thereon at any particular time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event no liquid market exists for a particular futures
    contract or option thereon in which the Fund maintains a
    position, it will not be possible to effect a closing
    transaction in that contract or to do so at a satisfactory price
    and the Fund would have to either make or take delivery under
    the futures contract or, in the case of a written option, wait
    to sell the underlying securities until the option expires or is
    exercised or, in the case of a purchased option, exercise the
    option. In the case of a futures contract or an option thereon
    which the Fund has written and which the Fund is unable to
    close, the Fund would be required to maintain margin deposits on
    the futures contract or option thereon and to make variation
    margin payments until the contract is closed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Successful use of futures contracts and options thereon and
    forward contracts by the Fund is subject to the ability of the
    Investment Adviser to predict correctly movements in the
    direction of interest and foreign currency rates. If the
    Investment Adviser&#146;s expectations are not met, the Fund
    will be in a worse position than if a hedging strategy had not
    been pursued. For example, if the Fund has hedged against the
    possibility of an increase in interest rates that would
    adversely affect the price of securities in its portfolio and
    the price of such securities increases instead, the Fund will
    lose part or all of the benefit of the increased value of its
    securities because it will have offsetting losses in its futures
    positions. In addition, in such situations, if the Fund has
    insufficient cash to meet daily variation margin requirements,
    it may have to sell securities to meet the requirements. These
    sales may be, but will not necessarily be, at increased prices
    which reflect the rising market. The Fund may have to sell
    securities at a time when it is disadvantageous to do so.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Additional Risks of Foreign Options, Futures Contracts,
    Options on Futures Contracts and Forward
    Contracts.</I>&#160;&#160;Options, futures contracts and options
    thereon and forward contracts on securities and currencies may
    be traded on foreign exchanges. Such transactions may not be
    regulated as effectively as similar transactions in the U.S.,
    may not involve a clearing mechanism and related guarantees, and
    are subject to the risk of governmental actions affecting
    trading in, or the prices of, foreign securities. The value of
    such positions also could be adversely affected by
    (i)&#160;other complex foreign political, legal and economic
    factors, (ii)&#160;lesser availability than in the U.S.&#160;of
    data on which to make trading decisions, (iii)&#160;delays in
    the Fund&#146;s ability to act upon economic events occurring in
    the foreign markets during non-business hours in the U.S.,
    (iv)&#160;the imposition of different exercise and settlement
    terms and procedures and margin requirements than in the U.S.
    and (v)&#160;lesser trading volume.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Exchanges on which options, futures and options on futures are
    traded may impose limits on the positions that the Fund may take
    in certain circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Risks of Currency Transactions.</I>&#160;&#160;Currency
    transactions are also subject to risks different from those of
    other portfolio transactions. Because currency control is of
    great importance to the issuing governments and influences
    economic planning and policy, purchases and sales of currency
    and related instruments can be adversely affected by government
    exchange controls, limitations or restrictions on repatriation
    of currency, and manipulation, or exchange restrictions imposed
    by governments. These forms of governmental action can result in
    losses to the Fund if it is unable to deliver or receive
    currency or monies in settlement of obligations and could also
    cause hedges it has entered into to be rendered useless,
    resulting in full currency exposure as well as incurring
    transaction costs.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-7
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>When Issued, Delayed Delivery Securities and Forward
    Commitments.</I>&#160;&#160;The Fund may enter into forward
    commitments for the purchase or sale of securities, including on
    a &#147;when issued&#148; or &#147;delayed delivery&#148; basis,
    in excess of customary settlement periods for the type of
    security involved. In some cases, a forward commitment may be
    conditioned upon the occurrence of a subsequent event, such as
    approval and consummation of a merger, corporate reorganization
    or debt restructuring, i.e., a when, as and if issued security.
    When such transactions are negotiated, the price is fixed at the
    time of the commitment, with payment and delivery taking place
    in the future, generally a month or more after the date of the
    commitment. While it will only enter into a forward commitment
    with the intention of actually acquiring the security, the Fund
    may sell the security before the settlement date if it is deemed
    advisable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Securities purchased under a forward commitment are subject to
    market fluctuation, and no interest (or dividends) accrues to
    the Fund prior to the settlement date. The Fund will segregate
    with its custodian cash or liquid securities in an aggregate
    amount at least equal to the amount of its outstanding forward
    commitments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Restricted and Illiquid Securities.</I>&#160;&#160;The Fund
    may invest up to a total of 10% of its net assets in securities
    that are subject to restrictions on resale and securities the
    markets for which are illiquid, including repurchase agreements
    with more than seven days to maturity. Illiquid securities
    include securities the disposition of which is subject to
    substantial legal or contractual restrictions. The sale of
    illiquid securities often requires more time and results in
    higher brokerage charges or dealer discounts and other selling
    expenses than does the sale of securities eligible for trading
    on national securities exchanges or in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    markets. Restricted securities may sell at a price lower than
    similar securities that are not subject to restrictions on
    resale. Unseasoned issuers are companies (including
    predecessors) that have operated less than three years. The
    continued liquidity of such securities may not be as well
    assured as that of publicly traded securities, and accordingly
    the Board will monitor their liquidity. The Board will review
    pertinent factors such as trading activity, reliability of price
    information and trading patterns of comparable securities in
    determining whether to treat any such security as liquid for
    purposes of the foregoing 10% test. To the extent the Board
    treats such securities as liquid, temporary impairments to
    trading patterns of such securities may adversely affect the
    Fund&#146;s liquidity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In accordance with pronouncements of the Commission, the Fund
    may invest in restricted securities that can be traded among
    qualified institutional buyers under Rule&#160;144A under the
    Securities Act of 1933, as amended (the &#147;Securities
    Act&#148;), without registration and may treat them as liquid
    for purposes of the foregoing 10% test if such securities are
    found to be liquid. The Board has adopted guidelines and
    delegated to the Investment Adviser, subject to the supervision
    of the Board, the function of determining and monitoring the
    liquidity of particular Rule&#160;144A securities.
</DIV>
<A name='203'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    RESTRICTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund operates under the following restrictions that
    constitute fundamental policies under the 1940 Act and that,
    except as otherwise noted, cannot be changed without the
    affirmative vote of a majority, as defined in the 1940 Act, of
    the outstanding voting securities of the Fund (voting together
    as a single class). In addition, pursuant to the
    Articles&#160;Supplementary, the affirmative vote of a majority,
    as defined in the 1940 Act, of the outstanding preferred stock
    of the Fund (voting separately as a single class) is also
    required to change a fundamental policy, as defined in the 1940
    Act. For purposes of the preferred stock voting rights described
    in the foregoing sentence, except as otherwise required under
    the 1940 Act, the majority of the outstanding preferred stock
    means, in accordance with Section&#160;2(a)(42) of the 1940 Act,
    the vote of (i)&#160;of 67% or more of the shares of preferred
    stock present at the stockholders meeting called for such vote,
    if the holders of more than 50% of the outstanding preferred
    stock are present or represented by proxy or (ii)&#160;more than
    50% of the outstanding preferred stock, whichever is less.
    Except as otherwise noted, all percentage limitations set forth
    below apply immediately after a purchase or initial investment
    and any subsequent change in any applicable percentage resulting
    from market fluctuations does not require any action. The Fund
    may not:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Invest 25% or more of its total assets, taken at market
    value at the time of each investment, in the securities of
    issuers in any particular industry. This restriction does not
    apply to investments in direct
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-8
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    obligations of the United States or by its agencies or
    instrumentalities that are entitled to the full faith and credit
    of the United States and that, other than United States Treasury
    Bills, provide for the periodic payment of interest and the full
    payment of principal at maturity or call for redemption
    (&#147;U.S.&#160;Government Obligations&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Purchase securities of other investment companies,
    except in connection with a merger, consolidation, acquisition
    or reorganization, if more than 10% of the market value of the
    total assets of the Fund would be invested in securities of
    other investment companies, more than 5% of the market value of
    the total assets of the Fund would be invested in the securities
    of any one investment company or the Fund would own more than 3%
    of any other investment company&#146;s securities, provided,
    however, this restriction shall not apply to securities of any
    investment company organized by the Fund that are to be
    distributed pro rata as a dividend to its stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Purchase or sell commodities or commodity contracts
    except that the Fund may purchase or sell futures contracts and
    related options thereon if immediately thereafter (i)&#160;no
    more than 5% of its total assets are invested in margins and
    premiums and (ii)&#160;the aggregate market value of its
    outstanding futures contracts and market value of the currencies
    and futures contracts subject to outstanding options written by
    the Fund does not exceed 50% of the market value of its total
    assets. The Fund may not purchase or sell real estate, provided
    that the Fund may invest in securities secured by real estate or
    interests therein or issued by companies which invest in real
    estate or interests therein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Purchase any securities on margin or make short sales,
    except that the Fund may obtain such short-term credit as may be
    necessary for the clearance of purchases and sales of portfolio
    securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Make loans of money, except by the purchase of a portion
    of publicly distributed debt obligations in which the Fund may
    invest, and repurchase agreements with respect to those
    obligations, consistent with its investment objectives and
    policies. The Fund reserves the authority to make loans of its
    portfolio securities to financial intermediaries in an aggregate
    amount not exceeding 20% of its total assets. Any such loans may
    only be made upon approval of, and subject to any conditions
    imposed by, the Board. Because these loans would at all times be
    fully collateralized, the risk of loss in the event of default
    of the borrower should be slight.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;Borrow money, except that the Fund may borrow from banks
    and other financial institutions on an unsecured basis, in an
    amount not exceeding 10% of its total assets, to finance the
    repurchase of its stock. The Fund also may borrow money on a
    secured basis from banks as a temporary measure for
    extraordinary or emergency purposes. Temporary borrowings may
    not exceed 5% of the value of the total assets of the Fund at
    the time the loan is made. The Fund may pledge up to 10% of the
    lesser of the cost or value of its total assets to secure
    temporary borrowings. The Fund will not borrow for investment
    purposes. Immediately after any borrowing, the Fund will
    maintain asset coverage of not less than 300% with respect to
    all borrowings. While the borrowing of the Fund exceeds 5% of
    its respective total assets, the Fund will make no further
    purchases of securities, although this limitation will not apply
    to repurchase transactions as described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;Issue senior securities, except to the extent permitted
    by applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;Underwrite securities of other issuers except insofar as
    the Fund may be deemed an underwriter under the Securities Act
    in selling portfolio securities; provided, however, this
    restriction shall not apply to securities of any investment
    company organized by the Fund that are to be distributed pro
    rata as a dividend to its stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;Invest more than 10% of its total assets in illiquid
    securities, such as repurchase agreements with maturities in
    excess of seven days, or securities that at the time of purchase
    have legal or contractual restrictions on resale.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-9
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='204'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT
    OF THE FUND</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directors
    and Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The business and affairs of the Fund are managed under the
    direction of its Board, and the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    operations are conducted through or under the direction of its
    officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The names and business addresses of the Directors and principal
    officers of the Fund are set forth in the following table,
    together with their positions and their principal occupations
    during the past five years and, in the case of the Directors,
    their positions with certain other organizations and companies.
    Directors who are &#147;interested persons&#148; of the Fund, as
    defined by the 1940 Act, are listed under the caption
    &#147;Interested Directors.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Portfolios in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Term of Office<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Fund Complex<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name, Position(s), Address<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>and Length of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Overseen by<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal Occupation(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other Directorships<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>and Age&#160;(1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Time Served&#160;(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Director</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>During Past Five Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Held by Director</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">INTERESTED DIRECTORS:&#160;(3)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Mario J. Gabelli<BR>
    Director and Chief<BR>
    Investment Officer<BR>
    Age: 64
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">Since 1986&#160;***
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">23
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Chairman and Chief Executive
    Officer of GAMCO Investors, Inc. and Chief Investment
    Officer&#151;Value Portfolios of Gabelli Funds, LLC and GAMCO
    Asset Management Inc.; Director/Trustee or Chief Investment
    Officer of other registered investment companies in the Gabelli
    fund complex; Chairman and Chief Executive Officer of GGCP, Inc.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Director of Morgan Group Holdings,
    Inc. (transportation services); Chairman of the Board of Lynch
    Interactive Corporation (multimedia and communication services
    company)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Anthony R. Pustorino<BR>
    Director<BR>
    Age: 81
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">Since 1986&#160;*
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">14
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Certified Public Accountant;
    Professor Emeritus, Pace University
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Director of LGL Group, Inc.
    (diversified manufacturing)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">NON-INTERESTED DIRECTORS:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Thomas E. Bratter<BR>
    Director<BR>
    Age: 67
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">Since 1986&#160;***
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">3
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Director, President and Founder of
    The John Dewey Academy (residential college preparatory
    therapeutic high school)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">None
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Anthony J. Colavita&#160;(4)<BR>
    Director<BR>
    Age: 70
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">Since 1999&#160;**
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">33
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Partner in the law firm of Anthony
    J. Colavita,&#160;P.C.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">None
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">James P. Conn&#160;(4)<BR>
    Director<BR>
    Age: 68
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">Since 1989&#160;*
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">14
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Former Managing Director and Chief
    Investment Officer of Financial Security Assurance Holdings Ltd.
    (insurance holding company) (1992-1998)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Director of First Republic Bank
    (banking)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Frank J. Fahrenkopf,&#160;Jr.<BR>
    Director<BR>
    Age: 67
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">Since 1998&#160;**
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">5
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">President and Chief Executive
    Officer of the American Gaming Association; Co-Chairman of the
    Commission on Presidential Debates; Chairman of the Republican
    National Committee
    <FONT style="white-space: nowrap">(1983-1989)</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Director of First Republic Bank
    (banking)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-10
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Portfolios in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Term of Office<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Fund Complex<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name, Position(s), Address<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>and Length of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Overseen by<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal Occupation(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other Directorships<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>and Age&#160;(1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Time Served&#160;(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Director</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>During Past Five Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Held by Director</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Arthur V. Ferrara<BR>
    Director<BR>
    Age: 76
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">Since 2001&#160;***
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">5
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Former Chairman of the Board and
    Chief Executive Officer of The Guardian Life Insurance Company
    of America
    <FONT style="white-space: nowrap">(1993-1995)</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Director of The Guardian Sponsored
    Mutual Funds
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Salvatore J. Zizza<BR>
    Director<BR>
    Age: 60
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 8pt">Since 1986&#160;**
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">24
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Chairman of Hallmark Electrical
    Supplies Corp.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Director of Hollis Eden
    Pharmaceuticals (biotechnology) and Earl Scheib, Inc.
    (automotive services)
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="49%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name, Position(s),<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Address and Age&#160;(1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Length of Time Served&#160;(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Principal Occupation(s) During Past Five Years</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Bruce N. Alpert<BR>
    President<BR>
    Age: 54<BR>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">Since 1988
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Executive Vice President and Chief
    Operating Officer of Gabelli Funds, LLC since 1988; Director and
    President of Gabelli Advisers, Inc. since 1998; Officer of all
    the registered investment companies in the Gabelli fund complex.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Carter W. Austin<BR>
    Vice President<BR>
    Age: 40
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">Since 2000
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Vice President of the Fund since
    2000; Vice President of The Gabelli Dividend&#160;&#38; Income
    Trust since 2003 and The Gabelli Global Gold, Natural
    Resources&#160;&#38; Income Trust since 2005; Vice President of
    Gabelli Funds, LLC since 1996.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Peter D. Goldstein<BR>
    Chief Compliance Officer<BR>
    Age: 53
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">Since 2004
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Director of Regulatory Affairs for
    GAMCO Investors, Inc. since 2004; Chief Compliance Officer of
    all the registered investment companies in the Gabelli fund
    complex; Vice President of Goldman Sachs Asset Management from
    2000-2004.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">James E. McKee<BR>
    Secretary<BR>
    Age: 43
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">Since 1995
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Vice President, General Counsel and
    Secretary of GAMCO Investors, Inc. since 1999 and GAMCO Asset
    Management Inc. since 1993; Secretary of all the registered
    investment companies advised by Gabelli Advisers, Inc. and
    Gabelli Funds, LLC.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 8pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Agnes Mullady<BR>
    Treasurer and Principal<BR>
    Financial Officer<BR>
    Age: 47
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 8pt">Since 2006
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 8pt">Officer of all the registered
    investment companies in the Gabelli Funds complex; Senior Vice
    President of U.S.&#160;Trust Company, N.A. and Treasurer and
    Chief Financial Officer of Excelsior Funds from 2004-2005; Chief
    Financial Officer of AMIC Distribution Partners from 2002-2004;
    Controller of Reserve Management, Inc. and Reserve Partners,
    Inc. and Treasurer of Reserve Funds from 2000-2002.
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Address: One Corporate Center, Rye,
    NY
    <FONT style="white-space: nowrap">10580-1422,</FONT>
    unless otherwise noted.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Fund&#146;s Board is divided
    into three classes, each class having a term of three years.
    Each year the term of office of one class expires and the
    successor or successors elected to such class serve for a
    three-year term. The three-year term for each class is as
    follows:
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">*
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Term continues until the
    Fund&#146;s 2009 Annual Meeting of Shareholders or until their
    successors are duly elected and qualified.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">**
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Term continues until the
    Fund&#146;s 2008 Annual Meeting of Shareholders or until their
    successors are duly elected and qualified.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">***
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Term continues until the
    Fund&#146;s 2007 Annual Meeting of Shareholders or until their
    successors are duly elected and qualified.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">&#147;Interested person&#148; of
    the Fund as defined in the 1940 Act. Mr.&#160;Gabelli is
    considered an &#147;interested person&#148; of the Fund because
    of his affiliation with the Investment Adviser and
    Gabelli&#160;&#38; Company, Inc., which executes portfolio
    transactions for the Fund, and as a controlling shareholder
    because of the level of his ownership of shares of common stock
    of the Fund. As a result of his ownership of securities of an
    </FONT></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-11
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    affiliate of Citigroup Global Markets Inc., Mr.&#160;Pustorino
    is considered an &#147;interested person&#148; of the Fund until
    after the completion of this offering.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    As a Director, elected solely by holders of the Fund&#146;s
    preferred stock.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BENEFICIAL
    OWNERSHIP OF STOCK HELD IN THE FUND&#160;AND<BR>
    THE FUND&#160;COMPLEX FOR EACH DIRECTOR</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Set forth in the table below is the dollar range of equity
    securities in the Fund beneficially owned by each Director and
    the aggregate dollar range of equity securities in the Fund
    complex beneficially owned by each Director. &#147;Beneficial
    Ownership&#148; is determined in accordance with
    <FONT style="white-space: nowrap">Section&#160;16a-1(a)(2)</FONT>
    of the Securities Exchange Act of 1934, as amended (the
    &#147;1934&#160;Act&#148;).
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="21%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate Dollar Range of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Equity Securities<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>in All Registered<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Dollar Range of Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Investment Companies<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Overseen by Directors<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Director</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>in the Fund&#160;*(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>in the Fund Complex&#160;*(1)(2)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">INTERESTED DIRECTORS:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mario J. Gabelli
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Anthony R. Pustorino&#160;**
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">NON-INTERESTED DIRECTORS:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Dr. Thomas E. Bratter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Anthony J. Colavita&#160;**
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">C
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">James P. Conn
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Frank J. Fahrenkopf,&#160;Jr.&#160;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">A
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">B
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Arthur V. Ferrara
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">A
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Salvatore J. Zizza
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">E
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Key to Dollar Ranges</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A.&#160;None
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    B.&#160;$1-$10,000
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C.&#160;$10,001-$50,000
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    D.&#160;$50,001-$100,000
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    E.&#160;Over $100,000
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All shares were valued as of December&#160;31, 2005.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    ** </TD>
    <TD></TD>
    <TD valign="bottom">
    Messrs.&#160;Colavita and Pustorino each beneficially owned less
    than 1% of the common stock of LGL Group, Inc., having a value
    of $16,517 and $19,272, respectively, as of December&#160;31,
    2005. LGL Group, Inc may be deemed to be controlled by Mario J.
    Gabelli and an affiliated person and in that event would be
    deemed to be under common control with the Investment Adviser.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    This information has been furnished by each Director as of
    December&#160;31, 2005.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The &#147;Fund&#160;Complex&#148; includes all the funds that
    are considered part of the same fund complex as the Fund because
    they have common or affiliated investment advisers.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee is composed of three of the Fund&#146;s
    independent (as such term is defined by the NYSE&#146;s listing
    standards (the &#147;NYSE Listing Standards&#148;)) Directors,
    namely, Messrs.&#160;Colavita, Pustorino and Zizza. Each member
    of the Audit Committee has been determined by the Board to be
    financially literate. The role of the Fund&#146;s Audit
    Committee is to assist the Board in its oversight of
    (i)&#160;the quality and integrity of the Fund&#146;s financial
    statement reporting process and the independent audit and
    reviews thereof; (ii)&#160;the Fund&#146;s accounting and
    financial reporting policies and practices, its internal
    controls and, as appropriate, the internal controls of certain
    of its service providers; (iii)&#160;the Fund&#146;s compliance
    with legal and regulatory requirements;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-12
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and (iv)&#160;the independent registered public accounting
    firm&#146;s qualifications, independence and performance. The
    Audit Committee also is required to prepare an audit committee
    report pursuant to the rules of the Commission for inclusion in
    the Fund&#146;s annual proxy statement. The Audit Committee
    operates pursuant to the Audit Committee Charter (the
    &#147;Audit Charter&#148;) that was most recently reviewed and
    approved by the Board on February&#160;15, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Audit Charter, the Audit Committee is
    responsible for conferring with the Fund&#146;s independent
    registered public accounting firm, reviewing annual financial
    statements, approving the selection of the Fund&#146;s
    independent registered public accounting firm and overseeing the
    Fund&#146;s internal controls. The Audit Charter also contains
    provisions relating to the pre-approval by the Audit Committee
    of certain non-audit services to be provided by
    PricewaterhouseCoopers LLP to the Fund and to the Investment
    Adviser and certain of its affiliates. The Audit Committee
    advises the full Board with respect to accounting, auditing and
    financial matters affecting the Fund. As set forth in the Audit
    Charter, management is responsible for maintaining appropriate
    systems for accounting and internal control, and the Fund&#146;s
    independent registered public accounting firm is responsible for
    planning and carrying out proper audits and reviews. The
    independent registered public accounting firm is ultimately
    accountable to the Board and to the Audit Committee, as
    representatives of shareholders. The independent registered
    public accounting firm for the Fund reports directly to the
    Audit Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In performing its oversight function, at a meeting held on
    February&#160;13, 2006, the Audit Committee reviewed and
    discussed with management of the Fund and PricewaterhouseCoopers
    LLP the audited financial statements of the Fund as of and for
    the fiscal year ended December&#160;31, 2005, and discussed the
    audit of such financial statements with the independent
    registered public accounting firm.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the Audit Committee discussed with the independent
    registered public accounting firm the accounting principles
    applied by the Fund and such other matters brought to the
    attention of the Audit Committee by the independent registered
    public accounting firm required by Statement of Auditing
    Standards No.&#160;61, Communications with Audit Committees, as
    currently modified or supplemented. The Audit Committee also
    received from the independent registered public accounting firm
    the written disclosures and statements required by the
    Commission&#146;s independence rules, delineating relationships
    between the independent registered public accounting firm and
    the Fund and discussed the impact that any such relationships
    might have on the objectivity and independence of the
    independent registered public accounting firm.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As set forth above, and as more fully set forth in the Audit
    Charter, the Audit Committee has significant duties and powers
    in its oversight role with respect to the Fund&#146;s financial
    reporting procedures, internal control systems and the
    independent audit process.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The members of the Audit Committee are not, and do not represent
    themselves to be, professionally engaged in the practice of
    auditing or accounting and are not employed by the Fund for
    accounting, financial management, or internal control purposes.
    Moreover, the Audit Committee relies on and makes no independent
    verification of the facts presented to it or representations
    made by management or independent verification of the facts
    presented to it or representations made by management or the
    Fund&#146;s independent registered public accounting firm.
    Accordingly, the Audit Committee&#146;s oversight does not
    provide an independent basis to determine that management has
    maintained appropriate accounting
    <FONT style="white-space: nowrap">and/or</FONT>
    financial reporting principles and policies, or internal
    controls and procedures, designed to assure compliance with
    accounting standards and applicable laws and regulations.
    Furthermore, the Audit Committee&#146;s considerations and
    discussions referred to above do not provide assurance that the
    audit of the Fund&#146;s financial statements has been carried
    out in accordance with the standards of the Public Company
    Accounting Oversight Board (United States) or that the financial
    statements are presented in accordance with generally accepted
    accounting principles (United States).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee met twice during the year ended
    December&#160;31, 2005.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-13
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Nominating
    Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board has a Nominating Committee composed of three
    independent (as such term is defined by the NYSE Listing
    Standards) Directors, namely, Messrs.&#160;Colavita, Ferrara and
    Zizza. The Nominating Committee met once during the year ended
    December&#160;31, 2005. The Nominating Committee is responsible
    for identifying and recommending to the Board individuals
    believed to be qualified to become Board members in the event
    that a position is vacated or created. The Nominating Committee
    will consider Director candidates recommended by shareholders.
    In considering candidates submitted by shareholders, the
    Nominating Committee will take into consideration the needs of
    the Board, the qualifications of the candidate and the interests
    of shareholders. The Nominating Committee may also take into
    consideration the number of shares held by the recommending
    shareholder and the length of time that such shares have been
    held. To recommend a candidate for consideration by the
    Nominating Committee, a shareholder must submit the
    recommendation in writing and must include the following
    information:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The name of the shareholder and evidence of the
    shareholder&#146;s ownership of shares of the Fund, including
    the number of shares owned and the length of time of ownership;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The name of the candidate, the candidate&#146;s resume or a
    listing of his or her qualifications to be a Director of the
    Fund and the person&#146;s consent to be named as a Director if
    selected by the Nominating Committee and nominated by the
    Board;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    If requested by the Nominating Committee, a completed and signed
    director&#146;s questionnaire.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shareholder&#146;s recommendation and information described
    above must be sent to James E. McKee, the Fund&#146;s Secretary,
    c/o&#160;Gabelli Funds, LLC, and must be received by the
    Secretary no less than 120&#160;days prior to the anniversary
    date of the Fund&#146;s most recent annual meeting of
    stockholders or, if the meeting has moved by more than
    30&#160;days, a reasonable amount of time before the meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Nominating Committee believes that the minimum
    qualifications for serving as a Director of the Fund are that
    the individual demonstrate, by significant accomplishment in his
    or her field, an ability to make a meaningful contribution to
    the Board&#146;S oversight of the business and affairs of the
    Fund and have an impeccable record and reputation for honest and
    ethical conduct in both his or her professional and personal
    activities. In addition, the Nominating Committee examines a
    candidate&#146;s specific experiences and skills, time
    availability in light of other commitments, potential conflicts
    of interest and independence from management and the Fund. The
    Nominating Committee also seeks to have the Board represent a
    diversity of backgrounds and experience.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Nominating Committee adopted a charter on
    May&#160;12, 2004, and amended the charter on November&#160;17,
    2004. The charter can be found on the Fund&#146;s website at
    http://www.gabelli.com.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proxy
    Voting Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund also has a Proxy Voting Committee, which, if so
    determined by the Board, is authorized to exercise voting power
    <FONT style="white-space: nowrap">and/or</FONT>
    dispositive power over specific securities held in the
    Fund&#146;s portfolio for such period as the Board may
    determine. The Directors serving on the Proxy Voting Committee
    are Messrs.&#160;Conn, Ferrara and Pustorino.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Remuneration
    of Directors and Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund pays each Director who is not affiliated with the
    Investment Adviser or its affiliates a fee of $12,000&#160;per
    year plus $1,500&#160;per meeting attended in person,
    $1,000&#160;per Committee meeting attended in person, and $500
    per telephonic meeting, together with the Director&#146;s actual
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses relating to his attendance at such meetings. In
    addition, the Audit Committee Chairman receives an annual fee of
    $3,000, the Proxy Voting Committee Chairman receives an annual
    fee of $1,500, and the Nominating Committee Chairman receives an
    annual fee of $2,000. The aggregate remuneration (not including
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses) paid by the Fund to such Directors during the year
    ended December&#160;31, 2005 amounted to
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-14
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    $139,991. During the year ended December&#160;31, 2005, the
    Directors of the Fund met seven times, three of which were
    special meetings of Directors. Each Director then serving in
    such capacity attended at least 75% of the meetings of Directors
    and of any Committee of which he is a member.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows certain compensation information for
    the Directors and Officers of the Fund for the year ended
    December&#160;31, 2005. Officers of the Fund who are employed by
    the Investment Adviser receive no compensation or expense
    reimbursement from the Fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPENSATION
    TABLE FOR THE YEAR ENDED DECEMBER&#160;31, 2005</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="10%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Total Compensation<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>from the<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Fund and Fund Complex<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Paid<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Person and Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>from the Fund</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>to Directors/Officers&#160;*</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">DIRECTORS:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mario J. Gabelli, Chairman of the
    Board
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0&#160;
</TD>
<TD nowrap align="left" valign="bottom">
     (24)&#160;****
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Dr. Thomas E. Bratter, Director
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,750&#160;
</TD>
<TD nowrap align="left" valign="bottom">
     (3)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Anthony J. Colavita, Director
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,085
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    212,473&#160;
</TD>
<TD nowrap align="left" valign="bottom">
     (37)&#160;***,****
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">James P. Conn, Director
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,538
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    83,283&#160;
</TD>
<TD nowrap align="left" valign="bottom">
     (14)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Frank J. Fahrenkopf,&#160;Jr.,
    Director
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,225
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    60,183&#160;
</TD>
<TD nowrap align="left" valign="bottom">
     (5)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Arthur V. Ferrara, Director
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,063
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,011&#160;
</TD>
<TD nowrap align="left" valign="bottom">
     (9)&#160;***
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Karl Otto Pohl, Director**
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,571&#160;
</TD>
<TD nowrap align="left" valign="bottom">
     (35)&#160;***,****
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Anthony R. Pustorino, Director
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    147,261&#160;
</TD>
<TD nowrap align="left" valign="bottom">
     (17)&#160;***
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Salvatore J. Zizza, Director
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    143,962&#160;
</TD>
<TD nowrap align="left" valign="bottom">
     (25)&#160;****
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">OFFICER:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Dawn M. Donato, Assistant Vice
    President&#160;*****
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    75,000&#160;
</TD>
<TD nowrap align="left" valign="bottom">
     (1)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the total compensation paid to such persons during
    the calendar year ended December&#160;31, 2005 by investment
    companies (including the Fund) or portfolios thereof from which
    such person receives compensation that are considered part of
    the same Fund&#160;Complex as the Fund because they have common
    or affiliated investment advisers. The number in parentheses
    represents the number of such investment companies and
    portfolios.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    ** </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Pohl resigned from the Board on November&#160;15, 2005
    and now serves as Director Emeritus.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    *** </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes compensation for serving as a Director of The
    Treasurer&#146;s Fund, Inc., which was liquidated on
    October&#160;28, 2005.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    **** </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes compensation for serving as a Trustee of Ned Davis
    Research Funds, Inc., which was liquidated on February&#160;10,
    2006.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    ***** </TD>
    <TD></TD>
    <TD valign="bottom">
    Ms.&#160;Donato was employed by the Fund and not by the
    Investment Adviser (although during her tenure she was eligible
    to receive incentive-based variable compensation from affiliates
    of the Investment Adviser). Ms.&#160;Donato resigned her
    position as an officer and an employee of the Fund on
    October&#160;6, 2006.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limitation
    of Officers&#146; and Directors&#146; Liability</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s By-Laws provide that the Fund, to the fullest
    extent permitted by law, will indemnify its current and former
    Directors and officers and may indemnify its employees or agents
    against liabilities and expenses incurred in connection with
    litigation in which they may be involved because of their
    offices or association with the Fund. The By-Laws do not permit
    indemnification against any liability to which such person would
    be subject by reason of willful misfeasance, bad faith, gross
    negligence or reckless disregard of the duties involved in the
    conduct of his office. Maryland law does not permit
    indemnification of present or former directors, officers,
    employees or agents in connection with any proceeding to which
    they may be made
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-15
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    a party by reason of their service to the Fund if (i)&#160;the
    act or omission of such person or entity was material to the
    matter giving rise to the proceeding and (a)&#160;was committed
    in bad faith; or (b)&#160;was the result of active and
    deliberate dishonesty; (ii)&#160;such person or entity actually
    received an improper personal benefit in money, property or
    services; or (iii)&#160;in the case of any criminal proceeding,
    such person or entity had reasonable cause to believe that the
    act or omission was unlawful.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Maryland law, the Fund is not permitted to indemnify for
    an adverse judgment in a suit by or in the right of the Fund for
    a judgment of liability on the basis that personal benefit was
    improperly received, unless in either case a court orders
    indemnification and then only for expenses. The termination of
    any proceeding by conviction or upon a plea of nolo contendere
    or its equivalent or an entry of an order of probation prior to
    judgment creates a rebuttable presumption that the director,
    officer, employee or agent did not meet the requisite standard
    of conduct required for permitted indemnification. The
    termination of any proceeding by judgment, order or settlement,
    however, does not create such a presumption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The By-Laws and Maryland law permit the Fund to advance
    reasonable expenses to current or former Directors, officers,
    employees and agents upon the Fund&#146;s receipt of a written
    affirmation by such person or entity of its good faith belief
    that it has met the standard of conduct necessary for
    indemnification by the Fund, and a written undertaking by such
    person or entity (or on its behalf) to repay the amount paid or
    reimbursed by the Fund if it is ultimately determined that such
    person or entity did not meet the requisite standard of conduct.
    The By-Laws further require that one of the following conditions
    must also be met to advance payment of expenses: (i)&#160;the
    person or entity seeking indemnification shall provide a
    security in the form and amount acceptable to the Fund for its
    undertaking; (ii)&#160;the Fund is insured against losses
    arising by reason of the advance; (iii)&#160;approval by a
    majority of a quorum of the Directors of the Fund who are
    neither &#147;interested persons&#148; as defined by
    Section&#160;2(a)(19) of the 1940 Act nor parties to the
    proceeding; or (iv)&#160;a written opinion of independent legal
    counsel, based on a review of the facts readily available to the
    Fund at the time the advance is proposed to be made, to the
    effect that there is reason to believe that the person or entity
    seeking indemnification will ultimately be found to be entitled
    to indemnification.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Maryland law permits a Maryland 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 actual receipt of an
    improper benefit or profit in money, property or services or
    active and deliberate dishonesty established by final judgment
    as being material to the cause of action. The Fund&#146;s
    Charter provides for such a limitation, except to the extent
    such exemption is not permitted by the 1940 Act, as amended from
    time to time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Matters
    Relating to Investment Adviser</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Affiliates of the Investment Adviser, may, in the ordinary
    course of their business, acquire for their own account or for
    the accounts of their advisory clients, significant (and
    possibly controlling) positions in the securities of companies
    that may also be suitable for investment by the Fund. The
    securities in which the Fund might invest may thereby be limited
    to some extent. For instance, many companies have adopted
    so-called &#147;poison pill&#148; or other defensive measures
    designed to discourage or prevent the completion of
    non-negotiated offers for control of the company. Such defensive
    measures may have the effect of limiting the shares of the
    company, which might otherwise be acquired by the Fund if the
    affiliates of the Investment Adviser or their advisory accounts
    have or acquire a significant position in the same securities.
    However, the Investment Adviser does not believe that the
    investment activities of its affiliates will have a material
    adverse effect upon the Fund in seeking to achieve its
    investment objectives. In addition, the Fund and the Investment
    Adviser have adopted a code of ethics that is designed in part
    to ensure that all such orders are accorded priority of
    execution over orders entered on behalf of proprietary accounts
    or accounts in which the Investment Adviser or its affiliates
    have a substantial pecuniary interest. See &#147;General
    Information&#151;Code of Ethics.&#148; The Investment Adviser
    may give advice or take actions with respect to other clients
    that differs from the action taken with respect to the Fund. The
    Fund may invest in the securities of companies that are
    investment management clients of the Investment Adviser&#146;s
    affiliates. In addition, portfolio companies or their officers
    or directors may be minority shareholders of the Investment
    Adviser&#146;s affiliates.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-16
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the years ended December&#160;31, 2003, December&#160;31,
    2004, and December&#160;31, 2005, the Investment Adviser was
    paid $12,895,377, $15,167,775 and $16,357,998, respectively, for
    advisory and administrative services rendered to the Fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Manager Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Accounts Managed</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information below lists other accounts for which the
    Fund&#146;s portfolio managers were primarily responsible for
    the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    management during the year ended December&#160;31, 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="24%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="25%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accounts<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Managed<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>with<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Advisory<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total Assets<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fee<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>with Advisory<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name of Portfolio<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Accounts<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Based on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fee Based on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Manager</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Types of Accounts</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Managed</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total Assets</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Performance</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Performance</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Mario J. Gabelli
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Registered Investment Companies
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,060,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,700,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Other Pooled Investment Vehicles
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    946,400,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    704,600,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Other Accounts
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1882
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,000,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,300,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Caesar M.P. Bryan
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Registered Investment Companies
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,800,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,900,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Other Pooled Investment Vehicles
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,600,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,600,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Other Accounts
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45,500,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the portion of assets for which the portfolio manager
    has primary responsibility in the accounts indicated. The
    accounts indicated may contain additional assets under the
    primary responsibility of other portfolio managers.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Potential
    Conflicts of Interest</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Actual or apparent conflicts of interest may arise when a
    portfolio manager for the Fund also has
    <FONT style="white-space: nowrap">day-to-day</FONT>
    management responsibilities with respect to one or more other
    accounts. These potential conflicts include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Allocation of Limited Time and
    Attention.</I>&#160;&#160;Because the portfolio manager manages
    many accounts, he may not be able to formulate as complete a
    strategy or identify equally attractive investment opportunities
    for each of those accounts as if he were to devote substantially
    more attention to the management of only a few accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Allocation of Limited Investment
    Opportunities.</I>&#160;&#160;If the portfolio manager
    identifies an investment opportunity that may be suitable for
    multiple accounts, the Fund may not be able to take full
    advantage of that opportunity because the opportunity may need
    to be allocated among all or many of these accounts or other
    accounts primarily managed by other portfolio managers of the
    Investment Adviser and its affiliates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Pursuit of Differing Strategies.</I>&#160;&#160;At times, the
    portfolio manager may determine that an investment opportunity
    may be appropriate for only some of the accounts for which he
    exercises investment responsibility, or may decide that certain
    of these accounts should take differing positions with respect
    to a particular security. In these cases, the portfolio manager
    may execute differing or opposite transactions for one or more
    accounts which may affect the market price of the security or
    the execution of the transactions, or both, to the detriment of
    one or more of his accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selection of Broker/Dealers.</I>&#160;&#160;Because of the
    portfolio manager&#146;s position with, and his indirect
    majority ownership interest in, an affiliated broker,
    Gabelli&#160;&#38; Company, Inc., he may have an incentive to
    use Gabelli&#160;&#38; Company, Inc. to execute portfolio
    transactions for the Fund even if using Gabelli&#160;&#38;
    Company, Inc. is not in the best interest of the Fund.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-17
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Variation in Compensation.</I>&#160;&#160;A conflict of
    interest may arise where the financial or other benefits
    available to the portfolio manager differ among the accounts
    that he manages. If the structure of the Investment
    Adviser&#146;s management fee or the portfolio manager&#146;s
    compensation differs among accounts (such as where certain funds
    or accounts pay higher management fees or performance-based
    management fees), the portfolio manager may be motivated to
    favor certain funds or accounts over others. The portfolio
    manager also may be motivated to favor funds or accounts in
    which he has an investment interest, or in which the Investment
    Adviser or its affiliates have investment interests. In
    Mr.&#160;Gabelli&#146;s case, the Investment Adviser&#146;s
    compensation (and expenses) for the Fund are marginally greater
    as a percentage of assets than for certain other accounts and
    are less than for certain other accounts managed by
    Mr.&#160;Gabelli, while his personal compensation structure
    varies with near term performance to a greater degree in certain
    performance fee based accounts than with non-performance fee
    based accounts. In addition, he has investment interests in
    several of the funds managed by the Investment Adviser and its
    affiliates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser and the Fund have adopted compliance
    policies and procedures that are designed to address the various
    conflicts of interest that may arise for the Investment Adviser
    and its staff members. However, there is no guarantee that such
    policies and procedures will be able to detect and address every
    situation in which an actual or potential conflict may arise. In
    Mr.&#160;Bryan&#146;s case, his compensation is not affected by
    changes in assets of the Fund while it is for other accounts
    that he manages.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Compensation Structure.</I>&#160;&#160;Mr.&#160;Gabelli
    receives incentive-based variable compensation based on a
    percentage of net revenues received by the Investment Adviser
    for managing the Fund. Net revenues are determined by deducting
    from gross investment management fees the firm&#146;s expenses
    (other than Mr.&#160;Gabelli&#146;s compensation) allocable to
    the Fund. Additionally, he receives similar incentive-based
    variable compensation for managing other accounts within the
    firm. This method of compensation is based on the premise that
    superior long-term performance in managing a portfolio should be
    rewarded with higher compensation as a result of growth of
    assets through appreciation and net investment activity. Five
    closed-end registered investment companies managed by
    Mr.&#160;Gabelli have arrangements whereby the Investment
    Adviser will only receive its investment advisory fee
    attributable to the liquidation value of outstanding preferred
    stock (and Mr.&#160;Gabelli would only receive his percentage of
    such advisory fee) if certain performance levels are met.
    Mr.&#160;Gabelli manages other accounts with performance fees.
    Compensation for managing these accounts has two components. One
    component of his compensation is based on a percentage of net
    revenues received by the Investment Adviser for managing the
    account. The second component is based on absolute performance
    of the account, with respect to which a percentage of such
    performance fee is paid to Mr.&#160;Gabelli. As an executive
    officer of the Investment Adviser&#146;s parent company, GAMCO
    Investors, Inc., Mr.&#160;Gabelli also receives ten percent of
    the net operating profits of the parent company.
    Mr.&#160;Gabelli receives no base salary, no annual bonus and no
    stock options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The compensation of other portfolio managers in the Gabelli
    organization is reviewed annually and structured to enable it to
    attract and retain highly qualified professionals in a
    competitive environment. Mr.&#160;Bryan receives a compensation
    package that includes a minimum draw or base salary,
    equity-based incentive compensation via awards of stock options,
    and incentive-based variable compensation based on a percentage
    of net revenues received by the Investment Adviser for managing
    certain accounts other than the Fund to the extent that the
    amount exceeds a minimum level of compensation. Net revenues are
    determined by deducting from gross investment management fees
    certain of the firm&#146;s expenses (other than
    Mr.&#160;Bryan&#146;s compensation) allocable to such other
    accounts. This method of compensation is based on the premise
    that superior long-term performance in managing a portfolio
    should be rewarded with higher compensation as a result of
    growth of assets through appreciation and net investment
    activity. Equity-based incentive compensation is based on an
    evaluation by the Investment Adviser&#146;s parent, GAMCO
    Investors, Inc., of quantitative and qualitative performance
    evaluation criteria.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Bryan&#146;s compensation for managing other pooled
    investment accounts is based on a percentage of net revenues
    received by the Investment Adviser for managing the account.
    Compensation for managing accounts that have a performance-based
    fee will have two components. One component is based on a
    percentage of net revenues received by the Investment Adviser
    for managing the account. The second component is based on
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-18
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    absolute performance of the account, with respect to which a
    percentage of the performance fee is paid to the portfolio
    manager.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Ownership of Stock in the Fund.</I>&#160;&#160;Set forth in
    the table below is the dollar range of equity securities in the
    Fund beneficially owned by Messrs.&#160;Gabelli and Bryan:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="84%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Dollar Range of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Held in Fund&#160;*</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mario J. Gabelli
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    G
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Caesar M.P. Bryan
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    KEY TO DOLLAR RANGES&#160;&#151; INFORMATION AS OF
    DECEMBER&#160;31, 2005</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    A. None</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    B. $1&#151;$10,000</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    C. $10,001&#151;$50,000</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    D. $50,001&#151;$100,000</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    E. $100,001&#151;$500,000</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    F. $500,001&#151;$1,000,000</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    G. over $1,000,000</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Holdings Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Employees of the Investment Adviser and its affiliates will
    often have access to information concerning the portfolio
    holdings of the Fund. The Fund and the Investment Adviser have
    adopted policies and procedures that require all employees to
    safeguard proprietary information of the Fund, which includes
    information relating to the Fund&#146;s portfolio holdings as
    well as portfolio trading activity of the Investment Adviser
    with respect to the Fund (collectively, &#147;Portfolio Holdings
    Information&#148;). In addition, the Fund and the Investment
    Adviser have adopted policies and procedures providing that
    Portfolio Holdings Information may not be disclosed except to
    the extent that it is (a)&#160;made available to the general
    public by posting on the Fund&#146;s website or filed as a part
    of a required filing on
    <FONT style="white-space: nowrap">Form&#160;N-Q</FONT>
    or NCSR or (b)&#160;provided to a third party for legitimate
    business purposes or regulatory purposes, that has agreed to
    keep such data confidential under forms approved by the
    Investment Adviser&#146;s legal department or outside counsel,
    as described below. The Investment Adviser will examine each
    situation under (b)&#160;with a view to determine that release
    of the information is in the best interest of the Fund and its
    shareholders and, if a potential conflict between the
    Adviser&#146;s interests and the Fund&#146;s interests arises,
    to have such conflict resolved by the Chief Compliance Officer
    or the independent Board. These policies further provide that no
    officer of the Fund or employee of the Investment Adviser shall
    communicate with the media about the Fund without obtaining the
    advance consent of the Chief Executive Officer, Chief Operating
    Officer, or General Counsel of the Investment Adviser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the foregoing policies, the Fund currently may disclose
    Portfolio Holdings Information in the circumstances outlined
    below. Disclosure generally may be either on a monthly or
    quarterly basis with no time lag in some cases and with a time
    lag of up to 60&#160;days in other cases (with the exception of
    proxy voting services which require a regular download of data):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;To regulatory authorities in response to requests for
    such information and with the approval of the Chief Compliance
    Officer of the Fund;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;To mutual fund rating and statistical agencies and to
    persons performing similar functions where there is a legitimate
    business purpose for such disclosure and such entity has agreed
    to keep such data confidential at least until it has been made
    public by the Investment Adviser;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-19
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;To service providers of the Fund, as necessary for the
    performance of their services to the Fund and to the Board; the
    Fund&#146;s service providers are its administrator, transfer
    agent, custodian, independent registered public accounting firm,
    and legal counsel;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;To firms providing proxy voting and other proxy
    services provided each such entity has agreed to keep such data
    confidential at least until it has been made public by the
    Investment Adviser;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;To certain broker-dealers, investment advisers, and
    other financial intermediaries for purposes of their performing
    due diligence on the Fund and not for dissemination of this
    information to their clients or use of this information to
    conduct trading for their clients. Disclosure of portfolio
    holdings information in these circumstances requires the broker,
    dealer, investment adviser, or financial intermediary to agree
    to keep such information confidential and is further subject to
    prior approval of the Chief Compliance Officer of the Fund and
    shall be reported to the Board at the next quarterly
    meeting;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (6)&#160;To consultants for purposes of performing analysis of
    the Fund, which analysis (but not the Portfolio Holdings
    Information) may be used by the consultant with its clients or
    disseminated to the public, provided that such entity shall have
    agreed to keep such information confidential at least until it
    has been made public by the Investment Adviser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Fund&#146;s policies described in item&#160;2 above
    the following entities receive information about the portfolio
    holdings including information derived from the portfolio
    monthly:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;Lipper Inc. receives information derived from the
    portfolio, with a one (1)&#160;business day lag,&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;The Investment Company Institute receives information
    derived from the portfolio, with up to a ten (10)&#160;business
    day lag.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Disclosures made pursuant to a confidentiality agreement are
    subject to periodic confirmation by the Chief Compliance Officer
    of the Fund that the recipient has utilized such information
    solely in accordance with the terms of the agreement. Neither
    the Fund nor the Investment Adviser, nor any of the Investment
    Adviser&#146;s affiliates, will accept on behalf of itself, its
    affiliates, or the Fund any compensation or other consideration
    in connection with the disclosure of portfolio holdings of the
    Fund. The Board will review such arrangements annually with the
    Fund&#146;s Chief Compliance Officer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proxy
    Voting Procedures</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has adopted the proxy voting procedures of the
    Investment Adviser and has directed the Investment Adviser to
    vote all proxies relating to the Fund&#146;s voting securities
    in accordance with such procedures. The proxy voting procedures
    are set forth below as Appendix&#160;A to this SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Information on how proxies relating to the Fund&#146;s voting
    securities were voted by the Investment Adviser during the
    12&#160;month period ended June&#160;30, 2006 is available, upon
    request, by calling
    <FONT style="white-space: nowrap">(800)&#160;422-3554</FONT>
    or on the website of the Commission at http://www.sec.gov.
</DIV>
<A name='205'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PORTFOLIO
    TRANSACTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to policies established by the Board, the Investment
    Adviser is responsible for placing purchase and sale orders and
    the allocation of brokerage on behalf of the Fund. Transactions
    in equity securities are in most cases effected on
    U.S.&#160;stock exchanges and involve the payment of negotiated
    brokerage commissions. In general, there may be no stated
    commission in the case of securities traded in
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    markets, but the prices of those securities may include
    undisclosed commissions or mark-ups. Principal transactions are
    not entered into with affiliates of the Fund. However,
    Gabelli&#160;&#38; Company, Inc. may execute transactions in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    markets on an agency basis and receive a stated commission
    therefrom. To the extent consistent with applicable provisions
    of the 1940 Act and the rules and exemptions adopted by the
    Commission thereunder, as well as other regulatory requirements,
    the Fund&#146;s Board has determined that portfolio transactions
    may be executed through Gabelli&#160;&#38; Company, Inc. and its
    broker-dealer affiliates if, in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-20
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the judgment of the Investment Adviser, the use of those
    broker-dealers is likely to result in price and execution at
    least as favorable as those of other qualified broker-dealers
    and if, in particular transactions, those broker-dealers charge
    the Fund a rate consistent with that charged to comparable
    unaffiliated customers in similar transactions. The Fund has no
    obligations to deal with any broker or group of brokers in
    executing transactions in portfolio securities. In executing
    transactions, the Investment Adviser seeks to obtain the best
    price and execution for the Fund, taking into account such
    factors as price, size of order, difficulty of execution and
    operational facilities of the firm involved and the firm&#146;s
    risk in positioning a block of securities. While the Investment
    Adviser generally seeks reasonably competitive commission rates,
    the Fund does not necessarily pay the lowest commission
    available.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to obtaining the best price and execution, brokers who
    provide supplemental research, market and statistical
    information or other services (e.g. wire services) to the
    Investment Adviser or its affiliates may receive orders for
    transactions by the Fund. The term &#147;research, market and
    statistical information&#148; includes advice as to the value of
    securities, and advisability of investing in, purchasing or
    selling securities, and the availability of securities or
    purchasers or sellers of securities, and furnishing analyses and
    reports concerning issues, industries, securities, economic
    factors and trends, portfolio strategy and the performance of
    accounts. Information so received will be in addition to and not
    in lieu of the services required to be performed by the
    Investment Adviser under the Advisory Agreement and the expenses
    of the Investment Adviser will not necessarily be reduced as a
    result of the receipt of such supplemental information. Such
    information may be useful to the Investment Adviser and its
    affiliates in providing services to clients other than the Fund,
    and not all such information is used by the Investment Adviser
    in connection with the Fund. Conversely, such information
    provided to the Investment Adviser and its affiliates by brokers
    and dealers through whom other clients of the Investment Adviser
    and its affiliates effect securities transactions may be useful
    to the Investment Adviser in providing services to the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although investment decisions for the Fund are made
    independently from those of the other accounts managed by the
    Investment Adviser and its affiliates, investments of the kind
    made by the Fund may also be made by those other accounts. When
    the same securities are purchased for or sold by the Fund and
    any such other accounts, it is the policy of the Investment
    Adviser and its affiliates to allocate such purchases and sales
    in a manner deemed fair and equitable to all of the accounts,
    including the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the fiscal years ended December&#160;31, 2003,
    December&#160;31, 2004 and December&#160;31, 2005, the Fund paid
    a total of $837,474, $1,249,931 and $814,155, respectively, in
    brokerage commissions, of which Gabelli&#160;&#38; Company, Inc.
    and its affiliates received, $426,925, $835,136 and $469,081,
    respectively. The amount received by Gabelli&#160;&#38; Company,
    Inc. and its affiliates from the Fund in respect of brokerage
    commissions for the fiscal year ended December&#160;31, 2005
    represented approximately 57.62% of the aggregate dollar amount
    of brokerage commissions paid by the Fund for such period and
    approximately 51.44% of the aggregate dollar amount of
    transactions by the Fund for such period.
</DIV>
<A name='206'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TAXATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion is a brief summary of certain
    U.S.&#160;federal income tax considerations affecting the Fund
    and its stockholders. The discussion reflects applicable tax
    laws of the United States as of the date of this SAI, which tax
    laws may be changed or subject to new interpretation by the
    courts or the Internal Revenue Service (the &#147;IRS&#148;),
    retroactively or prospectively. No attempt is made to present a
    detailed explanation of all U.S.&#160;federal, state, local and
    foreign tax concerns affecting the Fund and its stockholders
    (including stockholders owning large positions in the Fund), and
    the discussions set forth here and in the Prospectus do not
    constitute tax advice. Investors are urged to consult their own
    tax advisers with any specific questions relating to
    U.S.&#160;federal, state, local and foreign taxes.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-21
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of the Fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has elected to be treated and has qualified, and
    intends to continue to qualify, as a regulated investment
    company under Subchapter M of the Internal Revenue Code of 1986,
    as amended (the &#147;CODE&#148;) (a &#147;RIC&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Fund were unable to satisfy the 90% distribution
    requirement described under &#147;Taxation&#148; in the
    Prospectus or otherwise were to fail to qualify as a RIC in any
    year, it would be taxed in the same manner as an ordinary
    corporation and distributions to the Fund&#146;s stockholders
    would not be deductible by the Fund in computing its taxable
    income. To qualify again to be taxed as a RIC in a subsequent
    year, the Fund would be required to distribute to its
    stockholders its earnings and profits attributable to non-RIC
    years reduced by an interest charge on 50% of such earnings and
    profits payable by the Fund to the IRS. In addition, if the Fund
    failed to qualify as a RIC for a period greater than two taxable
    years, then the Fund would be required to elect to recognize and
    pay tax on any net built-in gain (the excess of aggregate gain,
    including items of income, over aggregate loss that would have
    been realized if the Fund had been liquidated) or,
    alternatively, be subject to taxation on such built-in gain
    recognized for a period of ten years, in order to qualify as a
    RIC in a subsequent year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Gain or loss on the sales of securities by the Fund will
    generally be long-term capital gain or loss if the securities
    have been held by the Fund for more than one year. Gain or loss
    on the sale of securities held for one year or less will be
    short-term capital gain or loss.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Foreign currency gain or loss on
    <FONT style="white-space: nowrap">non-U.S.&#160;dollar-denominated</FONT>
    securities and on any
    <FONT style="white-space: nowrap">non-U.S.&#160;dollar-denominated</FONT>
    futures contracts, options and forward contracts that are not
    section&#160;1256 contracts (as defined in the Code) generally
    will be treated as ordinary income and loss.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Gains or losses on section&#160;1256 contracts generally are
    considered 60% long-term and 40% short-term capital gains or
    losses; however, foreign currency gains or losses arising from
    certain section&#160;1256 contracts may be treated as ordinary
    income or loss. Also, section&#160;1256 contracts held by the
    Fund at the end of each taxable year (and on certain other dates
    as prescribed under the Code) are
    <FONT style="white-space: nowrap">&#147;marked-to-market&#148;</FONT>
    with the result that unrealized gains or losses are treated as
    though they were realized.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Investments by the Fund in certain &#147;passive foreign
    investment companies&#148; (&#147;PFICs&#148;) could subject the
    Fund to federal income tax (including interest charges) on
    certain distributions or dispositions with respect to those
    investments which cannot be eliminated by making distributions
    to stockholders. Elections may be available to the Fund to
    mitigate the effect of this tax provided that the PFIC complies
    with certain reporting requirements, but such elections
    generally accelerate the recognition of income without the
    receipt of cash. Dividends paid by PFICs will not qualify for
    the reduced tax rates discussed below under &#147;Taxation of
    Stockholders.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may invest in debt obligations purchased at a discount
    with the result that the Fund may be required to accrue income
    for U.S.&#160;federal income tax purposes before amounts due
    under the obligations are paid. The Fund may also invest in
    securities rated in the medium to lower rating categories of
    nationally recognized rating organizations, and in unrated
    securities (&#147;high yield securities&#148;). A portion of the
    interest payments on such high yield securities may be treated
    as dividends for certain U.S.&#160;federal income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of investing in stock of PFICs or securities
    purchased at a discount or any other investment that produces
    income that is not matched by a corresponding cash distribution
    to the Fund, the Fund could be required to currently include
    income it has not yet received. Any such income would be treated
    as income earned by the Fund and therefore would be subject to
    the distribution requirements of the Code. This might prevent
    the Fund from distributing 90% of its investment company taxable
    income as is required in order to avoid Fund-level federal
    income taxation on all of its income, or might prevent the Fund
    from distributing enough ordinary income and capital gain net
    income to avoid completely the imposition of the excise tax. To
    avoid this result, the Fund may be required to borrow money or
    dispose of securities to be able to make distributions to its
    stockholders.
</DIV>

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    <BR>
    S-22
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Fund does not meet the asset coverage requirements of the
    1940 Act and the Articles&#160;Supplementary, the Fund will be
    required to suspend distributions to the holders of the shares
    of common stock until the asset coverage is restored. Such a
    suspension of distributions might prevent the Fund from
    distributing 90% of its investment company taxable income as is
    required in order to avoid Fund-level federal income taxation on
    all of its income, or might prevent the Fund from distributing
    enough income and capital gain net income to avoid completely
    imposition of the excise tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain of the Fund&#146;s investment practices are subject to
    special and complex U.S.&#160;federal income tax provisions that
    may, among other things, (i)&#160;disallow, suspend or otherwise
    limit the allowance of certain losses or deductions,
    (ii)&#160;convert lower taxed long-term capital gains into
    higher taxed short-term capital gains or ordinary income,
    (iii)&#160;convert ordinary loss or a deduction into capital
    loss (the deductibility of which is more limited),
    (iv)&#160;cause the Fund to recognize income or gain without a
    corresponding receipt of cash, (v)&#160;adversely affect the
    time as to when a purchase or sale of stock or securities is
    deemed to occur, (vi)&#160;adversely alter the characterization
    of certain complex financial transactions and (vii)&#160;produce
    income that will not qualify as good income for purposes of the
    90% annual gross income requirement described above. The Fund
    will monitor its transactions and may make certain tax elections
    to mitigate the effect of these rules and prevent
    disqualification of the Fund as a RIC.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Foreign
    Taxes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since the Fund may invest in foreign securities, its income from
    such securities may be subject to
    <FONT style="white-space: nowrap">non-U.S.&#160;taxes.</FONT>
    The Fund intends to invest less than 50% of its total assets in
    foreign securities. As long as the Fund continues to invest less
    than 50% of its assets in foreign securities it will not be
    eligible to elect to &#147;pass-through&#148; to stockholders of
    the Fund the ability to use the foreign tax deduction or foreign
    tax credit for foreign taxes paid with respect to qualifying
    taxes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of Stockholders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A distribution will be treated as paid during the calendar year
    if it is paid during the calendar year or declared by the Fund
    in October, November or December of the year, payable to
    stockholders of record on a date during such a month and paid by
    the Fund during January of the following year. Any such
    distributions paid during January of the following year will be
    deemed to be received on December&#160;31 of the year the
    distributions are declared, rather than when the distributions
    are received.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund will determine either to distribute or to 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 of 35% of
    such amount. In that event, the Fund expects to designate the
    retained amount as undistributed capital gain in a notice to its
    stockholders, each of whom (i)&#160;will be required to include
    in income for tax purposes as long-term capital gain its share
    of such undistributed amounts, (ii)&#160;will be entitled to
    credit its proportionate share of the tax paid by the Fund
    against its federal income tax liability and to claim refunds to
    the extent that the credit exceeds such liability and
    (iii)&#160;will increase its basis in its shares of stock of the
    Fund by an amount equal to 65% of the amount of undistributed
    capital gain included in such stockholder&#146;s gross income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions paid by the Fund from its investment company
    taxable income, which includes net short-term capital gain,
    generally are taxable as ordinary income to the extent of the
    Fund&#146;s earnings and profits. Such distributions (if
    designated by the Fund) may, however, qualify (provided holding
    period and other requirements are met by both the Fund and the
    stockholder) (i)&#160;for the dividends received deduction
    available to corporations, but only to the extent that the
    Fund&#146;s income consists of dividend income from
    U.S.&#160;corporations and (ii)&#160;through December&#160;31,
    2010, as qualified dividend income eligible for the reduced
    maximum federal rate to individuals of generally 15% (currently
    5% for individuals in lower tax brackets) to the extent that the
    Fund receives qualified dividend income. Qualified dividend
    income is, in general, dividend income from taxable domestic
    corporations and certain qualified foreign corporations (e.g.,
    generally, foreign corporations incorporated in a possession of
    the United States or in certain countries with a qualifying
    comprehensive tax treaty with the United States, or whose stock
    with respect to which such dividend is paid is
</DIV>

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    <BR>
    S-23
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    readily tradable on an established securities market in the
    United States). A qualified foreign corporation does not include
    a foreign corporation which for the taxable year of the
    corporation in which the dividend was paid, or the preceding
    taxable year, is a PFIC. If the Fund lends portfolio securities,
    the amount received by the Fund that is the equivalent of the
    dividends paid by the issuer on the securities loaned will not
    be eligible for qualified dividend income treatment.
    Distributions of net capital gain designated as capital gain
    distributions, if any, are taxable to stockholders at rates
    applicable to long-term capital gain, whether paid in cash or in
    stock, and regardless of how long the stockholder has held the
    Fund&#146;s stock. Capital gain distributions are not eligible
    for the dividends received deduction. The maximum federal tax
    rate on net long-term capital gain of individuals is reduced
    generally from 20% to 15% (currently 5% for individuals in lower
    brackets) for such gain realized before January&#160;1, 2011.
    Distributions in excess of the Fund&#146;s earnings and profits
    will first reduce the adjusted tax basis of a holder&#146;s
    stock and, after such adjusted tax basis is reduced to zero,
    will constitute capital gain to such holder (assuming the stock
    is held as a capital asset). For non-corporate taxpayers,
    investment company taxable income (other than qualified dividend
    income) will currently 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%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an individual receives a regular dividend qualifying for the
    long-term capital gains rates and such dividend constitutes an
    &#147;extraordinary dividend,&#148; and the individual
    subsequently recognizes a loss on the sale or exchange of stock
    in respect of which the extraordinary dividend was paid, then
    the loss will be long-term capital loss to the extent of such
    extraordinary dividend. An &#147;extraordinary dividend&#148; on
    preferred stock for this purpose is generally a dividend
    (i)&#160;in an amount greater than or equal to 5% of the
    taxpayer&#146;s tax basis (or trading value) in a share of
    stock, aggregating dividends with ex-dividend dates within an
    <FONT style="white-space: nowrap">85-day</FONT>
    period or (ii)&#160;in an amount greater than 20% of the
    taxpayer&#146;s tax basis (or trading value) in a share of
    stock, aggregating dividends with ex-dividend dates within a
    <FONT style="white-space: nowrap">365-day</FONT>
    period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The IRS currently requires that a RIC that has two or more
    classes of stock allocate to each such class proportionate
    amounts of each type of its income (such as ordinary income,
    capital gains, dividends qualifying for the dividends received
    deduction (&#147;DRD&#148;) and qualified dividend income) based
    upon the percentage of total dividends paid out of current or
    accumulated earnings and profits to each class for the tax year.
    Accordingly, the Fund intends each year to allocate capital gain
    dividends, dividends qualifying for the DRD and dividends that
    constitute qualified dividend income, if any, between its common
    stock and preferred stock in proportion to the total dividends
    paid out of current or accumulated earnings and profits to each
    class with respect to such tax year. Distributions in excess of
    the Fund&#146;s current and accumulated earnings and profits, if
    any, however, will not be allocated proportionately among the
    common stock and preferred stock. Since the Fund&#146;s current
    and accumulated earnings and profits will first be used to pay
    dividends on its preferred stock (including the Series&#160;F
    Preferred ), distributions in excess of such earnings and
    profits, if any, will be made disproportionately to holders of
    shares of common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders may be entitled to offset their capital gain
    distributions (but not distributions eligible for qualified
    dividend income treatment) 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, stockholders
    with capital loss are urged to consult their own tax advisers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The price of stock purchased at any time may reflect the amount
    of a forthcoming distribution. Those purchasing stock just prior
    to a distribution will receive a distribution which generally
    will be taxable to them even though it represents in part a
    return of invested capital.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain types of income received by the Fund from real estate
    investment trusts (&#147;REITs&#148;), real estate mortgage
    investment conduits (&#147;REMICs&#148;), taxable mortgage pools
    or other investments may cause the Fund to designate some or all
    of its distributions as &#147;excess inclusion income.&#148; To
    Fund shareholders such excess inclusion income may
    (1)&#160;constitute taxable income, as &#147;unrelated business
    taxable income&#148; (&#147;UBTI&#148;) for those shareholders
    who would otherwise be tax-exempt such as individual retirement
    accounts, 401(k) accounts, Keogh plans, pension plans and
    certain charitable entities; (2)&#160;not be offset against net
    operating
</DIV>

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    <BR>
    S-24
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    losses for tax purposes; (3)&#160;not be eligible for reduced
    U.S.&#160;withholding for non- U.S.&#160;shareholders even from
    tax treaty countries; and (4)&#160;cause the Fund to be subject
    to tax if certain &#147;disqualified organizations&#148; as
    defined by the Code are Fund shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon a sale, exchange, redemption or other disposition of stock,
    a stockholder will generally realize a taxable gain or loss
    equal to the difference between the amount of cash and the fair
    market value of other property received and the
    stockholder&#146;s adjusted tax basis in the stock. Such gain or
    loss will be treated as long-term capital gain or loss if the
    stock has been held for more than one year. Any loss realized on
    a sale or exchange will be disallowed to the extent the stock
    disposed of is replaced by substantially identical stock within
    a <FONT style="white-space: nowrap">61-day</FONT>
    period beginning 30&#160;days before and ending 30&#160;days
    after the date that the stock is disposed of. In such a case,
    the basis of the stock acquired will be adjusted to reflect the
    disallowed loss.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any loss realized by a stockholder on the sale of Fund stock
    held by the stockholder for six months or less will be treated
    for tax purposes as a long-term capital loss to the extent of
    any capital gain distributions received by the stockholder (or
    amounts credited to the stockholder as an undistributed capital
    gain) with respect to such stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ordinary income distributions and capital gain distributions
    also may be subject to state and local taxes. Stockholders are
    urged to consult their own tax advisers regarding specific
    questions about federal (including the application of the
    alternative minimum tax rules), state, local or foreign tax
    consequences to them of investing in the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions of investment company taxable income made by the
    Fund to stockholders who are non-resident aliens or foreign
    entities (&#147;foreign investors&#148;) are generally subject
    to withholding tax at a 30% rate or a reduced rate specified by
    an applicable income tax treaty. In order to obtain a reduced
    rate of withholding, a foreign investor will be required to
    provide an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    certifying its entitlement to benefits under a treaty. The
    withholding tax does not apply to regular dividends paid to a
    foreign investor who provides a
    <FONT style="white-space: nowrap">Form&#160;W-8ECI,</FONT>
    certifying that the dividends are effectively connected with the
    foreign investor&#146;s conduct of a trade or business within
    the United States. Instead, the effectively connected dividends
    will be subject to regular U.S.&#160;income tax as if the
    foreign investor were a U.S.&#160;stockholder. A
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    receiving effectively connected dividends may also be subject to
    additional &#147;branch profits tax&#148; imposed at a rate of
    30% (or lower treaty rate). A foreign investor who fails to
    provide an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or other applicable form may be subject to backup withholding at
    the appropriate rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, United States federal withholding tax will not apply
    to any gain or income realized by a foreign investor in respect
    of any capital gain distributions, undistributed capital gains,
    exempt-interest dividends, or upon the sale or other disposition
    of shares of the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For taxable years beginning before January&#160;1, 2008,
    properly-designated dividends are generally exempt from United
    States federal withholding tax where they (i)&#160;are paid in
    respect of the Fund&#146;s &#147;qualified net interest
    income&#148; (generally, the Fund&#146;s U.S.&#160;source
    interest income, other than certain contingent interest and
    interest from obligations of a corporation or partnership in
    which the Fund is at least a 10% shareholder, reduced by
    expenses that are allocable to such income) (such dividend, an
    &#147;interest-related dividend&#148;) or (ii)&#160;are paid in
    respect of the Fund&#146;s &#147;qualified short-term gain&#148;
    (generally, the excess of the Fund&#146;s net short-term capital
    gain over the Fund&#146;s long-term capital loss for such
    taxable year) (such dividend, a &#147;short-term capital gain
    dividend&#148;). However, depending on its circumstances, the
    Fund may designate all, some or none of its potentially eligible
    dividends as such interest-related dividends or as short-term
    capital gain dividends,
    <FONT style="white-space: nowrap">and/or</FONT> treat
    such dividends, in whole or in part, as ineligible for this
    exemption from withholding. In order to qualify for this
    exemption from withholding, a foreign investor will need to
    comply with applicable certification requirements relating to
    its
    <FONT style="white-space: nowrap">non-U.S.&#160;status</FONT>
    (including, in general, furnishing an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or substitute Form). In the case of shares held through an
    intermediary, the intermediary may withhold even if the Fund
    designates the payment as an interest-related dividend or
    short-term capital gain dividend. Foreign investors should
    contact their intermediaries with respect to the application of
    these rules to their accounts.
</DIV>

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    <BR>
    S-25
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Backup
    Withholding</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may be required to withhold U.S.&#160;federal income
    tax on all taxable distributions and redemption proceeds payable
    to non-corporate stockholders who fail to provide the Fund with
    their correct taxpayer identification number or to make required
    certifications, or who have been notified by the IRS that they
    are subject to backup withholding. Backup withholding is not an
    additional tax. Any amounts withheld may be refunded or credited
    against such stockholder&#146;s U.S.&#160;federal income tax
    liability, if any, provided that the required information is
    furnished to the IRS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The foregoing is a general and abbreviated summary of the
    applicable provisions of the code and treasury regulations
    presently in effect. For the complete provisions, reference
    should be made to the pertinent code sections&#160;and the
    treasury regulations promulgated thereunder. The code and the
    treasury regulations are subject to change by legislative,
    judicial or administrative action, either prospectively or
    retroactively. Persons considering an investment in
    shares&#160;of common stock should consult their own tax
    advisers regarding the purchase, ownership and disposition of
    shares&#160;of common stock.</B>
</DIV>
<A name='207'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">AUTOMATIC
    DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Fund&#146;s Automatic Dividend Reinvestment and
    Voluntary Cash Purchase Plan (the &#147;Plan&#148;), a
    stockholder whose shares of common stock are registered in his
    own name will have all distributions reinvested automatically by
    Computershare Trust Company, N.A. (&#147;Computershare&#148;),
    which is agent under the Plan, unless the stockholder elects to
    receive cash. Distributions with respect to shares of common
    stock registered in the name of a broker-dealer or other nominee
    (that is, in &#147;street name&#148;) will be reinvested by the
    broker or nominee in additional shares of common stock under the
    Plan, unless the service is not provided by the broker or
    nominee or the stockholder elects to receive distributions in
    cash. Investors who own shares of common stock registered in
    street name should consult their broker-dealers for details
    regarding reinvestment. All distributions to investors who do
    not participate in the Plan will be paid by check mailed
    directly to the record holder by Computershare as
    dividend-disbursing agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Plan, whenever the market price of the shares of
    common stock is equal to or exceeds net asset value at the time
    shares of common stock are valued for purposes of determining
    the number of shares equivalent to the cash dividend or capital
    gains distribution, participants in the Plan are issued shares
    of common stock, valued at the greater of (i)&#160;the net asset
    value as most recently determined or (ii)&#160;95% of the
    then-current market price of the shares of common stock. The
    valuation date is the dividend or distribution payment date or,
    if that date is not a NYSE trading day, the next preceding
    trading day. If the net asset value of the shares of common
    stock at the time of valuation exceeds the market price of the
    shares of common stock, participants will receive shares of
    common stock from the Fund, valued at market price. If the Fund
    should declare a dividend or capital gains distribution payable
    only in cash, Computershare will purchase the shares of common
    stock for such Plan in the open market, on the NYSE or
    elsewhere, for the participants&#146; accounts, except that
    Computershare will endeavor to terminate purchases in the open
    market and cause the Fund to issue shares of common stock at the
    greater of net asset value or 95% of market value if, following
    the commencement of such purchases, the market value of the
    shares of common stock exceeds net asset value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Participants in the Plan have the option of making additional
    cash payments to Computershare, semi-monthly, for investment in
    the common stock as applicable. Such payments may be made in any
    amount from $250 to $10,000. Computershare will use all funds
    received from participants to purchase shares of common stock in
    the open market on or about the 1st&#160;and 15th&#160;of each
    month. Computershare will charge each stockholder who
    participates $0.75, plus a pro rata share of the brokerage
    commissions. Brokerage charges for such purchases are expected
    to be less than the usual brokerage charge for such
    transactions. It is suggested that participants send voluntary
    cash payments to Computershare in a manner that ensures that
    Computershare will receive these payments approximately
    10&#160;days before the 1st&#160;and 15th&#160;of the month. A
    participant may without charge withdraw a voluntary cash payment
    by written notice, if the notice is received by Computershare at
    least 48&#160;hours before such payment is to be invested.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-26
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Computershare maintains all stockholder accounts in the Plan and
    furnishes written confirmations of all transactions in the
    account, including information needed by stockholders for
    personal and tax records. Shares of common stock in the account
    of each Plan participant will be held by Computershare in
    noncertificated form in the name of the participant. A Plan
    participant may send its stock certificates to Computershare so
    that the shares of common stock represented by such certificates
    will be held by Computershare in the participant&#146;s
    stockholder account under the Plan. In the case of stockholders
    such as banks, brokers or nominees, which hold shares of common
    stock for others who are the beneficial owners, Computershare
    will administer the Plan on the basis of the number of shares of
    common stock certified from time to time by the stockholder as
    representing the total amount registered in the
    stockholder&#146;s name and held for the account of beneficial
    owners who participate in the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Experience under the Plan may indicate that changes are
    desirable. Accordingly, the Fund reserves the right to amend or
    terminate its Plan as applied to any voluntary cash payments
    made and any dividend or distribution paid subsequent to written
    notice of the change sent to the members of such Plan at least
    90&#160;days before the record date for such dividend or
    distribution. The Plan also may be amended or terminated by
    Computershare on at least 90&#160;days&#146; written notice to
    the participants in such Plan. All correspondence concerning the
    Plan should be directed to Computershare at P.O. Box&#160;43010,
    Providence, RI
    <FONT style="white-space: nowrap">02940-3010.</FONT>
</DIV>
<A name='208'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ADDITIONAL
    INFORMATION CONCERNING THE SERIES&#160;F PREFERRED</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The additional information concerning the Series&#160;F
    Preferred contained in this SAI does not purport to be a
    complete description of the Series&#160;F Preferred and should
    be read in conjunction with the description of the Series&#160;F
    Preferred contained in the Prospectus under &#147;Description of
    the Series&#160;F Preferred.&#148; This description is subject
    to and qualified in its entirety by reference to the Fund&#146;s
    Governing Documents (as defined in the Glossary), including the
    provisions of the Articles&#160;Supplementary establishing the
    Series&#160;F Preferred. Copies of these
    Articles&#160;Supplementary are filed as exhibits to the
    registration statement of which the Prospectus and this SAI are
    a part and may be inspected, and a copy thereof may be obtained,
    as described under &#147;Additional Information&#148; in the
    Prospectus.
</DIV>
<A name='209'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MOODY&#146;S
    GUIDELINES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The description of the Moody&#146;s Guidelines contained in this
    SAI does not purport to be complete and is subject to and
    qualified in its entirety by reference to the
    Articles&#160;Supplementary. A copy of the
    Articles&#160;Supplementary is filed as an exhibit to the
    registration statement of which the Prospectus and this SAI are
    a part and may be inspected, and copies thereof may be obtained,
    as described under &#147;Additional Information&#148; in the
    Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The composition of the Fund&#146;s portfolio reflects guidelines
    (referred to herein as the &#147;Rating Agency Guidelines&#148;)
    established by Moody&#146;s in connection with the Fund&#146;s
    receipt of a rating of &#147;Aaa&#148; from Moody&#146;s for the
    Series&#160;F Preferred. These Rating Agency Guidelines relate,
    among other things, to industry and credit quality
    characteristics of issuers and diversification requirements and
    specify various Discount Factors for different types of
    securities (with the level of discount greater as the rating of
    a security becomes lower). Under the Rating Agency Guidelines,
    certain types of securities in which the Fund may otherwise
    invest consistent with its investment strategy are not eligible
    for inclusion in the calculation of the Discounted Value of the
    Fund&#146;s portfolio. Such instruments include, for example,
    private placements (other than Rule&#160;144A securities) and
    other securities not within the Rating Agency Guidelines.
    Accordingly, although the Fund reserves the right to invest in
    such securities to the extent set forth herein, such securities
    have not constituted and it is anticipated that they will not
    constitute a significant portion of the Fund&#146;s portfolio.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Rating Agency Guidelines require that the Fund maintain
    assets having an aggregate Discounted Value, determined on the
    basis of such guidelines, greater than the aggregate liquidation
    preference of the Outstanding Series&#160;F Preferred and other
    Preferred Stock plus specified liabilities, payment obligations
    and other amounts, as of periodic Valuation Dates. The Rating
    Agency Guidelines also require the Fund to
</DIV>

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    <BR>
    S-27
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    maintain asset coverage for the Outstanding Preferred Stock
    (including the Series&#160;F Preferred ) on a non-discounted
    basis of at least 200% as of the end of each month, and the 1940
    Act requires this asset coverage as a condition to paying
    dividends or other distributions on its shares of common stock.
    See &#147;Description of the Series&#160;F Preferred&#151;Asset
    Maintenance Requirements&#148; in the Prospectus. The effect of
    compliance with the Rating Agency Guidelines may be to cause the
    Fund to invest in higher quality assets
    <FONT style="white-space: nowrap">and/or</FONT> to
    maintain relatively substantial balances of highly liquid assets
    or to restrict the Fund&#146;s ability to make certain
    investments that would otherwise be deemed potentially desirable
    by the Investment Adviser, including private placements of other
    than Rule&#160;144A securities. The Rating Agency Guidelines are
    subject to change from time to time with the consent of the
    relevant Rating Agency and will apply to the Series&#160;F
    Preferred only so long as the relevant Rating Agency is rating
    such stock at the request of the Fund. If in the future the Fund
    elected to issue senior securities rated by a rating agency
    other than Moody&#146;s, other similar arrangements might apply
    with respect to those securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund intends to maintain, at specified times, a Discounted
    Value for its portfolio at least equal to the amount specified
    by each Rating Agency (the &#147;Basic Maintenance
    Amount&#148;), the determination of which is as set forth under
    &#147;Description of the Series&#160;F Preferred&#151;Asset
    Maintenance Requirements&#148; in the Prospectus. To the extent
    any particular portfolio holding does not satisfy the applicable
    Rating Agency Guidelines, all or a portion of such
    holding&#146;s value will not be included in the calculation of
    Discounted Value (as defined by such Rating Agency). Upon any
    failure to maintain the required Discounted Value, the Fund may
    seek to alter the composition of its portfolio to reestablish
    required asset coverage within the specified ten Business Day
    cure period, thereby incurring additional transaction costs and
    possible losses
    <FONT style="white-space: nowrap">and/or</FONT> gains
    on dispositions of portfolio securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Rating Agency Guidelines do not impose any limitations on
    the percentage of Fund 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 such assets
    included in the portfolio at any time may vary depending upon
    the rating, diversification and other characteristics of the
    assets included in the portfolio which are eligible for
    inclusion in the Discounted Value of the portfolio under the
    Rating Agency Guidelines.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A rating of preferred stock as &#147;Aaa&#148; (as described by
    Moody&#146;s ) indicates strong asset protection, conservative
    balance sheet ratios and positive indications of continued
    protection of preferred dividend requirements. A Moody&#146;s
    credit rating of preferred stock does not address the likelihood
    that a resale mechanism will be successful. As described by
    Moody&#146;s, an issue of preferred stock which is rated
    &#147;Aaa&#148; is considered to be top-quality preferred stock
    with good asset protection and the least risk of dividend
    impairment within the universe of preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund will pay certain fees to Moody&#146;s for rating the
    Series&#160;F Preferred. Such ratings may be subject to revision
    or withdrawal by the assigning Rating Agency at any time. Any
    rating of the Series&#160;F Preferred should be evaluated
    independently of any other rating. Ratings are not
    recommendations to purchase, hold, or sell Series&#160;F
    Preferred inasmuch as the rating does not comment as to market
    price or suitability for a particular investor. The rating is
    based on current information furnished to Moody&#146;s by the
    Fund and obtained by Moody&#146;s from other sources. The rating
    may be changed, suspended or withdrawn as a result of changes
    in, or unavailability of, such information. The Fund has no
    current intention to file a voluntary application for relief
    under federal bankruptcy law or any similar application under
    state law for so long as the Fund is solvent and does not
    foresee becoming insolvent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Moody&#146;s guidelines, the Fund is required to
    maintain specified discounted asset values for its portfolio
    representing the Preferred Stock&#146;s Basic Maintenance
    Amount. To the extent any particular portfolio holding does not
    meet the applicable guidelines, it is not included for purposes
    of calculating the Discounted Value of the Fund&#146;s portfolio.
</DIV>

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    <BR>
    S-28
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following Discount Factors apply to portfolio holdings as
    described below, subject to diversification, issuer size and
    other requirements, in order to constitute Moody&#146;s Eligible
    Assets includable within the calculation of Discounted Value:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset&#160;*:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Discount Factor</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Treasury Securities with
    final maturities that are less than or equal to 60&#160;days
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Demand or time deposits,
    certificates of deposit and bankers&#146; acceptances includible
    in Short Term Money Market Instruments
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">P-1</FONT> by
    Moody&#146;s maturing in 30&#160;days or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">P-1</FONT> by
    Moody&#146;s maturing in more than 30&#160;days but in
    270&#160;days or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">A-1+</FONT> by
    S&#38;P maturing in 270&#160;days or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.25
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Repurchase obligations includible
    in Short Term Money Market Instruments if term is less than
    30&#160;days and counterparty is rated at least A2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Other repurchase obligations
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">Discount factor<BR>
    applicable to<BR>
    underlying assets
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Common Stocks and Common
    Stocks of foreign issuers for which ADRs are traded:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Large Cap Stocks (Market
    Capitalization in excess of $10&#160;billion)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mid Cap Stocks (Market
    Capitalization in between $2&#160;billion and $10&#160;billion)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.05
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Small Cap Stocks (Market
    Capitalization less than $2&#160;billion)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.20
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Common Stocks of foreign issuers
    (in existence for at least five years) for which no ADRs are
    traded
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">4.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible Preferred Stocks and
    Convertible Corporate Debt Securities having a delta range of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 28pt">
    <FONT style="font-size: 10pt">.8-.4 (investment grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.92
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 28pt">
    <FONT style="font-size: 10pt">.8-.4 (below investment grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2:26
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 28pt">
    <FONT style="font-size: 10pt">1-.8 (investment grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.95
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 28pt">
    <FONT style="font-size: 10pt">1-.8 (below investment grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2:29
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible Preferred Stocks and
    Convertible Corporate Debt Securities that are unrated
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Preferred Stocks:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 28pt">
    <FONT style="font-size: 10pt">Auction rate preferred stocks
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">3.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 28pt">
    <FONT style="font-size: 10pt">Other preferred stock rated:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="font-size: 10pt">Aaa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="font-size: 10pt">Aa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="font-size: 10pt">A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="font-size: 10pt">Baa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="font-size: 10pt">Ba
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.96
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="font-size: 10pt">B
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.16
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Less than B or not rated
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.40
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">DRD Preferred (investment grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">DRD Preferred (below investment
    grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.16
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-29
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset&#160;*:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Discount Factor</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Government Obligations
    (other than U.S.&#160;Treasury Securities Strips set forth
    below) with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.04
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.09
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.12
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.21
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.24
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.25
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.26
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.26
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Treasury Securities
    Strips with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.04
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.10
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.14
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.21
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.27
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.34
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.45
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.54
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.66
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Corporate Debt:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt having
    a delta range of .4-0, and non-convertible corporate debt, rated
    at least Aal with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.09
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.20
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.26
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.32
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.39
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.45
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    S-30
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset&#160;*:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Discount Factor</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt having
    a delta range of .4-0, and non-convertible corporate debt, rated
    at least Aa3 with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.12
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.23
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.29
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1:35
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.43
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.73
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt having
    a delta range of .4-0, and non-convertible corporate debt, rated
    at least A3 with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.22
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.27
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.33
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.39
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.47
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.81
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt having
    a delta range of .4-0, and non-convertible corporate debt, rated
    at least Baa3 with remaining terms of maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.25
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.31
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.38
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.44
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.52
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.89
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    S-31
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset&#160;*:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Discount Factor</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt having
    a delta range of .4-0, and non-convertible corporate debt, rated
    at least Ba3 with remaining terms of maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year, or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.37
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.46
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.53
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.61
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.68
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.79
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.89
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.96
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.96
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.96
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.05
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt having
    a delta range of .4-0, and non-convertible corporate debt, rated
    at least Bl and B2 with remaining terms of maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.68
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.76
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.85
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.97
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.08
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.16
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.28
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.29
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.40
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Discount Factors are for a seven-week exposure period; the
    Discount Factor applicable to Rule&#160;144A securities shall be
    increased by 20%. Unless conclusions regarding liquidity risk
    and estimates of both the probability and severity of default
    for the Fund&#146;s assets can be derived from other sources,
    securities rated below B by Moody&#146;s and unrated securities,
    which are securities rated by neither Moody&#146;s, S&#38;P nor
    Fitch, are limited to 10% of Moody&#146;s Eligible Assets. If a
    convertible corporate debt security is unrated by Moody&#146;s,
    S&#38;P or Fitch, the Fund will use the percentage set forth
    under &#147;NR&#148; in this table. Ratings assigned by S&#38;P
    or Fitch are generally accepted by Moody&#146;s at face value.
    However, adjustments to face value may be made to particular
    categories of credits for which an S&#38;P
    <FONT style="white-space: nowrap">and/or</FONT> Fitch
    rating does not seem to approximate a Moody&#146;s rating
    equivalent. Securities with different ratings assigned by
    S&#38;P and Fitch will be accepted at the lower of the two
    ratings.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#147;Moody&#146;s
    Eligible Assets&#148; Means:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;cash (including, for this purpose, receivables for
    investments sold to a counterparty whose senior debt securities
    are rated at least Baa3 by Moody&#146;s or a counterparty
    approved by Moody&#146;s and payable within five Business Days
    following such Valuation Date and dividends and interest
    receivable within 49&#160;days on investments);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Short-Term Money Market Instruments;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    S-32
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;commercial paper that is not includible as a Short-Term
    Money Market Instrument having on the Valuation Date a rating
    from Moody&#146;s of at least
    <FONT style="white-space: nowrap">P-1</FONT> and
    maturing within 270&#160;days;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;preferred stocks (i)&#160;which either (A)&#160;are
    issued by issuers whose senior debt securities are rated at
    least Baa1 by Moody&#146;s or (B)&#160;are rated at least Baa3
    by Moody&#146;s or (C)&#160;in the event an issuer&#146;s senior
    debt securities or preferred stock is not rated by Moody&#146;s,
    which either (1)&#160;are issued by an issuer whose senior debt
    securities are rated at least A&#8722; by S&#38;P or
    (2)&#160;are rated at least A&#8722; by S&#38;P and for this
    purpose have been assigned a Moody&#146;s equivalent rating of
    at least Baa3, (ii)&#160;of issuers which have (or, in the case
    of issuers which are special purpose corporations, whose parent
    companies have) common stock listed on the New York Stock
    Exchange, the American Stock Exchange or the Nasdaq National
    Market System, (iii)&#160;which have a minimum issue size (when
    taken together with other of the issuer&#146;s issues of similar
    tenor) of $40,000,000, (iv)&#160;which have paid cash dividends
    consistently during the preceding three-year period (or, in the
    case of new issues without a dividend history, are rated at
    least A1 by Moody&#146;s or, if not rated by Moody&#146;s, are
    rated at least A+ by S&#38;P), (v)&#160;which pay cumulative
    cash dividends in U.S.&#160;dollars, (vi)&#160;which are not
    convertible into any other class of stock and do not have
    warrants attached, (vii)&#160;which are not issued by issuers in
    the transportation industry and (viii)&#160;in the case of
    auction rate preferred stocks, which are rated at least Aa3 by
    Moody&#146;s, or. if not rated by Moody&#146;s, AA&#8722; by
    S&#38;P, AA&#8722; by Fitch or are otherwise approved in writing
    by Moody&#146;s and have never had a failed auction; provided,
    however, that for this purpose the aggregate Market Value of the
    Fund&#146;s holdings of any single issue of auction rate
    preferred stock shall not be more than 1% of the Fund&#146;s
    total assets;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;common stocks (i)&#160;(A)&#160;which are traded on a
    nationally recognized stock exchange or in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market, (B)&#160;if cash dividend paying, pay cash dividends in
    U.S.&#160;dollars and (C)&#160;which may be sold without
    restriction by the Fund; provided, however, that (y)&#160;common
    stock which, while a Moody&#146;s Eligible Asset owned by the
    Fund, ceases paying any regular cash dividend will no longer be
    considered a Moody&#146;s Eligible Asset until 71&#160;days
    after the date of the announcement of such cessation, unless the
    issuer of the common stock has senior debt securities rated at
    least A3 by Moody&#146;s and (z)&#160;the aggregate Market Value
    of the Corporation&#146;s holdings of the common stock of any
    issuer in excess of 4% in the case of utility common stock and
    6% in the case of non-utility common stock of the aggregate
    Market Value of the Fund&#146;s holdings shall not be
    Moody&#146;s Eligible Assets, (ii)&#160;which are securities
    denominated in any currency other than the U.S.&#160;dollar or
    securities of issuers formed under the laws of jurisdictions
    other than the United States, its states and the District of
    Columbia for which there are American Depositary Receipts
    (&#147;ADRs&#148;) or their equivalents which are traded in the
    United States on exchanges or
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    and are issued by banks formed under the laws of the United
    States, its states or the District of Columbia or
    (iii)&#160;which are securities of issuers formed under the laws
    of jurisdictions other than the United States (and in existence
    for at least five years) for which no ADRs are traded; provided,
    however, that the aggregate Market Value of the Fund&#146;s
    holdings of securities denominated in currencies other than the
    U.S.&#160;dollar and ADRs in excess of (A)&#160;6% of the
    aggregate Market Value of the Outstanding shares of common stock
    of such issuer thereof or (B)&#160;in excess of 10% of the
    Market Value of the Fund&#146;s Moody&#146;s Eligible Assets
    with respect to issuers formed under the laws of any single such
    <FONT style="white-space: nowrap">non-U.S.&#160;jurisdiction,</FONT>
    other than Australia, Belgium, Canada, Denmark, Finland, France,
    Germany, Ireland, Italy, Japan, Luxembourg, the Netherlands, New
    Zealand, Norway, Portugal, Spain, Sweden, Switzerland and the
    United Kingdom shall not be a Moody&#146;s Eligible Asset;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;ADR securities, based on the following guidelines:
    (i)&#160;Sponsored ADR program or (ii)&#160;Level&#160;II or
    Level&#160;III ADRs. Private placement Rule&#160;144A ADRs are
    not eligible for collateral consideration. Global GDR programs
    will be evaluated on a case by case basis;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;U.S.&#160;Government Obligations;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;corporate evidences of indebtedness (i)&#160;which may
    be sold without restriction by the Fund which are rated at least
    B3 (Caa subordinate) by Moody&#146;s (or, in the event the
    security is not rated by Moody&#146;s, the security is rated at
    least B&#8722; by S&#38;P and which for this purpose is assigned
    a Moody&#146;s equivalent rating of one full rating category
    lower), with such rating confirmed on each Valuation Date,
    (ii)&#160;which have a minimum issue size of at least
    (A)&#160;$100,000,000 if rated at least Baa3 or
    (B)&#160;$50,000,000 if rated B or Ba3,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-33
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;which are not convertible or exchangeable into equity
    of the issuing corporation and have a maturity of not more than
    30&#160;years and (iv)&#160;for which, if rated below Baa3 or
    not rated, the aggregate Market Value of the Fund&#146;s
    holdings do not exceed 10% of the aggregate Market Value of any
    individual issue of corporate evidences of indebtedness
    calculated at the time of original issuance;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;convertible corporate evidences of indebtedness
    (i)&#160;which are issued by issuers whose senior debt
    securities are rated at least B2 by Moody&#146;s (or, in the
    event an issuer&#146;s senior debt securities are not rated by
    Moody&#146;s, which are issued by issuers whose senior debt
    securities are rated at least B by S&#38;P and which for this
    purpose is assigned a Moody&#146;s equivalent rating of one full
    rating category lower), (ii)&#160;which are convertible into
    common stocks which are traded on the New York Stock Exchange or
    the American Stock Exchange or are quoted on the Nasdaq National
    Market System and (iii)&#160;which, if cash dividend paying, pay
    cash dividends in U.S.&#160;dollars; provided, however, that
    once convertible corporate evidences of indebtedness have been
    converted into common stock, the common stock issued upon
    conversion must satisfy the criteria set forth in
    clause&#160;(e) above and other relevant criteria set forth in
    this definition in order to be a Moody&#146;s Eligible Asset;
    provided, however, that the Fund&#146;s investments in auction
    rate preferred stocks described in clause&#160;(d) above shall
    be included in Moody&#146;s Eligible Assets only to the extent
    that the aggregate Market Value of such stocks does not exceed
    10% of the aggregate Market Value of all of the
    Corporation&#146;s investments meeting the criteria set forth in
    clauses&#160;(a) through (g)&#160;above less the aggregate
    Market Value of those investments excluded from Moody&#146;s
    Eligible Assets pursuant to the paragraph appearing after
    clause&#160;(i) below;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;no assets which are subject to any lien or irrevocably
    deposited by the Fund for the payment of amounts needed to meet
    the obligations described in clauses&#160;(a) through
    (d)&#160;of the definition of &#147;Basic Maintenance
    Amount&#148; in &#147;Description of the Series&#160;F Preferred
    Rating Agency Guidelines&#148; may be includible in Moody&#146;s
    Eligible Assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding anything to the contrary in the preceding
    clauses&#160;(a)-(j), the FUND&#146;s investment in preferred
    stock, common stock, corporate evidences of indebtedness and
    convertible corporate evidences of indebtedness shall not be
    treated as Moody&#146;s Eligible Assets except to the extent
    they satisfy the following diversification requirements
    (utilizing Moody&#146;s Industry and
    <FONT style="white-space: nowrap">Sub-industry</FONT>
    Categories) with respect to the Market Value of the Fund&#146;s
    holdings:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuer:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Moody&#146;s Rating&#160;(1)(2)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Single Issuer&#160;(3)(4)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Single Issuer&#160;(3)(4)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aaa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">CS/CB, Baa&#160;(5)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ba
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B1/B2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B3 or lower
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-34
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Industry
    and State:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Single
    <FONT style="white-space: nowrap">Sub-</FONT><BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Moody&#146;s Rating&#160;(1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Single Industry&#160;(3)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Industry&#160;(3)(6)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Single Issuer&#160;(3)(4)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aaa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %&#160;(7)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">CS/CB, Baa&#160;(5)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
    %&#160;(7)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ba
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B1/B2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B3 or lower
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Unless conclusions regarding liquidity risk and estimates of
    both the probability and severity of default for the Fund&#146;s
    assets can be derived from other sources, securities rated below
    B by Moody&#146;s and unrated securities, which are securities
    rated by neither Moody&#146;s, S&#38;P nor Fitch, are limited to
    10% of Moody&#146;s Eligible Assets. If a corporate, municipal
    or other debt security is unrated by Moody&#146;s, S&#38;P or
    Fitch, the Fund will use the percentage set forth under &#147;B3
    or lower&#148; in this table. Ratings assigned by S&#38;P or
    Fitch are generally accepted by Moody&#146;s at face value.
    However, adjustments to face value may be made to particular
    categories of credits for which the S&#38;P
    <FONT style="white-space: nowrap">and/or</FONT> Fitch
    rating does not seem to approximate a Moody&#146;s rating
    equivalent.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Corporate evidences of indebtedness from issues ranging from
    $50,000,000 to $100,000,000 are limited to 20% of Moody&#146;s
    Eligible Assets.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    The referenced percentages represent maximum cumulative totals
    only for the related Moody&#146;s rating category and each lower
    Moody&#146;s rating category.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Issuers subject to common ownership of 25% or more are
    considered as one name.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    CS/CB refers to common stock and convertible corporate evidences
    of indebtedness, which are diversified independently from the
    rating level.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    In the case of utility common stock, utility preferred stock,
    utility evidences of indebtedness and utility convertible
    evidences of indebtedness, the definition of industry refers to
    sub-industries (electric, water, hydro power, gas, diversified).
    Investments in other sub-industries are eligible only to the
    extent that the combined sum represents a percentage position of
    the Moody&#146;s Eligible Assets less than or equal to the
    percentage limits in the diversification tables above.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Such percentage shall be 15% in the case of utilities regulated
    by California, New York and Texas.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Moody&#146;s Hedging Transactions.</I>&#160;&#160;For so long
    as any Preferred Stock is rated by Moody&#146;s, the Fund may
    buy or sell financial futures contracts, write, purchase or sell
    call options on financial futures contracts or purchase put
    options on financial futures contracts or write call options on
    portfolio securities, swaps and securities lending unless it
    receives written confirmation from Moody&#146;s that engaging in
    such transactions would impair the ratings then assigned to the
    Preferred Stock by Moody&#146;s (collectively &#147;Moody&#146;s
    Hedging Transactions&#148;), subject to the following
    limitations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Future and call options: For purposes of the Basic
    Maintenance Amount, futures held by the Fund and call options
    sold by the Fund shall not be included as Moody&#146;s Eligible
    Assets. However, such assets shall be valued at Market Value by
    subtracting the good faith margin and the maximum daily trading
    variance as of a Valuation Date. For call options purchased by
    the Fund, the Market Value of the call option will be included
    as a Moody&#146;s Eligible Asset subject to a Moody&#146;s
    Discount Factor mutually agreed to between the Fund and
    Moody&#146;s based on the characteristics of the option contract
    such as its maturity and the underlying security of the contract.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Securities lending: The Fund may engage in securities
    lending in an amount not to exceed 10% of the Fund&#146;s total
    gross assets (provided term and conditions of the securities
    lending program are
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-35
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    disclosed in advance to Moody&#146;s, if Moody&#146;s is rating
    the Preferred Stock). For purposes of calculating the Basic
    Maintenance Amount, such securities lent shall be included as
    Moody&#146;s Eligible Assets with the appropriate Moody&#146;s
    Discount Factor applied to such lent security. The obligation to
    return such collateral shall not be included as an
    obligation/liability for purposes of calculating the Basic
    Maintenance Amount. However, the Fund may reinvest cash
    collateral for securities lent in conformity with its investment
    objectives and policies and the provisions of these By-Laws. In
    such event, to the extent that securities lending collateral
    received is invested by the Fund in assets that otherwise would
    be Moody&#146;s Eligible Assets and the value of such assets
    exceeds the amount of the Fund&#146;s Moody&#146;s Eligible
    Assets by applying the applicable Moody&#146;s Discount Factor
    to this amount and adding the product to total Moody&#146;s
    Eligible Assets. Conversely, if the value of assets in which
    securities lending collateral has been invested is less then the
    amount of the Fund&#146;s obligation to return the collateral on
    a Valuation Date, such difference shall be included as an
    obligation/liability of the Fund for purposes of calculating the
    Basic Maintenance Amount. Collateral received by the Fund in a
    securities lending transaction and maintained by the Fund in the
    form received shall not be included as a Moody&#146;s Eligible
    Asset for purposes of calculating the Basic Maintenance Amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Swaps (including Total Return Swaps and Interest Rate
    Swaps): Total Return and Interest Rate Swaps are subject to the
    following provisions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;Only the cumulative unsettled profit and loss from a
    Total Return Swap transaction will be calculated when
    determining the Basic Maintenance Amount. If the Fund has an
    outstanding gain from a swap transaction on a Valuation Date,
    the gain will be included as a Moody&#146;s Eligible Asset
    subject to the Moody&#146;s Discount Factor on the counterparty
    to the swap transaction. If the Fund has an outstanding
    liability from a swap transaction on a Valuation Date, the Fund
    will subtract the outstanding liability from the total
    Moody&#146;s Eligible Assets in calculating the Basic
    Maintenance Amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, for swaps other than Total Return Swaps, the Market
    Value of the position (positive or negative) will be included as
    a Moody&#146;s Eligible Asset. The aggregate notional value of
    all swaps will not exceed the Liquidation Preference of the
    Outstanding Preferred Stock. At the time a swap is executed, the
    Fund will only enter into swap transactions where the
    counterparty has at least a S&#38;P or Fitch rating of A&#8722;
    or Moody&#146;s long-term rating of A3.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;(1)&#160;The underlying securities subject to a Credit
    Default Swap sold by the Fund will be subject to the applicable
    Moody&#146;s Discount Factor for each security subject to the
    swap;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;If the Fund purchases a Credit Default Swap and holds
    the underlying security, the Market Value of the Credit Default
    Swap and the underlying security will be included as a
    Moody&#146;s Eligible Asset subject to the Moody&#146;s Discount
    Factor assessed based on the counterparty risk and the duration
    of the swap agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If not otherwise provided for in (i)-(iii) above, derivative
    instruments shall be treated as follows: Any derivative
    instruments will be valued pursuant to the Fund&#146;s valuation
    procedures on a Valuation Date. The amount of the net payment
    obligation and the cost of a closing transaction, as
    appropriate, on any derivative instrument on a Valuation Date
    will be counted as a liability for purposes of determining the
    Basic Maintenance Amount (e.g., written call option that is in
    the money for the holder). Any derivative instrument with
    respect to which the Fund is owed payment on the Valuation Date
    that is not based upon an individual security or securities that
    are Moody&#146;s Eligible Assets will have a mutually agreed
    -upon valuation by Moody&#146;s and the Fund for purposes of
    determining Moody&#146;s Eligible Assets. Any derivative
    instrument with respect to which the Fund is owed payment on the
    Valuation Date that is based upon an individual security or
    securities that are Moody&#146;s Eligible Assets (e.g., a
    purchased call option on a bond that is in the money) will be
    valued as follows for purposes of determining Moody&#146;s
    Eligible Assets: (A)&#160;For such derivative instruments that
    are exchange traded, the value of the
    <FONT style="white-space: nowrap">in-the-money</FONT>
    amount of the payment obligation to the Fund will be reduced by
    applying the Moody&#146;s Discount Factor (as it would apply to
    the underlying security or securities) and then added to
    Moody&#146;s Eligible Assets; and (B)&#160;for such derivative
    instruments that are not exchange-
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-36
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    traded, the value of the
    <FONT style="white-space: nowrap">in-the-money</FONT>
    amount of the payment obligation to the Fund will be
    (1)&#160;reduced as described in (A)&#160;and (B)&#160;further
    reduced by applying to the remaining amount the Moody&#146;s
    Discount Factor determined by reference to the credit rating of
    the derivative counterparty with the remaining amount after
    these reductions then added to Moody&#146;s Eligible Assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of determining whether the Fund has Moody&#146;s
    Eligible Assets with an aggregate Discounted Value that equals
    or exceeds the Basic Maintenance Amount, the Discounted Value of
    all Forward Commitments to which the Fund is a party and of all
    securities deliverable to the Fund pursuant to such Forward
    Commitments shall be zero.
</DIV>
<A name='210'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NET ASSET
    VALUE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of determining the Fund&#146;s net asset value per
    share, portfolio securities listed or traded on a nationally
    recognized securities exchange or traded in the
    <FONT style="white-space: nowrap">U.S.&#160;over-the-counter</FONT>
    market for which market quotations are readily available are
    valued at the last quoted sale price or a market&#146;s official
    closing price as of the close of business on the day the
    securities are being valued. If there were no sales that day,
    the security is valued at the average of the closing bid and
    asked prices or, if there were no asked prices quoted on that
    day, then the security is valued at the most recently available
    price, or, if the Board so determines, by such other method as
    the Board shall determine in good faith, to reflect its fair
    market value. Portfolio securities traded on more than one
    national securities exchange or market are valued according to
    the broadest and most representative market, as determined by
    the Investment Adviser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Portfolio securities primarily traded on foreign markets are
    generally valued at the preceding closing values of such
    securities on their respective exchanges or, if after the close,
    market conditions change significantly, certain foreign
    securities may be fair valued pursuant to procedures established
    by the Board. Debt instruments that are not credit impaired with
    remaining maturities of 60&#160;days or less are valued at
    amortized cost, unless the Board determines such amount does not
    reflect the securities&#146; fair value, in which case these
    securities will be valued at their fair value as determined by
    the Board. Debt instruments having a maturity greater than
    60&#160;days for which market quotations are readily available
    are valued at the average of the latest bid and asked prices. If
    there were no asked prices quoted on such day, the security is
    valued using the closing bid price. Futures contracts are valued
    at the closing settlement price of the exchange or board of
    trade on which the applicable contract is traded.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Securities and other assets for which market quotations are not
    readily available are valued at their fair value as determined
    in good faith under procedures established by and under the
    general supervision of the Board. Fair valuation methodologies
    and procedures may include, but are not limited to: analysis and
    review of available financial and non-financial information
    about the company; comparisons to the valuation and changes in
    valuation of similar securities, including a comparison of
    foreign securities to the equivalent U.S.&#160;dollar value ADR
    securities at the close of the U.S.&#160;exchange; and
    evaluation of any other information that could be indicative of
    the value of the security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund obtains valuation on the basis of prices provided by
    one or more pricing services approved by the Board. All other
    investment assets, including restricted and not readily
    marketable securities, are valued at their fair value as
    determined in good faith under procedures established by and
    under the general supervision of the Board. In addition,
    whenever developments in one or more securities markets after
    the close of the principal markets for one or more portfolio
    securities and before the time as of which the Fund determines
    its net asset value would, if such developments had been
    reflected in such principal markets, likely have had more than a
    minimal effect on the Fund&#146;s asset value per share, the
    Fund may fair value such portfolio securities based on available
    market information as of the time the Fund determines its net
    asset value.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-37
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='211'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BENEFICIAL
    OWNERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Principal
    Stockholders and Ownership By Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Set forth below is information as of October&#160;31, 2006 with
    respect to the beneficial ownership of our shares of common
    stock by (i) each person who is known by us to be the beneficial
    owner of more than five percent of the outstanding shares of
    common stock, (ii)&#160;each of our interested and
    non-interested Directors, and (iii)&#160;all of our interested
    and non-interested Directors as a group. Except as otherwise
    indicated, to our knowledge, all shares are beneficially owned
    and investment and voting power is held by the persons named as
    owners. At this time, we are unaware of any stockholder owning
    5&#160;percent or more of the outstanding shares of common
    stock. Unless otherwise provided, the address of each holder is
    Gabelli Funds, LLC, One Corporate Center, Rye, NY,
    <FONT style="white-space: nowrap">10580-1422.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Set forth in the table below is the amount of shares
    beneficially owned by each Director of the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="34%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Amount and Nature of Beneficial<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Director</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ownership&#160;(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Outstanding&#160;(2)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">INTERESTED DIRECTORS:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mario J. Gabelli
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">1,827,970&#160;shares of common
    stock&#160;(3)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Anthony R. Pustorino
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">13,620&#160;shares of common
    stock&#160;(4)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">NON-INTERESTED DIRECTORS:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Dr. Thomas E. Bratter
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">29,075&#160;shares of common stock;
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">375&#160;shares of Series&#160;B
    Preferred
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Anthony J. Colavita
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">2,835&#160;shares of common
    stock&#160;(5);
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">750&#160;shares of Series&#160;B
    Preferred&#160;(6)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">James P. Conn
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">43,439&#160;shares of common stock;
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">750&#160;shares of Series&#160;B
    Preferred
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Frank J. Fahrenkopf,&#160;Jr.&#160;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">0
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Arthur V. Ferrara
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">0
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Salvatore J. Zizza
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">41,390&#160;shares of common
    stock&#160;(7)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    This information has been furnished by each Director as of
    October&#160;31, 2006. &#147;Beneficial Ownership&#148; is
    determined in accordance with
    <FONT style="white-space: nowrap">Section&#160;16a-1(a)(2)</FONT>
    of the 1934&#160;Act. Reflects ownership of common stock unless
    otherwise noted.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    An asterisk indicates that the ownership amount constitutes less
    than 1% of the total shares outstanding.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 947,963&#160;shares of common stock owned directly by
    Mr.&#160;Gabelli, 37,358&#160;shares of common stock owned by a
    family partnership for which Mr.&#160;Gabelli serves as general
    partner, and 842,649&#160;shares of common stock owned by GAMCO
    Investors, Inc. or its affiliates. Mr.&#160;Gabelli disclaims
    beneficial ownership of the shares held by the discretionary
    accounts and by the entities named except to the extent of his
    interest in such entities.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 2,632&#160;shares of common stock owned by
    Mr.&#160;Pustorino&#146;s spouse for which he disclaims
    beneficial ownership.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Comprised of 2,835&#160;shares of common stock owned by
    Mr.&#160;Colavita&#146;s spouse for which he disclaims
    beneficial ownership.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Comprised of 750&#160;shares of preferred stock owned by
    Mr.&#160;Colavita&#146;s spouse for which he disclaims
    beneficial ownership.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 30,500&#160;shares of common stock owned by
    Mr.&#160;Zizza&#146;s sons for which he disclaims beneficial
    ownership.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-38
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of October&#160;31, 2006, the Directors and Officers of the
    Fund as a group beneficially owned approximately 1.2% of the
    Fund&#146;s outstanding shares of common stock and less than 1%
    of the Fund&#146;s outstanding Series&#160;B Preferred.
</DIV>
<A name='212'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENERAL
    INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Book-Entry-Only
    Issuance</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC will act as securities depository for the stock of
    Series&#160;F Preferred offered pursuant to the Prospectus. The
    information in this section concerning DTC and DTC&#146;s
    book-entry system is based upon information obtained from DTC.
    The securities offered hereby initially will be issued only as
    fully-registered securities registered in the name of
    Cede&#160;&#38; Co. (as nominee for DTC). One or more
    fully-registered global security certificates initially will be
    issued, representing in the aggregate the total number of
    securities, and deposited with DTC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC is a limited-purpose trust company organized under the New
    York Banking Law, a &#147;banking organization&#148; within the
    meaning of the New York Banking Law, a member of the Federal
    Reserve System, a &#147;clearing corporation&#148; within the
    meaning of the New York Uniform Commercial Code and a
    &#147;clearing agency&#148; registered pursuant to the
    provisions of Section&#160;17A of the 1934&#160;Act, as amended.
    DTC holds securities that its participants deposit with DTC. DTC
    also facilitates the settlement among participants of securities
    transactions, such as transfers and pledges, in deposited
    securities through electronic computerized book-entry changes in
    participants&#146; accounts, thereby eliminating the need for
    physical movement of securities certificates. Direct DTC
    participants include securities brokers and dealers, banks,
    trust companies, clearing corporations and certain other
    organizations. Access to the DTC system is also available to
    others such as securities brokers and dealers, banks and trust
    companies that clear through or maintain a custodial
    relationship with a direct participant, either directly or
    indirectly through other entities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Purchases of securities within the DTC system must be made by or
    through direct participants, which will receive a credit for the
    securities on DTC&#146;s records. The ownership interest of each
    actual purchaser of a security, a beneficial owner, is in turn
    to be recorded on the direct or indirect participants&#146;
    records. Beneficial owners will not receive written confirmation
    from DTC of their purchases, but beneficial owners are expected
    to receive written confirmations providing details of the
    transactions, and periodic statements of their holdings, from
    the direct or indirect participants through which the beneficial
    owners purchased securities. Transfers of ownership interests in
    securities are to be accomplished by entries made on the books
    of participants acting on behalf of beneficial owners.
    Beneficial owners will not receive certificates representing
    their ownership interests in securities, except as provided
    herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC has no knowledge of the actual beneficial owners of the
    securities being offered pursuant to this Prospectus; DTC&#146;s
    records reflect only the identity of the direct participants to
    whose accounts such securities are credited, which may or may
    not be the beneficial owners. The participants will remain
    responsible for keeping account of their holdings on behalf of
    their customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Conveyance of notices and other communications by DTC to direct
    participants, by direct participants to indirect participants,
    and by direct participants and indirect participants to
    beneficial owners will be governed by arrangements among them,
    subject to any statutory or regulatory requirements as may be in
    effect from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Payments on the securities will be made to DTC. DTC&#146;s
    practice is to credit direct participants&#146; accounts on the
    relevant payment date in accordance with their respective
    holdings shown on DTC&#146;s records unless DTC has reason to
    believe that it will not receive payments on such payment date.
    Payments by participants to beneficial owners will be governed
    by standing instructions and customary practices and will be the
    responsibility of such participant and not of DTC or the Fund,
    subject to any statutory or regulatory requirements as may be in
    effect from time to time. Payment of distributions to DTC is the
    responsibility of the Fund, disbursement of such payments to
    direct participants is the responsibility of DTC, and
    disbursement
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-39
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of such payments to the beneficial owners is the responsibility
    of direct and indirect participants. Furthermore each beneficial
    owner must rely on the procedures of DTC to exercise any rights
    under the securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DTC may discontinue providing its services as securities
    depository with respect to the securities at any time by giving
    reasonable notice to the Fund. Under such circumstances, in the
    event that a successor securities depository is not obtained,
    certificates representing the securities will be printed and
    delivered.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Counsel
    and Independent Registered Public Accounting Firm</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Willkie Farr&#160;&#38; Gallagher LLP, 787 Seventh Avenue, New
    York, New York 10019, is counsel to the Fund. As to certain
    matters of Maryland law, Willkie Farr&#160;&#38; Gallagher LLP
    will rely on the opinion of Venable LLP, 1800 Mercantile Bank
    and Trust Building, 2&#160;Hopkins Plaza, Baltimore, Maryland
    21201.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PricewaterhouseCoopers LLP, 300&#160;Madison Avenue, New York,
    New York 10017 serves as the Independent Registered Public
    Accounting Firm of the Fund and will annually audit the
    financial statements of the Fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proxy
    Voting Procedures</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has adopted the proxy voting procedures of the
    Investment Adviser and has directed the Investment Adviser to
    vote all proxies relating to the Fund&#146;s voting securities
    in accordance with such procedures. The proxy voting procedures
    are attached hereto as Appendix&#160;A. Information regarding
    how the Fund voted proxies relating to portfolio securities
    during the most recent
    <FONT style="white-space: nowrap">12-month</FONT>
    period ended June&#160;30 is available (i)&#160;without charge,
    upon request, by calling
    <FONT style="white-space: nowrap">800-422-3554,</FONT>
    or on the Registrant&#146;s website at
    <FONT style="white-space: nowrap">http://www.gabelli.com,</FONT>
    and (ii)&#160;on the Commission&#146;s website at
    http://www.sec.gov.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Code of
    Ethics</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund and the Investment Adviser have adopted a code of
    ethics (the &#147;Code of Ethics&#148;) under
    <FONT style="white-space: nowrap">Rule&#160;17(j)-1</FONT>
    under the 1940 Act. The Code of Ethics permits
    directors/trustees, officers and employees of the Fund, the
    Investment Adviser and their affiliates, subject to the Code of
    Ethics and its restrictive provisions, to invest in securities,
    including securities that may be purchased or held by the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Code of Ethics can be reviewed and copied at the
    Commission&#146;s Public Reference Room in Washington,&#160;D.C.
    Information on the operations of the Public Reference Room may
    be obtained by calling the Commission at 800-SEC-0330. The Code
    of Ethics is also available on the EDGAR database on the
    Commission&#146;s website at http://www.sec.gov. Copies of the
    Code of Ethics may also be obtained, after paying a duplicating
    fee, by electronic request at the following
    <FONT style="white-space: nowrap">e-mail</FONT>
    address: publicinfo@sec.gov, or by writing the Commission&#146;s
    Public Reference Room&#160;Section, Washington,&#160;D.C.
    <FONT style="white-space: nowrap">20549-0102.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Joint
    Code of Ethics for Chief Executive and Senior Financial
    Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund and the Investment Adviser have adopted a joint code of
    ethics (the &#147;Joint Code&#148;) that serves as a code of
    conduct.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Joint Code sets forth policies to guide the chief executive
    and senior financial officers in the performance of their
    duties. The Joint Code can be reviewed and copied at the
    Commission&#146;s Public Reference Room in Washington,&#160;D.C.
    Information on the operations of the Public Reference Room may
    be obtained by calling the Commission at 800-SEC-0330. The Joint
    Code is also available on the EDGAR database on the
    Commission&#146;s website at http://www.sec.gov. Copies of the
    Joint Code may also be obtained, after paying a duplicating fee,
    by electronic request at the following
    <FONT style="white-space: nowrap">e-mail</FONT>
    address: publicinfo@sec.gov, or by writing the Commission&#146;s
    Public Reference Room&#160;Section, Washington,&#160;D.C.
    <FONT style="white-space: nowrap">20549-0102.</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-40
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='213'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The audited financial statements included in the annual report
    to the Fund&#146;s shareholders for the year ended
    December&#160;31, 2005, and the unaudited financial statements
    included in the semi-annual report to the Fund&#146;s
    shareholders for the period ended June&#160;30, 2006, together
    with the reports of PricewaterhouseCoopers LLP for the
    Fund&#146;s annual report, are incorporated herein by reference
    from the Fund&#146;s annual report and semi-annual report to
    shareholders. All other portions of the annual report and
    semi-annual report to shareholders are not incorporated herein
    by reference and are not part of the Registration Statement. A
    copy of the annual report or the semi-annual report to
    shareholders may be obtained without charge by writing to the
    Fund at its address at One Corporate Center, Rye, New York
    <FONT style="white-space: nowrap">10580-1422</FONT>
    or by calling the Fund toll-free at
    <FONT style="white-space: nowrap">800-GABELLI</FONT>
    <FONT style="white-space: nowrap">(422-3554).</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-41
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='214'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GLOSSARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;ADJUSTED VALUE&#148; of each Eligible Asset shall be
    computed as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;cash shall be valued at 100% of the face value
    thereof;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;all other Eligible Assets shall be valued at the
    applicable Discounted Value thereof;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;each asset that is not an Eligible Asset shall be
    valued at zero.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;ADMINISTRATOR&#148; means the other party to the
    Administration Agreement with the Fund, which shall initially be
    Gabelli Funds, LLC, a New York limited liability company, and
    will include, as appropriate, any sub-administrator appointed by
    the Administrator.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;ARTICLES&#160;OF INCORPORATION&#148; means the Articles of
    Incorporation of the Fund, dated as of May&#160;20, 1986, as
    amended, supplemented or restated from time to time (including
    by the Articles&#160;Supplementary).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;ARTICLES&#160;SUPPLEMENTARY&#148; means the
    Articles&#160;Supplementary of the Fund establishing a series of
    preferred stock, including the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;BASIC MAINTENANCE AMOUNT&#148; has the meaning set forth
    in &#147;Moody&#146;s Guidelines.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;BOARD&#148; means the Board of Directors of the Fund or
    any duly authorized committee thereof as permitted by applicable
    law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;BUSINESS DAY&#148; means a day on which the New York Stock
    Exchange is open for trading and which is not a Saturday, Sunday
    or other day on which banks in the City of New York, New York
    are authorized or obligated by law to close.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;BY-LAWS&#148; means the By-Laws of the Fund, as amended
    from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CHARTER&#148; means the Charter of the Fund (together with
    any amendments or supplements thereto, including any articles
    supplementary).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;CODE&#148; means the Internal Revenue Code of 1986, as
    amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;COMMISSION&#148; means the United States Securities and
    Exchange Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;DEPOSIT ASSETS&#148; means cash, Short-Term Money Market
    Instruments and U.S.&#160;Government Securities. Except for
    determining whether the Fund has Eligible Assets with an
    Adjusted Value equal to or greater than the Basic Maintenance
    Amount, each Deposit Asset shall be deemed to have a value equal
    to its principal or face amount payable at maturity plus any
    interest payable thereon after delivery of such Deposit Asset
    but only if payable on or prior to the applicable payment date
    in advance of which the relevant deposit is made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;DISCOUNT FACTOR&#148; means (i)&#160;so long as
    Moody&#146;s is rating the Series&#160;F Preferred at the
    Fund&#146;s request, the Moody&#146;s Discount Factor,
    <FONT style="white-space: nowrap">and/or</FONT>
    (ii)&#160;any applicable discount factor established by any
    Other Rating Agency, whichever is applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;DISCOUNTED VALUE&#148; means, as applicable, (i) the
    quotient of the Market Value of an Eligible Asset divided by the
    applicable Discount Factor, or (ii)&#160;such other formula for
    determining the discounted value of an Eligible Asset as may be
    established by an applicable Rating Agency, provided that, with
    respect to an Eligible Asset that is currently callable,
    Discounted Value will be equal to the applicable quotient or
    product as calculated above or the call price, whichever is
    lower, and that, with respect to an Eligible Asset that is
    prepayable, Discounted Value will be equal to the applicable
    quotient or product as calculated above or the par value,
    whichever is lower.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;DIVIDEND PAYMENT DATE&#148; means, with respect to the
    Series&#160;F Preferred, any date on which dividends and
    distributions declared by the Board thereon are payable pursuant
    to the provisions of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-42
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    paragraph&#160;2(a) of Article&#160;II of the
    Articles&#160;Supplementary of the Series&#160;F Preferred and
    shall have a correlative meaning with respect to any other class
    or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;DIVIDEND PERIOD&#148; means, with respect to Series&#160;F
    Preferred, the quarterly dividend and distribution specified in
    paragraph&#160;1(a) of Article&#160;II of the
    Articles&#160;Supplementary for the Series&#160;F Preferred and,
    with respect to any other Preferred Stock issued by the Fund,
    the periods specified in or determinable by reference to the
    Articles&#160;Supplementary therefor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;ELIGIBLE ASSETS&#148; means Moody&#146;s Eligible Assets
    (if Moody&#146;s is then rating the Series&#160;F Preferred at
    the request of the Fund),
    <FONT style="white-space: nowrap">and/or</FONT> Other
    Rating Agency Eligible Assets if any Other Rating Agency is then
    rating the Series&#160;F Preferred, whichever is applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;GOVERNING DOCUMENTS&#148; means the Articles of
    Incorporation and the By-Laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;LIQUIDATION PREFERENCE&#148; means $25&#160;per share of
    Series&#160;F Preferred and will have a correlative meaning with
    respect to shares of any other class or series of Preferred
    Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;MARKET CAPITALIZATION&#148; means, with respect to any
    issue of common stock, as of any date, the product of
    (i)&#160;the number of shares of such common stock issued and
    outstanding as of the close of business on the date of
    determination thereof and (ii)&#160;the Market Value per share
    of such common stock as of the close of business on the date of
    determination thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;MARKET VALUE&#148; means the amount determined by the Fund
    with respect to specific Eligible Assets in accordance with
    valuation policies adopted from time to time by the Board as
    being in compliance with the requirements of the 1940 Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, &#147;Market Value&#148; may, at
    the option of the Fund with respect to any of its assets, mean
    the amount determined with respect to specific Eligible Assets
    of the Fund in the manner set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;as to any common or preferred stock which is an Eligible
    Asset, (a)&#160;if the stock is traded on a national securities
    exchange or quoted on the NASDAQ National Market System, the
    last sales price reported on the Valuation Date or (b)&#160;if
    there was no reported sales price on the Valuation Date, the
    price obtained from a Pricing Service as of the Valuation Date,
    or (c)&#160;if there was no reported sales price on the
    Valuation Date or price available from a Pricing Service, the
    lower of two bid prices for such stock provided to the
    Administrator by two recognized securities dealers with a
    minimum capitalization of $25,000,000 (or otherwise approved for
    such purpose by Moody&#146;s) at least one of which will be
    provided in writing or by telecopy, telex, other electronic
    transcription, computer-obtained quotation reducible to written
    form or similar means, and in turn provided to the Fund by any
    such means by such administrator, or, if two bid prices cannot
    be obtained, such Eligible Asset will have a Market Value of
    zero;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;as to any U.S.&#160;Government Obligation, Short-Term
    Money Market Instrument (other than demand deposits, federal
    funds, bankers&#146; acceptances and next Business Day
    repurchase agreements) and commercial paper with a maturity of
    greater than 60&#160;days, the product of (a)&#160;the principal
    amount (accreted principal to the extent such instrument
    accretes interest) of such instrument and (b)&#160;the price
    provided by a Pricing Service or, if not obtainable through a
    Pricing Service, the lower of the bid prices for the same kind
    of instruments having, as nearly as practicable, comparable
    interest rates and maturities provided by two recognized
    securities dealers having minimum capitalization of $25,000,000
    (or otherwise approved for such purpose by Moody&#146;s) to the
    administrator, at least one of which will be provided in writing
    or by telecopy, telex, other electronic transcription, computer
    obtained quotation reducible to written form or similar means,
    and in turn provided to the Fund by any such means by such
    administrator, or, if two bid prices cannot be obtained, such
    Eligible Asset will have a Market Value of zero;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;as to cash, demand and timed deposits, federal funds,
    bankers&#146; acceptances and next Business Day repurchase
    agreements included in Short-Term Money Market Instruments, the
    face value thereof;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-43
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;as to any U.S.&#160;Government Obligation, Short-Term
    Money Market Instrument or commercial paper with a maturity of
    60&#160;days or fewer, amortized cost unless the Board
    determines that such value does not constitute fair value; or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;as to any other evidence of indebtedness which is an
    Eligible Asset, (a)&#160;the product of (1)&#160;the unpaid
    principal balance of such indebtedness as of the Valuation Date
    and (2)(A) if such indebtedness is traded on a national
    securities exchange or quoted on the NASDAQ National Market
    System, the last sales price reported on the Valuation Date or
    (B)&#160;if there was no reported sales price on the Valuation
    Date and if such indebtedness is not traded on a national
    securities exchange or quoted on the NASDAQ National Market
    System, the price obtained from a Pricing Service as of the
    Valuation Date or (C)&#160;if there was no reported sales price
    on the Valuation Date or if such indebtedness is not traded on a
    national securities exchange or quoted on the NASDAQ National
    Market System, and a price was not obtainable from a Pricing
    Service as of the Valuation Date, the lower of two bid prices
    for such indebtedness provided by two recognized dealers with a
    minimum capitalization of $25,000,000 (or otherwise approved for
    such purpose by Moody&#146;s) to the administrator of the
    Fund&#146;s assets, at least one of which will be provided in
    writing or by telecopy, telex, other electronic transcription,
    computer obtained quotation reducible to written form or similar
    means, and in turn provided to the Fund by any such means by
    such administrator, plus (b)&#160;accrued interest on such
    indebtedness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, in the case of preferred stock
    that is rated by a single Rating Agency, &#147;Market
    Value&#148; shall have the meaning set forth in the governing
    documents of such preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;MOODY&#146;S&#148; means Moody&#146;s Investors Service,
    Inc. and its successors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;MOODY&#146;S DISCOUNT FACTOR&#148; has the meaning
    ascribed to it in &#147;Moody&#146;s Guidelines.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;MOODY&#146;S ELIGIBLE ASSETS&#148; has the meaning
    ascribed to it in &#147;Moody&#146;s Guidelines.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;MOODY&#146;S HEDGING TRANSACTION&#148; has the meaning
    ascribed to it in &#147;Moody&#146;s Guidelines.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;1940 ACT&#148; means the Investment Company Act of 1940,
    as amended, or any successor statute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;1940 ACT ASSET COVERAGE&#148; means asset coverage, as
    determined in accordance with Section&#160;18(h) of the 1940
    Act, of at least 200% with respect to all outstanding senior
    securities of the Fund which are stock, including all
    Outstanding Series&#160;F Preferred (or such other asset
    coverage as may in the future be specified in or under the 1940
    Act as the minimum asset coverage for senior securities which
    are stock of a closed-end investment company as a condition of
    declaring dividends and distributions on its shares of common
    stock), determined on the basis of values calculated as of a
    time within 48&#160;hours (not including Saturdays, Sundays or
    holidays) next preceding the time of such determination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;OTHER RATING AGENCY&#148; means any rating agency other
    than Moody&#146;s then providing a rating for the Series&#160;F
    Preferred pursuant to the request of the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;OTHER RATING AGENCY ELIGIBLE ASSETS&#148; means assets of
    the Fund designated by any Other Rating Agency as eligible for
    inclusion in calculating the discounted value of the Fund&#146;s
    assets in connection with such Other Rating Agency&#146;s rating
    of the Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;OUTSTANDING&#148; means, as of any date, Preferred Stock
    theretofore issued by the Fund except:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;any such Preferred Stock theretofore cancelled by the
    Fund or delivered to the Fund for cancellation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;any such share of Preferred Stock other than shares of
    Auction Rate Preferred (as defined in the Prospectus), as to
    which a notice of redemption will have been given and for whose
    payment at the redemption thereof Deposit Assets in the
    necessary amount are held by the Fund in trust for, or have been
    irrevocably deposited with the relevant disbursing agent for
    payment to, the holder of such stock pursuant to the
    Articles&#160;Supplementary with respect thereto;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-44
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;in the case of Auction Rate Preferred stock, any such
    shares theretofore delivered to the applicable auction agent for
    cancellation or with respect to which the Fund has given notice
    of redemption and irrevocably deposited with the applicable
    paying agent sufficient funds to redeem such stock;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;any such Preferred Stock in exchange for or in lieu of
    which other shares have been issued and delivered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, (x)&#160;for purposes of voting
    rights (including the determination of the number of shares
    required to constitute a quorum), any shares of Preferred Stock
    as to which the Fund or any subsidiary is the holder, as
    applicable, will be disregarded and deemed not Outstanding; and
    (y)&#160;in connection with any auction, any Auction Rate
    Preferred stock as to which the Fund or any Person known to the
    auction agent to be a subsidiary is the holder or Existing
    Holder, as applicable, will be disregarded and not deemed
    Outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;PERSON&#148; means and includes an individual, a
    partnership, the Fund, a trust, a corporation, a limited
    liability company, an unincorporated association, a joint
    venture or other entity or a government or any agency or
    political subdivision thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;PREFERRED STOCK&#148; means the preferred stock, par value
    $0.001&#160;per share, of the Fund, and includes the
    Series&#160;F Preferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;PRICING SERVICE&#148; means any of the following:
    Bloomberg Financial Service, Bridge Information Services, Data
    Resources Inc., FT Interactive, International Securities Market
    Association, Merrill Lynch Securities Pricing Service, Muller
    Data Corp., Reuters, S&#38;P/J.J. Kenny, Telerate, Trepp Pricing
    and Wood Gundy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;RATING AGENCY&#148; means Moody&#146;s as long as
    Moody&#146;s is then rating the Series&#160;F Preferred at the
    request of the Fund, or any Other Rating Agency then rating the
    Series&#160;F Preferred at the request of the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;RATING AGENCY GUIDELINES&#148; has the meaning set forth
    in &#147;Moody&#146;s Guidelines.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;SECURITIES ACT&#148; means the Securities Act of 1933, as
    amended, or any successor statute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;SERIES&#160;F PREFERRED&#148; means the Fund&#146;s
    Series&#160;F Cumulative Preferred Stock, $0.001&#160;par value
    per share and liquidation preference $25&#160;per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;SHORT-TERM MONEY MARKET INSTRUMENTS&#148; means the
    following types of instruments if, on the date of purchase or
    other acquisition thereof by the Fund, the remaining term to
    maturity thereof is not in excess of 180&#160;days:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;commercial paper rated
    <FONT style="white-space: nowrap">A-1</FONT> if such
    commercial paper matures in 30&#160;days, or
    <FONT style="white-space: nowrap">A-1+</FONT> if such
    commercial paper matures in over 30&#160;days;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;AAAm rated money market funds
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;demand or time deposits in, and banker&#146;s
    acceptances and certificates of deposit of (A)&#160;a depository
    institution or trust company incorporated under the laws of the
    United States of America or any state thereof or the District of
    Columbia or (B)&#160;a United States branch office or agency of
    a foreign depository institution (provided that such branch
    office or agency is subject to banking regulation under the laws
    of the United States, any state thereof or the District of
    Columbia) or
    <FONT style="white-space: nowrap">(C)&#160;A-1+</FONT>
    rated institutions;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;overnight funds;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;U.S.&#160;Government Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, in the case of preferred stock
    that is rated by a single Rating Agency, &#147;Short-Term Money
    Market Instruments&#148; shall have the meaning set forth in the
    governing documents of such preferred stock.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-45
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;U.S.&#160;GOVERNMENT SECURITIES&#148; means direct
    obligations of the United States or by its agencies or
    instrumentalities that are entitled to the full faith and credit
    of the United States and that, other than United States Treasury
    Bills, provide for the periodic payment of interest and the full
    payment of principal at maturity or call for redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;VALUATION DATE&#148; means the last Business Day of each
    month, or such other date as the Fund and Rating Agencies may
    agree to for purposes of determining the Basic Maintenance
    Amount. Notwithstanding the foregoing, in the case of preferred
    stock that is rated by a single Rating Agency, &#147;Valuation
    Date&#148; shall have the meaning set forth in the governing
    documents of such preferred stock.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    S-46
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GAMCO
    INVESTORS, INC. AND AFFILIATES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE VOTING OF PROXIES ON BEHALF OF CLIENTS</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">Rules&#160;204(4)-2</FONT>
    and 204-2 under the Investment Advisers Act of 1940 and
    <FONT style="white-space: nowrap">Rule&#160;30b1-4</FONT>
    under the Investment Company Act of 1940 require investment
    advisers to adopt written policies and procedures governing the
    voting of proxies on behalf of their clients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These procedures will be used by GAMCO Asset Management, Inc.,
    Gabelli Funds, LLC and Gabelli Advisers, Inc. (collectively, the
    &#147;Advisers&#148;) to determine how to vote proxies relating
    to portfolio securities held by their clients, including the
    procedures that the Advisers use when a vote presents a conflict
    between the interests of the shareholders of an investment
    company managed by one of the Advisers, on the one hand, and
    those of the Advisers; the principal underwriter; or any
    affiliated person of the investment company, the Advisers, or
    the principal underwriter. These procedures will not apply where
    the Advisers do not have voting discretion or where the Advisers
    have agreed with a client to vote the client&#146;s proxies in
    accordance with specific guidelines or procedures supplied by
    the client (to the extent permitted by ERISA).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">I.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Proxy
    Voting Committee</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Proxy Voting Committee was originally formed in April 1989
    for the purpose of formulating guidelines and reviewing proxy
    statements within the parameters set by the substantive proxy
    voting guidelines originally published by GAMCO Asset
    Management, Inc. in 1988 and updated periodically, a copy of
    which is appended as Exhibit&#160;A. The Committee will include
    representatives of Research, Administration, Legal, and the
    Advisers. Additional or replacement members of the Committee
    will be nominated by the Chairman and voted upon by the entire
    Committee. As of June&#160;30, 2006, the members were:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Bruce N. Alpert, Chief Operating Officer of Gabelli Funds, LLC
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Caesar M. P. Bryan, Portfolio Manager
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Joshua W. Fenton, Director of Research
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Peter D. Goldstein, Director of Regulatory Affairs
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Douglas R. Jamieson, Chief Operating Officer of GAMCO
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    James E. McKee, General Counsel
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Karyn-Marie Prylucki, Director of Proxy Voting Services
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Christopher J. Michailoff, Deputy General Counsel
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    George Maldonado, Proxy Administrator
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    William S. Selby, Managing Director of GAMCO
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Howard F. Ward, Portfolio Manager
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Joshua Fenton currently chairs the Committee. Meetings
    are held on an as needed basis to form views on the manner in
    which the Advisers should vote proxies on behalf of their
    clients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, the Director of Proxy Voting Services, using the
    Proxy Guidelines, recommendations of Institutional Shareholder
    Corporate Governance Service ( &#147;ISS&#148;), other
    third-party services and the analysts of Gabelli&#160;&#38;
    Company, Inc., will determine how to vote on each issue. For
    non-controversial matters, the Director of Proxy Voting Services
    may vote the proxy if the vote is (1)&#160;consistent with the
    recommendations of the issuer&#146;s Board of Directors and not
    contrary to the Proxy Guidelines; (2)&#160;consistent with the
    recommendations of the issuer&#146;s Board of Directors and is a
    non-controversial issue not covered by the Proxy Guidelines; or
    (3)&#160;the vote is contrary to the recommendations of the
    issuer&#146;s Board of Directors but is consistent with the
    Proxy Guidelines. In those instances, the Director of Proxy
    Voting Services or the Chairman of the Committee may sign and
    date the proxy statement indicating how each issue will be voted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All matters identified by the Chairman of the Committee, the
    Director of Proxy Voting Services or the Legal Department as
    controversial, taking into account the recommendations of ISS or
    other third party services and the analysts of
    Gabelli&#160;&#38; Company, Inc., will be presented to the Proxy
    Voting Committee. If the Chairman of the Committee, the Director
    of Proxy Voting Services or the Legal Department has identified
    the matter as one that (1)&#160;is controversial; (2)&#160;would
    benefit from deliberation by the Proxy Voting Committee; or
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-1
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;may give rise to a conflict of interest between the
    Advisers and their clients, the Chairman of the Committee will
    initially determine what vote to recommend that the Advisers
    should cast and the matter will go before the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For matters submitted to the Committee, each member of the
    Committee will receive, prior to the meeting, a copy of the
    proxy statement, any relevant third party research, a summary of
    any views provided by the Chief Investment Officer and any
    recommendations by Gabelli&#160;&#38; Company, Inc. analysts.
    The Chief Investment Officer or the Gabelli&#160;&#38; Company,
    Inc. analysts may be invited to present their viewpoints. If the
    Legal Department believes that the matter before the committee
    is one with respect to which a conflict of interest may exist
    between the Advisers and their clients, counsel will provide an
    opinion to the Committee concerning the conflict. If the matter
    is one in which the interests of the clients of one or more
    Advisers may diverge, counsel will so advise and the Committee
    may make different recommendations as to different clients. For
    any matters where the recommendation may trigger appraisal
    rights, counsel will provide an opinion concerning the likely
    risks and merits of such an appraisal action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each matter submitted to the Committee will be determined by the
    vote of a majority of the members present at the meeting. Should
    the vote concerning one or more recommendations be tied in the
    Committee, the Chairman of the Committee will cast the deciding
    vote. The Committee will notify the proxy department of its
    decisions and the proxies will be voted accordingly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although the Proxy Guidelines express the normal preferences for
    the voting of any shares not covered by a contrary investment
    guideline provided by the client, the Committee is not bound by
    the preferences set forth in the Proxy Guidelines and will
    review each matter on its own merits. Written minutes of all
    Proxy Voting Committee meetings will be maintained. The Advisers
    subscribe to ISS, which supplies current information on
    companies, matters being voted on, regulations, trends in proxy
    voting and information on corporate governance issues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the vote cast either by the analyst or as a result of the
    deliberations of the Proxy Voting Committee runs contrary to the
    recommendation of the Board of Directors of the issuer, the
    matter will be referred to legal counsel to determine whether an
    amendment to the most recently filed Schedule&#160;13D is
    appropriate.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">II.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Social
    Issues and Other Client Guidelines</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a client has provided special instructions relating to the
    voting of proxies, they should be noted in the client&#146;s
    account file and forwarded to the Proxy Voting Department. This
    is the responsibility of the investment professional or sales
    assistant for the client. In accordance with Department of Labor
    guidelines, the Advisers&#146; policy is to vote on behalf of
    ERISA accounts in the best interest of the plan participants
    with regard to social issues that carry an economic impact.
    Where an account is not governed by ERISA, the Advisers will
    vote shares held on behalf of the client in a manner consistent
    with any individual investment/voting guidelines provided by the
    client. Otherwise the Advisers will abstain with respect to
    those shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">III.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Client
    Retention of Voting Rights</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a client chooses to retain the right to vote proxies or if
    there is any change in voting authority, the following should be
    notified by the investment professional or sales assistant for
    the client.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Operations
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Legal Department
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Proxy Department
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Investment professional assigned to the account
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that the Board of Directors (or a Committee
    thereof) of one or more of the investment companies managed by
    one of the Advisers has retained direct voting control over any
    security, the Proxy Voting Department will provide each Board
    member (or Committee member) with a copy of the proxy
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    statement together with any other relevant information including
    recommendations of ISS or other third-party services.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">IV.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Records</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Proxy Voting Department will retain a record of matters
    voted upon by the Advisers for their clients. The Advisers&#146;
    staff may request proxy-voting records for use in presentations
    to current or prospective clients. Requests for proxy voting
    records should be made at least ten days prior to client
    meetings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a client wishes to receive a proxy voting record on a
    quarterly, semi-annual or annual basis, please notify the Proxy
    Voting Department. The reports will be available for mailing
    approximately ten days after the quarter end of the period.
    First quarter reports may be delayed since the end of the
    quarter falls during the height of the proxy season.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A letter is sent to the custodians for all clients for which the
    Advisers have voting responsibility instructing them to forward
    all proxy materials to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="7%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Attn:&#160;&#160;
</TD>
    <TD align="left">
    Proxy Voting Department
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    One Corporate Center
</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rye, New York
    <FONT style="white-space: nowrap">10580-1433</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The sales assistant sends the letters to the custodians along
    with the trading/DTC instructions. Proxy voting records will be
    retained in compliance with
    <FONT style="white-space: nowrap">Rule&#160;204-2</FONT>
    under the Investment Advisers Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">V.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Procedures</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Custodian banks, outside brokerage firms and First
    Clearing Corporation are responsible for forwarding proxies
    directly to GAMCO. Proxies are received in one of two forms:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Shareholder Vote&#160;Authorization Forms (VAFs)&#151;Issued by
    ADP. VAFs must be voted through the issuing institution causing
    a time lag. ADP is an outside service contracted by the various
    institutions to issue proxy materials.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Proxy cards which may be voted directly.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Upon receipt of the proxy, the number of shares each
    form represents is logged into the proxy system according to
    security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;In the case of a discrepancy such as an incorrect number
    of shares, an improperly signed or dated card, wrong class of
    security, etc., the issuing custodian is notified by phone. A
    corrected proxy is requested. Arrangements are made to insure
    that a proper proxy is received in time to be voted (overnight
    delivery, fax, etc.). When securities are out on loan on the
    record date, the custodian is requested to supply written
    verification.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Upon receipt of instructions from the proxy committee,
    the votes are cast and recorded for each account on an
    individual basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since January&#160;1, 1992, records have been maintained on the
    Proxy Edge system. The system is backed up regularly. From 1990
    through 1991, records were maintained on the PROXY VOTER system
    and in hardcopy format. Prior to 1990, records were maintained
    on diskette and in hardcopy format.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PROXY EDGE RECORDS INCLUDE:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Security Name and Cusip Number
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Date and Type of Meeting (Annual, Special, Contest)
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Client Name
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adviser or Fund&#160;Account Number
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Directors&#146; Recommendation
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    How GAMCO voted for the client on each issue
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The rationale for the vote when appropriate
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    RECORDS PRIOR TO THE INSTITUTION OF THE PROXY EDGE SYSTEM
    INCLUDE:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Security name
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Type of Meeting (Annual, Special, Contest)
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Date of Meeting
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name of Custodian
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name of Client
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Custodian Account Number
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adviser or Fund&#160;Account Number
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Directors&#146; Recommendation
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    How the Adviser voted for the client on each issue
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Date the proxy statement was received and by whom
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name of person posting the vote
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Date and method by which the vote was cast
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    From these records individual client proxy voting records are
    compiled. It is our policy to provide institutional clients with
    a proxy voting record during client reviews. In addition, we
    will supply a proxy voting record at the request of the client
    on a quarterly, semi-annual or annual basis.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;VAFs are kept alphabetically by security. Records for
    the current proxy season are located in the Proxy Voting
    Department office. In preparation for the upcoming season, files
    are transferred to an offsite storage facility during
    January/February.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;Shareholder Vote&#160;Authorization Forms issued by ADP
    are always sent directly to a specific individual at ADP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;If a proxy card or VAF is received too late to be voted
    in the conventional matter, every attempt is made to vote in one
    of the following manners:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    VAFs can be faxed to ADP up until the time of the meeting. This
    is followed up by mailing the original form.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    When a solicitor has been retained, the solicitor is called. At
    the solicitor&#146;s direction, the proxy is faxed.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;In the case of a proxy contest, records are maintained
    for each opposing entity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;Voting in Person. At times it may be necessary to vote
    the shares in person. In this case, a &#147;legal proxy&#148; is
    obtained in the following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Banks and brokerage firms using the services at ADP:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A call is placed to ADP requesting legal proxies. The VAFs are
    then sent overnight to ADP. ADP issues individual legal proxies
    and sends them back via overnight mail. A lead-time of at least
    two weeks prior to the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    meeting is needed to do this. Alternatively, the procedures
    detailed below for banks not using ADP may be implemented.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Banks and brokerage firms issuing proxies directly:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The bank is called and/or faxed and a legal proxy is requested.
    All legal proxies should appoint: &#147;REPRESENTATIVE OF WITH
    FULL POWER OF SUBSTITUTION.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The legal proxies are given to the person attending the meeting
    along with the following supplemental material:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A limited Power of Attorney appointing the attendee an Adviser
    representative.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A list of all shares being voted by custodian only. Client names
    and account numbers are not included. This list must be
    presented, along with the proxies, to the Inspectors of
    Elections
    <FONT style="white-space: nowrap">and/or</FONT>
    tabulator at least one-half hour prior to the scheduled start of
    the meeting. The tabulator must &#147;qualify&#148; the votes
    (i.e., determine if the votes have previously been cast, if the
    votes have been rescinded, etc.).
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A sample ERISA and Individual contract.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A sample of the annual authorization to vote proxies form.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A copy of our most recent Schedule&#160;13D filing (if
    applicable).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROXY
    VOTING GUIDELINES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>GENERAL POLICY STATEMENT</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is the policy of GAMCO Investors Inc. to vote in the best
    economic interests of our clients. As we state in our Magna
    Carta of Shareholders Rights, established in May 1988, we are
    neither for nor against management. We are for shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At our first proxy committee meeting in 1989, it was decided
    that each proxy statement should be evaluated on its own merits
    within the framework first established by our Magna Carta of
    Shareholders Rights. The attached guidelines serve to enhance
    that broad framework.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not consider any issue routine. We take into consideration
    all of our research on the company, its directors, and their
    short- and long-term goals for the company. In cases where
    issues that we generally do not approve of are combined with
    other issues, the negative aspects of the issues will be
    factored into the evaluation of the overall proposals but will
    not necessitate a vote in opposition to the overall proposals.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board of
    Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The advisers do not consider the election of the Board of
    Directors a routine issue. Each slate of directors is evaluated
    on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Factors taken into consideration include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Historical responsiveness to shareholders. This may include such
    areas as:
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Paying greenmail
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Failure to adopt shareholder resolutions receiving a majority of
    shareholder votes
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Qualifications
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Nominating committee in place
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Number of outside directors on the board
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Attendance at meetings
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Overall performance
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Selection
    of Auditors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, we support the Board of Directors&#146;
    recommendation for auditors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Blank
    Check Preferred Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We oppose the issuance of blank check preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Blank check preferred stock allows the company to issue stock
    and establish dividends, voting rights, etc. without further
    shareholder approval.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Classified
    Board</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A classified board is one where the directors are divided into
    classes with overlapping terms. A different class is elected at
    each annual meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While a classified board promotes continuity of directors
    facilitating long-range planning, we feel directors should be
    accountable to shareholders on an annual basis. We will look at
    this proposal on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis taking into consideration the board&#146;s historical
    responsiveness to the rights of shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where a classified board is in place we will generally not
    support attempts to change to an annually elected board. When an
    annually elected board is in place, we generally will not
    support attempts to classify the board.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Increase
    Authorized Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The request to increase the amount of outstanding shares is
    considered on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis. Factors taken into consideration include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Future use of additional shares:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Stock split
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Stock option or other executive compensation plan
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Finance growth of company/strengthen balance sheet
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Aid in restructuring
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Improve credit rating
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Implement a poison pill or other takeover defense
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Amount of stock currently authorized but not yet issued or
    reserved for stock option plans
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Amount of additional stock to be authorized and its dilutive
    effect
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will support this proposal if a detailed and verifiable plan
    for the use of the additional shares is contained in the proxy
    statement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Confidential
    Ballot</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We support the idea that a shareholder&#146;s identity and vote
    should be treated with confidentiality.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    However, we look at this issue on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to promote confidentiality in the voting process, we
    endorse the use of independent Inspectors of Election.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-6
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Cumulative
    Voting</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, we support cumulative voting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cumulative voting is a process by which a shareholder may
    multiply the number of directors being elected by the number of
    shares held on record date and cast the total number for one
    candidate or allocate the voting among two or more candidates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where cumulative voting is in place, we will vote against any
    proposal to rescind this shareholder right.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cumulative voting may result in a minority block of stock
    gaining representation on the board. When a proposal is made to
    institute cumulative voting, the proposal will be reviewed on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis. While we feel that each board member should represent all
    shareholders, cumulative voting provides minority shareholders
    an opportunity to have their views represented.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Liability and Indemnification</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We support efforts to attract the best possible directors by
    limiting the liability and increasing the indemnification of
    directors, except in the case of insider dealing.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Equal
    Access to the Proxy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Commission&#146;s rules provide for shareholder resolutions.
    However, the resolutions are limited in scope and there is a 500
    word limit on proponents&#146; written arguments. Management has
    no such limitations. While we support equal access to the proxy,
    we would look at such variables as length of time required to
    respond, percentage of ownership, etc.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fair
    Price Provisions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Charter provisions requiring a bidder to pay all shareholders a
    fair price are intended to prevent two-tier tender offers that
    may be abusive. Typically, these provisions do not apply to
    board-approved transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We support fair price provisions because we feel all
    shareholders should be entitled to receive the same benefits.
    Provisions are reviewed on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Golden
    Parachutes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Golden parachutes are severance payments to top executives who
    are terminated or demoted after a takeover.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We support any proposal that would assure management of its own
    welfare so that they may continue to make decisions in the best
    interest of the company and shareholders even if the decision
    results in management losing their jobs. We do not, however,
    support excessive golden parachutes. Therefore, each proposal
    will be decided on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Note:</I>&#160;&#160;Congress has imposed a tax on any
    parachute that is more than three times the executive&#146;s
    average annual compensation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-Greenmail
    Proposals</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not support greenmail. An offer extended to one
    shareholder should be extended to all shareholders equally
    across the board.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limit
    Shareholders&#146; Rights to Call Special Meetings</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We support the right of shareholders to call a special meeting.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-7
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consideration
    of Nonfinancial Effects of A Merger</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This proposal releases the directors from only looking at the
    financial effects of a merger and allows them the opportunity to
    consider the merger&#146;s effects on employees, the community,
    and consumers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a fiduciary, we are obligated to vote in the best economic
    interests of our clients. In general, this proposal does not
    allow us to do that. Therefore, we generally cannot support this
    proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Reviewed on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mergers,
    Buyouts, Spin-Offs, Restructurings</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the above is considered on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis. According to the United States Department of Labor, we
    are not required to vote for a proposal simply because the
    offering price is at a premium to the current market price. We
    may take into consideration the long-term interests of the
    shareholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Military
    Issues</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholder proposals regarding military production must be
    evaluated on a purely economic set of criteria for our ERISA
    clients. As such, decisions will be made on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In voting on this proposal for our non-ERISA clients, we will
    vote according to the client&#146;s direction when applicable.
    Where no direction has been given, we will vote in the best
    economic interests of our clients. It is not our duty to impose
    our social judgment on others.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Northern
    Ireland</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholder proposals requesting the signing of the MacBride
    principles for the purpose of countering the discrimination
    against Catholics in hiring practices must be evaluated on a
    purely economic set of criteria for our ERISA clients. As such,
    decisions will be made on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In voting on this proposal for our non-ERISA clients, we will
    vote according to client direction when applicable. Where no
    direction has been given, we will vote in the best economic
    interests of our clients. It is not our duty to impose our
    social judgment on others.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Opt-Out
    of State Anti-Takeover Law</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This shareholder proposal requests that a company opt out of the
    coverage of the state&#146;s takeover statutes. Example:
    Delaware law requires that a buyer must acquire at least 85% of
    the company&#146;s stock before the buyer can exercise control
    unless the board approves.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We consider this on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis. Our decision will be based on the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    State of incorporation
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Management history of responsiveness to shareholders
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Other mitigating factors
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Poison
    Pill</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, we do not endorse poison pills.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In certain cases where management has a history of being
    responsive to the needs of shareholders and the stock is very
    liquid, we will reconsider this position.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-8
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reincorporation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, we support reincorporation for well-defined business
    reasons. We oppose reincorporation if proposed solely for the
    purpose of reincorporating in a state with more stringent
    anti-takeover statutes that may negatively impact the value of
    the stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stock
    Option Plans</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stock option plans are an excellent way to attract, hold and
    motivate directors and employees. However, each stock option
    plan must be evaluated on its own merits, taking into
    consideration the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Dilution of voting power or earnings per share by more than 10%
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Kind of stock to be awarded, to whom, when and how much
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Method of payment
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Amount of stock already authorized but not yet issued under
    existing stock option plans
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Supermajority
    Vote Requirements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Supermajority vote requirements in a company&#146;s charter or
    bylaws require a level of voting approval in excess of a simple
    majority of the outstanding shares. In general, we oppose
    supermajority-voting requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Supermajority requirements often exceed the average level of
    shareholder participation. We support proposal approval by a
    simple majority of the shares voting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limit
    Shareholders&#146; Right to Act By Written Consent</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Written consent allows shareholders to initiate and carry on a
    shareholder action without having to wait until the next annual
    meeting or to call a special meeting. It permits action to be
    taken by the written consent of the same percentage of the
    shares that would be required to effect the proposed action at a
    shareholder meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Reviewed on a
    <FONT style="white-space: nowrap">case-by-case</FONT>
    basis.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-9
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;C<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OTHER
    INFORMATION</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;25.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Financial
    Statements and Exhibits</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Financial Statements(1)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Portfolio of Investments
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Statement of Assets and Liabilities
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Statement of Operations
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Statement of Changes in Net Assets for the year
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Financial highlights for a share outstanding throughout
    the periods 1996 through June&#160;30, 2006
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Notes to Financial Statements
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;Report of Independent Accountants
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Exhibits
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;(i)&#160;Articles of Incorporation(2)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;(ii)&#160;Articles&#160;Supplementary for the
    Series&#160;B 7.20% Cumulative Preferred Stock(3)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;(iii)&#160;Articles&#160;Supplementary for the
    Series&#160;C Auction Rate Preferred Cumulative Stock(5)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;(iv)&#160;Articles&#160;Supplementary for the
    Series&#160;D 5.875% Cumulative Preferred Stock(11)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="8%"></TD>
    <TD width="84%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(v)&#160;
</TD>
    <TD align="left">
    Articles&#160;Supplementary for the Series&#160;E Auction Rate
    Preferred Cumulative Preferred Stock(11)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 8%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;(vi)&#160;Articles&#160;Supplementary for the
    Series&#160;F&#160;[&#160;&#160;] Cumulative Preferred Stock(11)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="9%"></TD>
    <TD width="83%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(vii)&#160;
</TD>
    <TD align="left">
    Articles of Amendment dated May&#160;12, 2004 to the Articles of
    Incorporation(8)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="8%"></TD>
    <TD width="84%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(viii)&#160;
</TD>
    <TD align="left">
    Articles of Amendment dated September&#160;12, 2005 to the
    Articles of Incorporation(9)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Amended and Restated By-Laws of Registrant(9)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Not applicable
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Specimen Stock Certificate:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="7%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(i)&#160;
</TD>
    <TD align="left">
    Form of certificate for Common Stock, par value $.001&#160;per
    share(6)
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(ii)&#160;
</TD>
    <TD align="left">
    7.20% Tax Advantaged Series&#160;B Cumulative Preferred Stock(3)
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(iii)&#160;
</TD>
    <TD align="left">
    Series&#160;C Auction Rate Cumulative Preferred Stock(5)
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(iv)&#160;
</TD>
    <TD align="left">
    5.875% Series&#160;D Cumulative Preferred Stock(7)
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(v)&#160;
</TD>
    <TD align="left">
    Series&#160;E Auction Rate Cumulative Preferred Stock(7)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (e)&#160;
</TD>
    <TD align="left">
    Automatic Dividend Reinvestment and Voluntary Cash Purchase Plan
    of The Gabelli Equity Trust Inc. (the &#147;Registrant&#148;)(2)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Not applicable
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (g)&#160;
</TD>
    <TD align="left">
    Investment Advisory Agreement between Registrant and Gabelli
    Funds, LLC (the &#147;Investment Adviser&#148;)(6)
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;Form of Underwriting Agreement(11)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Not applicable
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;Custodian Contract between Registrant and Mellon Trust
    of New England, N.A.(2)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="10%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (k)&#160;(i)&#160;
</TD>
    <TD align="left">
    Registrar, Transfer Agency and Service Agreement between
    Registrant and Computershare Shareholder Services, Inc.(6)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="8%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(ii)&#160;
</TD>
    <TD align="left">
    Transfer Agent and Registrar Services Fee Agreement between
    Registrant and Computershare Shareholder Services, Inc.(6)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="8%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(iii)&#160;
</TD>
    <TD align="left">
    Form of Auction Agency Agreement for the Series&#160;C Auction
    Rate Cumulative Preferred Stock(5)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="8%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(iv)&#160;
</TD>
    <TD align="left">
    Form of Auction Agency Agreement for the Series&#160;E Auction
    Rate Cumulative Preferred Stock(7)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(v)&#160;
</TD>
    <TD align="left">
    Form of Broker-Dealer Agreement for the Series&#160;C Auction
    Rate Cumulative Preferred Stock(5)
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(vi)&#160;
</TD>
    <TD align="left">
    Form of Broker-Dealer Agreement for the Series&#160;E Auction
    Rate Cumulative Preferred Stock(7)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="10%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (l)&#160;(i)&#160;
</TD>
    <TD align="left">
    Opinion and Consent of Willkie Farr&#160;&#38; Gallagher LLP(11)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="8%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(ii)&#160;
</TD>
    <TD align="left">
    Opinion and Consent of Venable LLP(11)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (m)&#160;Not applicable
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="10%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (n)&#160;(i)&#160;
</TD>
    <TD align="left">
    Consent of Independent Registered Public Accounting Firm(11)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="8%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;(ii)&#160;
</TD>
    <TD align="left">
    Powers of Attorney (10)
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (o)&#160;Not applicable
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (p)&#160;Not applicable
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (q)&#160;Not applicable
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (r)&#160;Codes of Ethics of the Registrant and the Investment
    Adviser (4)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Incorporated by reference to the Registrant&#146;s
    semi-annual report filed September&#160;6, 2006 on
    <FONT style="white-space: nowrap">form&#160;N-CSRS</FONT>
    (File
    <FONT style="white-space: nowrap">No.&#160;811-4700)</FONT>
    and the Registrant&#146;s annual report filed on March&#160;13,
    2006 on
    <FONT style="white-space: nowrap">form&#160;N-CSR</FONT>
    (File
    <FONT style="white-space: nowrap">No.&#160;811-04700).</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Incorporated by reference to the Registrant&#146;s
    Pre-Effective Amendment No.&#160;2 to the Registrant&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-2</FONT>
    (File Nos. 33 3-45951 and
    <FONT style="white-space: nowrap">811-4700);</FONT>
    as filed with the Securities and Exchange Commission on
    April&#160;7, 1998.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Incorporated by reference to the Registrant&#146;s
    Pre-Effective Amendment No.&#160;1 to the Registrant&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-2</FONT>
    (File Nos.
    <FONT style="white-space: nowrap">333-47012</FONT>
    and
    <FONT style="white-space: nowrap">811-4700);</FONT>
    as filed with the Securities and Exchange Commission on
    June&#160;11, 2001.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Incorporated by reference to Pre-Effective Amendment
    No.&#160;2 to the Registrant&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-2</FONT>
    (File Nos.
    <FONT style="white-space: nowrap">333-62323</FONT>
    and
    <FONT style="white-space: nowrap">811-4700);</FONT>
    as filed with the Securities and Exchange Commission on
    December&#160;12, 2000.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Incorporated by reference to the Registrant&#146;s
    Pre-Effective Amendment No.&#160;3 to the Registrant&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-2</FONT>
    (File Nos.
    <FONT style="white-space: nowrap">333-86554</FONT>
    and
    <FONT style="white-space: nowrap">811-4700);</FONT>
    as filed with the Securities and Exchange Commission on
    June&#160;25, 2002.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;Incorporated by reference to the Registrant&#146;s
    Pre-Effective Amendment No.&#160;1 to the Registrant&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-2</FONT>
    (File Nos.
    <FONT style="white-space: nowrap">333-62323</FONT>
    and
    <FONT style="white-space: nowrap">811-4700);</FONT>
    as filed with the Securities and Exchange Commission on
    October&#160;13, 1995.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;Incorporated by reference to the Registrant&#146;s
    Pre-Effective Amendment No.&#160;2 to the Registrant&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-2</FONT>
    (File Nos.
    <FONT style="white-space: nowrap">333-106081</FONT>
    and 8114700); as filed with the Securities and Exchange
    Commission on October&#160;1, 2003.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;Incorporated by reference to the Registrant&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-14</FONT>
    (File Nos.
    <FONT style="white-space: nowrap">333-126111)</FONT>
    as filed with the Securities and Exchange Commission on
    June&#160;24, 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;Incorporated by reference to the Registrant&#146;s
    Pre-Effective Amendment No.&#160;1 to the Registrant&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-2</FONT>
    (File Nos.
    <FONT style="white-space: nowrap">333-127724</FONT>
    and
    <FONT style="white-space: nowrap">811-04700)</FONT>
    as filed with the Securities and Exchange Commission on
    September&#160;14, 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.&#160;Incorporated by reference to the Registrant&#146;s
    Registration Statement on N-2 (File Nos.
    <FONT style="white-space: nowrap">333-137298</FONT>
    and
    <FONT style="white-space: nowrap">811-04700)</FONT>
    as filed with the Securities and Exchange Commission on
    September&#160;13, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.&#160;Filed herewith.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;26.&#160;&#160;<I>Marketing
    Arrangements</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please refer to exhibit&#160;2(h) of this Registration Statement
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;27.&#160;&#160;<I>Other
    Expenses of Issuance and Distribution</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the estimated expenses to be
    incurred in connection with the offering described in this
    Registration Statement
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="90%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">SEC registration fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,375
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">New York Stock Exchange listing fee
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Rating Agency fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Printing expenses
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Auditing fees and expenses
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Legal fees and expenses
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    275,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Blue Sky fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Miscellaneous
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Total
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;28.&#160;&#160;<I>Persons
    Controlled by or Under Common Control with
    Registrant</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    NONE
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;29.&#160;&#160;<I>Number
    of Holders of Securities as of September&#160;30,
    2006:</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Class of Stock</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Record Holders</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Common Stock
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78,356
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;B Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,293
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;C Auction Rate
    Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;D Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,515
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Series&#160;E Auction Rate
    Preferred
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    418
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;30.&#160;&#160;<I>Indemnification</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The response to this Item is incorporated by reference to the
    caption &#147;Management of the Fund&#151;Limitation of
    Officers&#146; and Directors&#146; Liability&#148; in the
    Part&#160;B of this Registration Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Insofar as indemnification for liability arising under the
    Securities Act of 1933, as amended (the
    &#147;1933&#160;Act&#148;) may be permitted to directors,
    officers and controlling persons of Registrant pursuant to the
    foregoing provisions, or otherwise, Registrant has been advised
    that, in the opinion of the Commission, such indemnification is
    against public policy as expressed in the Securities Act, and
    is, therefore, unenforceable. In the event that a claim for
    indemnification against such liabilities (other than the payment
    by Registrant of expenses incurred or paid by a director,
    officer or controlling person of Registrant in the successful
    defense of any action, suit or proceeding) is asserted by such
    director, officer or controlling person in connection with the
    securities being registered, 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 Securities Act and
    will be governed by the final adjudication of such issue.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;31.&#160;&#160;<I>Business
    and Other Connections of Investment Adviser</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser, a limited liability company organized
    under the laws of the State of New York, acts as investment
    adviser to the Registrant. The Registrant is fulfilling the
    requirement of this Item&#160;31 to provide a list of the
    officers and directors of the Investment Adviser, together with
    information as to any other business, profession, vocation or
    employment of a substantial nature engaged in by the Investment
    Adviser or those officers and directors during the past two
    years, by incorporating by reference the information contained
    in the Form&#160;ADV of the Investment Adviser filed with the
    commission pursuant to the 1940 Act (Commission File
    <FONT style="white-space: nowrap">No.&#160;801-37706).</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;32.&#160;&#160;<I>Location
    of Accounts and Records</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accounts and records of the Registrant are maintained in
    part at the office of the Investment Adviser at One Corporate
    Center, Rye, New York
    <FONT style="white-space: nowrap">10580-1422,</FONT>
    in part at the offices of the Custodian, Mellon Trust of New
    England, N.A., 135 Santilli Highway, Everett, Massachusetts
    02149, in part at the offices of the Registrant&#146;s
    <FONT style="white-space: nowrap">Sub-Administrator,</FONT>
    PFPC, Inc, 400 Bellevue Parkway, Wilmington, Delaware, 19808,
    and in part at the offices of Computershare Shareholder
    Services, Inc., N.A., PO Box&#160;43025, Providence, RI
    <FONT style="white-space: nowrap">02940-3025.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;33.&#160;&#160;<I>Management
    Services</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;34.&#160;&#160;<I>Undertakings</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Registrant undertakes to suspend the offering of shares
    until the prospectus is amended, if subsequent to the effective
    date of this registration statement, its net asset value
    declines more than ten percent from its net asset value as of
    the effective date of the registration statement or its net
    asset value increases to an amount greater than its net proceeds
    as stated in the prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Not applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Not applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Not applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;a. Registrant undertakes that, for the purpose of
    determining any liability under the Securities Act the
    information omitted from the form of prospectus filed as part of
    the Registration Statement in reliance upon Rule&#160;430A and
    contained in the form of prospectus filed by the Registrant
    pursuant to Rule&#160;497(h) will be deemed to be a part of the
    Registration Statement as of the time it was declared effective.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    b.&#160;Registrant undertakes that, for the purpose of
    determining any liability under the Securities Act, each
    post-effective amendment that contains a form of prospectus will
    be deemed to be a new Registration Statement relating to the
    securities offered therein, and the offering of such securities
    at that time will be deemed to be the initial bona fide offering
    thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;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, any
    Statement of Additional Information constituting Part&#160;B of
    this Registration Statement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As required by the Securities Act of 1933 and the Investment
    Company Act of 1940, this Registrant&#146;s Registration
    Statement has been signed on behalf of the Registrant, in the
    City of Rye, State of New York, on the 6th&#160;day of November,
    2006.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE GABELLI EQUITY TRUST&#160;INC.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display: inline; text-align: left; width: 90%">/s/&#160;&#160;Bruce
    N. Alpert</DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Bruce N. Alpert
</DIV>

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    President and Principal Executive Officer
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, this
    Registration Statement has been signed below by the following
    persons in the capacities and on the dates set forth below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Signature</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display: inline; text-align: center; width: 90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Mario
    J. Gabelli
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Director and Chairman
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">November&#160;6, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display: inline; text-align: left; width: 90%"><FONT style="font-size: 10pt">/s/&#160;&#160;Agnes
    Mullady</DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 --></FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 10pt">Treasurer and Principal Financial
    Officer
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">November&#160;6, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display: inline; text-align: center; width: 90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Thomas
    E. Bratter
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">November&#160;6, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display: inline; text-align: center; width: 90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Anthony
    J. Colavita
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">November&#160;6, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display: inline; text-align: center; width: 90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->James
    P. Conn
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">November&#160;6, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display: inline; text-align: center; width: 90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Frank
    J. Fahrenkopf,&#160;Jr.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">November&#160;6, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display: inline; text-align: center; width: 90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Arthur
    V. Ferrara
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">November&#160;6, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display: inline; text-align: center; width: 90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Anthony
    R. Pustorino
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">November&#160;6, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display: inline; text-align: center; width: 90%"><FONT style="font-size: 10pt; font-variant: SMALL-CAPS">*</FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Salvatore
    J. Zizza
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">November&#160;6, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display: inline; text-align: left; width: 90%"><FONT style="font-size: 10pt">/s/&#160;&#160;Bruce
    N. Alpert</DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 0pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><!-- callerid=201 iwidth=184 length=0 -->Bruce
    N. Alpert<BR>
    <FONT style="white-space: nowrap">Attorney-in-Fact</FONT><BR>
    </FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Pursuant to a Power of Attorney</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;INDEX</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=01 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="90%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2(a)
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(iv)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Articles Supplementary for the
    Series&#160;D 5.875% Cumulative Preferred Stock
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(v)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Articles Supplementary for the
    Series&#160;E Auction Rate Preferred Cumulative Preferred Stock
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(vi)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Articles Supplementary for the
    Series&#160;F&#160;&#160;% Cumulative Preferred Stock
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    (h)
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Form of Underwriting Agreement
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    (l)&#160;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(i)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Opinion and Consent of Willkie
    Farr&#160;&#38; Gallagher LLP
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(ii)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Opinion and Consent of Venable LLP
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    (n)
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Consent of Independent Registered
    Public Accounting Firm
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.A.IV
<SEQUENCE>2
<FILENAME>y26698a2exv99w2wawiv.htm
<DESCRIPTION>EX-99.2.A.IV: ARTICLES SUPPLEMENTARY FOR SERIES D
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.2.A.IV</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Exhibit&#160;2(a)(iv)
    </FONT>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    GABELLI EQUITY TRUST&#160;INC.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLES&#160;SUPPLEMENTARY<BR>
    CREATING AND FIXING THE RIGHTS OF<BR>
    5.875% SERIES&#160;D CUMULATIVE PREFERRED STOCK</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Gabelli Equity Trust Inc., a Maryland corporation, having
    its principal office in Baltimore City, Maryland (hereinafter
    called the &#147;<U>Corporation</U>&#148;), hereby certifies to
    the State Department of Assessments and Taxation of the State of
    Maryland that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FIRST:&#160;The Board of Directors of the Corporation, at a
    meeting duly convened and held on May&#160;14, 2003, pursuant to
    authority expressly vested in it by Article&#160;V of the
    Charter of the Corporation, adopted resolutions
    (i)&#160;reclassifying 2,000,000&#160;shares of authorized but
    unissued common stock as preferred stock of the Fund, par value
    $.001&#160;per share, (ii)&#160;redesignating
    382,100&#160;shares of is authorized by unissued 7.25%
    Cumulative Preferred Stock as preferred stock of the
    Corporation, par value $.001&#160;per share,
    (iii)&#160;redesignating 3,400,000&#160;shares of its authorized
    but unissued shares of 7.20% Tax Advantaged Series&#160;B
    Cumulative Preferred Stock as preferred stock of the
    Corporation, par value $.001&#160;per share,
    (iv)&#160;redesignating 800&#160;shares of the Series&#160;C
    Auction Rate Cumulative Preferred Stock as preferred stock of
    the Corporation, par value $.001&#160;per share, and
    (v)&#160;authorizing the issuance and designation of up to
    6,006,000&#160;shares of preferred stock as a new series of
    fixed rate preferred stock and one or more series of auction
    rate preferred stock at such times as the Pricing Committee
    should determine.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SECOND:&#160;The Pricing Committee, at a meeting duly convened
    and held on October&#160;2, 2003, pursuant to authority granted
    it by the Board of Directors of the Corporation at its
    May&#160;14, 2003 meeting, approved the designation and issuance
    by the Corporation of 3,000,000&#160;shares of 5.875%
    Series&#160;D Cumulative Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THIRD:&#160;The preferences, rights, voting powers,
    restrictions, limitations as to dividends, qualifications, and
    terms and conditions of redemption of the 5.875% Series&#160;D
    Cumulative Preferred Stock, par value $.001&#160;per share, as
    set by the Board of Directors are as follows:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;I
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DEFINITIONS
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless the context or use indicates another or different meaning
    or intent, each of the following terms when used in these
    Articles&#160;Supplementary shall have the meaning ascribed to
    it below, whether such term is used in the singular or plural
    and regardless of tense:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Accountant&#146;s Confirmation</U>&#148; means a letter
    from an Independent Accountant delivered to Moody&#146;s with
    respect to certain Basic Maintenance Reports substantially to
    the effect that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;the Independent Accountant has read the Basic
    Maintenance Report or Reports prepared by the Administrator
    during the referenced calendar year that are referred to in such
    letter;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;with respect to the issue size compliance, issuer
    diversification and industry diversification calculations, such
    calculations and the resulting Market Value of the Moody&#146;s
    Eligible Assets included in the Reports and the Adjusted Value
    of the Moody&#146;s Eligible Assets included in the Reports are
    numerically correct;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;with respect to the excess or deficiency of the
    Adjusted Value of the Moody&#146;s Eligible Assets included in
    the Reports when compared to the Basic Maintenance Amount
    calculated for Moody&#146;s, the results of the calculation set
    forth in the Reports have been recalculated and are numerically
    correct;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;with respect to the Moody&#146;s and S&#38;P ratings on
    corporate evidences of indebtedness, convertible corporate
    evidences of indebtedness and preferred stock listed in the
    Reports, that information has been traced and agrees with the
    information provided directly or indirectly by the respective
    rating agencies (in the event such information does not agree or
    such information is not listed in the accounting records of the
    Corporation, the Independent Accountants will inquire of the
    rating agencies what such information is and provide a listing
    in their letter of such differences, if any);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;with respect to issuer name and coupon or dividend rate
    listed in the Reports, that information has been traced and
    agrees with information listed in the accounting records of the
    Corporation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;with respect to issue size listed in the Reports, that
    information has been traced and agrees with information provided
    by a Pricing Service or such other services as Moody&#146;s may
    authorize from time to time;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;with respect to the prices (or alternative permissible
    factors used in calculating the Market Value as provided by
    these Articles&#160;Supplementary) provided by the Administrator
    of the Corporation&#146;s assets for purposes of valuing
    securities in the portfolio, the Independent Accountant has
    traced the price used in the Reports to the price provided by
    such Administrator (in accordance with the procedures provided
    in these Articles Supplementary) and verified that such
    information agrees (in the event such information does not
    agree, the Independent Accountants will provide a listing in
    their letter of such differences);&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;with respect to the description of each security
    included in the Reports, the description of Moody&#146;s
    Eligible Assets has been compared to the definition of
    Moody&#146;s Eligible Assets contained in these
    Articles&#160;Supplementary, and the description as appearing in
    the Reports agrees with the definition of Moody&#146;s Eligible
    Assets as described in these Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each such letter may state that:&#160;(i)&#160;such Independent
    Accountant has made no independent verification of the accuracy
    of the description of the investment securities listed in the
    Reports or the Market Value of those securities nor has it
    performed any procedures other than those specifically outlined
    above for the purposes of issuing such letter; (ii)&#160;unless
    otherwise stated in the letter, the procedures specified therein
    were limited to a comparison of numbers or a verification of
    specified computations applicable to numbers appearing in the
    Reports and the schedule(s) thereto; (iii)&#160;the foregoing
    procedures do not constitute an examination in accordance with
    generally accepted auditing standards and the Reports contained
    in the letter do not extend to any of the Corporation&#146;s
    financial statements taken as a whole; (iv)&#160;such
    Independent Accountant does not express an opinion as to whether
    such procedures would enable such Independent Accountant to
    determine that the methods followed in the preparation of the
    Reports would correctly determine the Market Value or Discounted
    Value of the investment portfolio; and (v)&#160;accordingly,
    such Independent Accountant expresses no opinion as to the
    information set forth in the Reports or in the schedule(s)
    thereto and makes no representation as to the sufficiency of the
    procedures performed for the purposes of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Such letter shall also state that the Independent Accountant is
    an &#147;independent accountant&#148; with respect to the
    Corporation within the meaning of the Securities Act of 1933, as
    amended, and the related published rules and regulations
    thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Adjusted Value</U>&#148; of each Moody&#146;s Eligible
    Asset shall be computed as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;cash shall be valued at 100% of the face value
    thereof;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;all other Moody&#146;s Eligible Assets shall be valued
    at the Discounted Value thereof;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;each asset that is not a Moody&#146;s Eligible Asset
    shall be valued at zero.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Administrator</U>&#148; means the other party to the
    Administration Agreement with the Corporation, which shall
    initially be Gabelli Funds, LLC, a New York limited liability
    company, and will include, as appropriate, any sub-administrator
    appointed by the Administrator.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>ADRs</U>&#148; means U.S.&#160;dollar-denominated
    American Depository Receipts.
</DIV>

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    <BR>
    2
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Adviser</U>&#148; means Gabelli Funds, LLC, a New York
    limited liability company, or such other person as shall be
    serving as the investment adviser of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Annual Valuation Date</U>&#148; means the Valuation
    Date each calendar year so designated by the Corporation,
    commencing in the calendar year 2003.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Asset Coverage</U>&#148; means asset coverage, as
    determined in accordance with Section&#160;18(h) of the 1940
    Act, of at least 200% with respect to all outstanding senior
    securities of the Corporation which are stock, including all
    Outstanding shares of Series&#160;D Preferred Stock (or such
    other asset coverage as may in the future be specified in or
    under the 1940 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),
    determined on the basis of values calculated as of a time within
    48&#160;hours (not including Saturdays, Sundays or holidays)
    next preceding the time of such determination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Basic Maintenance Amount</U>&#148; means, as of any
    Valuation Date, the dollar amount equal to (a)&#160;the sum of
    (i)&#160;the product of the number of shares of each class or
    series of Preferred Stock Outstanding on such Valuation Date
    multiplied by the Liquidation Preference per share; (ii)&#160;to
    the extent not included in (i)&#160;the aggregate amount of cash
    dividends (whether or not earned or declared) that will have
    accumulated for each Outstanding share of Preferred Stock from
    the most recent Dividend Payment Date to which dividends have
    been paid or duly provided for (or, in the event the Basic
    Maintenance Amount is calculated on a date prior to the initial
    Dividend Payment Date with respect to a class or series of the
    Preferred Stock, then from the Date of Original Issue) through
    the Valuation Date plus all dividends to accumulate on the
    Preferred Stock then Outstanding during the 70&#160;days
    following such Valuation Date or, if less, during the number of
    days following such Valuation Date that shares of Preferred
    Stock called for redemption are scheduled to remain Outstanding;
    (iii)&#160;the Corporation&#146;s other liabilities due and
    payable as of such Valuation Date (except that dividends and
    other distributions payable by the Corporation on Common Stock
    shall not be included as a liability) and such liabilities
    projected to become due and payable by the Corporation during
    the 90&#160;days following such Valuation Date (excluding
    liabilities for investments to be purchased and for dividends
    and other distributions not declared as of such Valuation Date);
    and (iv)&#160;any current liabilities of the Corporation as of
    such Valuation Date to the extent not reflected in (or
    specifically excluded by) any of (a)(i) through (a)(iii)
    (including, without limitation, and immediately upon
    determination, any amounts due and payable by the Corporation
    pursuant to reverse repurchase agreements and any payables for
    assets purchased as of such Valuation Date) less (b)(i) the
    Adjusted Value of any of the Corporation&#146;s assets or
    (ii)&#160;the face value of any of the Corporation&#146;s assets
    if, in the case of both (b)(i) and (b)(ii), such assets are
    either cash or evidences of indebtedness which mature prior to
    or on the date of redemption or repurchase of shares of
    Preferred Stock or payment of another liability and are either
    U.S.&#160;Government Obligations or evidences of indebtedness
    which have a rating assigned by Moody&#146;s of at least Aaa,
    <FONT style="white-space: nowrap">P-1,</FONT> VMIG-1
    or MIG-1 or by S&#38;P of at least AAA,
    <FONT style="white-space: nowrap">SP-1+</FONT> or
    <FONT style="white-space: nowrap">A-1+,</FONT> and
    are irrevocably held by the Corporation&#146;s custodian bank in
    a segregated account or deposited by the Corporation with the
    Dividend-Disbursing Agent for the payment of the amounts needed
    to redeem or repurchase Preferred Stock subject to redemption or
    repurchase or any of (a)(ii) through (a)(iv); and provided that
    in the event the Corporation has repurchased Preferred Stock and
    irrevocably segregated or deposited assets as described above
    with its custodian bank or the Dividend-Disbursing Agent for the
    payment of the repurchase price the Corporation may deduct 100%
    of the Liquidation Preference of such Preferred Stock to be
    repurchased from (a)&#160;above. Basic Maintenance Amount shall,
    for purposes of these Articles&#160;Supplementary, have a
    correlative meaning with respect to a ny other class or series
    of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Basic Maintenance Amount Cure Date</U>&#148; means,
    with respect to the Series&#160;D Preferred Stock, 10 Business
    Days following a Valuation Date, such date being the last day
    upon which the Corporation&#146;s failure to comply with
    paragraph&#160;6(a)(ii)(A) of Article&#160;II hereof could be
    cured, and for the purposes of these Articles&#160;Supplementary
    shall have a correlative meaning with respect to any other class
    or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Basic Maintenance Report</U>&#148; or
    &#147;<U>Report</U>&#148; means, with respect to the
    Series&#160;D Preferred Stock, a report prepared by the
    Administrator which sets forth, as of the related Valuation
    Date, Moody&#146;s Eligible Assets
</DIV>

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    <BR>
    3
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    sufficient to meet or exceed the Basic Maintenance Amount, the
    Market Value and Discounted Value thereof (seriatim and in the
    aggregate), and the Basic Maintenance Amount, and for the
    purposes of these Articles&#160;Supplementary shall have a
    correlative meaning with respect to any other class or series of
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Board of Directors</U>&#148; means the Board of
    Directors of the Corporation or any duly authorized committee
    thereof as permitted by applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Business Day</U>&#148; means a day on which the New
    York Stock Exchange is open for trading and that 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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Charter</U>&#148; means the Articles of Incorporation
    of the Corporation, as amended, supplemented (including these
    Articles&#160;Supplementary), as filed with the State Department
    of Assessments and Taxation of the State of Maryland.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Common Stock</U>&#148; means the Common Stock, par
    value $.001&#160;per share, of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Corporation</U>&#148; means The Gabelli Equity Trust
    Inc., a Maryland corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Cure Date</U>&#148; shall have the meaning set forth in
    paragraph&#160;4(a) of Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Date of Original Issue</U>&#148; means October&#160;7,
    2003, and for the purposes of these Articles&#160;Supplementary
    shall mean with respect to any other class or series of
    Preferred Stock the date upon which shares of such class or
    series are first issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Deposit Assets</U>&#148; means cash, Short-Term Money
    Market Instruments and U.S.&#160;Government Obligations. Except
    for determining whether the Corporation has Moody&#146;s
    Eligible Assets with an Adjusted Value equal to or greater than
    the Basic Maintenance Amount, each Deposit Asset shall be deemed
    to have a value equal to its principal or face amount payable at
    maturity plus any interest payable thereon after delivery of
    such Deposit Asset but only if payable on or prior to the
    applicable payment date in advance of which the relevant deposit
    is made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Discounted Value</U>&#148; means, as applicable,
    (a)&#160;the quotient of the Market Value of an Eligible Asset
    divided by the applicable Discount Factor or (b)&#160;such other
    formula for determining the discounted value of an Eligible
    Asset as may be established by an applicable rating agency,
    provided, in either case that with respect to an Eligible Asset
    that is currently callable, Discounted Value will be equal to
    the applicable quotient or product as calculated above or the
    call price, whichever is lower, and that with respect to an
    Eligible Asset that is prepayable, Discounted Value will be
    equal to the applicable quotient or product as calculated above
    or the par value, whichever is lower.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Dividend-Disbursing Agent</U>&#148; means, with respect
    to the Series&#160;D Preferred Stock, EquiServe Trust Company,
    N.A. and its successors or any other dividend-disbursing agent
    appointed by the Corporation and, with respect to any other
    class or series of Preferred Stock, the Person appointed by the
    Corporation as dividend-disbursing or paying agent with respect
    to such class or series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Dividend Payment Date</U>&#148; means with respect to
    the Series&#160;D Preferred Stock, any date on which dividends
    declared by the Board of Directors thereon are payable pursuant
    to the provisions of paragraph&#160;2(a) of Article&#160;II of
    these Articles&#160;Supplementary and shall for the purposes of
    these Articles&#160;Supplementary have a correlative meaning
    with respect to any other class or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Dividend Period</U>&#148; shall have the meaning set
    forth in paragraph&#160;2(a) of Article&#160;II hereof, and for
    the purposes of these Articles&#160;Supplementary shall have a
    correlative meaning with respect to any other class or series of
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Independent Accountant</U>&#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.
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Liquidation Preference</U>&#148; shall, with respect to
    the Series&#160;D Preferred Stock, have the meaning set forth in
    paragraph&#160;3(a) of Article&#160;II hereof, and for the
    purposes of these Articles&#160;Supplementary shall have a
    correlative meaning with respect to any other class or series of
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Market Value</U>&#148; means the amount determined by
    the Corporation with respect to Moody&#146;s Eligible Assets in
    accordance with valuation policies adopted from time to time by
    the Board of Directors as being in compliance with the
    requirements of the 1940 Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, &#147;Market Value&#148; may, at
    the option of the Corporation with respect to any of its assets,
    mean the amount determined with respect to specific Moody&#146;s
    Eligible Assets of the Corporation in the manner set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;as to any common or preferred stock which is a
    Moody&#146;s Eligible Asset, (i)&#160;if the stock is traded on
    a national securities exchange or quoted on the Nasdaq System,
    the last sales price reported on the Valuation Date or
    (ii)&#160;if there was no reported sales price on the Valuation
    Date, the lower of two bid prices for such stock provided to the
    Administrator by two recognized securities dealers with minimum
    capitalizations of $25,000,000 (or otherwise approved for such
    purpose by Moody&#146;s) or by one such securities dealer and
    any other source (provided that the utilization of such source
    would not adversely affect Moody&#146;s then-current rating of
    the Series&#160;D Preferred Stock), at least one of which shall
    be provided in writing or by telecopy, telex, other electronic
    transcription, computer obtained quotation reducible to written
    form or similar means, and in turn provided to the Corporation
    by any such means by such Administrator, or, if two bid prices
    cannot be obtained, such Moody&#146;s Eligible Asset shall have
    a Market Value of zero;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;as to any U.S.&#160;Government Obligation, Short Term
    Money Market Instrument (other than demand deposits, federal
    funds, bankers&#146; acceptances and next Business Day
    repurchase agreements) and commercial paper with a maturity of
    greater than 60&#160;days, the product of (i)&#160;the principal
    amount (accreted principal to the extent such instrument
    accretes interest) of such instrument, and (ii)&#160;the lower
    of the bid prices for the same kind of instruments having, as
    nearly as practicable, comparable interest rates and maturities
    provided by two recognized securities dealers having a minimum
    capitalization of $25,000,000 (or otherwise approved for such
    purpose by Moody&#146;s) or by one such dealer and any other
    source (provided that the utilization of such source would not
    adversely affect Moody&#146;s then-current rating of the
    Series&#160;D Preferred Stock) to the Administrator, at least
    one of which shall be provided in writing or by telecopy, telex,
    other electronic transcription, computer obtained quotation
    reducible to written form or similar means, and in turn provided
    to the Corporation by any such means by such Administrator, or,
    if two bid prices cannot be obtained, such Moody&#146;s Eligible
    Asset will have a Market Value of zero;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;as to cash, demand deposits, federal funds,
    bankers&#146; acceptances and next Business Day repurchase
    agreements included in Short-Term Money Market Instruments, the
    face value thereof;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;as to any U.S.&#160;Government Obligation, Short-Term
    Money Market Instrument or commercial paper with a maturity of
    60&#160;days or fewer, amortized cost unless the Board of
    Directors determines that such value does not constitute fair
    value;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;as to any other evidence of indebtedness which is a
    Moody&#146;s Eligible Asset, (i)&#160;the product of
    (A)&#160;the unpaid principal balance of such indebtedness as of
    the Valuation Date and (B)(1) if such indebtedness is traded on
    a national securities exchange or quoted on the Nasdaq System,
    the last sales price reported on the Valuation Date or
    (2)&#160;if there was no reported sales price on the Valuation
    Date or if such indebtedness is not traded on a national
    securities exchange or quoted on the Nasdaq System, the lower of
    two bid prices for such indebtedness provided by two recognized
    dealers with a minimum capitalization of $25,000,000 (or
    otherwise approved for such purpose by Moody&#146;s) or by one
    such dealer and any other source (provided that the utilization
    of such source would not adversely affect Moody&#146;s
    then-current rating of the Series&#160;D Preferred Stock) to the
    Administrator, at least one of which shall be provided in
    writing or by telecopy, telex, other electronic transcription,
    computer obtained quotation
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    reducible to written form or similar means, and in turn provided
    to the Corporation by any such means by such Administrator, plus
    (ii)&#160;accrued interest on such indebtedness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Moody&#146;s</U>&#148; means Moody&#146;s Investors
    Service, Inc., or its successors at law. In the event that
    Moody&#146;s is no longer rating the Series&#160;D Preferred
    Stock at the request of the Corporation,
    &#147;Moody&#146;s&#148; shall be deemed to refer to any other
    nationally recognized securities rating agency designated by the
    Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Moody&#146;s Discount Factor</U>&#148; means, with
    respect to a Moody&#146;s Eligible Asset specified below, the
    following applicable number:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Discount Factor:</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Short Term Money Market
    Instruments (other than U.S.&#160;Government Obligations set
    forth below) and other commercial paper:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Treasury Securities with
    final maturities that are less than or equal to 60&#160;days
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Demand or time deposits,
    certificates of deposit and bankers&#146; acceptances includible
    in Short Term Money Market Instruments
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">P-1</FONT> by
    Moody&#146;s maturing in 30&#160;days or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">P-1</FONT> by
    Moody&#146;s maturing in more than 30&#160;days but in
    270&#160;days or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">A-1+</FONT> by
    S&#38;P maturing in 270&#160;days or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.25
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Repurchase obligations includible
    in Short Term Money Market Instruments if term is less than
    30&#160;days and counterparty is rated&#160;at&#160;least&#160;A2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Other repurchase obligations
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">Discount Factor<BR>
    applicable to<BR>
    underlying assets
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Common Stocks and Common
    Stocks of foreign issuers for which ADR&#146;s are traded
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.70
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.64
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.41
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">3.40
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Common Stocks of foreign issuers
    (in existence for at least five years) for which no ADR&#146;s
    are traded
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">4.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible Preferred Stocks
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">3.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Preferred stocks:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Auction rate preferred stocks
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">3.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Non-Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">3.60
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Other preferred stocks issued by
    issuers in the financial and industrial industries
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.97
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Non-Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.07
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Other preferred stocks issued by
    issuers in the utilities industry
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Non-Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Discount Factor:</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Government Obligations
    (other than U.S.&#160;Treasury Securities Strips set forth
    below) with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.04
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.09
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.12
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years of less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.21
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.24
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.25
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.26
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.26
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Treasury Securities
    Strips with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.04
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.10
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.14
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.21
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.27
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.34
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.45
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.54
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.66
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Corporate Debt:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least Aaa1 with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.09
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.20
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.26
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.32
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.39
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.45
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Discount Factor:</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least Aa3 with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.12
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years of less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.23
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.29
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.35
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.43
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least A3 with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.22
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.27
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.33
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.39
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.47
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least Baa3 with remaining terms of maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.25
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.31
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.38
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.44
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.52
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Discount Factor:</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least Ba3 with remaining terms of maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.37
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.46
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.53
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.61
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.68
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.79
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.89
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.96
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.96
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.96
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least B1 and B2 with remaining terms of maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.68
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.76
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.85
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.97
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.08
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.16
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.28
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.29
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Convertible corporate debt
    securities rated at least Aa3 issued by the following type of
    issuers:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.67
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.61
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.38
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.65
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Convertible corporate debt
    securities rated at least A3 issued by the following type of
    issuers:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.72
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.66
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.43
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.75
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Convertible corporate debt
    securities rated at least Baa3 issued by the following type of
    issuers:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.88
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.82
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.59
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.85
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Discount Factor:</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Convertible corporate debt
    securities rated at least Ba3 issued by the following type of
    issuers:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.95
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.90
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.65
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.90
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Convertible corporate debt
    securities rated at least B2 issued by the following type of
    issuers:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.98
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.93
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.70
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.95
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Moody&#146;s Eligible Assets</U>&#148; means:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;cash (including, for this purpose, receivables for
    investments sold to a counterparty whose senior debt securities
    are rated at least Baa3 by Moody&#146;s or a counterparty
    approved by Moody&#146;s and payable within five Business Days
    following such Valuation Date and dividends and interest
    receivable within 70&#160;days on investments);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Short-Term Money Market Instruments;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;commercial paper that is not includible as a Short-Term
    Money Market Instrument having on the Valuation Date a rating
    from Moody&#146;s of at least
    <FONT style="white-space: nowrap">P-1</FONT> and
    maturing within 270&#160;days;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;preferred stocks (i)&#160;which either (A)&#160;are
    issued by issuers whose senior debt securities are rated at
    least Baa1 by Moody&#146;s or (B)&#160;are rated at least Baa3
    by Moody&#146;s or (C)&#160;in the event an issuer&#146;s senior
    debt securities or preferred stock is not rated by Moody&#146;s,
    which either (1)&#160;are issued by an issuer whose senior debt
    securities are rated at least A&#8722; by S&#38;P or
    (2)&#160;are rated at least A&#8722; by S&#38;P and for this
    purpose have been assigned a Moody&#146;s equivalent rating of
    at least Baa3, (ii)&#160;of issuers which have (or, in the case
    of issuers which are special purpose corporations, whose parent
    companies have) common stock listed on the New York Stock
    Exchange, the American Stock Exchange or the Nasdaq National
    Market System, (iii)&#160;which have a minimum issue size (when
    taken together with other of the issuer&#146;s issues of similar
    tenor) of $50,000,000, (iv)&#160;which have paid cash dividends
    consistently during the preceding three-year period (or, in the
    case of new issues without a dividend history, are rated at
    least A1 by Moody&#146;s or, if not rated by Moody&#146;s, are
    rated at least AA&#8722; by S&#38;P), (v)&#160;which pay
    cumulative cash dividends in U.S.&#160;dollars, (vi)&#160;which
    are not convertible into any other class of stock and do not
    have warrants attached, (vii)&#160;which are not issued by
    issuers in the transportation industry and (viii)&#160;in the
    case of auction rate preferred stocks, which are rated at least
    Aa3 by Moody&#146;s, or if not rated by Moody&#146;s, AAA by
    S&#38;P, AAA by Fitch or are otherwise approved in writing by
    Moody&#146;s and have never had a failed auction; <I>provided,
    however</I>, that for this purpose the aggregate Market Value of
    the Corporation&#146;s holdings of any single issue of auction
    rate preferred stock shall not be more than 1% of the
    Corporation&#146;s total assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;common stocks (i)&#160;(A)&#160;which are traded on a
    nationally recognized stock exchange or in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market, (B)&#160;if cash dividend paying, pay cash dividends in
    U.S.&#160;dollars and (C)&#160;which may be sold without
    restriction by the Corporation; <I>provided, however</I>, that
    (y)&#160;common stock which, while a Moody&#146;s Eligible Asset
    owned by the Corporation, ceases paying any regular cash
    dividend will no longer be considered a Moody&#146;s Eligible
    Asset until 71&#160;days after the date of the announcement of
    such cessation, unless the issuer of the common stock has senior
    debt securities rated at least A3 by Moody&#146;s and
    (z)&#160;the aggregate Market Value of the Corporation&#146;s
    holdings of the common stock of any issuer in excess of 4% in
    the case of utility common stock and 6% in the case of
    non-utility common stock of the aggregate Market
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Value of the Corporation&#146;s holdings shall not be
    Moody&#146;s Eligible Assets, (ii)&#160;which are securities
    denominated in any currency other than the U.S.&#160;dollar or
    securities of issuers formed under the laws of jurisdictions
    other than the United States, its states and the District of
    Columbia for which there are dollar-denominated ADRs or their
    equivalents which are traded in the United States on exchanges
    or
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    and are issued by banks formed under the laws of the United
    States, its states or the District of Columbia or
    (iii)&#160;which are securities of issuers formed under the laws
    of jurisdictions other than the United States (and in existence
    for at least five years) for which no ADRs are traded;
    <I>provided, however</I>, that the aggregate Market Value of the
    Corporation&#146;s holdings of securities denominated in
    currencies other than the U.S.&#160;dollar and ADRs in excess of
    (A)&#160;6% of the aggregate Market Value of the outstanding
    shares of common stock of such issuer thereof or (B)&#160;10% of
    the Market Value of the Corporation&#146;s Moody&#146;s Eligible
    Assets with respect to issuers formed under the laws of any
    single such
    <FONT style="white-space: nowrap">non-U.S.&#160;jurisdiction</FONT>
    other than Australia, Belgium, Canada, Denmark, Finland, France,
    Germany, Ireland, Italy, Japan, the Netherlands, New Zealand,
    Norway, Spain, Sweden, Switzerland and the United Kingdom, shall
    not be a Moody&#146;s Eligible Asset;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;ADR securities, based on the following guidelines:
    (i)&#160;Sponsored ADR program or (ii)&#160;Level&#160;II or
    Level&#160;III ADRs. Private placement Rule&#160;144A ADRs are
    not eligible for collateral consideration. Global GDR programs
    will be evaluated on a case by case basis;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;U.S.&#160;Government Obligations;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;corporate evidences of indebtedness (i)&#160;which may
    be sold without restriction by the Corporation which are rated
    at least B3 (Caa subordinate) by Moody&#146;s (or, in the event
    the security is not rated by Moody&#146;s, the security is rated
    at least BB&#8722; by S&#38;P and which for this purpose is
    assigned a Moody&#146;s equivalent rating of one full rating
    category lower), with such rating confirmed on each Valuation
    Date, (ii)&#160;which have a minimum issue size of at least
    (A)&#160;$100,000,000 if rated at least Baa3 or
    (B)&#160;$50,000,000 if rated B or Ba3, (iii)&#160;which are not
    convertible or exchangeable into equity of the issuing
    corporation and have a maturity of not more than 30&#160;years
    and (iv)&#160;for which, if rated below Baa3 or not rated, the
    aggregate Market Value of the Corporation&#146;s holdings do not
    exceed 10% of the aggregate Market Value of any individual issue
    of corporate evidences of indebtedness calculated at the time of
    original issuance;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;convertible corporate evidences of indebtedness
    (i)&#160;which are issued by issuers whose senior debt
    securities are rated at least B2 by Moody&#146;s (or, in the
    event an issuer&#146;s senior debt securities are not rated by
    Moody&#146;s, which are issued by issuers whose senior debt
    securities are rated at least BB by S&#38;P and which for this
    purpose is assigned a Moody&#146;s equivalent rating of one full
    rating category lower), (ii)&#160;which are convertible into
    common stocks which are traded on the New York Stock Exchange or
    the American Stock Exchange or are quoted on the Nasdaq National
    Market System and (iii)&#160;which, if cash dividend paying, pay
    cash dividends in U.S.&#160;dollars; <I>provided, however</I>,
    that once convertible corporate evidences of indebtedness have
    been converted into common stock, the common stock issued upon
    conversion must satisfy the criteria set forth in
    clause&#160;(e) above and other relevant criteria set forth in
    this definition in order to be a Moody&#146;s Eligible Asset;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>provided, however</I>, that the Corporation&#146;s
    investments in auction rate preferred stocks described in
    clause&#160;(d) above shall be included in Moody&#146;s Eligible
    Assets only to the extent that the aggregate Market Value of
    such stocks does not exceed 10% of the aggregate Market Value of
    all of the Corporation&#146;s investments meeting the criteria
    set forth in clauses&#160;(a) through (g)&#160;above less the
    aggregate Market Value of those investments excluded from
    Moody&#146;s Eligible Assets pursuant to the paragraph appearing
    after clause&#160;(j) below;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;no assets which are subject to any lien or irrevocably
    deposited by the Corporation for the payment of amounts needed
    to meet the obligations described in clauses&#160;(a)(i) through
    (a)(iv) of the definition of &#147;Basic Maintenance
    Amount&#148; may be includible in Moody&#146;s Eligible Assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding anything to the contrary in the preceding
    clauses&#160;(a)-(j), the Corporation&#146;s investment in
    preferred stock, common stock, corporate evidences of
    indebtedness and convertible corporate evidences of indebtedness
    shall not be treated as Moody&#146;s Eligible Assets except to
    the extent they satisfy the following
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    diversification requirements (utilizing Moody&#146;s Industry
    and
    <FONT style="white-space: nowrap">Sub-industry</FONT>
    Categories) with respect to the Market Value of the
    Corporation&#146;s holdings:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuer:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum Single<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum Single<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Moody&#146;s Rating&#160;(1)(2)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Issuer&#160;(3)(4)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Issuer&#160;(3)(4)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aaa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">CS/CB, Baa&#160;(5)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ba
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B1/B2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B3 or below
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Industry
    and State:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum Single<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Single
    <FONT style="white-space: nowrap">Sub-</FONT><BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum Single<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Moody&#146;s Rating&#160;(1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Industry&#160;(3)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Industry&#160;(3)(6)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>State&#160;(3)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aaa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %&#160;(7)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">CS/CB, Baa&#160;(5)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
    %&#160;(7)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ba
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B1/B2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B3 or below
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Unless conclusions regarding liquidity risk as well as estimates
    of both the probability and severity of default for the
    Corporation&#146;s assets can be derived from other sources,
    securities rated below B by Moody&#146;s and unrated securities,
    which are securities rated by neither Moody&#146;s, S&#38;P nor
    Fitch, are limited to 10% of Moody&#146;s Eligible Assets. If a
    corporate, municipal or other debt security is unrated by
    Moody&#146;s, S&#38;P or Fitch, the Corporation will use the
    percentage set forth under &#147;B3 or below&#148; in this
    table. Ratings assigned by S&#38;P or Fitch are generally
    accepted by Moody&#146;s at face value. However, adjustments to
    face value may be made to particular categories of credits for
    which the S&#38;P
    <FONT style="white-space: nowrap">and/or</FONT> Fitch
    rating does not seem to approximate a Moody&#146;s rating
    equivalent.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Corporate evidences of indebtedness from issues ranging
    $50,000,000 to $100,000,000 are limited to 20% of Moody&#146;s
    Eligible Assets.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    The referenced percentages represent maximum cumulative totals
    only for the related Moody&#146;s rating category and each lower
    Moody&#146;s rating category.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Issuers subject to common ownership of 25% or more are
    considered as one name.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    CS/CB refers to common stock and convertible corporate evidences
    of indebtedness, which are diversified independently from the
    rating level.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    In the case of utility common stock, utility preferred stock,
    utility evidences of indebtedness and utility convertible
    evidences of indebtedness, the definition of industry refers to
    sub-industries (electric, water, hydro power, gas, diversified).
    Investments in other sub-industries are eligible only to the
    extent that the combined sum represents a percentage position of
    the Moody&#146;s Eligible Assets less than or equal to the
    percentage limits in the diversification tables above.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Such percentage shall be 15% in the case of utilities regulated
    by California, New York and Texas.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#148;<U>Moody&#146;s Industry Classifications</U>&#148; means
    for the purposes of determining Moody&#146;s Eligible Assets,
    each of the following industry classifications (or such other
    classifications as Moody&#146;s may from time to time approve
    for application to the Series&#160;D Preferred Stock).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;1.&#160;Aerospace and Defense: Major Contractor,
    Subsystems, Research, Aircraft Manufacturing, Arms, Ammunition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;2.&#160;Automobile: Automobile Equipment,
    Auto-Manufacturing, Auto Parts Manufacturing, Personal Use
    Trailers, Motor Homes, Dealers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;3.&#160;Banking: Bank Holding, Savings and Loans, Consumer
    Credit, Small Loan, Agency, Factoring, Receivables.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;4.&#160;Beverage, Food and Tobacco: Beer and Ale,
    Distillers, Wines and Liquors, Distributors, Soft Drink Syrup,
    Bottlers, Bakery, Mill Sugar, Canned Foods, Corn Refiners, Dairy
    Products, Meat Products, Poultry Products, Snacks, Packaged
    Foods, Distributors, Candy, Gum, Seafood, Frozen Food,
    Cigarettes, Cigars, Leaf/Snuff, Vegetable Oil.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;5.&#160;Buildings and Real Estate: Brick, Cement, Climate
    Controls, Contracting, Engineering, Construction, Hardware,
    Forest Products (building-related only), Plumbing, Roofing,
    Wallboard, Real Estate, Real Estate Development, REITs, Land
    Development.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;6.&#160;Chemicals, Plastics and Rubber: Chemicals
    (non-agricultural), Industrial Gases, Sulphur, Plastics, Plastic
    Products, Abrasives, Coatings, Paints, Varnish, Fabricating
    Containers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;7.&#160;Packaging and Glass: Glass, Fiberglass, Containers
    made of: Glass, Metal, Paper, Plastic, Wood or Fiberglass.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;8.&#160;Personal and Non-Durable Consumer Products
    (Manufacturing Only): Soaps, Perfumes, Cosmetics, Toiletries,
    Cleaning Supplies, School Supplies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;9.&#160;Diversified/Conglomerate Manufacturing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.&#160;Diversified/Conglomerate Service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.&#160;Diversified Natural Resources, Precious Metals and
    Minerals: Fabricating, Distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.&#160;Ecological: Pollution Control, Waste Removal, Waste
    Treatment and Waste Disposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.&#160;Electronics: Computer Hardware, Electric Equipment,
    Components, Controllers, Motors, Household Appliances,
    Information Service Communication Systems, Radios, TVs, Tape
    Machines, Speakers, Printers, Drivers, Technology.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.&#160;Finance: Investment Brokerage, Leasing, Syndication,
    Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.&#160;Farming and Agriculture: Livestock, Grains, Produce,
    Agriculture Chemicals, Agricultural Equipment, Fertilizers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.&#160;Grocery: Grocery Stores, Convenience Food Stores.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    17.&#160;Healthcare, Education and Childcare: Ethical Drugs,
    Proprietary Drugs, Research, Health Care Centers, Nursing Homes,
    HMOs, Hospitals, Hospital Supplies, Medical Equipment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    18.&#160;Home and Office Furnishings, Housewares, and Durable
    Consumer Products: Carpets, Floor Coverings, Furniture, Cooking,
    Ranges.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    19.&#160;Hotels, Motels, Inns and Gaming.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    20.&#160;Insurance: Life, Property and Casualty, Broker, Agent,
    Surety.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    21.&#160;Leisure, Amusement, Motion Pictures, Entertainment:
    Boating, Bowling, Billiards, Musical Instruments, Fishing, Photo
    Equipment, Records, Tapes, Sports, Outdoor Equipment (Camping),
    Tourism, Resorts, Games, Toy Manufacturing, Motion Picture
    Production Theaters, Motion Picture Distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    22.&#160;Machinery (Non-Agricultural, Non-Construction,
    Non-Electronic): Industrial, Machine Tools, Steam Generators.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    23.&#160;Mining, Steel, Iron and Non-Precious Metals: Coal,
    Copper, Lead, Uranium, Zinc, Aluminum, Stainless Steel,
    Integrated Steel, Ore Production, Refractories, Steel Mill
    Machinery, Mini-Mills, Fabricating, Distribution and Sales of
    the foregoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    24.&#160;Oil and Gas: Crude Producer, Retailer, Well Supply,
    Service and Drilling.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    25.&#160;Printing, Publishing, and Broadcasting: Graphic Arts,
    Paper, Paper Products, Business Forms, Magazines, Books,
    Periodicals, Newspapers, Textbooks, Radio, T.V., Cable
    Broadcasting Equipment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    26.&#160;Cargo Transport: Rail, Shipping, Railroads, Rail-car
    Builders, Ship Builders, Containers, Container Builders, Parts,
    Overnight Mail, Trucking, Truck Manufacturing, Trailer
    Manufacturing, Air Cargo, Transport.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    27.&#160;Retail Stores: Apparel, Toy, Variety, Drugs,
    Department, Mail Order Catalog, Showroom.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    28.&#160;Telecommunications: Local, Long Distance, Independent,
    Telephone, Telegraph, Satellite, Equipment, Research, Cellular.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    29.&#160;Textiles and Leather: Producer, Synthetic Fiber,
    Apparel Manufacturer, Leather Shoes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    30.&#160;Personal Transportation: Air, Bus, Rail, Car Rental.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    31.&#160;Utilities: Electric, Water, Hydro Power, Gas.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    32.&#160;Diversified Sovereigns: Semi-sovereigns, Canadian
    Provinces, Supra-national Agencies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Corporation will use SIC codes in determining which industry
    classification is applicable to a particular investment in
    consultation with the Independent Accountant and Moody&#146;s,
    to the extent the Corporation considers necessary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>1933&#160;Act</U>&#148; means the Securities Act of
    1933, as amended, or any successor statute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>1940 Act</U>&#148; means the Investment Company Act of
    1940, as amended, or any successor statute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Notice of Redemption</U>&#148; shall have the meaning
    set forth in paragraph&#160;4(c)(i) of Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Outstanding</U>&#148; means, as of any date, Preferred
    Stock theretofore issued by the Corporation except:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;any such share of Preferred Stock theretofore cancelled
    by the Corporation or delivered to the Corporation for
    cancellation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;any such share of Preferred Stock other than auction
    rate Preferred Stock as to which a notice of redemption shall
    have been given and for whose payment at the redemption thereof
    Deposit Assets in the necessary amount are held by the
    Corporation in trust for, or have been irrevocably deposited
    with the relevant disbursing agent for payment to, the holder of
    such share pursuant to the Articles&#160;Supplementary with
    respect thereto;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;in the case of auction rate Preferred Stock, any such
    shares theretofore delivered to the auction agent for
    cancellation or with respect to which the Corporation has given
    notice of redemption and irrevocably deposited with the paying
    agent sufficient funds to redeem such shares;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;any such share in exchange for or in lieu of which
    other shares have been issued and delivered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, (i)&#160;for purposes of voting
    rights (including the determination of the number of shares
    required to constitute a quorum), any shares of Preferred Stock
    as to which any subsidiary of the Corporation is the holder will
    be disregarded and deemed not Outstanding, and (ii)&#160;in
    connection with any
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    auction of shares of auction rate Preferred Stock as to which
    the Corporation or any Person known to the auction agent to be a
    subsidiary of the Corporation is the holder will be disregarded
    and not deemed Outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Person</U>&#148; means and includes an individual, a
    partnership, the Corporation, a trust, a corporation, a limited
    liability company, an unincorporated association, a joint
    venture or other entity or a government or any agency or
    political subdivision thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Preferred Stock</U>&#148; means the preferred stock,
    par value $.001&#160;per share, of the Corporation, and includes
    the Series&#160;D Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Pricing Service</U>&#148; means any of the following:
    Bloomberg Financial Service, Bridge Information Services, Data
    Resources Inc., FT Interactive, International Securities Market
    Association, Merrill Lynch Securities Pricing Service, Muller
    Data Corp., Reuters, S&#38;P/J.J. Kenny, Telerate, Trepp Pricing
    and Wood Gundy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Redemption&#160;Price</U>&#148; has the meaning set
    forth in paragraph&#160;4(a) of Article&#160;II hereof, and for
    the purposes of these Articles&#160;Supplementary shall have a
    correlative meaning with respect to any other class or series of
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>S&#38;P</U>&#148; means Standard&#160;&#38; Poor&#146;s
    Ratings Services, or its successors at law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Series&#160;D Preferred Stock</U>&#148; means the
    5.875% Series&#160;D Cumulative Preferred Stock, par value
    $.001&#160;per share, of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Series&#160;D Asset Coverage Cure Date</U>&#148; means,
    with respect to the failure by the Corporation to maintain Asset
    Coverage (as required by paragraph&#160;6(a)(i) of
    Article&#160;II hereof) as of the last Business Day of each
    March, June, September and December of each year, 60&#160;days
    following such Business Day.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Short-Term Money Market Instruments</U>&#148; means the
    following types of instruments if, on the date of purchase or
    other acquisition thereof by the Corporation, the remaining term
    to maturity thereof is not in excess of 180&#160;days:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;commercial paper rated
    <FONT style="white-space: nowrap">A-1</FONT> if such
    commercial paper matures in 30&#160;days or
    <FONT style="white-space: nowrap">A-1+</FONT> if such
    commercial paper matures in over 30&#160;days;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;demand or time deposits in, and banker&#146;s
    acceptances and certificates of deposit of (A)&#160;a depository
    institution or trust company incorporated under the laws of the
    United States of America or any state thereof or the District of
    Columbia or (B)&#160;a United States branch office or agency of
    a foreign depository institution (provided that such branch
    office or agency is subject to banking regulation under the laws
    of the United States, any state thereof or the District of
    Columbia);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;overnight funds;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;U.S.&#160;Government Obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>U.S.&#160;Government Obligations</U>&#148; means direct
    obligations of the United States or by its agencies or
    instrumentalities that are entitled to the full faith and credit
    of the United States and that, other than United States Treasury
    Bills, provide for the periodic payment of interest and the full
    payment of principal at maturity or call for redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Valuation Date</U>&#148; means the last Business Day of
    each month, or such other date as the Corporation and
    Moody&#146;s may agree to for purposes of determining the Basic
    Maintenance Amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Voting Period</U>&#148; shall have the meaning set
    forth in paragraph&#160;5(b) of Article&#160;II hereof.
</DIV>

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    <BR>
    15
</DIV><!-- END LOGICAL PAGE -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;II
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SERIES&#160;D PREFERRED STOCK
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Number of Shares; Ranking.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The initial number of authorized shares constituting
    the Series&#160;D Preferred Stock to be issued is 3,000,000. No
    fractional shares of Series&#160;D Preferred Stock shall be
    issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Shares of Series&#160;D Preferred Stock which at any
    time have been redeemed or purchased by the Corporation shall,
    after such redemption or purchase, have the status of authorized
    but unissued shares of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The Series&#160;D Preferred Stock shall rank on a
    parity with any other series of Preferred Stock as to the
    payment of dividends and liquidation preference to which such
    stock is entitled.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;No Holder of Series&#160;D Preferred Stock shall have,
    solely by reason of being such a holder, any preemptive or other
    right to acquire, purchase or subscribe for any shares of any
    Preferred Stock or Common Stock or other securities of the
    Corporation which it may hereafter issue or sell.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Holders of shares of Series&#160;D Preferred Stock
    shall be entitled to receive, when, as and if declared by the
    Board of Directors, out of funds legally available therefor,
    cumulative cash dividends at the rate of 5.875%&#160;per annum
    (computed on the basis of a
    <FONT style="white-space: nowrap">360-day</FONT> year
    consisting of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months) of the Liquidation Preference on the Series&#160;D
    Preferred Stock and no more, payable quarterly on
    March&#160;26th, June&#160;26th, September&#160;26th&#160;and
    December&#160;26th&#160;in each year (each a &#147;<U>Dividend
    Payment Date</U>&#148;) commencing December&#160;26, 2003 (or,
    if any such day is not a Business Day, then on the next
    succeeding Business Day) to holders of record of Series&#160;D
    Preferred Stock as they appear on the stock register of the
    Corporation at the close of business on the fifth preceding
    Business Day in preference to dividends on shares of Common
    Stock and any other capital stock of the Corporation ranking
    junior to the Series&#160;D Preferred Stock in payment of
    dividends. Dividends on shares of Series&#160;D Preferred Stock
    shall accumulate from the date on which such shares are
    originally issued. Each period beginning on and including a
    Dividend Payment Date (or the Date of Original Issue, in the
    case of the first dividend period after issuance of such shares)
    and ending on but excluding the next succeeding Dividend Payment
    Date is referred to herein as a &#147;<U>Dividend
    Period.</U>&#148; Dividends on account of arrears for any past
    Dividend Period or in connection with the redemption of
    Series&#160;D Preferred Stock may be declared and paid at any
    time, without reference to any Dividend Payment Date, to holders
    of record on such date not exceeding 30&#160;days preceding the
    payment date thereof as shall be fixed by the Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;(i)&#160;No full dividends shall be declared or paid on
    shares of Series&#160;D Preferred Stock for any Dividend Period
    or part thereof unless full cumulative dividends due through the
    most recent Dividend Payment Dates therefor for all series of
    Preferred Stock of the Corporation ranking on a parity with the
    Series&#160;D Preferred Stock as to the payment of dividends
    have been or contemporaneously are declared and paid through the
    most recent Dividend Payment Dates therefor. If full cumulative
    dividends due have not been paid on all Outstanding shares of
    such Preferred Stock, any dividends being paid on such shares of
    Preferred Stock (including the Series&#160;D Preferred Stock)
    will be paid as nearly pro rata as possible in proportion to the
    respective amounts of dividends accumulated but unpaid on each
    such series of Preferred Stock on the relevant Dividend Payment
    Date. No holders of shares of Series&#160;D Preferred Stock
    shall be entitled to any dividends, whether payable in cash,
    property or stock, in excess of full cumulative dividends as
    provided in this paragraph&#160;2(b)(i) on shares of
    Series&#160;D Preferred Stock. No interest or sum of money in
    lieu of interest shall be payable in respect of any dividend
    payments on any shares of Series&#160;D Preferred Stock that may
    be in arrears.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;(ii)&#160;For so long as shares of
    Series&#160;D Preferred Stock are Outstanding, the Corporation
    shall not pay 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 Series&#160;D
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Preferred Stock as to payment of dividends and the distribution
    of assets upon liquidation) in respect of the Common Stock or
    any other stock of the Corporation ranking junior to the
    Series&#160;D Preferred Stock as to payment of dividends and the
    distribution of assets upon liquidation, or call for redemption,
    redeem, purchase or otherwise acquire for consideration any
    shares of Common Stock or any other stock of the Corporation
    ranking junior to the Series&#160;D Preferred Stock as to
    payment of dividends and upon liquidation (except by conversion
    into or exchange for stock of the Corporation ranking junior to
    the Series&#160;D Preferred Stock as to payment of dividends and
    the distribution of assets upon liquidation), unless, in each
    case, (A)&#160;immediately thereafter, the aggregate Adjusted
    Value of the Corporation&#146;s Moody&#146;s Eligible Assets
    shall equal or exceed the Basic Maintenance Amount and the
    Corporation shall have Asset Coverage, (B)&#160;all cumulative
    dividends on all shares of Series&#160;D 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 applicable
    Dividend-Disbursing Agent) and (C)&#160;the Corporation has
    redeemed the full number of shares of Series&#160;D Preferred
    Stock to be redeemed mandatorily pursuant to any provision
    contained herein for mandatory redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;(iii)&#160;Any dividend payment made on
    the shares of Series&#160;D Preferred Stock shall first be
    credited against the dividends accumulated with respect to the
    earliest Dividend Period for which dividends have not been paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Not later than the Business Day immediately preceding
    each Dividend Payment Date, the Corporation shall deposit with
    the Dividend-Disbursing Agent Deposit Assets having an initial
    combined value sufficient to pay the dividends that are payable
    on such Dividend Payment Date, which Deposit Assets shall mature
    on or prior to such Dividend Payment Date. The Corporation may
    direct the Dividend-Disbursing Agent with respect to the
    investment of any such Deposit Assets, provided that such
    investment consists exclusively of Deposit Assets and provided
    further that the proceeds of any such investment will be
    available at the opening of business on such Dividend Payment
    Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Liquidation Rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;In the event of any liquidation, dissolution or winding
    up of the affairs of the Corporation, whether voluntary or
    involuntary, the holders of shares of Series&#160;D Preferred
    Stock shall be entitled to receive out of the assets of the
    Corporation available for distribution to stockholders, after
    satisfying claims of creditors but before any distribution or
    payment shall be made in respect of the Common Stock or any
    other stock of the Corporation ranking junior to the
    Series&#160;D Preferred Stock as to liquidation payments, a
    liquidation distribution in the amount of $25.00&#160;per share
    (the &#147;<U>Liquidation Preference</U>&#148;), plus an amount
    equal to all unpaid dividends accumulated to and including the
    date fixed for such distribution or payment (whether or not
    earned or declared by the Corporation, but excluding interest
    thereon), and such holders shall be entitled to no further
    participation in any distribution or payment in connection with
    any such liquidation, dissolution or winding up.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;If, upon any liquidation, dissolution or winding up of
    the affairs of the Corporation, whether voluntary or
    involuntary, the assets of the Corporation available for
    distribution among the holders of all Outstanding shares of
    Series&#160;D Preferred Stock, and any other Outstanding shares
    of a class or series of Preferred Stock of the Corporation
    ranking on a parity with the Series&#160;D Preferred Stock as to
    payment upon liquidation, shall be insufficient to permit the
    payment in full to such holders of Series&#160;D Preferred Stock
    of the Liquidation Preference plus accumulated and unpaid
    dividends and the amounts due upon liquidation with respect to
    such other Preferred Stock, then such available assets shall be
    distributed among the holders of shares of Series&#160;D
    Preferred Stock and such other Preferred Stock ratably in
    proportion to the respective preferential amounts to which they
    are entitled. Unless and until the Liquidation Preference plus
    accumulated and unpaid dividends has been paid in full to the
    holders of shares of Series&#160;D Preferred Stock, no dividends
    or distributions will be made to holders of the Common Stock or
    any other stock of the Corporation ranking junior to the
    Series&#160;D Preferred Stock as to liquidation.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares of the Series&#160;D Preferred Stock shall be redeemed by
    the Corporation as provided below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Mandatory Redemptions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Corporation is required to redeem any shares of Preferred
    Stock (which may include Series&#160;D Preferred Stock) pursuant
    to paragraphs&#160;6(b) or 6(c) of Article&#160;II hereof, then
    the Corporation shall, to the extent permitted by the 1940 Act
    and Maryland law, by the close of business on such Series&#160;D
    Asset Coverage Cure Date or Basic Maintenance Amount Cure Date
    (herein collectively referred to as a &#147;<U>Cure
    Date</U>&#148;), as the case may be, fix a redemption date and
    proceed to redeem shares as set forth in paragraph&#160;4(c)
    hereof. On such redemption date, the Corporation shall redeem,
    out of funds legally available therefor, the number of shares of
    Preferred Stock, which, to the extent permitted by the 1940 Act
    and Maryland law, at the option of the Corporation may include
    any proportion of Series&#160;D Preferred Stock or any other
    series of Preferred Stock, equal to the minimum number of shares
    the redemption of which, if such redemption had occurred
    immediately prior to the opening of business on such Cure Date,
    would have resulted in the Corporation having Asset Coverage or
    an Adjusted Value of its Moody&#146;s Eligible Assets equal to
    or greater than the Basic Maintenance Amount, as the case may
    be, immediately prior to the opening of business on such Cure
    Date or, if Asset Coverage or an Adjusted Value of its Eligible
    Assets equal to or greater than the Basic Maintenance Amount, as
    the case may be, cannot be so restored, all of the Outstanding
    shares of Series&#160;D Preferred Stock, at a price equal to
    $25.00&#160;per share plus accumulated but unpaid dividends
    (whether or not earned or declared by the Corporation) through
    the date of redemption (the
    &#147;<U>Redemption&#160;Price</U>&#148;). In the event that
    shares of Preferred Stock are redeemed pursuant to
    paragraphs&#160;6(b) or 6(c) of Article&#160;II hereof, the
    Corporation may, but is not required to, redeem a sufficient
    number of shares of Series&#160;D Preferred Stock pursuant to
    this paragraph&#160;4(a) which, when aggregated with other
    shares of Preferred Stock redeemed by the Corporation, permits
    the Corporation to have with respect to the shares of Preferred
    Stock (including the Series&#160;D Preferred Stock) remaining
    Outstanding after such redemption (i)&#160;Asset Coverage of as
    much as 220% and (ii)&#160;Moody&#146;s Eligible Assets with
    Adjusted Value of as great as 110% of the Basic Maintenance
    Amount. In the event that all of the shares of Series&#160;D
    Preferred Stock then Outstanding are required to be redeemed
    pursuant to paragraph&#160;6 of Article&#160;II hereof, the
    Corporation shall redeem such shares at the
    Redemption&#160;Price and proceed to do so as set forth in
    paragraph&#160;4(c) hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Optional Redemptions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to September&#160;26, 2008, the shares of Series&#160;D
    Preferred Stock are not subject to optional redemption by the
    Corporation unless such redemption is necessary, in the judgment
    of the Board of Directors, to maintain the Corporation&#146;s
    status as a regulated investment company under Subchapter M of
    the Internal Revenue Code of 1986, as amended. Commencing
    September&#160;26, 2008 and thereafter, and prior thereto to the
    extent necessary to maintain the Corporation&#146;s status as a
    regulated investment company under Subchapter M of the Internal
    Revenue Code of 1986, as amended, to the extent permitted by the
    1940 Act and Maryland law, the Corporation may at any time upon
    Notice of Redemption redeem the Series&#160;D Preferred Stock in
    whole or in part at the Redemption&#160;Price per share, which
    notice shall specify a redemption date of not fewer than
    15&#160;days nor more than 40&#160;days after the date of such
    notice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Procedures for Redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;If the Corporation shall determine or be required to
    redeem shares of Series&#160;D Preferred Stock pursuant to this
    paragraph&#160;4, it shall mail a written notice of redemption
    (&#147;<U>Notice of Redemption</U>&#148;) with respect to such
    redemption by first class mail, postage prepaid, to each holder
    of the shares to be redeemed at such holder&#146;s address as
    the same appears on the stock books of the Corporation on the
    close of business on such date as the Board of Directors may
    determine, which date shall not be earlier than the second
    Business Day prior to the date upon which such Notice of
    Redemption is mailed to the holders of Series&#160;D Preferred
    Stock. Each such Notice of Redemption shall state: (A)&#160;the
    redemption date as established by the Board of Directors;
    (B)&#160;the number of
</DIV>

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    <BR>
    18
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    shares of Series&#160;D Preferred Stock to be redeemed;
    (C)&#160;the CUSIP number(s) of such shares; (D)&#160;the
    Redemption&#160;Price (specifying the amount of accumulated
    dividends to be included therein); (E)&#160;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 in respect of such redemption;
    (F)&#160;that dividends on the shares to be redeemed will cease
    to accrue on such redemption date; (G)&#160;the provisions of
    this paragraph&#160;4 under which such redemption is made; and
    (H)&#160;in the case of a redemption pursuant to
    paragraph&#160;4(b), any conditions precedent to such
    redemption. If fewer than all shares of Series&#160;D Preferred
    Stock held by any holder are to be redeemed, the Notice of
    Redemption mailed to such holder also shall specify the number
    or percentage of shares to be redeemed from such holder. No
    defect in the Notice of Redemption or the mailing thereof shall
    affect the validity of the redemption proceedings, except as
    required by applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;If the Corporation shall give a Notice of Redemption,
    then by the close of business on the Business Day preceding the
    redemption date specified in the Notice of Redemption (so long
    as any conditions precedent to such redemption have been met)
    or, if the Dividend-Disbursing Agent so agrees, another date not
    later than the redemption date, the Corporation shall
    (A)&#160;deposit with the Dividend-Disbursing Agent Deposit
    Assets that shall mature on or prior to such redemption date
    having an initial combined value sufficient to effect the
    redemption of the shares of Series&#160;D Preferred Stock to be
    redeemed and (B)&#160;give the Dividend-Disbursing Agent
    irrevocable instructions and authority to pay the
    Redemption&#160;Price to the holders of the shares of
    Series&#160;D Preferred Stock called for redemption on the
    redemption date. The Corporation may direct the
    Dividend-Disbursing Agent with respect to the investment of any
    Deposit Assets so deposited provided that the proceeds of any
    such investment will be available at the opening of business on
    such redemption date. Upon the date of such deposit (unless the
    Corporation shall default in making payment of the
    Redemption&#160;Price), all rights of the holders of the shares
    of Series&#160;D Preferred Stock so called for redemption shall
    cease and terminate except the right of the holders thereof to
    receive the Redemption&#160;Price thereof and such shares shall
    no longer be deemed Outstanding for any purpose. The Corporation
    shall be entitled to receive, promptly after the date fixed for
    redemption, any cash in excess of the aggregate
    Redemption&#160;Price of the shares of Series&#160;D Preferred
    Stock called for redemption on such date and any remaining
    Deposit Assets. Any assets so deposited that are unclaimed at
    the end of two years from such redemption date shall, to the
    extent permitted by law, be repaid to the Corporation, after
    which the holders of the shares of Series&#160;D Preferred Stock
    so called for redemption shall look only to the Corporation for
    payment of the Redemption&#160;Price thereof. The Corporation
    shall be entitled to receive, from time to time after the date
    fixed for redemption, any interest on the Deposit Assets so
    deposited.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;On or after the redemption date, each holder of
    shares of Series&#160;D Preferred Stock that are subject to
    redemption shall surrender the certificate evidencing such
    shares to the Corporation at the place designated in the Notice
    of Redemption and shall then be entitled to receive the cash
    Redemption&#160;Price, without interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;In the case of any redemption of less than all of the
    shares of Series&#160;D Preferred Stock pursuant to these
    Articles&#160;Supplementary, such redemption shall be made pro
    rata from each holder of shares of Series&#160;D Preferred Stock
    in accordance with the respective number of shares held by each
    such holder on the record date for such redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;Notwithstanding the other provisions of this
    paragraph&#160;4, the Corporation shall not redeem shares of
    Series&#160;D Preferred Stock unless all accumulated and unpaid
    dividends on all Outstanding shares of Series&#160;D Preferred
    Stock and other Preferred Stock ranking on a parity with the
    Series&#160;D Preferred Stock with respect to dividends for all
    applicable past Dividend Periods (whether or not earned or
    declared by the Corporation) shall have been or are
    contemporaneously paid or declared and Deposit Assets for the
    payment of such dividends shall have been deposited with the
    Dividend-Disbursing Agent as set forth in paragraph&#160;2(c) of
    Article&#160;II hereof, provided, however, that the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    foregoing shall not prevent the purchase or acquisition of
    outstanding shares of Preferred Stock pursuant to the successful
    completion of an otherwise lawful purchase or exchange offer
    made on the same terms to holders of all Outstanding shares of
    Series&#160;D Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Corporation shall not have funds legally available for
    the redemption of, or is otherwise unable to redeem, all the
    shares of the Series&#160;D Preferred Stock or other Preferred
    Stock designated to be redeemed on any redemption date, the
    Corporation shall redeem on such redemption date the number of
    shares of Series&#160;D Preferred Stock and other Preferred
    Stock so designated as it shall have legally available funds, or
    is otherwise able, to redeem ratably on the basis of the
    Redemption&#160;Price from each holder whose shares are to be
    redeemed, and the remainder of the shares of the Series&#160;D
    Preferred Stock and other Preferred Stock designated to be
    redeemed shall be redeemed on the earliest practicable date on
    which the Corporation shall have funds legally available for the
    redemption of, or is otherwise able to redeem, such shares upon
    Notice of Redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Voting Rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;General.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise provided by law or as specified in the
    Charter, each holder of shares of Series&#160;D Preferred Stock
    and any other Preferred Stock shall be entitled to one vote for
    each share held on each matter submitted to a vote of
    stockholders of the Corporation, and the holders of Outstanding
    shares of Preferred Stock, including Series&#160;D Preferred
    Stock, and of shares of Common Stock shall vote together as a
    single class; <I>provided, however</I>, that at any meeting of
    the stockholders of the Corporation held for the election of
    directors, the holders of Outstanding shares of Preferred Stock,
    including Series&#160;D Preferred Stock, shall be entitled, as a
    class, to the exclusion of the holders of all other securities
    and classes of capital stock of the Corporation, to elect a
    number of Corporation&#146;s directors, such that following the
    election of directors at the meeting of the stockholders, the
    Corporation&#146;s Board of Directors shall contain two
    directors elected by the holders of the Outstanding shares of
    Preferred Stock, including the Series&#160;D Preferred Stock.
    Subject to paragraph&#160;5(b) of Article&#160;II hereof, the
    holders of outstanding shares of capital stock of the
    Corporation, including the holders of Outstanding shares of
    Preferred Stock, including the Series&#160;D Preferred Stock,
    voting as a single class, shall elect the balance of the
    directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Right to Elect Majority of Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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;<U>Voting Period</U>&#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 pursuant to paragraph&#160;5(a) above,
    would constitute a majority of the Board of Directors as so
    increased by such smallest number; and the holders of shares of
    Preferred Stock shall be entitled, voting separately as one
    class (to the exclusion of the holders of all other securities
    and classes of capital stock of the Corporation), to elect such
    smallest number of additional directors, together with the two
    directors that such holders are in any event entitled to elect
    pursuant to paragraph&#160;5(a) above. The Corporation and the
    Board of Directors shall take all necessary action, including
    amending the Corporation&#146;s bylaws, to effect an increase in
    the number of directors as described in the preceding sentence.
    A Voting Period shall commence:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;if at any time 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 Series&#160;D Preferred Stock 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 Dividend-Disbursing Agent for the payment of
    such accumulated dividends; or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;if at any time holders of any other shares of
    Preferred Stock are entitled to elect a majority of the
    directors of the Corporation under the 1940 Act or
    Articles&#160;Supplementary creating such shares.
</DIV>

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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the termination of a Voting Period, the voting rights
    described in this paragraph&#160;5(b) shall cease, subject
    always, however, to the reverting of such voting rights in the
    holders of Preferred Stock upon the further occurrence of any of
    the events described in this paragraph&#160;5(b).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Right to Vote with Respect to Certain Other Matters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    So long as any shares of Series&#160;D Preferred Stock are
    Outstanding, the Corporation shall not, without the affirmative
    vote of the holders of a majority (as defined in the 1940 Act)
    of the shares of Preferred Stock Outstanding at the time, voting
    separately as one class, amend, alter or repeal the provisions
    of the Charter, whether by merger, consolidation or otherwise,
    so as to materially adversely affect any of the contract rights
    expressly set forth in the Charter with respect to holders of
    shares of Series&#160;D Preferred Stock or any other Preferred
    Stock. To the extent permitted under the 1940 Act, in the event
    shares of more than one series of Preferred Stock are
    Outstanding, the Corporation shall not effect any of the actions
    set forth in the preceding sentence which materially adversely
    affects the contract rights expressly set forth in the Charter
    with respect to a holder of shares of a series of Preferred
    Stock differently than those of a holder of shares of any other
    series of Preferred Stock without the affirmative vote of the
    holders of at least a majority of the shares of Preferred Stock
    of each series materially adversely affected and Outstanding at
    such time (each such materially adversely affected series voting
    separately as a class to the extent its rights are affected
    differently). The Corporation shall notify Moody&#146;s ten
    Business Days prior to any such vote described above. Unless a
    higher percentage is provided for under the Charter or
    applicable law, the affirmative vote of the holders of a
    majority of the Outstanding shares of Preferred Stock, including
    Series&#160;D Preferred Stock, 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&#160;13(a) of the 1940 Act.
    For purposes of this paragraph&#160;5(c), the phrase &#147;vote
    of the holders of a majority of the Outstanding shares of
    Preferred Stock&#148; (or any like phrase) shall mean, in
    accordance with Section&#160;2(a)(42) of the 1940 Act, the vote,
    at the annual or a special meeting of the stockholders of the
    Corporation duly called (i)&#160;of 67&#160;percent or more of
    the shares of Preferred Stock present at such meeting, if the
    holders of more than 50&#160;percent of the Outstanding shares
    of Preferred Stock are present or represented by proxy; or
    (ii)&#160;of more than 50&#160;percent of the Outstanding shares
    of Preferred Stock, whichever is less. The class vote of holders
    of shares of Preferred Stock 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
    Series&#160;D Preferred Stock, voting together as a single
    class, necessary to authorize the action in question. An
    increase in the number of authorized shares of Preferred Stock
    pursuant to the Charter or the issuance of additional shares of
    any series of Preferred Stock (including Series&#160;D Preferred
    Stock) pursuant to the Charter shall not in and of itself be
    considered to adversely affect the contract rights of the
    holders of Series&#160;D Preferred Stock. The provisions of this
    paragraph&#160;5(c) are subject to the provisions of
    paragraph&#160;6 of Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Voting Procedures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;As soon as practicable after the accrual of any right
    of the holders of shares of Preferred Stock to elect additional
    directors as described in paragraph&#160;5(b) above, the
    Corporation shall call a special meeting of such holders and
    instruct the Dividend-Disbursing Agent to mail a notice of such
    special meeting to such holders, such meeting to be held not
    less than 10 nor more than 20&#160;days after the date of
    mailing of such notice. If the Corporation fails to send such
    notice to the Dividend-Disbursing Agent or if the Corporation
    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 day on which such
    notice is mailed or such other date as the Board of Directors
    shall determine. At any such special meeting and at each meeting
    held during a Voting Period, such holders of Preferred Stock,
    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&#160;5(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 such holders present in person or by
    proxy shall have the power to adjourn the meeting without
    notice, other than by an announcement at the meeting, to a date
    not more than 90&#160;days after the original record date.
</DIV>

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    <BR>
    21
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;For purposes of determining any rights of the holders
    of Series&#160;D Preferred Stock to vote on any matter or the
    number of shares required to constitute a quorum, whether such
    right is created by these Articles&#160;Supplementary, by the
    other provisions of the Charter, by statute or otherwise, a
    share of Series&#160;D Preferred Stock which is not Outstanding
    shall not be counted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;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 Series&#160;D Preferred Stock, 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 two incumbent directors elected by
    the holders of Preferred Stock, including Series&#160;D
    Preferred Stock, and the remaining incumbent directors elected
    by the holders of the Common Stock and Preferred Stock, shall
    constitute the duly elected directors of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;Upon the expiration of a Voting Period, the terms of
    office of the additional directors elected by the holders of
    Preferred Stock pursuant to paragraph&#160;5(b) above shall
    expire and the remaining directors shall constitute the
    directors of the Corporation and the voting rights of such
    holders of Preferred Stock, including Series&#160;D Preferred
    Stock, to elect additional directors pursuant to
    paragraph&#160;5(b) above shall cease, subject to the provisions
    of the last sentence of paragraph&#160;5(b). Upon the expiration
    of the terms of the directors elected by the holders of
    Preferred Stock pursuant to paragraph&#160;5(b) above, the
    number of directors shall be automatically reduced to the number
    and composition of directors on the Board immediately preceding
    such Voting Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Exclusive Remedy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise required by law, the holders of shares of
    Series&#160;D Preferred Stock shall not have any rights or
    preferences other than those specifically set forth herein. The
    holders of shares of Series&#160;D Preferred Stock shall have no
    preemptive rights or rights to cumulative voting. In the event
    that the Corporation fails to pay any dividends on the shares of
    Series&#160;D Preferred Stock, the exclusive remedy of the
    holders shall be the right to vote for directors pursuant to the
    provisions of this paragraph&#160;5.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Notification to Moody&#146;s.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event a vote of holders of Series&#160;D Preferred Stock
    is required pursuant to the provisions of Section&#160;13(a) of
    the 1940 Act, as long as the Series&#160;D Preferred Stock is
    rated by Moody&#146;s at the Corporation&#146;s request, the
    Corporation shall, not later than ten Business Days prior to the
    date on which such vote is to be taken, notify Moody&#146;s that
    such vote is to be taken and the nature of the action with
    respect to which such vote is to be taken and, not later than
    ten Business Days after the date on which such vote is taken,
    notify Moody&#146;s of the result of such vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;Coverage Tests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Determination of Compliance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For so long as any shares of Series&#160;D Preferred Stock are
    Outstanding, the Corporation shall make the following
    determinations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Asset Coverage. The Corporation shall have Asset
    Coverage as of the last Business Day of each March, June,
    September and December of each year in which any share of
    Series&#160;D Preferred Stock is Outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Basic Maintenance Amount Requirement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;For so long as any shares of Series&#160;D Preferred
    Stock are Outstanding and are rated by Moody&#146;s at the
    Corporation&#146;s request, the Corporation shall maintain, on
    each Valuation Date, Moody&#146;s Eligible Assets having an
    Adjusted Value at least equal to the Basic Maintenance Amount,
    each as of such Valuation Date. Upon any failure to maintain
    Moody&#146;s Eligible Assets having an Adjusted Value at least
    equal to the Basic Maintenance Amount, the Corporation shall use
    all commercially reasonable efforts to retain Moody&#146;s
    Eligible Assets having an Adjusted Value at least
</DIV>

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    <BR>
    22
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<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    equal to the Basic Maintenance Amount on or prior to the Basic
    Maintenance Amount Cure Date, by altering the composition of its
    portfolio or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;The Administrator shall prepare a Basic Maintenance
    Report relating to each Valuation Date. On or before
    5:00&#160;P.M., New York City time, on the fifth Business Day
    after the first Valuation Date following the Date of Original
    Issue of the Series&#160;D Preferred Stock and after each
    (1)&#160;Annual Valuation Date, (2)&#160;Valuation Date on which
    the Corporation fails to satisfy the requirements of
    paragraph&#160;6(a)(ii)(A) above, (3)&#160;Basic Maintenance
    Amount Cure Date following a Valuation Date on which the
    Corporation fails to satisfy the requirements of
    paragraph&#160;6(a)(ii)(A) above and (4)&#160;Valuation Date and
    any immediately succeeding Business Day on which the Adjusted
    Value of the Corporation&#146;s Moody&#146;s Eligible Assets
    exceeds the Basic Maintenance Amount by 5% or less, the
    Corporation shall complete and deliver to Moody&#146;s a Basic
    Maintenance Report, which will be deemed to have been delivered
    to Moody&#146;s if Moody&#146;s receives a copy or telecopy,
    telex or other electronic transcription or transmission of the
    Basic Maintenance Report and on the same day the Corporation
    mails to Moody&#146;s for delivery on the next Business Day the
    Basic Maintenance Report. A failure by the Corporation to
    deliver a Basic Maintenance Report under this
    paragraph&#160;6(a)(ii)(B) shall be deemed to be delivery of a
    Basic Maintenance Report indicating an Adjusted Value of the
    Corporation&#146;s Moody&#146;s Eligible Assets less than the
    Basic Maintenance Amount, as of the relevant Valuation Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (C)&#160;Within ten Business Days after the date of delivery to
    Moody&#146;s of a Basic Maintenance Report in accordance with
    paragraph&#160;6(a)(ii)(B) above relating to an Annual Valuation
    Date, the Corporation shall deliver to Moody&#146;s an
    Accountant&#146;s Confirmation relating to such Basic
    Maintenance Report that was prepared by the Corporation during
    the quarter ending on such Annual Valuation Date. Also, within
    ten Business Days after the date of delivery to Moody&#146;s of
    a Basic Maintenance Report in accordance with
    paragraph&#160;6(a)(ii)(B) above relating to a Valuation Date on
    which the Corporation fails to satisfy the requirements of
    paragraph&#160;6(a)(ii)(A) and any Basic Maintenance Amount Cure
    Date, the Corporation shall deliver to Moody&#146;s an
    Accountant&#146;s Confirmation relating to such Basic
    Maintenance Report.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (D)&#160;In the event the Adjusted Value of the
    Corporation&#146;s Moody&#146;s Eligible Assets shown in any
    Basic Maintenance Report prepared pursuant to
    paragraph&#160;6(a)(ii)(B) above is less than the applicable
    Basic Maintenance Amount, the Corporation shall have until the
    Basic Maintenance Amount Cure Date to achieve an Adjusted Value
    of the Corporation&#146;s Moody&#146;s Eligible Assets at least
    equal to the Basic Maintenance Amount, and upon such achievement
    (and not later than such Basic Maintenance Amount Cure Date) the
    Corporation shall inform Moody&#146;s of such achievement in
    writing by delivery of a revised Basic Maintenance Report
    showing an Adjusted Value of the Corporation&#146;s Moody&#146;s
    Eligible Assets at least equal to the Basic Maintenance Amount
    as of the date of such revised Basic Maintenance Report.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (E)&#160;On or before 5:00&#160;P.M., New York City time, on no
    later than the fifth Business Day after the next Valuation Date
    following each date on which the Corporation has repurchased
    more than 1% of its Common Stock since the most recent date of
    delivery of a Basic Maintenance Report, the Corporation shall
    complete and deliver to Moody&#146;s a Basic Maintenance Report.
    A Basic Maintenance Report delivered as provided in
    paragraph&#160;6(a)(ii)(B) above also shall be deemed to have
    been delivered pursuant to this paragraph&#160;6(a)(ii)(E).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Failure to Meet Asset Coverage.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Corporation fails to have Asset Coverage as provided in
    paragraph&#160;6(a)(i) hereof and such failure is not cured as
    of the related Series&#160;D Asset Coverage Cure Date,
    (i)&#160;the Corporation shall give a Notice of Redemption as
    described in paragraph&#160;4 of Article&#160;II hereof with
    respect to the redemption of a sufficient number of shares of
    Preferred Stock, which at the Corporation&#146;s determination
    (to the extent permitted by the 1940 Act and Maryland law) may
    include any proportion of Series&#160;D Preferred Stock, to
    enable it to meet the requirements of paragraph&#160;6(a)(i)
    above, and, at the Corporation&#146;s discretion, such
    additional number of shares
</DIV>

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    <BR>
    23
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of Series&#160;D Preferred Stock or other Preferred Stock in
    order that the Corporation have Asset Coverage with respect to
    the shares of Series&#160;D Preferred Stock and any other
    Preferred Stock remaining Outstanding after such redemption as
    great as 220%, and (ii)&#160;deposit with the
    Dividend-Disbursing Agent Deposit Securities having an initial
    combined value sufficient to effect the redemption of the shares
    of Series&#160;D Preferred Stock or other Preferred Stock to be
    redeemed, as contemplated by paragraph&#160;4(a) of
    Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Failure to Maintain Moody&#146;s Eligible Assets having
    an Adjusted Value at Least Equal to the Basic Maintenance Amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Corporation fails to have Moody&#146;s Eligible Assets
    having an Adjusted Value at least equal to the Basic Maintenance
    Amount as provided in paragraph&#160;6(a)(ii)(A) above and such
    failure is not cured, the Corporation shall, on or prior to the
    Basic Maintenance Amount Cure Date, (i)&#160;give a Notice of
    Redemption as described in paragraph&#160;4 of Article&#160;II
    hereof with respect to the redemption of a sufficient number of
    shares of Series&#160;D Preferred Stock or other Preferred Stock
    to enable it to meet the requirements of
    paragraph&#160;6(a)(ii)(A) above, and, at the Corporation&#146;s
    discretion, such additional number of shares of Series&#160;D
    Preferred Stock or other Preferred Stock in order that the
    Corporation have Adjusted Assets with respect to the remaining
    shares of Series&#160;D Preferred Stock and any other Preferred
    Stock remaining Outstanding after such redemption as great as
    110% of the Basic Maintenance Amount, and (ii)&#160;deposit with
    the Dividend-Disbursing Agent Deposit Assets having an initial
    combined value sufficient to effect the redemption of the shares
    of Series&#160;D Preferred Stock or other Preferred Stock to be
    redeemed, as contemplated by paragraph&#160;4(a) of
    Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Status of Shares&#160;Called for Redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of determining whether the requirements of
    paragraphs&#160;6(a)(i) and 6(a)(ii)(A) hereof are satisfied,
    (i)&#160;no share of the Series&#160;D Preferred Stock shall be
    deemed to be Outstanding for purposes of any computation if,
    prior to or concurrently with such determination, sufficient
    Deposit Assets to pay the full Redemption&#160;Price for such
    share shall have been deposited in trust with the
    Dividend-Disbursing Agent (or applicable paying agent) and the
    requisite Notice of Redemption shall have been given, and
    (ii)&#160;such Deposit Assets deposited with the
    Dividend-Disbursing Agent (or paying agent) shall not be
    included.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;Certain Other Restrictions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;For so long as the Series&#160;D Preferred Stock is
    rated by Moody&#146;s at the request of the Corporation, the
    Corporation will not, and will cause the Adviser not to,
    (i)&#160;knowingly and willfully purchase or sell any asset for
    the specific purpose of causing, and with the actual knowledge
    that the effect of such purchase or sale will be to cause, the
    Corporation to have Moody&#146;s Eligible Assets having an
    Adjusted Value as of the date of such purchase or sale to be
    less than the Basic Maintenance Amount as of such date,
    (ii)&#160;in the event that, as of the immediately preceding
    Valuation Date, the Adjusted Value of the Corporation&#146;s
    Moody&#146;s Eligible Assets exceeded the Basic Maintenance
    Amount by 5% or less, alter the composition of the
    Corporation&#146;s assets in a manner reasonably expected to
    reduce the Adjusted Value of the Corporation&#146;s Moody&#146;s
    Eligible Assets, unless the Corporation shall have confirmed
    that, after giving effect to such alteration, the Adjusted Value
    of the Corporation&#146;s Moody&#146;s Eligible Assets exceeded
    the Basic Maintenance Amount or (iii)&#160;declare or pay any
    dividend or other distribution on any shares of Common Stock or
    repurchase any shares of Common Stock, unless the Corporation
    shall have confirmed that, after giving effect to such
    declaration, other distribution or repurchase, the Corporation
    continued to satisfy the requirements of
    paragraph&#160;6(a)(ii)(A) of Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;For so long as the Series&#160;D Preferred Stock is
    rated by Moody&#146;s at the request of the Corporation, unless
    the Corporation shall have received written confirmation from
    Moody&#146;s, the Corporation may engage in the lending of its
    portfolio securities only in an amount of up to 5% of the
    Corporation&#146;s total assets, provided that the Corporation
    receives cash collateral for such loaned securities which is
    maintained at all times in an amount equal to at least 100% of
    the current market value of the loaned securities and, if
    invested, is invested only in Short-Term Money Market
    Investments or in money market mutual funds meeting the
    requirements of
    <FONT style="white-space: nowrap">Rule&#160;2a-7</FONT>
    under the 1940 Act that maintain a constant
</DIV>

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    <BR>
    24
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    $1.00&#160;per share net asset value and treat the loaned
    securities rather than the collateral as the assets of the
    Corporation for purposes of determining compliance with
    paragraph&#160;6 of Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;For so long as the Series&#160;D Preferred Stock is
    rated by Moody&#146;s at the request of the Corporation, the
    Corporation shall not consolidate the Corporation with, merge
    the Corporation into, sell or otherwise transfer all or
    substantially all of the Corporation&#146;s assets to another
    Person or adopt a plan of liquidation of the Corporation, in
    each case without providing prior written notification to
    Moody&#146;s.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;Limitation on Incurrence of Additional Indebtedness and
    Issuance of Additional Preferred Stock
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;So long as any shares of Series&#160;D Preferred Stock
    are Outstanding the Corporation may issue and sell one or more
    series of a class of senior securities of the Corporation
    representing indebtedness under Section&#160;18 of the 1940 Act
    <FONT style="white-space: nowrap">and/or</FONT>
    otherwise create or incur indebtedness, provided that
    immediately after giving effect to the incurrence of such
    indebtedness and to its receipt and application of the proceeds
    thereof, the Corporation shall have an &#147;asset
    coverage&#148; for all senior securities representing
    indebtedness, as defined in Section&#160;18(h) of the 1940 Act,
    of at least 300% of the amount of all indebtedness of the
    Corporation then Outstanding and no such additional indebtedness
    shall have any preference or priority over any other
    indebtedness of the Corporation upon the distribution of the
    assets of the Corporation or in respect of the payment of
    interest. Any possible liability resulting from lending
    <FONT style="white-space: nowrap">and/or</FONT>
    borrowing portfolio securities, entering into reverse repurchase
    agreements, entering into futures contracts and writing options,
    to the extent such transactions are made in accordance with the
    investment restrictions of the Corporation then in effect, shall
    not be considered to be indebtedness limited by this
    paragraph&#160;8(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;So long as any shares of Series&#160;D Preferred Stock
    are Outstanding, the Corporation may issue and sell shares of
    one or more other series of Preferred Stock constituting a
    series of a class of senior securities of the Corporation
    representing stock under Section&#160;18 of the 1940 Act in
    addition to the shares of Series&#160;D Preferred Stock,
    provided that (i)&#160;the Corporation shall, immediately after
    giving effect to the issuance of such additional Preferred Stock
    and to its receipt and application of the proceeds thereof,
    including, without limitation, to the redemption of Preferred
    Stock for which a Redemption&#160;Notice has been mailed prior
    to such issuance, have an &#147;asset coverage&#148; for all
    senior securities which are stock, as defined in
    Section&#160;18(h) of the 1940 Act, of at least 200% of the sum
    of the liquidation preference of the shares of Series&#160;D
    Preferred Stock and all other Preferred Stock of the Corporation
    then Outstanding, and (ii)&#160;no such additional Preferred
    Stock shall have any preference or priority over any other
    Preferred Stock of the Corporation upon the distribution of the
    assets of the Corporation or in respect of the payment of
    dividends.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;III<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ABILITY OF
    BOARD OF DIRECTORS TO MODIFY THE ARTICLES&#160;SUPPLEMENTARY
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The calculation of Adjusted Value, Basic Maintenance Amount and
    the elements of each of them and the definitions of such terms
    and elements may be modified by action of the Board of Directors
    without further action by the stockholders if the Board of
    Directors determines that such modification is necessary to
    prevent a reduction in rating of the shares of Preferred Stock
    by Moody&#146;s or is in the best interests of the holders of
    shares of Common Stock and is not adverse to the holders of
    Preferred Stock in view of advice to the Corporation by
    Moody&#146;s that such modification would not adversely affect
    its then-current rating of the shares of Series&#160;D Preferred
    Stock. To the extent the Corporation is unable to obtain an
    opinion of counsel to the effect that operation of the foregoing
    sentence is enforceable in the circumstances then obtaining, the
    calculation of Adjusted Value, Basic Maintenance Amount and the
    elements of each of them and the definitions of such terms and
    the elements thereof shall be adjusted from time to time without
    further action by the Board of Directors and the stockholders
    only to reflect changes made thereto independently by
    Moody&#146;s (if Moody&#146;s is then rating the Series&#160;D
    Preferred Stock at the request of the Corporation) if
    Moody&#146;s has advised the Corporation in writing separately
    (a)&#160;of such adjustments and (b)&#160;that the revised
    calculation
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    definition would not cause Moody&#146;s to reduce or withdraw
    its then-current rating of the shares of Series&#160;D Preferred
    Stock. The adjustments contemplated by the preceding sentence
    shall be made effective upon the time the Corporation receives
    the notice from Moody&#146;s to the effect specified in
    clause&#160;(b) of the preceding sentence. Any such modification
    may be rescinded or further modified by action of the Board of
    Directors and the stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the provisions of the preceding paragraph, to
    the extent permitted by law, the Board of Directors, without the
    vote of the holders of the Series&#160;D Preferred Stock or any
    other capital stock of the Corporation, may amend the provisions
    of these Articles&#160;Supplementary to resolve any
    inconsistency or ambiguity or to remedy any formal defect so
    long as the amendment does not materially adversely affect any
    of the contract rights of holders of shares of the Series&#160;D
    Preferred Stock or any other capital stock of the Corporation or
    adversely affect the then-current rating on the Series&#160;D
    Preferred Stock by Moody&#146;s.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    IN WITNESS WHEREOF, The Gabelli Equity Trust Inc. has caused
    these presents to be signed in its name and on its behalf by a
    duly authorized officer, and its corporate seal to be hereunto
    affixed and attested by its Secretary, and the said officers of
    the Corporation further acknowledge said instrument to be the
    corporate act of the Corporation, and state that to the best of
    their knowledge, information and belief under penalty of perjury
    the matters and facts herein set forth with respect to approval
    are true in all material respects, all on October&#160;3, 2003.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE GABELLI EQUITY TRUST&#160;INC.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By:<DIV style="display: inline; text-align: center; width: 90%">/s/&#160;&#160;Gus
    A. Coutsorous</DIV>
</DIV>

<DIV style="font-size: 2pt; margin-left: 49%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name: Gus A. Coutsorous
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;Vice President and Treasurer
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attest:
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="display: inline; text-align: center; width: 90%">/s/&#160;&#160;James
    E. McKee</DIV>
</DIV>

<DIV style="font-size: 2pt; margin-right: 49%; width: 85%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=227 -->

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name: James E. McKee
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;Secretary
</DIV>

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    <BR>
    26
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.A.V
<SEQUENCE>3
<FILENAME>y26698a2exv99w2wawv.htm
<DESCRIPTION>EX-99.2.A.V:  ARTICLES SUPPLEMENTARY FOR SERIES E
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.2.A.V</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit
    2(a)(v)</FONT></B>
</DIV>

<DIV style="margin-top: 15pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    GABELLI EQUITY TRUST&#160;INC.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLES&#160;SUPPLEMENTARY<BR>
    CREATING AND FIXING THE RIGHTS OF<BR>
    SERIES&#160;E AUCTION RATE PREFERRED STOCK</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Gabelli Equity Trust Inc., a Maryland corporation having its
    principal office in Baltimore City, Maryland (the
    &#147;<U>Corporation</U>&#148;), hereby certifies to the State
    Department of Assessments and Taxation of the State of Maryland
    that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FIRST: The Board of Directors of the Corporation, at a meeting
    duly convened and held on May&#160;14, 2003, pursuant to
    authority expressly vested in it by Article&#160;V of the
    Charter of the Corporation, adopted resolutions authorizing the
    issuance and designation of up to 6,006,000&#160;shares of
    preferred stock as a new series of fixed rate preferred and one
    or more series of auction rate preferred stock at such times as
    the Pricing Committee should determine.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SECOND: The Pricing Committee, at a meeting duly convened and
    held on October&#160;2, 2003, pursuant to authority granted it
    by the Board of Directors of the Corporation at its May&#160;14,
    2003 meeting, approved the designation and issuance by the
    Corporation of 2,000&#160;shares of Series&#160;E Auction Rate
    Cumulative Preferred Stock.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THIRD: The preferences, rights, voting powers, restrictions,
    limitations as to dividends, qualifications, and terms and
    conditions of redemption of the Series&#160;E Auction Rate
    Preferred Stock, par value $.001&#160;per share, as set by the
    Board of Directors are as follows:
</DIV>

<DIV style="margin-top: 15pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESIGNATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Series&#160;E Preferred Stock: A series of 2,000&#160;shares of
    preferred stock, par value $0.001&#160;per share, is hereby
    designated &#147;Series&#160;E Auction Rate Preferred
    Stock&#148; (the &#147;<U>Series&#160;E Preferred
    Stock</U>&#148;). Each share of Series&#160;E Preferred Stock
    may be issued on a date to be determined by the Board of
    Directors of the Corporation; have an initial dividend rate per
    annum, an initial Dividend Period and an initial Dividend
    Payment Date as shall be determined in advance of the issuance
    thereof by the Board of Directors of the Corporation; and have
    such other preferences, rights, voting powers, restrictions,
    limitations as to dividends, qualifications and terms and
    conditions of redemption, 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 these
    Articles&#160;Supplementary. The Series&#160;E Preferred Stock
    shall constitute a separate series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used in these Articles&#160;Supplementary, unless the context
    requires otherwise, each capitalized term shall have the meaning
    ascribed to it in paragraph&#160;13 of Article&#160;I and
    paragraph&#160;1 of Article&#160;II of these
    Articles&#160;Supplementary. Paragraph references that do not
    reference a specific Article shall refer to the Article in which
    the reference occurs, unless the context requires otherwise.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Article&#160;I:<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Series&#160;E
    Preferred Stock Terms
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Number of Shares; Ranking.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The initial number of authorized shares constituting
    the Series&#160;E Preferred Stock to be issued is 2,000. No
    fractional shares of Series&#160;E Preferred Stock shall be
    issued.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Shares of Series&#160;E Preferred Stock which at any
    time have been redeemed or purchased by the Corporation shall,
    after such redemption or purchase, have the status of authorized
    but unissued shares of Preferred Stock.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The Series&#160;E Preferred Stock shall rank on a
    parity with any other series of Preferred Stock as to the
    payment of dividends and liquidation preference to which such
    stock is entitled.
</DIV>

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    <BR>
    1
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;No Holder of Series&#160;E Preferred Stock shall have,
    solely by reason of being such a holder, any preemptive or other
    right to acquire, purchase or subscribe for any shares of any
    Preferred Stock or Common Stock or other securities of the
    Corporation which it may hereafter issue or sell.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The Holders of Series&#160;E Preferred Stock shall be
    entitled to receive, when, as and if declared by the Board of
    Directors, out of funds legally available therefor, cumulative
    cash dividends on their shares of Series&#160;E Preferred Stock
    at the dividend rate determined by the Board of Directors in the
    manner described under &#147;Designation&#148; above during the
    period from and after the date on which such shares are
    originally issued up to and including the last day of the
    initial Dividend Period and, thereafter, at the rate, determined
    as set forth in paragraph&#160;2(c), and no more, payable on the
    respective dates determined as set forth in paragraph&#160;2(b).
    Dividends on the Outstanding shares of Series&#160;E Preferred
    Stock shall accumulate from the date on which such shares are
    originally issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Dividends shall be payable when, as and if declared by
    the Board of Directors following the initial Dividend Payment
    Date, subject to paragraph&#160;2(b)(ii), on the Series&#160;E
    Preferred Stock as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;with respect to any Dividend Period of one year or
    less, on the first Business Day following the last day of such
    Dividend Period; provided, however, if the Dividend Period is
    more than 91&#160;days then on the 91st, 181st&#160;and
    271st&#160;days within such period, if applicable, and on the
    first Business Day following the last day of such Dividend
    Period;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;with respect to any Dividend Period of more than one
    year, on a quarterly basis on each March&#160;26th,
    June&#160;26th, September&#160;26th&#160;and
    December&#160;26th&#160;within such Dividend Period and on the
    first Business Day following the last day of such Dividend
    Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;If a day for payment of dividends resulting from the
    application of paragraph&#160;2(b)(i) above is not a Business
    Day, then the Dividend Payment Date shall be the first Business
    Day following such day for payment of dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;The Corporation shall pay to the Paying Agent not
    later than 12:00 noon, New York City time, on the Business Day
    immediately preceding each Dividend Payment Date for
    Series&#160;E Preferred Stock, an aggregate amount of
    immediately available funds equal to the dividends to be paid to
    all Holders of such Series&#160;E Preferred Stock on such
    Dividend Payment Date. The Corporation shall not be required to
    establish any reserves for the payment of dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;All moneys paid to the Paying Agent for the payment of
    dividends shall be held in trust for the payment of such
    dividends by the Paying Agent for the benefit of the Holders
    specified in paragraph&#160;2(b)(v). Unless instructed by the
    Corporation in writing the Paying Agent will hold such moneys
    uninvested. Any moneys paid to the Paying Agent in accordance
    with the foregoing but not applied by the Paying Agent to the
    payment of dividends, including interest earned, if any, on such
    moneys, will, to the extent permitted by law, be repaid to the
    Corporation at the end of 90&#160;days from the date on which
    such moneys were to have been so applied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;Each dividend on Series&#160;E Preferred Stock shall be
    paid on the Dividend Payment Date therefor to the Holders of
    Series&#160;E Preferred Stock as their names appear on the stock
    ledger or stock records of the Corporation on the Business Day
    immediately preceding such Dividend Payment Date; provided,
    however, that if dividends are in arrears, they may be declared
    and paid at any time to Holders as their names appear on the
    stock ledger or stock records of the Corporation on such date
    not exceeding 15&#160;days preceding the payment date thereof,
    as may be fixed by the Board of Directors. No interest will be
    payable in respect of any dividend payment or payments which may
    be in arrears.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;For each Dividend Period after the initial Dividend
    Period for the Outstanding shares of Series&#160;E Preferred
    Stock, the dividend rate shall be equal to the rate (stated as a
    rate per annum) that results from an Auction (but the rate set
    at the Auction will not exceed the Maximum Rate); provided,
    however, that if an Auction for any subsequent Dividend Period
    of Series&#160;E Preferred Stock is not held for any reason
</DIV>

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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (other than as provided in the immediately following sentence)
    or if Sufficient Clearing Bids have not been made in an Auction
    (other than as a result of all shares of Series&#160;E Preferred
    Stock being the subject of Submitted Hold Orders), then the
    dividend rate on each Outstanding share of Series&#160;E
    Preferred Stock for any such Dividend Period shall be the
    Maximum Rate, except as provided in 2(c)(ii) below. If an
    Auction is not held because an unforeseen event or unforeseen
    events cause a day that otherwise would have been an Auction
    Date not to be a Business Day, then the length of the
    then-current Dividend Period shall be extended by seven days (or
    a multiple thereof if necessary because of such unforeseen event
    or events), the Applicable Rate for such period shall be the
    Applicable Rate for the Dividend Period so extended and the
    Dividend Payment Date for such Dividend Period shall be the
    first Business Day immediately succeeding the end of such period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vii)&#160;Subject to the cure provisions in
    paragraph&#160;2(c)(iii) below, a Default Period with respect to
    the Outstanding shares of Series&#160;E Preferred Stock will
    commence if the Corporation fails to deposit irrevocably in
    trust in same-day funds, with the Paying Agent by 12:00 noon,
    New York City time on the Business Day immediately preceding the
    relevant Dividend Payment Date, the full amount of any declared
    dividend on the Outstanding shares of Series&#160;E Preferred
    Stock then payable on that Dividend Payment Date (a
    &#147;<U>Dividend Default</U>&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the cure provisions of paragraph&#160;2(c)(iii)
    below, a Default Period with respect to a Dividend Default or a
    Redemption&#160;Default shall end on the Business Day on which,
    by 12:00 noon, New York City time, all unpaid dividends and any
    unpaid Redemption&#160;Price in respect of such shares of
    Series&#160;E Preferred Stock shall have been deposited
    irrevocably in trust in same-day funds with the Paying Agent. In
    the case of a Default Period, the following shall apply:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A.&#160;Each Dividend Period that commences during a Default
    Period will be a Standard Dividend Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    B.&#160;The dividend rate for each Dividend Period that
    commences and concludes during a Default Period will be equal to
    the Default Rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C.&#160;In the event a Holder sells Series&#160;E Preferred
    Stock at an Auction that takes place on the day a Dividend
    Default occurs and the Default is not cured in accordance with
    paragraph&#160;2(c)(iii) below, such former Holder shall be
    entitled to receive the Default Rate with respect to the shares
    of Series&#160;E Preferred Stock such Holder sold at the Auction
    for the Dividend Period with respect to which the Default
    occurred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    D.&#160;In the event a Dividend Period commences during a
    Default Period and such Dividend Period continues after such
    Default Period has ended (a)&#160;the dividend rate for the
    portion of such Dividend Period that occurs during the Default
    Period will be the Default Rate and (b)&#160;the dividend rate
    for the portion of such Dividend Period that falls outside the
    Default Period will be (i)&#160;the Applicable Rate, in the case
    of the first Dividend Period following a Default, or
    (ii)&#160;the Maximum Rate, in the case of any other Dividend
    Period commencing during a Default Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    E.&#160;The commencement of a Default Period will not by itself
    cause the commencement of a new Dividend Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    F.&#160;No Auction will be held during an applicable Default
    Period; provided, however, that if a Default Period shall end
    prior to the end of a Standard Dividend Period that had
    commenced during such Default Period, an Auction will be held on
    the last day of such Standard Dividend Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (viii)&#160;No Default Period with respect to a Dividend Default
    or Redemption&#160;Default shall be deemed to have commenced,
    unless such default is due solely to the willful failure of the
    Corporation, if the amount of any dividend or any
    Redemption&#160;Price due is deposited irrevocably in trust in
    same-day funds with the Paying Agent by 12:00 noon, New York
    City time within three Business Days after the applicable
    Dividend Payment Date or Redemption&#160;Date, together with an
    amount in respect of such shares of Series&#160;E Preferred
    Stock equal to the Default Rate applied to the amount of such
    non-payment
</DIV>

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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    based on the actual number of days that would otherwise have
    comprised the Default Period divided by 360. The
    &#147;<U>Default Rate</U>&#148; shall be equal to the Reference
    Rate multiplied by three (3).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ix)&#160;The amount of dividends per share of Series&#160;E
    Preferred Stock payable (if declared) on each Dividend Payment
    Date of each Dividend Period of less than one year (or in
    respect of dividends on another date in connection with a
    redemption during such Dividend Period) shall be computed by
    multiplying the relevant Applicable Rate, Default Rate or
    Maximum Rate, as the case may be, for such Dividend Period (or a
    portion thereof) by a fraction, the numerator of which will be
    the number of days in such Dividend Period (or portion thereof)
    that such share of Series&#160;E Preferred Stock was Outstanding
    and for which the Applicable Rate, Maximum Rate or the Default
    Rate was applicable (but in no event shall the numerator exceed
    360)&#160;and the denominator of which will be 360, multiplying
    the amount so obtained by $25,000, and rounding the amount so
    obtained to the nearest cent. During any Dividend Period of one
    year or more, the amount of dividends per share of Series&#160;E
    Preferred Stock payable on any Dividend Payment Date (or in
    respect of dividends on another date in connection with a
    redemption during such Dividend Period) will be computed as
    described in the preceding sentence except that the numerator,
    with respect to any full twelve month period, will be 360.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Any dividend payment made on shares of Series&#160;E
    Preferred Stock shall first be credited against the earliest
    accumulated but unpaid dividends due with respect to such shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;For so long as shares of the Series&#160;E Preferred
    Stock are Outstanding, except as otherwise contemplated by
    Article&#160;I of these Articles&#160;Supplementary, the
    Corporation shall not pay 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
    Series&#160;E Preferred Stock as to dividends and upon
    liquidation) with respect to Common Stock or any other capital
    stock of the Corporation ranking junior to the Series&#160;E
    Preferred Stock as to dividends or upon liquidation, or call for
    redemption, redeem, purchase or otherwise acquire for
    consideration any Common Stock or other capital stock ranking
    junior to the Series&#160;E Preferred Stock (except by
    conversion into or exchange for shares of the Corporation
    ranking junior to the Series&#160;E Preferred Stock as to
    dividends and upon liquidation), unless, in each case,
    (i)&#160;immediately after such transaction, the Corporation
    would have Eligible Assets with an aggregate Discounted Value at
    least equal to the Basic Maintenance Amount and Asset Coverage
    would be achieved, (ii)&#160;all cumulative and unpaid dividends
    due on or prior to the date of the transaction have been
    declared and paid in full with respect to the Corporation&#146;s
    Preferred Stock, including the Series&#160;E Preferred Stock (or
    shall have been declared and sufficient funds for the payment
    thereof deposited with the applicable Paying Agent) and
    (iii)&#160;the Corporation has redeemed the full number of
    shares of Preferred Stock to be redeemed mandatorily pursuant to
    any provision for mandatory redemption contained herein,
    including, without limitation, any such provision contained in
    paragraph&#160;3(a)(ii).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;No full dividends shall be declared or paid on the
    Series&#160;E Preferred Stock for any Dividend Period or part
    thereof, unless full cumulative dividends due through the most
    recent Dividend Payment Dates therefor for all Outstanding
    series of Preferred Stock of the Corporation ranking on a parity
    with the Series&#160;E Preferred Stock as to the payment of
    dividends have been or contemporaneously are declared and paid
    through the most recent Dividend Payment Dates therefor. If full
    cumulative dividends due have not been paid on all Outstanding
    shares of such Preferred Stock, any dividends being paid on such
    shares of Preferred Stock (including the Series&#160;E Preferred
    Stock) will be paid as nearly pro rata as possible in proportion
    to the respective amounts of dividends accumulated but unpaid on
    each such series of Preferred Stock then Outstanding on the
    relevant Dividend Payment Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;<I>Optional Redemption.</I>&#160;&#160;After the
    initial Dividend Period, subject to any Non-Call Period and the
    provisions of this paragraph&#160;3 and to the extent permitted
    under the 1940 Act and Maryland law, the Corporation may, at its
    option, redeem in whole or in part out of funds legally
    available therefor, shares of Series&#160;E Preferred Stock by
    delivering a notice of redemption not less than 7 calendar days
    and not more than 40 calendar days prior to the
    Redemption&#160;Date at the applicable Redemption&#160;Price.
    Notwithstanding the
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    foregoing, the Corporation shall not give a notice of any
    redemption pursuant to this paragraph&#160;3(a)(i) unless, on
    the date on which the Corporation gives such notice (x)&#160;the
    Corporation reasonably believes that, assuming the fulfillment
    of any conditions precedent specified in such notice, it will be
    able to deposit with the Paying Agent when due Deposit Assets
    with maturity or tender dates not later than the day preceding
    the applicable Redemption&#160;Date and having a value not less
    than the Redemption&#160;Price due to Holders of the
    Series&#160;E Preferred Stock to be redeemed on the
    Redemption&#160;Date and (y)&#160;the Corporation would have
    Eligible Assets with an aggregate Discounted Value at least
    equal to the Basic Maintenance Amount and Asset Coverage
    immediately subsequent to such redemption, if such redemption
    were to occur on such date, it being understood that the
    provisions of paragraph&#160;3(d) shall be applicable in such
    circumstances in the event the Corporation makes the deposit and
    takes the other action required thereby.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;<I>Mandatory Redemption.</I>&#160;&#160;So long as
    shares of Series&#160;E Preferred Stock are Outstanding, if the
    Corporation fails (A)&#160;as of any Valuation Date to meet the
    Basic Maintenance Test and such failure is not cured by the
    Basic Maintenance Amount Cure Date or (B)&#160;as of any
    Quarterly Valuation Date to meet Asset Coverage and such failure
    is not cured by the Series&#160;E Asset Coverage Cure Date or
    (C)&#160;as of any valuation or measuring date applicable to any
    other series of Preferred Stock to meet any applicable
    maintenance amount test and such failure is not cured by the
    relevant cure date (any such cure date, together with any Basic
    Maintenance Amount Cure Date or Series&#160;E Asset Coverage
    Cure Date, a &#147;<U>Cure Date</U>&#148;), Preferred Stock,
    which at the Corporation&#146;s determination may include
    Series&#160;E Preferred Stock, will be subject to mandatory
    redemption out of funds legally available therefor. The series
    and number of shares of Preferred Stock to be redeemed in such
    circumstances will be determined by the Corporation, subject to
    the limitations of the 1940 Act and Maryland law, from among all
    series of Preferred Stock then Outstanding and may include any
    proportion of Series&#160;E Preferred Stock or any other series
    of Preferred Stock. The amount of Preferred Stock to be
    mandatorily redeemed under such circumstances shall, in the
    aggregate, equal the lesser of (1)&#160;the minimum amount of
    Preferred Stock (including the Series&#160;E Preferred Stock if
    so determined by the Corporation) the redemption of which, if
    deemed to have occurred immediately prior to the opening of
    business on the relevant Cure Date, would result in the
    Corporation meeting, as the case may be, the Basic Maintenance
    Test, Asset Coverage and any other then applicable maintenance
    amount test, in each case as of the relevant Cure Date (provided
    that, if there is no such minimum amount of Preferred Stock the
    redemption of which would have such result, all Series&#160;E
    Preferred Stock then Outstanding will be redeemed), and
    (2)&#160;the maximum amount of Preferred Stock that can be
    redeemed out of funds expected to be available therefor on the
    Mandatory Redemption&#160;Date at the applicable
    Redemption&#160;Price; provided, that in the event that
    Preferred Stock is redeemed mandatorily pursuant to this
    paragraph&#160;3, the Corporation may, but is not required to,
    redeem a sufficient amount of additional shares of Series&#160;E
    Preferred Stock, which when aggregated with other shares of
    Preferred Stock redeemed by the Corporation, permits the
    Corporation to have (x)&#160;Eligible Assets with Adjusted Value
    with respect to the Preferred Stock remaining Outstanding of as
    great as 110% of the Basic Maintenance Amount and (y)&#160;Asset
    Coverage with respect to the Preferred Stock remaining
    Outstanding of as much as 220%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Subject to the Articles&#160;Supplementary
    establishing each series of Preferred Stock and the 1940 Act,
    the Corporation may determine the shares and series of Preferred
    Stock to be redeemed in accordance with the
    paragraph&#160;3(a)(ii) above, subject to the further provisions
    of this paragraph&#160;3(a)(iii). The Corporation shall effect
    any mandatory redemption of Series&#160;E Preferred Stock
    relating to: (A)&#160;a failure to meet the Basic Maintenance
    Test or a failure to meet Asset Coverage, no later than eight
    days following such Cure Date, provided, that if such eighth day
    is not a Business Day, such redemption will occur not later than
    the close of business on the next Business Day or (B)&#160;a
    failure to meet any other then applicable maintenance amount
    test in accordance with the requirements of such test (in each
    case the date specified for such redemption being, the
    &#147;<U>Mandatory Redemption&#160;Date</U>&#148;), except that
    if the Corporation does not have funds legally available for the
    redemption of, or is not otherwise legally permitted to redeem,
    the amount of Preferred Stock which would be mandatorily
    redeemed by the Corporation under subparagraph&#160;3(a)(ii) if
    sufficient funds were available, or the Corporation otherwise is
    unable to effect such redemption on or prior to the applicable
    Mandatory Redemption&#160;Date, the Corporation shall redeem on
    such redemption date the number of shares of Series&#160;E
    Preferred Stock and other Preferred Stock with respect to which
    it has given notice of redemption as
</DIV>

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    <BR>
    5
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    it shall have legally available funds, or is otherwise able, to
    redeem ratably on the basis of Redemption&#160;Price from each
    holder whose shares are to be redeemed and the remainder of the
    Series&#160;E Preferred Stock and other Preferred Stock which it
    was unable to redeem on the earliest practicable date on which
    the Corporation will have such funds available upon notice, in
    the case of Series&#160;E Preferred Stock pursuant to
    paragraph&#160;3(b) to Holders of shares of Series&#160;E
    Preferred Stock to be redeemed. The Corporation will deposit
    with the Paying Agent funds sufficient to redeem the specified
    number of shares of Series&#160;E Preferred Stock subject to a
    redemption under this paragraph&#160;3(a) by 12:00 noon, New
    York City time, of the Business Day immediately preceding the
    redemption date. If fewer than all of the Outstanding shares of
    Series&#160;E Preferred Stock are to be redeemed, the number of
    shares of Series&#160;E Preferred Stock to be redeemed shall be
    redeemed pro rata from the Holders of such shares in proportion
    to the number of shares of Series&#160;E Preferred Stock held by
    such Holders, by lot or by such other method as the Corporation
    shall deem fair and equitable, subject, however, to the terms of
    any applicable Specific Redemption&#160;Provisions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;In the event of a redemption of Series&#160;E Preferred
    Stock pursuant to paragraph&#160;3(a) above, the Corporation
    will have filed or will file a notice of its intention to redeem
    with the Commission, in either case so as to provide at least
    the minimum notice required under
    <FONT style="white-space: nowrap">Rule&#160;23c-2</FONT>
    under the 1940 Act or any successor provision. In addition, the
    Corporation shall deliver a notice of redemption to the Auction
    Agent (the &#147;<U>Notice of Redemption</U>&#148;) containing
    the information set forth below (i)&#160;in the case of an
    optional redemption pursuant to paragraph&#160;3(a)(i) above,
    one Business Day prior to the giving of notice to the Holders
    and (ii)&#160;in the case of a mandatory redemption pursuant to
    paragraph&#160;3(a)(ii) above, on or prior to the 7th&#160;day
    preceding the Mandatory Redemption&#160;Date. The Auction Agent
    will use its reasonable efforts to provide telephonic,
    electronic or written notice to each Holder of any shares of
    Series&#160;E Preferred Stock called for redemption not later
    than the close of business on the Business Day immediately
    following the day on which the Corporation determines the shares
    to be redeemed (or, during a Default Period with respect to such
    shares, not later than the close of business on the Business Day
    immediately following the day on which the Auction Agent
    receives Notice of Redemption from the Corporation). The Auction
    Agent shall confirm a telephonic notice in writing not later
    than the close of business on the third Business Day preceding
    the date fixed for redemption by providing the Notice of
    Redemption to each Holder of shares called for redemption, the
    Paying Agent (if different from the Auction Agent) and the
    Securities Depository. Notice of Redemption will be addressed to
    the Holders of Series&#160;E Preferred Stock at their addresses
    appearing on the share records of the Corporation. Such Notice
    of Redemption will set forth (s)&#160;the date fixed for
    redemption, (t)&#160;the number or percentage of shares of
    Series&#160;E Preferred Stock to be redeemed, (u)&#160;the CUSIP
    number(s) of such shares, (v)&#160;the Redemption&#160;Price
    (specifying the amount of accumulated dividends to be included
    therein) and any applicable redemption premium, (w)&#160;the
    place or places where such shares are to be redeemed,
    (x)&#160;that dividends on the shares to be redeemed will cease
    to accumulate on such date fixed for redemption, (y)&#160;the
    provision of these Articles&#160;Supplementary under which
    redemption shall be made, and (z)&#160;in the case of a
    redemption pursuant to paragraph&#160;3(a)(i), any conditions
    precedent to such redemption. If fewer than all the Outstanding
    shares of Series&#160;E Preferred Stock held by any Holder are
    to be redeemed, the Notice of Redemption mailed to such Holder
    shall also specify the number or percentage of shares of
    Series&#160;E Preferred Stock to be redeemed from such Holder.
    No defect in the Notice of Redemption or in the transmittal or
    mailing thereof will affect the validity of the redemption
    proceedings, except as required by applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Notwithstanding the provisions of paragraph&#160;3(a),
    the Corporation shall not redeem shares of Preferred Stock
    unless all accumulated and unpaid dividends on all Outstanding
    shares of Series&#160;E Preferred Stock and other Preferred
    Stock ranking on a parity with the Series&#160;E Preferred Stock
    with respect to dividends for all applicable past Dividend
    Periods (whether or not earned or declared by the Corporation)
    have been or are contemporaneously paid or declared and Deposit
    Assets for the payment of such dividends have been deposited
    with the Paying Agent; provided, however, that the foregoing
    shall not prevent the purchase or acquisition of outstanding
    shares of Preferred Stock pursuant to the successful completion
    of an otherwise lawful purchase or exchange offer made on the
    same terms to holders of all Outstanding shares of Series&#160;E
    Preferred Stock.
</DIV>

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    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Upon the deposit of funds sufficient to redeem shares
    of Series&#160;E Preferred Stock with the Paying Agent and the
    giving of the Notice of Redemption to the Auction Agent under
    paragraph&#160;3(b) above, such shares shall no longer be deemed
    to be Outstanding for any purpose (including, without
    limitation, for purposes of calculating whether the Corporation
    has met the Basic Maintenance Test or Asset Coverage), and all
    rights of the Holders of the shares of Series&#160;E Preferred
    Stock so called for redemption shall cease and terminate, except
    the right of such Holder to receive the applicable
    Redemption&#160;Price, but without any interest or other
    additional amount. Such Redemption&#160;Price shall be paid by
    the Paying Agent to the nominee of the Securities Depository.
    The Corporation shall be entitled to receive from the Paying
    Agent, promptly after the date fixed for redemption, any cash
    deposited with the Paying Agent in excess of (i)&#160;the
    aggregate Redemption&#160;Price of the shares of Series&#160;E
    Preferred Stock called for redemption on such date and
    (ii)&#160;such other amounts, if any, to which Holders of the
    Series&#160;E Preferred Stock called for redemption may be
    entitled. Any funds so deposited that are unclaimed at the end
    of two years from such redemption date shall, to the extent
    permitted by law, be paid to the Corporation, after which time
    the Holders of shares of Series&#160;E Preferred Stock so called
    for redemption may look only to the Corporation for payment of
    the Redemption&#160;Price and all other amounts, if any, to
    which they may be entitled; provided, however, that the Paying
    Agent shall notify all Holders whose funds are unclaimed by
    placing a notice in <I>The Wall Street Journal </I>concerning
    the availability of such funds for three consecutive weeks. The
    Corporation shall be entitled to receive, from time to time
    after the date fixed for redemption, any interest earned on the
    funds so deposited.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;A Default Period with respect to the Outstanding shares
    of Series&#160;E Preferred Stock will commence if the
    Corporation fails to deposit irrevocably in trust in same-day
    funds, with the Paying Agent by 12:00 noon, New York City time
    on the Business Day preceding the redemption date specified in
    the Notice of Redemption (the
    &#147;<U>Redemption&#160;Date</U>&#148;) or on such later date
    as the Paying Agent shall authorize, the full amount of any
    Redemption&#160;Price payable on such Redemption&#160;Date (a
    &#147;<U>Redemption&#160;Default</U>&#148;); provided, that no
    Redemption&#160;Default shall be deemed to have occurred in
    respect of Series&#160;E Preferred Stock when the related
    redemption notice provides that the redemption of such
    Series&#160;E Preferred Stock is subject to one or more
    conditions precedent and each such condition precedent shall not
    have been satisfied at the time or times or in the manner
    specified in such Notice of Redemption. To the extent a
    Redemption Default occurs with respect to Series&#160;E
    Preferred Stock or that any redemption for which Notice of
    Redemption has been given is otherwise prohibited, such
    redemption shall be made as soon as practicable to the extent
    such funds become legally available or such redemption is no
    longer otherwise prohibited. Notwithstanding the fact that a
    Redemption Default has occurred and is continuing or that the
    Corporation has otherwise failed to redeem shares of
    Series&#160;E Preferred Stock for which a Notice of Redemption
    has been given, dividends may be declared and if so declared
    will be paid on Series&#160;E Preferred Stock, which shall
    include those shares of Series&#160;E Preferred Stock for which
    Notice of Redemption has been given but for which deposit of
    funds has not been made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;All moneys paid to the Paying Agent for payment of the
    Redemption Price of shares of Series&#160;E Preferred Stock
    called for redemption shall be held in trust by the Paying Agent
    for the benefit of Holders of the Series&#160;E Preferred Stock
    so to be redeemed. A Redemption Default will occur on account of
    the Corporation&#146;s failure to timely deposit any required
    Redemption Price with the Paying Agent and any resulting Default
    Period will end in accordance with paragraph&#160;2(c)(ii).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;So long as the Series&#160;E Preferred Stock is held of
    record by the nominee of the Securities Depository, the
    Redemption Price for such shares will be paid on the date fixed
    for redemption to the nominee of the Securities Depository for
    distribution to agent members for distribution to the Persons
    for whom they are acting as agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;Except for the provisions described above, nothing
    contained in these Articles Supplementary limits any right of
    the Corporation to purchase or otherwise acquire Series&#160;E
    Preferred Stock outside of an Auction at any price, whether
    higher or lower than the price that would be paid in connection
    with an optional or mandatory redemption, so long as, at the
    time of any such purchase, there is no arrearage in the payment
    of dividends on, or the Redemption Price with respect to, any
    shares of Series&#160;E Preferred Stock for which
</DIV>

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    <BR>
    7
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notice of Redemption has been given and the Corporation meets
    Asset Coverage and the Basic Maintenance Test after giving
    effect to such purchase or acquisition on the date thereof. Any
    shares of Series&#160;E Preferred Stock which are purchased,
    redeemed or otherwise acquired by the Corporation shall have no
    voting rights. If fewer than all the Outstanding shares of
    Series&#160;E Preferred Stock are redeemed or otherwise acquired
    by the Corporation, the Corporation shall give notice of such
    transaction to the Auction Agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;In the case of any redemption pursuant to this
    paragraph&#160;3, only whole shares of Series&#160;E Preferred
    Stock 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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;Notwithstanding anything herein to the contrary, the
    Board of Directors may authorize, create or issue other series
    of Preferred Stock ranking on a parity with the Series&#160;E
    Preferred Stock with respect to the payment of dividends or the
    distribution of assets upon dissolution, liquidation or winding
    up of the affairs of the Corporation, to the extent permitted by
    the 1940 Act, if upon issuance of any such series, either
    (i)&#160;the net proceeds from the sale of such stock (or such
    portion thereof needed to redeem or repurchase the Outstanding
    shares of Series&#160;E Preferred Stock) are deposited with the
    Auction Agent, Notice of Redemption as contemplated by
    paragraph&#160;3(b) has been delivered prior thereto or is sent
    promptly thereafter, and such proceeds are used to redeem all
    Outstanding shares of Series&#160;E Preferred Stock or
    (ii)&#160;the Corporation would meet Asset Coverage, the Basic
    Maintenance Test and the requirements of paragraph&#160;9
    immediately following such issuance and any redemption of
    Preferred Stock (which may include a portion of the
    Series&#160;E Preferred Stock) to be effected with the proceeds
    of such issuance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Designation of Dividend Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The initial Dividend Period for the Series&#160;E
    Preferred Stock shall be as determined in the manner under
    &#147;Designation&#148; above. The Corporation shall designate
    the duration of subsequent Dividend Periods of the Series&#160;E
    Preferred Stock; provided, however, that no such designation
    shall be necessary for a Standard Dividend Period and, provided
    further, that any designation of a Special Dividend Period for
    the Series&#160;E Preferred shall be effective only if
    (i)&#160;notice thereof shall have been given as provided
    herein, (ii)&#160;any failure to pay in a timely manner to the
    Auction Agent the full amount of any dividend on, or the
    Redemption Price of, the Series&#160;E Preferred Stock shall
    have been cured as provided for herein, (iii)&#160;Sufficient
    Clearing Orders shall have existed in an Auction held for the
    Series&#160;E Preferred Stock on the Auction Date immediately
    preceding the first day of such proposed Special Dividend
    Period, (iv)&#160;if the Corporation shall have mailed a Notice
    of Redemption with respect to any shares of Series&#160;E
    Preferred Stock, the Redemption Price with respect to such
    shares shall have been deposited with the Paying Agent and
    (v)&#160;the Corporation has confirmed 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 Basic Maintenance Amount, and the
    Corporation has consulted with the Broker-Dealers and has
    provided notice of such designation and a Basic Maintenance
    Report for the most recent Valuation Date to each Rating Agency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;If the Corporation proposes to designate any Special
    Dividend Period, not fewer than seven Business Days (or two
    Business Days in the event the duration of the Dividend Period
    prior to such Special Dividend Period is fewer than eight
    Business Days) nor more than 30 Business Days prior to the first
    day of such Special Dividend Period, notice shall be
    (i)&#160;made by press release and (ii)&#160;communicated by the
    Corporation by telephonic or other means to the Auction Agent
    and confirmed in writing promptly thereafter. Each such notice
    shall state (x)&#160;that the Corporation proposes to exercise
    its option to designate a succeeding Special Dividend Period,
    specifying the first and last days thereof and (y)&#160;that the
    Corporation will by 3:00&#160;P.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 (A)&#160;its determination,
    subject to certain conditions, to proceed with such Special
    Dividend Period, subject to the terms of any Specific
    Redemption&#160;Provisions, or (B)&#160;its determination not to
    proceed with such Special Dividend Period, in which latter event
    the succeeding Dividend Period shall be a Standard Dividend
    Period. No later than 3:00&#160;P.M., New York City time, on the
    second Business Day next preceding the first day of any proposed
    Special Dividend
</DIV>

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    <BR>
    8
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Period, the Corporation shall deliver to the Auction Agent, who
    will promptly deliver to the Broker-Dealers and Existing
    Holders, either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;a notice stating (a)&#160;that the Corporation has
    determined to designate the next succeeding Dividend Period as a
    Special Dividend Period, (b)&#160;the first and last days
    thereof and (c)&#160;the terms of any Specific
    Redemption&#160;Provisions;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;a notice stating that the Corporation has determined
    not to exercise its option to designate a Special Dividend
    Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Corporation fails to deliver either such notice with
    respect to the designation of any proposed Special Dividend
    Period to the Auction Agent or is unable to make the
    confirmation provided in paragraph&#160;4(a)(v) by
    3:00&#160;P.M., New York City time, on the second Business Day
    next preceding the first day of such proposed Special Dividend
    Period, the Corporation 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&#160;(2) above, thereby
    resulting in a Standard Dividend Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Restrictions on Transfer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Series&#160;E Preferred Stock may be transferred only
    (a)&#160;pursuant to an Order placed in an Auction, (b)&#160;to
    or through a Broker-Dealer or (c)&#160;to the Corporation or any
    Affiliate. Notwithstanding the foregoing, a transfer other than
    pursuant to an Auction will not be effective unless the selling
    Existing Holder or the Agent Member of such Existing Holder (in
    the case of an Existing Holder whose shares are listed in its
    own name on the books of the Auction Agent), or the
    Broker-Dealer or Agent Member of such Broker-Dealer (in the case
    of a transfer between persons holding shares of any
    Series&#160;E Preferred Stock through different Broker-Dealers),
    advises the Auction Agent of such transfer. Any certificates
    representing Series&#160;E Preferred Stock issued to the
    Securities Depository will bear legends with respect to the
    restrictions described above and stop-transfer instructions will
    be issued to the Transfer Agent
    <FONT style="white-space: nowrap">and/or</FONT>
    Registrar.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;Voting Rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;General.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise provided by law or as specified in the
    Charter, each Holder of Series&#160;E Preferred Stock and any
    other Preferred Stock shall be entitled to one vote for each
    share held on each matter submitted to a vote of stockholders of
    the Corporation, and the Holders of Outstanding shares of
    Preferred Stock and Common Stock shall vote together as a single
    class; provided, however, that at any meeting of the
    stockholders of the Corporation held for the election of
    directors, the Holders of Outstanding shares of Preferred Stock,
    including the Series E Preferred Stock, shall be entitled, as a
    class, to the exclusion of the Holders of all other securities
    and classes of capital stock of the Corporation, to elect a
    number of Corporation&#146;s directors, such that following the
    election of directors at the meeting of the stockholders, the
    Corporation&#146;s Board of Directors shall contain two
    directors elected by the Holders of the Outstanding shares of
    Preferred Stock as a class. Subject to paragraph&#160;6(b), the
    Holders of outstanding shares of capital stock of the
    Corporation, including the Holders of Outstanding shares of
    Preferred Stock, including Series&#160;E Preferred Stock, voting
    as a single class, shall elect the balance of the directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Right to Elect Majority of Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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;<U>Voting Period</U>&#148;), the number of
    directors constituting the Board of Directors shall be
    automatically increased by the smallest number of additional
    directors that, when added to the two directors elected
    exclusively by the Holders of shares of Preferred Stock pursuant
    to paragraph&#160;6(a) above, would constitute a majority of the
    Board of Directors as so increased by such smallest number; and
    the Holders of shares of Preferred Stock shall be entitled,
    voting separately as one class (to the exclusion of the holders
    of all other securities and classes of capital stock of the
    Corporation), to elect such smallest number of additional
    directors, together with the two directors that such Holders are
    in any event entitled to elect pursuant to paragraph&#160;6(a)
    above. The Corporation and the Board of Directors shall take all
    necessary action,
</DIV>

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    <BR>
    9
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    including amending the Corporation&#146;s bylaws, to effect an
    increase in the number of directors as described in the
    preceding sentence. A Voting Period shall commence:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;if at any time 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
    Series&#160;E Preferred Stock equal to at least two full
    years&#146; dividends shall have become due and unpaid and
    sufficient cash or specified securities shall not have been
    deposited with the Paying Agent for the payment in full of such
    accumulated dividends;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;if at any time holders of any other shares of
    Preferred Stock are entitled to elect a majority of the
    directors of the Corporation under the 1940 Act or the
    Articles&#160;Supplementary creating such shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the termination of a Voting Period, the voting rights
    described in this paragraph&#160;6(b) shall cease, subject
    always, however, to the reverting of such voting rights in the
    holders of Preferred Stock upon the further occurrence of any of
    the events described in this paragraph&#160;6(b).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Right to Vote with Respect to Certain Other Matters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    So long as the Series&#160;E Preferred Stock is Outstanding, the
    Corporation shall not, without the affirmative vote of the
    Holders of a majority of the shares of Preferred Stock
    Outstanding at the time, voting separately as one class, amend,
    alter or repeal the provisions of the Charter, whether by
    merger, consolidation or otherwise, so as to materially
    adversely affect any of the contract rights expressly set forth
    in the Charter of Holders of Series&#160;E Preferred Stock or
    any other Preferred Stock. To the extent permitted under the
    1940 Act, in the event shares of more than one series of
    Preferred Stock are Outstanding, the Corporation shall not
    effect any of the actions set forth in the preceding sentence
    which materially adversely affects the contract rights expressly
    set forth in the Charter of a Holder of shares of a series of
    Preferred Stock differently than those of a Holder of shares of
    any other series of Preferred Stock without the affirmative vote
    of the Holders of at least a majority of the shares of Preferred
    Stock of each series materially adversely affected and
    Outstanding at such time (each such materially adversely
    affected series voting separately as a class to the extent its
    rights are affected differently). The Corporation shall notify
    each Rating Agency ten Business Days prior to any such vote
    described above. Unless a higher percentage is provided for
    under the Charter or applicable provisions of the Maryland
    General Corporation Law, the affirmative vote of the Holders of
    a majority of the Outstanding shares of Preferred Stock,
    including the Series&#160;E Preferred Stock, 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&#160;13(a) of
    the 1940 Act. For purposes of this paragraph&#160;6(c), the
    phrase &#147;vote of the Holders of a majority of the
    Outstanding shares of Preferred Stock&#148; (or any like phrase)
    shall mean, in accordance with Section&#160;2(a)(42) of the 1940
    Act, the vote, at the annual or a special meeting of the
    stockholders of the Corporation duly called (A)&#160;of
    67&#160;percent or more of the shares of Preferred Stock present
    at such meeting, if the Holders of more than 50&#160;percent of
    the Outstanding shares of Preferred Stock are present or
    represented by proxy; or (B)&#160;of more than 50&#160;percent
    of the Outstanding shares of Preferred Stock, whichever is less.
    The class vote of Holders of shares of Preferred Stock 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 the Series&#160;E Preferred Stock,
    voting together as a single class, necessary to authorize the
    action in question. An increase in the number of authorized
    shares of Preferred Stock pursuant to the Charter or the
    issuance of additional shares of any series of Preferred Stock
    (including the Series&#160;E Preferred Stock) pursuant to the
    Charter shall not in and of itself be considered to adversely
    affect the contract rights of the Holders of Preferred Stock.
    The provisions of this paragraph&#160;6(c) are subject to the
    provisions of paragraph&#160;10.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Voting Procedures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;As soon as practicable after the accrual of any right
    of the Holders of shares of Preferred Stock, including the
    Series&#160;E Preferred Stock, to elect additional directors as
    described in paragraph&#160;6(b), the Corporation shall call a
    special meeting of such Holders and instruct the Auction Agent
    to mail a notice of such special meeting to the Holders of
    Series&#160;E Preferred Stock, such meeting to be held not less
    than 10 nor more than 20&#160;days after the date of mailing of
    such notice. If the Corporation fails to send such
</DIV>

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    <BR>
    10
</DIV><!-- END LOGICAL PAGE -->
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    notice to the Auction Agent or if the Corporation 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 day on which such notice is
    mailed or such other day as the Board of Directors shall
    determine. At any such special meeting and at each meeting held
    during a Voting Period, such Holders of Preferred Stock, 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&#160;6(b) 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 shares of Preferred Stock,
    including the Series&#160;E Preferred Stock, 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 date
    not more than 90&#160;days after the original record date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;For purposes of determining any rights of the Holders
    of the shares of Preferred Stock, including the Series&#160;E
    Preferred Stock, to vote on any matter, whether such right is
    created by these Articles&#160;Supplementary, by the other
    provisions of the Charter, by statute or otherwise, a share of
    Series&#160;E Preferred Stock which is not Outstanding shall not
    be counted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;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 the Series&#160;E Preferred Stock,
    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 two incumbent directors elected by
    the Holders of Preferred Stock, including the Series&#160;E
    Preferred Stock, and the remaining incumbent directors elected
    by the holders of the Common Stock and Preferred Stock, shall
    constitute the duly elected directors of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;Upon the expiration of a Voting Period, the terms of
    office of the additional directors elected by the Holders of
    Preferred Stock pursuant to paragraph&#160;6(b) above shall
    expire and the remaining directors shall constitute the
    directors of the Corporation and the voting rights of such
    Holders of Preferred Stock, including Series&#160;E Preferred
    Stock, to elect additional directors pursuant to
    paragraph&#160;6(b) above shall cease, subject to the provisions
    of the last sentence of paragraph&#160;6(b). Upon the expiration
    of the terms of the directors elected by the holders of
    Preferred Stock pursuant to paragraph&#160;6(b) above, the
    number of directors shall be automatically reduced to the number
    and composition of directors on the Board immediately preceding
    such Voting Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Exclusive Remedy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise required by law, the Holders of Series&#160;E
    Preferred Stock shall not have any rights or preferences other
    than those specifically set forth herein. The Holders of
    Series&#160;E Preferred Stock shall have no preemptive rights or
    rights to cumulative voting. In the event that the Corporation
    fails to pay any dividends on the Series&#160;E Preferred Stock,
    the exclusive remedy of the Holders shall be the right to vote
    for directors pursuant to the provisions of this
    paragraph&#160;6.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Notification to Rating Agency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event a vote of Holders of Preferred Stock is required
    pursuant to the provisions of Section&#160;13(a) of the 1940
    Act, as long as the Series&#160;E Preferred Stock is rated by a
    Rating Agency at the request of the Corporation, the Corporation
    shall, not later than ten Business Days prior to the date on
    which such vote is to be taken, notify each Rating Agency that
    such vote is to be taken and the nature of the action with
    respect to which such vote is to be taken and, not later than
    ten Business Days after the date on which such vote is taken,
    notify each Rating Agency of the result of such vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;Liquidation Rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;In the event of any liquidation, dissolution or winding
    up of the affairs of the Corporation, whether voluntary or
    involuntary, the Holders of Series&#160;E Preferred Stock shall
    be entitled to receive out of the assets of the Corporation
    available for distribution to stockholders, after claims of
    creditors but before any
</DIV>

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    <BR>
    11
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    distribution or payment shall be made in respect of the Common
    Stock or any other stock of the Corporation ranking junior to
    the Series&#160;E Preferred Stock as to liquidation payments, a
    liquidation distribution in the amount of $25,000.00&#160;per
    share (the &#147;<U>Liquidation Preference</U>&#148;), plus an
    amount equal to all unpaid dividends accumulated to and
    including the date fixed for such distribution or payment
    (whether or not earned or declared by the Corporation, but
    excluding interest thereon), and such Holders shall be entitled
    to no further participation in any distribution or payment in
    connection with any such liquidation, dissolution or winding up.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;If, upon any liquidation, dissolution or winding up of
    the affairs of the Corporation, whether voluntary or
    involuntary, the assets of the Corporation available for
    distribution among the Holders of all Outstanding shares of
    Series&#160;E Preferred Stock, and any other Outstanding class
    or series of Preferred Stock ranking on a parity with the
    Series&#160;E Preferred Stock as to payment upon liquidation,
    shall be insufficient to permit the payment in full to such
    Holders of Series&#160;E Preferred Stock of the Liquidation
    Preference plus accumulated and unpaid dividends and the amounts
    due upon liquidation with respect to such other Preferred Stock,
    then such available assets shall be distributed among the
    Holders of Series&#160;E Preferred Stock and such other
    Preferred Stock ratably in proportion to the respective
    preferential amounts to which they are entitled. Unless and
    until the Liquidation Preference plus accumulated and unpaid
    dividends has been paid in full to the Holders of shares of
    Series&#160;E Preferred Stock, no dividends or distributions
    will be made to holders of shares of the Common Stock or any
    other stock of the Corporation ranking junior to the
    Series&#160;E Preferred Stock as to liquidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;Auction Agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For so long as shares of the Series&#160;E Preferred Stock are
    Outstanding, the Auction Agent, duly appointed by the
    Corporation to so act, shall be in each case a commercial bank,
    trust company or other financial institution independent of the
    Corporation and its Affiliates (which, however, may engage or
    have engaged in business transactions with the Corporation or
    its Affiliates) and at no time shall the Corporation 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 any
    shares of Series&#160;E Preferred Stock are Outstanding, the
    Corporation shall use its best efforts promptly thereafter to
    appoint another qualified commercial bank, trust company or
    financial institution to act as the Auction Agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;Coverage Tests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Determination of Compliance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For so long as shares of the Series&#160;E Preferred Stock are
    Outstanding, the Corporation shall make the following
    determinations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Asset Coverage as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;As of each Quarterly Valuation Date, the Corporation
    shall determine whether Asset Coverage is met as of that date.
    In the event the Corporation determines that it has failed to
    meet Asset Coverage as of such Quarterly Valuation date, the
    Corporation will notify each Rating Agency of such failure in
    writing (which notification may be by facsimile or other
    electronic means) on or before 5:00&#160;P.M., New York City
    time, on the fifth Business Day following the date of such
    determination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;The Corporation shall deliver to each Rating Agency an
    &#147;<U>Asset Coverage Certificate</U>&#148; which sets forth
    the determination of paragraph&#160;9(a)(i)(A) above (1)&#160;as
    of the Date of Original Issue and, thereafter, (2)&#160;as of
    (x)&#160;each Quarterly Valuation Date and (y)&#160;a Business
    Day on or before any Series&#160;E Asset Coverage Cure Date
    following a failure to meet Asset Coverage. Such Asset Coverage
    Certificate shall be delivered in the case of clause&#160;(1) on
    the Date of Original Issue and in the case of clause&#160;(2) on
    or before the seventh Business Day following such Quarterly
    Valuation Date or the relevant Cure Date, as the case may be.
</DIV>

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    <BR>
    12
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Basic Maintenance Amount as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;For so long as the Series&#160;E Preferred Stock is
    rated by Moody&#146;s
    <FONT style="white-space: nowrap">and/or</FONT>
    S&#38;P at the Corporation&#146;s request, the Corporation shall
    maintain, on each Valuation Date, Eligible Assets having an
    Adjusted Value at least equal to the Basic Maintenance Amount,
    as of such Valuation Date. Upon any failure to maintain Eligible
    Assets having an Adjusted Value at least equal to the Basic
    Maintenance Amount, the Corporation shall use all commercially
    reasonable efforts to re-attain Eligible Assets having an
    Adjusted Value at least equal to the Basic Maintenance Amount on
    or prior to the Basic Maintenance Amount Cure Date, by altering
    the composition of its portfolio or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;On or before 5:00&#160;P.M., New York City time, on the
    fifth Business Day after a Valuation Date on which the
    Corporation fails to satisfy the Basic Maintenance Amount, and
    on the fifth Business Day after the Basic Maintenance Amount
    Cure Date with respect to such Valuation Date, the Corporation
    shall complete and deliver to each Rating Agency a Basic
    Maintenance Report as of the date of such failure or such Basic
    Maintenance Amount Cure Date, as the case may be, which will be
    deemed to have been delivered to such Rating Agency if such
    Rating Agency receives a copy or facsimile or other electronic
    transcription or transmission thereof and on the same day the
    Corporation mails or sends to such Rating Agency for delivery on
    the next Business Day the full Basic Maintenance Report. The
    Corporation shall also deliver a Basic Maintenance Report to
    each Rating Agency as of any Annual Valuation Date, in each case
    on or before the fifth Business Day after such day. A failure by
    the Corporation to deliver a Basic Maintenance Report pursuant
    to the preceding sentence shall be deemed to be delivery of a
    Basic Maintenance Report indicating the Discounted Value for all
    assets of the Corporation is less than the Basic Maintenance
    Amount, as of the relevant Valuation Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (C)&#160;Within ten Business Days after the date of delivery of
    a Basic Maintenance Report in accordance with
    paragraph&#160;9(a)(ii)(B) relating to any Annual Valuation
    Date, the Corporation shall cause the Independent Accountant to
    send an Accountant&#146;s Confirmation to each Rating Agency
    with respect to such Basic Maintenance Report.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (D)&#160;Within ten Business Days after the date of delivery of
    a Basic Maintenance Report in accordance with
    paragraph&#160;9(a)(ii)(B) relating to each, if any, Valuation
    Date on which the Corporation failed to satisfy the Basic
    Maintenance Amount and the Basic Maintenance Amount Cure Date
    with respect to such failure to satisfy the Basic Maintenance
    Amount, the Corporation shall cause the Independent Accountant
    to provide to each Rating Agency an Accountant&#146;s
    Confirmation as to such Basic Maintenance Report.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (E)&#160;If any Accountant&#146;s Confirmation delivered
    pursuant to paragraph&#160;(C)&#160;or (D)&#160;of this
    paragraph&#160;9(a)(ii) does not agree with the
    Corporation&#146;s calculation of the Basic Maintenance Report
    for a particular Valuation Date for which such Accountant&#146;s
    Confirmation was required to be delivered, or shows that a lower
    aggregate Discounted Value for the aggregate Eligible Assets in
    respect of any Rating Agency than was determined by the
    Corporation, 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 and deliver the Basic Maintenance Report to
    the relevant Rating Agency promptly following receipt by the
    Corporation of such Accountant&#146;s Confirmation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (F)&#160;On or before 5:00&#160;p.m., New York City time, on the
    fifth Business Day after the Date of Original Issue of
    Series&#160;E Preferred Stock, the Corporation shall complete
    and deliver to each Rating Agency a Basic Maintenance Report as
    of the close of business on such Date of Original Issue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (G)&#160;On or before 5:00&#160;p.m., New York City time, on the
    fifth Business Day after either (1)&#160;the Corporation shall
    have redeemed Series&#160;E Preferred Stock or (2)&#160;the
    ratio of the Discounted Value of Eligible Assets in respect of
    any Rating Agency to the Basic Maintenance Amount is less than
    or
</DIV>

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    <BR>
    13
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<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    equal to 110%, the Corporation shall complete and deliver to
    each Rating Agency, a Basic Maintenance Report as of the date of
    either such event.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (H)&#160;As for any Valuation Date for which the
    Corporation&#146;s ratio of the Discounted Value of Eligible
    Assets in respect of any Rating Agency to the Basic Maintenance
    Amount is less than or equal to 110%, the Trust shall deliver,
    by fax or email before 5:00&#160;p.m. New York City time on the
    first Business Day following such Valuation Date, notice of such
    ratio to each Rating Agency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Failure to Meet Asset Coverage Requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Corporation fails to have Asset Coverage as provided in
    paragraph&#160;9(a)(i)(A) or to have Eligible Assets having an
    Adjusted Value at least equal to the Basic Maintenance Amount as
    provided in paragraph&#160;9(a)(ii)(A) and such failure is not
    cured by the applicable Cure Date, Preferred Stock, which at the
    Corporation&#146;s determination (to the extent permitted by the
    1940 Act and Maryland law) may include any proportion of
    Series&#160;E Preferred Stock, will be subject to mandatory
    redemption as set forth in paragraph&#160;3.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Status of Series&#160;E Preferred Stock Called for
    redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of determining whether the requirements of
    paragraphs&#160;9(a)(i)(A) and 9(a)(ii)(A) hereof are satisfied,
    (i)&#160;no share of the Series&#160;E Preferred Stock or other
    Preferred Stock shall be deemed to be Outstanding for purposes
    of any computation if, prior to or concurrently with such
    determination, sufficient Deposit Assets to pay the full
    Redemption&#160;Price for such share shall have been deposited
    in trust with the Paying Agent (or applicable
    dividend-disbursing agent) and the requisite Notice of
    Redemption shall have been given, and (ii)&#160;such Deposit
    Assets deposited with the Paying Agent (or dividend-disbursing
    agent) shall not be included.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Certain Notifications Relating to Market Value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event the Market Value of an Eligible Asset is determined
    pursuant to clause&#160;(a)(iii) of the definition of Market
    Value set forth in paragraph&#160;13, the Corporation shall
    promptly inform each Rating Agency in writing (which notice may
    be by facsimile or other electronic means) of the basis upon
    which the Market Value of such Eligible Asset was determined.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.&#160;Certain Other Restrictions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;For so long as the shares of Series&#160;E Preferred
    are rated by a Rating Agency at the Corporation&#146;s request,
    the Corporation will not, and will cause the Adviser not to,
    (i)&#160;knowingly and willfully purchase or sell any asset for
    the specific purpose of causing, and with the actual knowledge
    that the effect of such purchase or sale will be to cause, the
    Corporation to have Eligible Assets having an Adjusted Value as
    of the date of such purchase or sale to be less than the Basic
    Maintenance Amount as of such date, (ii)&#160;in the event that,
    as of the immediately preceding Valuation Date, the Adjusted
    Value of the Corporation&#146;s Eligible Assets exceeded the
    Basic Maintenance Amount by 5% or less, alter the composition of
    the Corporation&#146;s assets in a manner reasonably expected to
    reduce the Adjusted Value of the Corporation&#146;s Eligible
    Assets, unless the Corporation shall have confirmed that, after
    giving effect to such alteration, the Adjusted Value of the
    Corporation&#146;s Eligible Assets exceeded the Basic
    Maintenance Amount or (iii)&#160;declare or pay any dividend or
    other distribution on any Common Stock or repurchase any Common
    Stock, unless the Corporation shall have confirmed that, after
    giving effect to such declaration, other distribution or
    repurchase, the Corporation continued to satisfy the
    requirements of paragraph&#160;9(a)(ii).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;For so long as the shares of Series&#160;E Preferred
    Stock are rated by any Rating Agency at the Corporation&#146;s
    request, unless the Corporation shall have received written
    confirmation from each such Rating Agency, the Corporation may
    engage in the lending of its portfolio securities only in an
    amount of up to 20% of the Corporation&#146;s total assets,
    provided that the Corporation receives cash collateral for such
    loaned securities that is maintained at all times in an amount
    equal to at least 100% of the then current market value of the
    loaned securities and, if invested, is invested only in
    Short-Term Money Market Instruments or in money market mutual
    funds meeting the requirements of
    <FONT style="white-space: nowrap">Rule&#160;2a-7</FONT>
    under the 1940 Act that maintain a
</DIV>

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    <BR>
    14
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    constant $1.00&#160;per share net asset value and treat the
    loaned securities rather than the collateral as the assets of
    the Corporation for purposes of determining compliance with
    paragraph&#160;9.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;For so long as the shares of Series&#160;E Preferred
    Stock are rated by Rating Agency at the Corporation&#146;s
    request, the Corporation shall not consolidate with, merge into,
    sell or otherwise transfer all or substantially all of its
    assets to another Person or adopt a plan of liquidation of the
    Corporation, in each case without providing prior written
    notification to each Rating Agency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.&#160;Limitation on Incurrence of Additional Indebtedness,
    Certain Transactions and Issuance of Additional Preferred Stock
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;So long as the shares of Series&#160;E Preferred Stock
    are Outstanding, the Corporation may issue and sell one or more
    series of a class of senior securities of the Corporation
    representing indebtedness under Section&#160;18 of the 1940 Act
    <FONT style="white-space: nowrap">and/or</FONT>
    otherwise create or incur indebtedness, provided that
    immediately after giving effect to the incurrence of such
    indebtedness and to its receipt and application of the proceeds
    thereof, the Corporation shall have an &#147;asset
    coverage&#148; for all senior securities representing
    indebtedness, as defined in Section&#160;18(h) of the 1940 Act,
    of at least 300% of the amount of all indebtedness of the
    Corporation then Outstanding and no such additional indebtedness
    shall have any preference or priority over any other
    indebtedness of the Corporation upon the distribution of the
    assets of the Corporation upon the distribution of the assets of
    the Corporation or in respect of the payment of interest. Any
    possible liability resulting from lending
    <FONT style="white-space: nowrap">and/or</FONT>
    borrowing portfolio securities, entering into reverse repurchase
    agreements, entering into futures contracts and writing options,
    to the extent such transactions are made in accordance with the
    investment restrictions of the Corporation then in effect, shall
    not be considered to be indebtedness limited by this
    paragraph&#160;11(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;So long as any shares of Series&#160;E Preferred Stock
    are Outstanding and S&#38;P is rating such Series&#160;E
    Preferred Stock at the Corporation&#146;s request, the
    Corporation will not, unless it has received written
    confirmation that any such transaction would not impair the
    rating then assigned by S&#38;P to such Series&#160;E Preferred
    Stock, engage in any one or more of the following transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;purchase or sell futures contracts; write, purchase or
    sell options on futures contracts; or write put options (except
    covered put options) or call options (except covered call
    options) on securities owned by the Corporation (collectively,
    &#147;S&#38;P Hedging Transactions&#148;), except subject to the
    following limitations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;for each net long or short position in S&#38;P Hedging
    Transactions, the Corporation will maintain segregated assets
    with the Corporation&#146;s custodian or with the counterparty
    to such S&#38;P Hedging Transaction an amount of cash or readily
    marketable securities having a value, when added to any amounts
    on deposit with the Corporations&#146;s futures commission
    merchants or brokers as margin or premium for such position, at
    least equal to the market value of the Corporation&#146;s
    potential obligations on such position,
    <FONT style="white-space: nowrap">marked-to-market</FONT>
    on a daily basis, in each case as and to the extent required by
    the applicable rules or orders of the Commission or by
    interpretations of the Commission&#146;s staff;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;the Corporation will not engage in any S&#38;P Hedging
    Transaction which would cause the Corporation at the time of
    such transaction to own or have sold the lesser of
    (1)&#160;outstanding futures contracts, in aggregate, based on
    the Standard&#160;&#38; Poor&#146;s 500 Index, the Dow Jones
    Industrial Average, the Russell 2000 Index, the Wilshire 5000
    Index, the Nasdaq Composite Index and the New York Stock
    Exchange Composite Index (or any component of any of the
    forgoing) exceeding in number 50% of the market value of the
    Corporation&#146;s total assets or (2)&#160;outstanding futures
    contracts based on any of the aforementioned indices exceeding
    in number 10% of the average number of daily traded futures
    contracts based on such index in the 30&#160;days preceding the
    time of effecting such transaction as reported by <I>The Wall
    Street Journal</I>;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (C)&#160;the Corporation will engage in closing transactions to
    close out any outstanding futures contract which the Corporation
    owns or has sold or any outstanding option thereon owned by
</DIV>

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    <BR>
    15
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<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the Corporation in the event (1)&#160;the Corporation does not
    have S&#38;P Eligible Assets with an aggregate Discounted Value
    equal to or greater than the Basic Maintenance Amount on two
    consecutive Valuation Dates and (2)&#160;the Corporation is
    required to pay variation margin on the second such Valuation
    Date;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (D)&#160;the Corporation will engage in a closing transaction to
    close out any outstanding futures contract or option thereon at
    least one week prior to the delivery date under the terms of the
    futures contract or option thereon unless the Corporation holds
    the securities deliverable under such terms;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (E)&#160;when the Corporation writes a futures contract or
    option thereon, either the amount of margin posted by the
    Corporation (in the case of a futures contract) or the
    <FONT style="white-space: nowrap">marked-to-market</FONT>
    value of the Corporation&#146;s obligation (in the case of a put
    option written by the Corporation) shall be treated as a
    liability of the Corporation for purposes of calculating the
    Basic Maintenance Amount, or, in the event the Corporation
    writes a futures contract or option thereon which requires
    delivery of an underlying security and the Corporation does not
    wish to treat its obligations with respect thereto as a
    liability for purposes of calculating the Basic Maintenance
    Amount, it shall hold such underlying security in its portfolio
    and shall not include such security to the extent of such
    contract or option as an S&#38;P Eligible Asset.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;borrow money, except for the purpose of clearing
    securities transactions if (A)&#160;the Basic Maintenance Amount
    would continue to be satisfied after giving effect to such
    borrowing and (B)&#160;such borrowing (1)&#160;is privately
    arranged with a bank or other person and is not intended to be
    publicly distributed or (2)&#160;is for &#147;temporary
    purposes,&#148; and is in an amount not exceeding 5&#160;percent
    of the market value of the total assets of the Corporation at
    the time of the borrowing; for purposes of the foregoing,
    &#147;temporary purposes&#148; means that the borrowing is to be
    repaid within sixty days and is not to be extended or renewed;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;engage in any short sales of equity securities (other
    than short sales against the box) unless the Corporation
    maintains segregated assets with the Corporation&#146;s
    custodian in an amount of cash or other readily marketable
    securities having a market value, when added to any amounts on
    deposit with the Corporation&#146;s broker as collateral for its
    obligation to replace the securities borrowed and sold short, at
    least equal to the current market value of securities sold
    short,
    <FONT style="white-space: nowrap">marked-to-market</FONT>
    on a daily basis;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;utilize any pricing service other than a Pricing
    Service or such other pricing service then permitted by
    S&#38;P;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;enter into any reverse repurchase agreement, other than
    with a counterparty that is rated at least
    <FONT style="white-space: nowrap">A-1+</FONT> by
    S&#38;P.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;So long as the shares Series&#160;E Preferred Stock are
    Outstanding, the Corporation may issue and sell shares of one or
    more other series of Preferred Stock constituting a series of a
    class of senior securities of the Corporation representing stock
    under Section&#160;18 of the 1940 Act in addition to the
    Series&#160;E Preferred Stock and other Preferred Stock then
    Outstanding, provided that (i)&#160;the Corporation shall,
    immediately after giving effect to the issuance of such
    additional shares of Preferred Stock and to its receipt and
    application of the proceeds thereof (including, without
    limitation, to the Redemption of Preferred Stock for which a
    Notice of Redemption has been mailed prior to such issuance),
    have an &#147;asset coverage&#148; for all senior securities
    which are stock, as defined in Section&#160;18(h) of the 1940
    Act, of at least 200% of the Series&#160;E Preferred Stock and
    all other Preferred Stock of the Corporation then Outstanding,
    and (ii)&#160;no such additional Preferred Stock (including any
    additional Series&#160;E Preferred Stock) shall have any
    preference or priority over any other Preferred Stock of the
    Corporation upon the distribution of the assets of the
    Corporation or in respect of the payment of dividends.
</DIV>

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    <BR>
    16
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.&#160;Termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that no shares of Series&#160;E Preferred Stock are
    Outstanding, all rights and preferences of such shares
    established and designated hereunder shall cease and terminate,
    and all obligations of the Corporation under these
    Articles&#160;Supplementary shall terminate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.&#160;Definitions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless the context or use indicates another or different meaning
    or intent, each of the following terms when used in these
    Articles&#160;Supplementary shall have the meaning ascribed to
    it below, whether such term is used in the singular or plural
    and regardless of tense:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;AA&#146; Financial Composite Commercial Paper
    Rate&#148; </B>on any date means
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;the interest equivalent of the
    <FONT style="white-space: nowrap">7-day</FONT> rate,
    in the case of a Dividend Period of seven days or shorter; for
    Dividend Periods greater than 7&#160;days but fewer than or
    equal to 31&#160;days, the
    <FONT style="white-space: nowrap">30-day</FONT> rate;
    for Dividend Periods greater than 31&#160;days but fewer than or
    equal to 61&#160;days, the
    <FONT style="white-space: nowrap">60-day</FONT> rate;
    for Dividend Periods greater than 61&#160;days but fewer than or
    equal to 91&#160;days, the 90&#160;day rate; for Dividend
    Periods greater than 91&#160;days but fewer than or equal to
    270&#160;days, the rate described in (ii)&#160;below; for
    Dividend Periods greater than 270&#160;days, the Treasury Index
    Rate; on commercial paper on behalf of issuers whose corporate
    bonds are rated &#147;AA&#148; by S&#38;P, or the equivalent of
    such rating by another nationally recognized rating agency, as
    announced by the Federal Reserve Bank of New York for the close
    of business on the Business Day immediately preceding such date;
    or (ii)&#160;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 Auction Agent
    for the close of business on the Business Day immediately
    preceding such date (rounded to the next highest .001 of 1%). If
    any Commercial Paper Dealer does not quote a rate required to
    determine the &#147;AA&#148; Financial Composite Commercial
    Paper Rate, such rate shall be determined on the basis of the
    quotations (or quotation) furnished by the remaining Commercial
    Paper Dealers (or Dealer), if any, or, if there are no such
    Commercial Paper Dealers, by the Auction Agent pursuant to
    instructions from the Corporation. For purposes of this
    definition, (A)&#160;&#147;<U>Commercial Paper Dealers</U>&#148;
    shall mean (1)&#160;Citigroup Global Markets Inc., Lehman
    Brothers Inc., Merrill Lynch, Pierce, Fenner&#160;&#38; Smith
    Incorporated and Goldman Sachs&#160;&#38; Co.; (2)&#160;in lieu
    of any thereof, its respective Affiliate or successor; and
    (3)&#160;in the event that any of the foregoing shall cease to
    quote rates for commercial paper of issuers of the sort
    described above, in substitution therefor, a nationally
    recognized dealer in commercial paper of such issuers then
    making such quotations selected by the Corporation, and
    (B)&#160;&#147;interest equivalent&#148; of a rate stated on a
    discount basis for commercial paper of a given number of
    days&#146; maturity shall mean a number equal to the quotient
    (rounded upward to the next higher one-thousandth of 1%) of
    (1)&#160;such rate expressed as a decimal, divided by
    (2)&#160;the difference between (x)&#160;1.00 and (y)&#160;a
    fraction, the numerator of which shall be the product of such
    rate expressed as a decimal, multiplied by the number of days in
    which such commercial paper shall mature and the denominator of
    which shall be 360.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Accountant&#146;s Confirmation&#148; </B>means a letter
    from an Independent Accountant delivered to each Rating Agency
    with respect to certain Basic Maintenance Reports substantially
    to the effect that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;the Independent Accountant has read the Basic
    Maintenance Report or Reports prepared by the Administrator
    during the referenced calendar year that are referred to in such
    letter;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;with respect to the issue size compliance, issuer
    diversification and industry diversification calculations, such
    calculations and the resulting Market Value of the relevant
    Eligible Assets included in the Reports and the Adjusted Value
    of the such Eligible Assets included in the Reports are
    numerically correct;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;with respect to the excess or deficiency of the
    Adjusted Value of the relevant Eligible Assets included in the
    Reports when compared to the Basic Maintenance Amount calculated
    for such Rating
</DIV>

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    <BR>
    17
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Agency the results of the calculation set forth in the Reports
    have been recalculated and are numerically correct;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;with respect to the Rating Agency ratings on corporate
    evidences of indebtedness, convertible corporate evidences of
    indebtedness and preferred stock listed in the Reports, that
    information has been traced and agrees with the information
    provided directly or indirectly by the respective Rating
    Agencies (in the event such information does not agree or such
    information is not listed in the accounting records of the
    Corporation, the Independent Accountants will inquire of the
    Rating Agencies what such information is and provide a listing
    in their letter of such differences, if any);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;with respect to issuer name and coupon or dividend rate
    listed in the Reports, that information has been traced and
    agrees with information listed in the accounting records of the
    Corporation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;with respect to issue size listed in the Reports, that
    information has been traced and agrees with information provided
    by a Pricing Service or such other services as the relevant
    Rating Agency may authorize from time to time;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;with respect to the prices (or alternative permissible
    factors used in calculating the Market Value as provided by
    these Articles&#160;Supplementary) provided by the Administrator
    of the Corporation&#146;s assets for purposes of valuing
    securities in the portfolio, the Independent Accountant has
    traced the price used in the Reports to the price provided by
    such Administrator (in accordance with the procedures provided
    in these Articles&#160;Supplementary) and verified that such
    information agrees (in the event such information does not
    agree, the Independent Accountants will provide a listing in
    their letter of such differences);&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;with respect to the description of each security
    included in the Reports, the description of the relevant
    Eligible Assets has been compared to the definition of such
    Rating Agency&#146;s Eligible Assets contained in these
    Articles&#160;Supplementary, and the description as appearing in
    the Reports agrees with the definition of such Rating
    Agency&#146;s Eligible Assets as described in these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each such letter may state that: (i)&#160;such Independent
    Accountant has made no independent verification of the accuracy
    of the description of the investment securities listed in the
    Reports or the Market Value of those securities nor has it
    performed any procedures other than those specifically outlined
    above for the purposes of issuing such letter; (ii)&#160;unless
    otherwise stated in the letter, the procedures specified therein
    were limited to a comparison of numbers or a verification of
    specified computations applicable to numbers appearing in the
    Reports and the schedule(s) thereto; (iii)&#160;the foregoing
    procedures do not constitute an examination in accordance with
    generally accepted auditing standards and the Reports contained
    in the letter do not extend to any of the Corporation&#146;s
    financial statements taken as a whole; (iv)&#160;such
    Independent Accountant does not express an opinion as to whether
    such procedures would enable such Independent Accountant to
    determine that the methods followed in the preparation of the
    Reports would correctly determine the Market Value or Discounted
    Value of the investment portfolio; and (v)&#160;accordingly,
    such Independent Accountant expresses no opinion as to the
    information set forth in the Reports or in the schedule(s)
    thereto and makes no representation as to the sufficiency of the
    procedures performed for the purposes of these Articles
    Supplementary; and such other statements as are acceptable to
    the Rating Agencies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Such letter shall also state that the Independent Accountant is
    an &#147;independent accountant&#148; with respect to the
    Corporation within the meaning of the 1933&#160;Act and the
    related published rules and regulations thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Adjusted Value&#148; </B>of each Eligible Asset shall
    be computed as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;cash shall be valued at 100% of the face value
    thereof;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;all other Eligible Assets shall be valued at the
    applicable Discounted Value thereof;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;each asset that is not an Eligible Asset shall be
    valued at zero.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Administrator&#148; </B>means the other party to the
    Administration Agreement with the Corporation, which shall
    initially be Gabelli Funds, LLC, a New York limited liability
    company, and will include, as appropriate, any sub-administrator
    appointed by the Administrator.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Advance Rate&#148; </B>means (a)&#160;so long as
    S&#38;P is rating the Series&#160;E Preferred Stock at the
    Corporation&#146;s request, the Advance Rates set forth in the
    definition of S&#38;P Rating Factor or (b)&#160;any applicable
    advance rate established by any Other Rating Agency, whichever
    is applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;ADRs&#148; </B>means U.S.&#160;dollar-denominated
    American Depository Receipts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Adviser&#148; </B>means Gabelli Funds, LLC, a New York
    limited liability company, or such other Person that is then
    serving as the investment adviser of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Affiliate&#148; </B>means, with respect to the Auction
    Agent, any person known to the Auction Agent to be controlled
    by, in control of or under common control with the Corporation;
    provided, however, that no Broker-Dealer controlled by, in
    control of or under common control with the Corporation 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 directors or executive officers of
    which is a director of the Corporation be deemed to be an
    Affiliate solely because such director or executive officer is
    also a director of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;All Hold Rate&#148; </B>means 80% of the &#147;AA&#148;
    Financial Composite Commercial Paper Rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Annual Valuation Date&#148; </B>means the Valuation
    Date each calendar year so designated by the Corporation,
    commencing in the calendar year 2003.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Applicable Rate&#148; </B>means, with respect to the
    Series&#160;E Preferred Stock, for each Dividend Period
    (i)&#160;if Sufficient Clearing Bids exist for the Auction in
    respect thereof, the Winning Bid Rate, (ii)&#160;if Sufficient
    Clearing Orders do not exist for the Auction in respect thereof,
    or an Auction does not take place with respect to such Dividend
    Period because of the commencement of a Default Period, the
    Maximum Rate and (iii)&#160;if all shares of Series&#160;E
    Preferred Stock are the subject of Submitted Hold Orders for the
    Auction in respect thereof, the All Hold Rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Asset Coverage&#148; </B>means asset coverage, as
    determined in accordance with Section&#160;18(h) of the 1940
    Act, of at least 200% with respect to all outstanding senior
    securities of the Corporation which are stock, including all
    Outstanding shares of Series&#160;E Preferred Stock (or such
    other asset coverage as may in the future be specified in or
    under the 1940 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),
    determined on the basis of values calculated as of a time within
    48&#160;hours (not including Saturdays, Sundays or holidays)
    next preceding the time of such determination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Asset Coverage Certificate&#148; </B>means the
    certificate required to be delivered by the Corporation pursuant
    to paragraph&#160;9(a)(i)(B) of Article&#160;I of these Articles
    Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Auction&#148; </B>means each periodic operation of the
    Auction Procedures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Auction Agent&#148; </B>means The Bank of New York
    unless and until another commercial bank, trust company, or
    other financial institution appointed by a resolution of the
    Board of Directors enters into an agreement with the Corporation
    to follow the Auction Procedures for the purpose of determining
    the Applicable Rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Auction Date&#148; </B>means the last day of the
    initial Dividend Period and each seventh day after the
    immediately preceding Auction Date; provided, however, that if
    any such seventh day is not a Business Day, such Auction Date
    shall be the first preceding day that is a Business Day and the
    next Auction Date, if for a Standard Dividend Period, shall
    (subject to the same advancement procedure) be the seventh day
    after the date that the preceding Auction Date would have been
    if not for the advancement procedure; provided further, however,
    that the Auction Date for the Auction at the conclusion of any
    Special Dividend Period shall be the last Business Day in such
    Special Dividend Period and that no more than one Auction shall
    be held during
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    any Dividend Period; provided further, however, that the Auction
    Date following a Default Period shall be the last Business Day
    in the Standard Dividend Period that commenced during such
    Default Period. Notwithstanding the foregoing, in the event an
    auction is not held because an unforeseen event or unforeseen
    events cause a day that otherwise would have been an Auction
    Date not to be a Business Day, then the length of the then
    current dividend period will be extended by seven days (or a
    multiple thereof if necessary because of such unforeseen event
    or events).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Auction Procedures&#148; </B>means the procedures for
    conducting Auctions as set forth in Article&#160;II of these
    Articles Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Basic Maintenance Amount&#148; </B>means, with respect
    to the Series&#160;E Preferred Stock, as of any Valuation Date,
    the dollar amount equal to (a)&#160;the sum of (i)&#160;the
    product of the number of shares of each class or series of
    Preferred Stock Outstanding on such Valuation Date multiplied,
    in the case of each such series or class, by the per share
    Liquidation Preference applicable to each such series or class;
    (ii)&#160;to the extent not included in (i)&#160;the aggregate
    amount of cash dividends (whether or not earned or declared)
    that will have accumulated for each Outstanding share of
    Preferred Stock from the most recent applicable dividend payment
    date to which dividends have been paid or duly provided for (or,
    in the event the Basic Maintenance Amount is calculated on a
    date prior to the initial Dividend Payment Date with respect to
    a class or series of the Preferred Stock, then from the Date of
    Original Issue of such shares) through the Valuation Date plus
    all dividends to accumulate on the Preferred Stock then
    Outstanding during the 31&#160;days following such Valuation
    Date or, if less, during the number of days following such
    Valuation Date that shares of Preferred Stock called for
    redemption are scheduled to remain Outstanding at the applicable
    rate or default rate then in effect with respect to such shares;
    (iii)&#160;the Corporation&#146;s other liabilities due and
    payable as of such Valuation Date (except that dividends and
    other distributions payable by the Corporation on Common Stock
    shall not be included as a liability) and such liabilities
    projected to become due and payable by the Corporation during
    the 90&#160;days following such Valuation Date (excluding
    liabilities for investments to be purchased and for dividends
    and other distributions not declared as of such Valuation Date);
    and (iv)&#160;any current liabilities of the Corporation as of
    such Valuation Date to the extent not reflected in (or
    specifically excluded by) any of (a)(i) through (a)(iii)
    (including, without limitation, and immediately upon
    determination, any amounts due and payable by the Corporation
    pursuant to reverse repurchase agreements and any payables for
    assets purchased as of such Valuation Date) less
    (b)&#160;(i)&#160;the Adjusted Value of any of the
    Corporation&#146;s assets or (ii)&#160;the face value of any of
    the Corporation&#146;s assets if, in the case of both (b)(i) and
    (b)(ii), such assets are either cash or evidences of
    indebtedness which mature prior to or on the date of redemption
    or repurchase of shares of Preferred Stock or payment of another
    liability and are either U.S.&#160;Government Obligations or
    evidences of indebtedness which have a rating assigned by
    Moody&#146;s of at least Aaa,
    <FONT style="white-space: nowrap">P-1,</FONT>
    <FONT style="white-space: nowrap">VMIG-1</FONT> or
    <FONT style="white-space: nowrap">MIG-1</FONT> or by
    S&#38;P of at least AAA,
    <FONT style="white-space: nowrap">SP-1+</FONT> or
    <FONT style="white-space: nowrap">A-1+,</FONT> and
    are irrevocably held by the Corporation&#146;s custodian bank in
    a segregated account or deposited by the Corporation with the
    dividend-disbursing agent or Paying Agent, as the case may be,
    for the payment of the amounts needed to redeem or repurchase
    Preferred Stock subject to redemption or repurchase or any of
    (a)(ii) through (a)(iv); and provided that in the event the
    Corporation has repurchased Preferred Stock and irrevocably
    segregated or deposited assets as described above with its
    custodian bank, the dividend-disbursing agent or Paying Agent
    for the payment of the repurchase price the Corporation may
    deduct 100% of the Liquidation Preference of such Preferred
    Stock to be repurchased from (a) above. Basic Maintenance Amount
    shall, for the purposes of these Articles Supplementary, have a
    correlative meaning with respect to any other class or series of
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Basic Maintenance Amount Cure Date&#148; </B>means,
    with respect to the Series&#160;E Preferred Stock,
    10&#160;Business Days following a Valuation Date, such date
    being the last day upon which the Corporation&#146;s failure to
    comply with paragraph&#160;9(a)(ii)(A) of Article&#160;I of
    these Articles Supplementary could be cured, and shall, for the
    purposes of these Articles Supplementary, have a correlative
    meaning with respect to any other class or series of Preferred
    Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Basic Maintenance Test&#148; </B>means, with respect to
    the Series&#160;E Preferred Stock, a test which is met if the
    lower of the aggregate Discounted Values of the Moody&#146;s
    Eligible Assets or the S&#38;P Eligible Assets if both
    Moody&#146;s and S&#38;P are then rating the Series&#160;E
    Preferred Stock at the request of the Corporation, or the
</DIV>

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    <BR>
    20
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Eligible Assets of whichever of Moody&#146;s or S&#38;P is then
    doing so if only one of Moody&#146;s or S&#38;P is then rating
    the Series&#160;E Preferred Stock at the request of the
    Corporation, meets or exceeds the Basic Maintenance Amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Basic Maintenance Report&#148; </B>or
    <B>&#147;Report&#148; </B>means with respect to the
    Series&#160;E Preferred Stock, a report prepared by the
    Administrator which sets forth, as of the related Monthly
    Valuation Date, (i)&#160;Moody&#146;s Eligible Assets and
    S&#38;P Eligible Assets sufficient to meet or exceed the Basic
    Maintenance Amount, (ii)&#160;the Market Value and Discounted
    Value thereof (seriatim and in the aggregate), (iii)&#160;the
    Basic Maintenance Amount, and (iv)&#160;the net asset value of
    the Corporation. Such report will also include (A)&#160;the
    month-end closing price for the Common Stock of the Corporation
    (B)&#160;the monthly total-return per Common Stock, which will
    be determined based upon month-end closing share prices,
    assuming reinvestment of all dividends paid during such month
    and (C)&#160;the total leverage position of the Corporation. For
    the purposes of these Articles Supplementary, &#147;Basic
    Maintenance Report&#148; or &#147;Report&#148; shall have a
    correlative meaning with respect to any other class or series of
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Beneficial Owner,&#148; </B>with respect to the shares
    of Series&#160;E Preferred Stock, 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
    Series&#160;E Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Bid&#148; </B>has the meaning set forth in
    paragraph&#160;2(a) of Article&#160;II of these Articles
    Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Bidder&#148; </B>has the meaning set forth in
    paragraph&#160;2(a) of Article&#160;II of these Articles
    Supplementary, provided however that neither the Corporation nor
    any Affiliate shall be permitted to be Bidder in an Auction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Board of Directors&#148; </B>or <B>&#147;Board&#148;
    </B>means the Board of Directors of the Corporation or any duly
    authorized committee thereof as permitted by applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Broker-Dealer&#148; </B>means any broker-dealer or
    broker-dealers, or other entity permitted by law to perform the
    functions required of a Broker-Dealer by the Auction Procedures,
    that has been selected by the Corporation and has entered into a
    Broker-Dealer Agreement that remains effective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Broker-Dealer Agreement&#148; </B>means an agreement
    between the Auction Agent and a Broker-Dealer, pursuant to which
    such Broker-Dealer agrees to follow the Auction Procedures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Business Day&#148; </B>means a day on which the New
    York Stock Exchange is open for trading and which is not a
    Saturday, Sunday or other day on which banks in The City of New
    York, New York are authorized or obligated by law to close.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Charter&#148; </B>means the Articles of Incorporation
    of the Corporation, as amended or supplemented (including these
    Articles Supplementary), as filed with the State Department of
    Assessments and Taxation of the State of Maryland.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Commission&#148; </B>means the Securities and Exchange
    Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Common Stock&#148; </B>means the shares of the
    Corporation&#146;s common stock, par value $.001&#160;per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Corporation&#148; </B>means The Gabelli Equity Trust
    Inc., a Maryland corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Cure Date&#148; </B>has the meaning set forth in
    paragraph&#160;3(a)(ii) of Article&#160;I of these Articles
    Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Date of Original Issue&#148; </B>means October&#160;7,
    2003, and, for the purposes of these Articles Supplementary,
    shall mean with respect to any other class or series of
    Preferred Stock the date upon which shares of such class or
    series are first issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Default&#148; </B>means a Dividend Default or a
    Redemption&#160;Default.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Default Period&#148; </B>means a Dividend Default or a
    Redemption&#160;Default.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Default Rate&#148; </B>has the meaning set forth in
    paragraph&#160;2(c)(iii) of Article&#160;I of these Articles
    Supplementary.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Deposit Assets&#148; </B>means cash, Short-Term Money
    Market Instruments and U.S.&#160;Government Obligations. Except
    for determining whether the Corporation has Eligible Assets with
    an Adjusted Value equal to or greater than the Basic Maintenance
    Amount, each Deposit Asset shall be deemed to have a value equal
    to its principal or face amount payable at maturity plus any
    interest payable thereon after delivery of such Deposit Asset
    but only if payable on or prior to the applicable payment date
    in advance of which the relevant deposit is made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Discount Factor&#148; </B>means (a)&#160;so long as
    Moody&#146;s is rating the Series&#160;E Preferred Stock at the
    Corporation&#146;s request, the Moody&#146;s Discount Factor,
    (b)&#160;so long as S&#38;P is rating the Series&#160;E
    Preferred Stock at the Corporation&#146;s request, the S&#38;P
    Discount Factor,
    <FONT style="white-space: nowrap">and/or</FONT>
    (c)&#160;any applicable discount factor established by any Other
    Rating Agency, whichever is applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Discounted Value&#148; </B>means, as applicable,
    (a)&#160;the quotient of the Market Value of an Eligible Asset
    divided by the applicable Discount Factor or (b)&#160;such other
    formula for determining the discounted value of an Eligible
    Asset as may be established by an applicable Rating Agency,
    provided, in either case that with respect to an Eligible Asset
    that is currently callable, Discounted Value will be equal to
    the applicable quotient or product as calculated above or the
    call price, whichever is lower, and that with respect to an
    Eligible Asset that is prepayable, Discounted Value will be
    equal to the applicable quotient or product as calculated above
    or the par value, whichever is lower.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Dividend Default&#148; </B>has the meaning set forth in
    paragraph&#160;2(c)(ii) of Article&#160;I of these Articles
    Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Dividend Payment Date&#148; </B>means with respect to
    the Series&#160;E Preferred Stock, any date on which dividends
    declared by the Board of Directors thereon are payable pursuant
    to the provisions of paragraph&#160;2(b) of Article&#160;I of
    these Articles Supplementary and shall for the purposes of these
    Articles Supplementary have a correlative meaning with respect
    to any other class or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Dividend Period&#148; </B>means, with respect to
    Series&#160;E Preferred Stock, the initial period determined in
    the manner set forth under &#147;Designation&#148; above, and
    thereafter, the period commencing on the Business Day following
    each Auction Date and ending on the next Auction Date or, if
    such next Auction Date is not immediately followed by a Business
    Day, on the latest day prior to the next succeeding Business
    Day, and shall, for the purposes of these Articles
    Supplementary, have a correlative meaning with respect to any
    other class or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Eligible Assets&#148; </B>means Moody&#146;s Eligible
    Assets (if Moody&#146;s is then rating the Series&#160;E
    Preferred Stock at the request of the Corporation), S&#38;P
    Eligible Assets (if S&#38;P is then rating the Series&#160;E
    Preferred Stock at the request of the Corporation),
    <FONT style="white-space: nowrap">and/or</FONT> Other
    Rating Agency Eligible Assets, whichever is applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Holder&#148; </B>means, with respect to the Preferred
    Stock, including the Series&#160;E Preferred Stock, the
    registered holder of such shares as the same appears on the
    stock ledger or stock records of the Corporation or records of
    the Auction Agent, as the case may be.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Independent Accountant&#148; </B>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 1933&#160;Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Industry Classification&#148; </B>means a six-digit
    industry classification in the Standard Industry Classification
    system published by the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Liquidation Preference&#148; </B>shall, with respect to
    each share of Series&#160;E Preferred Stock, have the meaning
    set forth in paragraph&#160;7(a) of Article&#160;I of these
    Articles Supplementary and shall, for the purposes of these
    Articles Supplementary, have a correlative meaning with respect
    to any other class or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Mandatory Redemption&#160;Date&#148; </B>has the
    meaning set forth in paragraph&#160;3(a)(iii) of Article&#160;I
    of these Articles Supplementary.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Market Value&#148; </B>means the amount determined by
    the Corporation with respect to specific Eligible Assets in
    accordance with valuation policies adopted from time to time by
    the Board of Directors as being in compliance with the
    requirements of the 1940 Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, &#147;Market Value&#148; may, at
    the option of the Corporation with respect to any of its assets,
    mean the amount determined with respect to specific Eligible
    Assets of the Corporation in the manner set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;as to any common or preferred stock which is an
    Eligible Asset, (i)&#160;if the stock is traded on a national
    securities exchange or quoted on the Nasdaq System, the last
    sales price reported on the Valuation Date, (ii)&#160;if there
    was no such reported sales price, the price reported by a
    recognized pricing service or (iii)&#160;if there was no such
    pricing service report, the lower of two bid prices for such
    stock provided to the Administrator by two recognized securities
    dealers with minimum capitalizations of $25,000,000 (or
    otherwise approved for such purpose by Moody&#146;s and
    S&#38;P), at least one of which shall be provided in writing or
    by telecopy, telex, other electronic transcription, computer
    obtained quotation reducible to written form or similar means,
    and in turn provided to the Corporation by any such means by
    such Administrator, or, if two bid prices cannot be obtained,
    such Eligible Asset shall have a Market Value of zero;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;as to any U.S.&#160;Government Obligation, Short-Term
    Money Market Instrument (other than demand deposits, federal
    funds, bankers&#146; acceptances and next Business Day
    repurchase agreements) and commercial paper, with a maturity of
    greater than 60&#160;days, the product of (i)&#160;the principal
    amount (accreted principal to the extent such instrument
    accretes interest) of such instrument and (ii)&#160;the lower of
    the bid prices for the same kind of instruments having, as
    nearly as practicable, comparable interest rates and maturities
    provided by two recognized securities dealers having minimum
    capitalization of $25,000,000 (or otherwise approved for such
    purpose by Moody&#146;s and S&#38;P) to the Administrator, at
    least one of which shall be provided in writing or by telecopy,
    telex, other electronic transcription, computer obtained
    quotation reducible to written form or similar means, and in
    turn provided to the Corporation by any such means by such
    Administrator, or, if two bid prices cannot be obtained, such
    Eligible Asset will have a Market Value of zero;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;as to cash, demand or time deposits, federal funds,
    bankers&#146; acceptances and next Business Day repurchase
    agreements included in Short-Term Money Market Instruments, the
    face value thereof;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;as to any U.S.&#160;Government Obligation, Short-Term
    Money Market Instrument or commercial paper with a maturity of
    60&#160;days or fewer, amortized cost unless the Board of
    Directors determines that such value does not constitute fair
    value;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;as to any other evidence of indebtedness which is an
    Eligible Asset, (i)&#160;the product of (A)&#160;the unpaid
    principal balance of such indebtedness as of the Valuation Date
    and (B)(1) if such indebtedness is traded on a national
    securities exchange or quoted on the Nasdaq System, the last
    sales price reported on the Valuation Date or (2)&#160;if there
    was no reported sales price on the Valuation Date or if such
    indebtedness is not traded on a national securities exchange or
    quoted on the Nasdaq System, the lower of two bid prices for
    such indebtedness provided by two recognized dealers with a
    minimum capitalization of $25,000,000 (or otherwise approved for
    such purpose by Moody&#146;s and S&#38;P) to the Administrator,
    at least one of which shall be provided in writing or by
    telecopy, telex, other electronic transcription, computer
    obtained quotation reducible to written form or similar means,
    and in turn provided to the Corporation by any such means by
    such Administrator, plus (ii)&#160;accrued interest on such
    indebtedness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Maximum Rate&#148; </B>means, on any date on which the
    Applicable Rate is determined, the applicable percentage of
    (i)&#160;in the case of a dividend period of 184&#160;days or
    less, the &#147;AA&#148; Financial Composite Commercial Paper
    Rate on the date of such Auction determined as set forth below
    based on the lower of the credit ratings assigned to the
    Series&#160;E Preferred by Moody&#146;s and S&#38;P subject to
    upward but not downward adjustment in the discretion of the
    Board of Directors after consultation with the Broker-Dealers;
    provided that
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    immediately following any such increase the Corporation would be
    in compliance with the Basic Maintenance Amount or (ii)&#160;in
    the case of a dividend period of longer than 184&#160;days, the
    Treasury Index Rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Moody&#146;s Credit Rating</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>S&#38;P Credit Rating</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Applicable Percentage</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aa3 or higher
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">AA&#8722; or higher
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    150
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A3 to A1
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">A&#8722; to A+
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    175
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Baa3 to Baa1
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">BBB&#8722; to BBB+
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    250
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Below Baa3
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Below BBB&#8722;
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    275
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Monthly Valuation Date&#148; </B>means the last
    Valuation Date for each calendar month.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Moody&#146;s&#148; </B>means Moody&#146;s Investors
    Service, Inc. and its successors at law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Moody&#146;s Discount Factor&#148; </B>means, with
    respect to a Moody&#146;s Eligible Asset specified below, the
    following applicable number:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Discount Factor:</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Short Term Money Market
    Instruments (other than U.S.&#160;Government Obligations set
    forth below) and other commercial paper:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">U.S.&#160;Treasury Securities with
    final maturities that are less than or equal to 60&#160;days
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Demand or time deposits,
    certificates of deposit and bankers&#146; acceptances includible
    in Moody&#146;s Short Term Money Market Instruments
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">P-1</FONT> by
    Moody&#146;s maturing in 30&#160;days or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">P-1</FONT> by
    Moody&#146;s maturing in more than 30&#160;days but in
    270&#160;days or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">A-1+</FONT> by
    S&#38;P maturing in 270&#160;days or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.25
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Repurchase obligations includible
    in Moody&#146;s Short Term Money Market Instruments if term is
    less than 30&#160;days and counterparty is rated at least A2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Other repurchase obligations
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">Discount Factor<BR>
    applicable to the<BR>
    underlying assets
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Common Stocks and Common
    Stocks of foreign issuers for which ADRs are traded
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">3.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.70
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.64
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.41
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">3.40
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Common Stocks of foreign issuers
    (in existence for at least five years) for which no ADRs are
    traded
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">4.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible Preferred Stocks
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">3.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Preferred stocks:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Auction rate preferred stocks
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">3.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Non-Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">3.60
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Other preferred stocks issued by
    issuers in the financial and industrial industries
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.97
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Non-Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.07
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Other preferred stocks issued by
    issuers in the utilities industry
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="font-size: 10pt">Non-Cumulative
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Discount Factor:</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Government Obligations
    (other than U.S.&#160;Treasury Securities Strips set forth
    below) with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.04
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.09
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.12
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years of less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.21
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.24
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.25
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.26
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.26
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Treasury Securities
    Strips with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.04
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.10
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.14
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.21
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.27
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.34
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.45
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.54
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.66
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Corporate Debt:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least Aaa1 with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.09
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.20
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.26
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.32
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.39
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.45
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least Aa3 with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.12
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years of less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.23
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.29
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.35
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.43
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    25
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Discount Factor:</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least A3 with remaining terms to maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.15
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.22
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.27
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.33
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.39
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.47
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.55
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least Baa3 with remaining terms of maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.18
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.25
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.31
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.38
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.44
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.52
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.65
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least Ba3 with remaining terms of maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.37
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.46
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.53
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.61
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.68
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.79
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.89
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.96
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.96
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.96
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Non-convertible corporate debt
    rated at least B1 and B2 with remaining terms of maturity of:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.50
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.60
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.68
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.76
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.85
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.97
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.08
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.16
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.28
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 40pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.29
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt
    securities rated at least Aa3 issued by the following type of
    issuers:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.67
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.61
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.38
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.65
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    26
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Discount Factor:</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt
    securities rated at least A3 issued by the following type of
    issuers:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.72
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.66
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.43
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.75
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt
    securities rated at least Baa3 issued by the following type of
    issuers:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.88
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.82
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.59
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.85
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt
    securities rated at least Ba3 issued by the following type of
    issuers:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.95
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.90
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.65
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.90
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible corporate debt
    securities rated at least B2 issued by the following type of
    issuers:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Utility
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.98
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Industrial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.93
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Financial
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.70
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 50pt">
    <FONT style="font-size: 10pt">Transportation
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.95
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Moody&#146;s Eligible Assets&#148; </B>means:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;cash (including, for this purpose, receivables for
    investments sold to a counterparty whose senior debt securities
    are rated at least Baa3 by Moody&#146;s or a counterparty
    approved by Moody&#146;s and payable within five Business Days
    following such Valuation Date and dividends and interest
    receivable within 49&#160;days on investments);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Short-Term Money Market Instruments;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;commercial paper that is not includible as a Short-Term
    Money Market Instrument having on the Valuation Date a rating
    from Moody&#146;s of at least
    <FONT style="white-space: nowrap">P-1</FONT> and
    maturing within 270&#160;days;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;preferred stocks (i)&#160;which either (A)&#160;are
    issued by issuers whose senior debt securities are rated at
    least Baa1 by Moody&#146;s or (B)&#160;are rated at least Baa3
    by Moody&#146;s or (C)&#160;in the event an issuer&#146;s senior
    debt securities or preferred stock is not rated by Moody&#146;s,
    which either (1)&#160;are issued by an issuer whose senior debt
    securities are rated at least A- by S&#38;P or (2)&#160;are
    rated at least A- by S&#38;P and for this purpose have been
    assigned a Moody&#146;s equivalent rating of at least Baa3,
    (ii)&#160;of issuers which have (or, in the case of issuers
    which are special purpose corporations, whose parent companies
    have) common stock listed on the New York Stock Exchange, the
    American Stock Exchange or the Nasdaq National Market System,
    (iii)&#160;which have a minimum issue size (when taken together
    with other of the issuer&#146;s issues of similar tenor) of
    $50,000,000, (iv)&#160;which have paid cash dividends
    consistently during the preceding three-year period (or, in the
    case of new issues without a dividend history, are rated at
    least A1 by Moody&#146;s or, if not rated by Moody&#146;s, are
    rated at least AA- by S&#38;P), (v)&#160;which pay cumulative
    cash dividends in U.S.&#160;dollars, (vi)&#160;which are not
    convertible into any other class of stock and do not have
    warrants attached, (vii)&#160;which are not issued by issuers in
    the transportation industry and (viii)&#160;in the case of
    auction rate preferred stocks, which are rated at least Aa3 by
    Moody&#146;s, or if not rated by Moody&#146;s, AAA by S&#38;P,
    AAA by Fitch or are otherwise approved in writing by
    Moody&#146;s and have never had a failed auction; <I>provided,
    however, </I>that for this purpose the aggregate Market Value of
    the Company&#146;s
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    27
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    holdings of any single issue of auction rate preferred stock
    shall not be more than 1% of the Corporation&#146;s total assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;common stocks (i)&#160;(A)&#160;which are traded on a
    nationally recognized stock exchange or in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market, (B)&#160;if cash dividend paying, pay cash dividends in
    U.S.&#160;dollars and (C)&#160;which may be sold without
    restriction by the Corporation; <I>provided, however, </I>that
    (y)&#160;common stock which, while a Moody&#146;s Eligible Asset
    owned by the Corporation, ceases paying any regular cash
    dividend will no longer be considered a Moody&#146;s Eligible
    Asset until 71&#160;days after the date of the announcement of
    such cessation, unless the issuer of the common stock has senior
    debt securities rated at least A3 by Moody&#146;s and
    (z)&#160;the aggregate Market Value of the Corporation&#146;s
    holdings of the common stock of any issuer in excess of 4% in
    the case of utility common stock and 6% in the case of
    non-utility common stock of the aggregate Market Value of the
    Corporation&#146;s holdings shall not be Moody&#146;s Eligible
    Assets, (ii)&#160;which are securities denominated in any
    currency other than the U.S.&#160;dollar or securities of
    issuers formed under the laws of jurisdictions other than the
    United States, its states and the District of Columbia for which
    there are ADRs or their equivalents which are traded in the
    United States on exchanges or
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    and are issued by banks formed under the laws of the United
    States, its states or the District of Columbia or
    (iii)&#160;which are securities of issuers formed under the laws
    of jurisdictions other than the United States (and in existence
    for at least five years) for which no ADRs are traded;
    <I>provided, however</I>, that the aggregate Market Value of the
    Corporation&#146;s holdings of securities denominated in
    currencies other than the U.S.&#160;dollar and ADRs in excess of
    (A)&#160;6% of the aggregate Market Value of the Outstanding
    shares of common stock of such issuer thereof or (B)&#160;in
    excess of 10% of the Market Value of the Corporation&#146;s
    Moody&#146;s Eligible Assets with respect to issuers formed
    under the laws of any single such
    <FONT style="white-space: nowrap">non-U.S.&#160;jurisdiction</FONT>
    other than Australia, Belgium, Canada, Denmark, Finland, France,
    Germany, Ireland, Italy, Japan, the Netherlands, New Zealand,
    Norway, Spain, Sweden, Switzerland and the United Kingdom, shall
    not be a Moody&#146;s Eligible Asset;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;ADR securities, based on the following guidelines:
    (i)&#160;Sponsored ADR program or (ii)&#160;Level&#160;II or
    Level&#160;III ADRs. Private placement Rule&#160;144A ADRs are
    not eligible for collateral consideration. Global GDR programs
    will be evaluated on a case by case basis;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;U.S.&#160;Government Obligations;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;corporate evidences of indebtedness (i)&#160;which may
    be sold without restriction by the Corporation which are rated
    at least B3 (Caa subordinate) by Moody&#146;s (or, in the event
    the security is not rated by Moody&#146;s, the security is rated
    at least BB&#8722; by S&#38;P and which for this purpose is
    assigned a Moody&#146;s equivalent rating of one full rating
    category lower), with such rating confirmed on each Valuation
    Date, (ii)&#160;which have a minimum issue size of at least
    (A)&#160;$100,000,000 if rated at least Baa3 or
    (B)&#160;$50,000,000 if rated B or Ba3, (iii)&#160;which are not
    convertible or exchangeable into equity of the issuing
    corporation and have a maturity of not more than 30&#160;years
    and (iv)&#160;for which, if rated below Baa3 or not rated, the
    aggregate Market Value of the Company&#146;s holdings do not
    exceed 10% of the aggregate Market Value of any individual issue
    of corporate evidences of indebtedness calculated at the time of
    original issuance;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;convertible corporate evidences of indebtedness
    (i)&#160;which are issued by issuers whose senior debt
    securities are rated at least B2 by Moody&#146;s (or, in the
    event an issuer&#146;s senior debt securities are not rated by
    Moody&#146;s, which are issued by issuers whose senior debt
    securities are rated at least BB by S&#38;P and which for this
    purpose is assigned a Moody&#146;s equivalent rating of one full
    rating category lower), (ii)&#160;which are convertible into
    common stocks which are traded on the New York Stock Exchange or
    the American Stock Exchange or are quoted on the Nasdaq National
    Market System and (iii)&#160;which, if cash dividend paying, pay
    cash dividends in U.S.&#160;dollars; <I>provided, however</I>,
    that once convertible corporate evidences of indebtedness have
    been converted into common stock, the common stock issued upon
    conversion must satisfy the criteria set forth in
    clause&#160;(e) above and other relevant criteria set forth in
    this definition in order to be a Moody&#146;s Eligible Asset;
    <I>provided, however</I>, that the Corporation&#146;s
    investments in auction rate preferred stocks described in
    clause&#160;(d) above shall be included in Moody&#146;s Eligible
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Assets only to the extent that the aggregate Market Value of
    such stocks does not exceed 10% of the aggregate Market Value of
    all of the Corporation&#146;s investments meeting the criteria
    set forth in clauses&#160;(a) through (g)&#160;above less the
    aggregate Market Value of those investments excluded from
    Moody&#146;s Eligible Assets pursuant to the paragraph appearing
    after clause&#160;(i) below;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;no assets which are subject to any lien or irrevocably
    deposited by the Corporation for the payment of amounts needed
    to meet the obligations described in clauses&#160;(a)(i) through
    (a)(iv) of the definition of &#147;Basic Maintenance
    Amount&#148; may be includible in Moody&#146;s Eligible Assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding anything to the contrary in the preceding
    clauses&#160;(a)-(j), the Corporation&#146;s investment in
    preferred stock, common stock, corporate evidences of
    indebtedness and convertible corporate evidences of indebtedness
    shall not be treated as Moody&#146;s Eligible Assets except to
    the extent they satisfy the following diversification
    requirements (utilizing Moody&#146;s Industry and
    <FONT style="white-space: nowrap">Sub-industry</FONT>
    Categories) with respect to the Market Value of the
    Corporation&#146;s holdings:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuer:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="71%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum Single<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum Single<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Moody&#146;s Rating&#160;(1)(2)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Issuer&#160;(3)(4)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Issuer&#160;(3)(4)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aaa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">CS/CB, Baa(5)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ba
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B1/B2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B3 or lower
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Industry
    and State:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum Single<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Single
    <FONT style="white-space: nowrap">Sub-</FONT><BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum Single<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Moody&#146;s Rating&#160;(1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Industry&#160;(3)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Industry&#160;(3)(6)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>State&#160;(3)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aaa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %&#160;(7)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">CS/CB, Baa&#160;(5)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
    %&#160;(7)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ba
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B1/B2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B3 or lower
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Unless conclusions regarding liquidity risk as well as estimates
    of both the probability and severity of default for the
    Corporation&#146;s assets can be derived from other sources,
    securities rated below B by Moody&#146;s and unrated securities,
    which are securities rated by neither Moody&#146;s, S&#38;P nor
    Fitch, are limited to 10% of Moody&#146;s Eligible Assets. If a
    corporate, municipal or other debt security is unrated by
    Moody&#146;s, S&#38;P or Fitch, the Corporation will use the
    percentage set forth under &#147;B3 or lower&#148; in this
    table. Ratings assigned by S&#38;P or Fitch are generally
    accepted by Moody&#146;s at face value. However, adjustments to
    face value may be made to particular categories of credits for
    which the S&#38;P
    <FONT style="white-space: nowrap">and/or</FONT> Fitch
    rating does not seem to approximate a Moody&#146;s rating
    equivalent.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Corporate evidences of indebtedness from issues ranging
    $50,000,000 to $100,000,000 are limited to 20% of Moody&#146;s
    Eligible Assets.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    The referenced percentages represent maximum cumulative totals
    only for the related Moody&#146;s rating category and each lower
    Moody&#146;s rating category.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Issuers subject to common ownership of 25% or more are
    considered as one name.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    CS/CB refers to common stock and convertible corporate evidences
    of indebtedness, which are diversified independently from the
    rating level.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    In the case of utility common stock, utility preferred stock,
    utility evidences of indebtedness and utility convertible
    evidences of indebtedness, the definition of industry refers to
    sub-industries (electric, water, hydro power, gas, diversified).
    Investments in other sub-industries are eligible only to the
    extent that the combined sum represents a percentage position of
    the Moody&#146;s Eligible Assets less than or equal to the
    percentage limits in the diversification tables above.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Such percentage shall be 15% in the case of utilities regulated
    by California, New York and Texas.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Moody&#146;s Hedging Transactions&#148; </B>means
    purchases or sales of exchange-traded financial futures
    contracts based on any index approved by Moody&#146;s or
    Treasury Bonds, and purchases, writings or sales of
    exchange-traded put options on such financial futures contracts,
    any index approved by Moody&#146;s or Treasury Bonds, and
    purchases, writings or sales of exchange-traded call options on
    such financial futures contracts, any index approved by
    Moody&#146;s or Treasury Bonds, subject to the following
    limitations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;the Corporation will not engage in any Moody&#146;s
    Hedging Transaction based on any index approved by Moody&#146;s
    (other than Closing Transactions) that would cause the
    Corporation at the time of such transaction to own or have sold:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;outstanding financial futures contracts based on such
    index exceeding in number 10% of the average number of daily
    traded financial futures contracts based on such index in the
    30&#160;days preceding the time of effecting such transaction as
    reported by <I>The Wall Street Journal</I>;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;outstanding financial futures contracts based on any
    index approved by Moody&#146;s having a Market Value exceeding
    50% of the Market Value of all portfolio securities of the
    Corporation constituting Moody&#146;s Eligible Assets owned by
    the Corporation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The Corporation will not engage in any Moody&#146;s
    Hedging Transaction based on Treasury Bonds (other than Closing
    Transactions) that would cause the Corporation at the time of
    such transaction to own or have sold:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;outstanding financial futures contracts based on
    Treasury Bonds with such contracts having an aggregate Market
    Value exceeding 20% of the aggregate Market Value of
    Moody&#146;s Eligible Assets owned by the Corporation and rated
    Aa by Moody&#146;s (or, if not rated by Moody&#146;s but rated
    by S&#38;P, rated AAA by S&#38;P);&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;outstanding financial futures contracts based on
    Treasury Bonds with such contracts having an aggregate Market
    Value exceeding 50% of the aggregate Market Value of all
    portfolio securities of the Corporation constituting
    Moody&#146;s Eligible Assets owned by the Corporation (other
    than Moody&#146;s Eligible Assets already subject to a
    Moody&#146;s Hedging Transaction) and rated Baa or A by
    Moody&#146;s (or, if not rated by Moody&#146;s but rated by
    S&#38;P, rated A or AA by S&#38;P);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The Corporation will engage in Closing Transactions to
    close out any outstanding financial futures contract based on
    any index approved by Moody&#146;s if the amount of open
    interest in such index as reported by <I>The Wall Street Journal
    </I>is less than an amount to be mutually determined by
    Moody&#146;s and the Corporation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;The Corporation will engage in a Closing Transaction to
    close out any outstanding financial futures contract by no later
    than the fifth Business Day of the month in which such contract
    expires and will engage in a Closing Transaction to close out
    any outstanding option on a financial futures contract by no
    later than the first Business Day of the month in which such
    option expires;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;The Corporation will engage in Moody&#146;s Hedging
    Transactions only with respect to financial futures contracts or
    options thereon having the next settlement date or the
    settlement date immediately thereafter;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;The Corporation (i)&#160;will not engage in options and
    futures transactions for leveraging or speculative purposes,
    except that an option or futures transaction shall not for these
    purposes be considered a leveraged position or speculative and
    (ii)&#160;will not write any call options or sell any financial
    futures contracts for the purpose of hedging the anticipated
    purchase of an asset prior to completion of such
    purchase;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;The Corporation will not enter into an option or
    futures transaction unless, after giving effect thereto, the
    Corporation would continue to have Moody&#146;s Eligible Assets
    with an aggregate Discounted Value equal to or greater than the
    Basic Maintenance Amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Moody&#146;s Industry Classifications&#148; </B>means,
    for the purposes of determining Moody&#146;s Eligible Assets,
    each of the following industry classifications (or such other
    classifications as Moody&#146;s may from time to time approve
    for application to the Series&#160;E Preferred Stock).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Aerospace and Defense: Major Contractor, Subsystems,
    Research, Aircraft Manufacturing, Arms, Ammunition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Automobile: Automobile Equipment, Auto-Manufacturing,
    Auto Parts Manufacturing, Personal Use Trailers, Motor Homes,
    Dealers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Banking: Bank Holding, Savings and Loans, Consumer
    Credit, Small Loan, Agency, Factoring, Receivables.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Beverage, Food and Tobacco: Beer and Ale, Distillers,
    Wines and Liquors, Distributors, Soft Drink Syrup, Bottlers,
    Bakery, Mill Sugar, Canned Foods, Corn Refiners, Dairy Products,
    Meat Products, Poultry Products, Snacks, Packaged Foods,
    Distributors, Candy, Gum, Seafood, Frozen Food, Cigarettes,
    Cigars, Leaf/Snuff, Vegetable Oil.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Buildings and Real Estate: Brick, Cement, Climate
    Controls, Contracting, Engineering, Construction, Hardware,
    Forest Products (building-related only), Plumbing, Roofing,
    Wallboard, Real Estate, Real Estate Development, REITs, Land
    Development.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;6.&#160;Chemicals, Plastics and Rubber: Chemicals
    (non-agricultural), Industrial Gases, Sulphur, Plastics, Plastic
    Products, Abrasives, Coatings, Paints, Varnish, Fabricating
    Containers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;7.&#160;Packaging and Glass: Glass, Fiberglass, Containers
    made of: Glass, Metal, Paper, Plastic, Wood or Fiberglass.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;8.&#160;Personal and Non-Durable Consumer Products
    (Manufacturing Only): Soaps, Perfumes, Cosmetics, Toiletries,
    Cleaning Supplies, School Supplies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;9.&#160;Diversified/Conglomerate Manufacturing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.&#160;Diversified/Conglomerate Service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.&#160;Diversified Natural Resources, Precious Metals and
    Minerals: Fabricating, Distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.&#160;Ecological: Pollution Control, Waste Removal, Waste
    Treatment and Waste Disposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.&#160;Electronics: Computer Hardware, Electric Equipment,
    Components, Controllers, Motors, Household Appliances,
    Information Service Communication Systems, Radios, TVs, Tape
    Machines, Speakers, Printers, Drivers, Technology.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.&#160;Finance: Investment Brokerage, Leasing, Syndication,
    Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.&#160;Farming and Agriculture: Livestock, Grains, Produce,
    Agriculture Chemicals, Agricultural Equipment, Fertilizers.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.&#160;Grocery: Grocery Stores, Convenience Food Stores.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    17.&#160;Healthcare, Education and Childcare: Ethical Drugs,
    Proprietary Drugs, Research, Health Care Centers, Nursing Homes,
    HMOs, Hospitals, Hospital Supplies, Medical Equipment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    18.&#160;Home and Office Furnishings, Housewares, and Durable
    Consumer Products: Carpets, Floor Coverings, Furniture, Cooking,
    Ranges.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    19.&#160;Hotels, Motels, Inns and Gaming.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    20.&#160;Insurance: Life, Property and Casualty, Broker, Agent,
    Surety.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    21.&#160;Leisure, Amusement, Motion Pictures, Entertainment:
    Boating, Bowling, Billiards, Musical Instruments, Fishing, Photo
    Equipment, Records, Tapes, Sports, Outdoor Equipment (Camping),
    Tourism, Resorts, Games, Toy Manufacturing, Motion Picture
    Production Theaters, Motion Picture Distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    22.&#160;Machinery (Non-Agricultural, Non-Construction,
    Non-Electronic): Industrial, Machine Tools, Steam Generators.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    23.&#160;Mining, Steel, Iron and Non-Precious Metals: Coal,
    Copper, Lead, Uranium, Zinc, Aluminum, Stainless Steel,
    Integrated Steel, Ore Production, Refractories, Steel Mill
    Machinery, Mini-Mills, Fabricating, Distribution and Sales of
    the foregoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    24.&#160;Oil and Gas: Crude Producer, Retailer, Well Supply,
    Service and Drilling.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    25.&#160;Printing, Publishing, and Broadcasting: Graphic Arts,
    Paper, Paper Products, Business Forms, Magazines, Books,
    Periodicals, Newspapers, Textbooks, Radio, T.V., Cable
    Broadcasting Equipment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    26.&#160;Cargo Transport: Rail, Shipping, Railroads, Rail-car
    Builders, Ship Builders, Containers, Container Builders, Parts,
    Overnight Mail, Trucking, Truck Manufacturing, Trailer
    Manufacturing, Air Cargo, Transport.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    27.&#160;Retail Stores: Apparel, Toy, Variety, Drugs,
    Department, Mail Order Catalog, Showroom.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    28.&#160;Telecommunications: Local, Long Distance, Independent,
    Telephone, Telegraph, Satellite, Equipment, Research, Cellular.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    29.&#160;Textiles and Leather: Producer, Synthetic Fiber,
    Apparel Manufacturer, Leather Shoes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    30.&#160;Personal Transportation: Air, Bus, Rail, Car Rental.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    31.&#160;Utilities: Electric, Water, Hydro Power, Gas.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    32.&#160;Diversified Sovereigns: Semi-sovereigns, Canadian
    Provinces, Supra-national Agencies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Corporation will use SIC codes in determining which industry
    classification is applicable to a particular investment in
    consultation with the Independent Accountant and Moody&#146;s,
    to the extent the Corporation considers necessary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;1933&#160;Act&#148; </B>means the Securities Act of
    1933, as amended, or any successor statute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;1940 Act&#148; </B>means the Investment Company Act of
    1940, as amended, or any successor statute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Non-Call Period&#148; </B>means a period determined by
    the Board of Directors after consultation with the
    Broker-Dealers, during which the Series&#160;E Preferred Stock
    subject to such Special Dividend Period is not subject to
    redemption at the option of the Corporation but only to
    mandatory redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Notice of Redemption&#148; </B>means any notice with
    respect to the redemption of Series&#160;E Preferred Stock
    pursuant to paragraph&#160;3 of Article&#160;I of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Other Rating Agency&#148; </B>means any rating agency
    other than Moody&#146;s or S&#38;P then providing a rating for
    the Series&#160;E Preferred Stock at the request of the
    Corporation.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    32
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Other Rating Agency Eligible Assets&#148; </B>means
    assets of the Corporation designated by any Other Rating Agency
    as eligible for inclusion in calculating the discounted value of
    the Corporation&#146;s assets in connection with such Other
    Rating Agency&#146;s rating of the Series&#160;E Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Outstanding&#148; </B>means, as of any date, shares of
    Preferred Stock theretofore issued by the Corporation except:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;any such share of Preferred Stock theretofore cancelled
    by the Corporation or delivered to the Corporation for
    cancellation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;any such share of Preferred Stock other than an auction
    rate Preferred Stock as to which a notice of redemption shall
    have been given and for whose payment at the redemption thereof
    Deposit Assets in the necessary amount are held by the
    Corporation in trust for, or have been irrevocably deposited
    with the relevant disbursing agent for payment to, the holder of
    such share pursuant to the Articles&#160;Supplementary with
    respect thereto;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;in the case of shares of an auction rate Preferred
    Stock, including the Series&#160;E Preferred Stock, any such
    shares theretofore delivered to the applicable auction agent for
    cancellation or with respect to which the Corporation has given
    notice of redemption and irrevocably deposited with the
    applicable paying agent sufficient funds to redeem such shares;
    and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;any such share in exchange for or in lieu of which
    other shares have been issued and delivered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, (i)&#160;for purposes of voting
    rights (including the determination of the number of shares
    required to constitute a quorum), any Preferred Stock as to
    which any subsidiary of the Corporation is the holder or
    Existing Holder, as applicable, will be disregarded and deemed
    not Outstanding and (ii)&#160;in connection with any auction,
    any auction rate Preferred Stock as to which any Person known to
    the auction agent to be a subsidiary of the Corporation is the
    holder or Existing Holder, as applicable, will be disregarded
    and not deemed Outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Paying Agent&#148; </B>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 Corporation
    to serve as paying agent, which paying agent may be the same as
    the Auction Agent and, with respect to any other class or series
    of Preferred Stock, the Person appointed by the Corporation as
    dividend-disbursing or paying agent with respect to such class
    or series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Person&#148; </B>means and includes an individual, a
    partnership, the Corporation, a trust, a corporation, a limited
    liability company, an unincorporated association, a joint
    venture or other entity or a government or any agency or
    political subdivision thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Preferred Stock&#148; </B>means the preferred stock,
    par value $.001&#160;per share, of the Corporation, and includes
    the shares of Series&#160;E Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Preferred Stocks&#148; </B>means, with respect to
    S&#38;P Ratings Factors, the preferred stock of issuers whose
    common stock satisfies subsections (b)(i)-(iv) of the definition
    of S&#38;P Eligible Assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Premium Call Period&#148; </B>means a period consisting
    of a number of whole years as determined by the Board of
    Directors after consultation with the Broker-Dealers, during
    each year of which the shares subject to such Special Dividend
    Period will be redeemable at the Corporation&#146;s option at a
    price per share equal to the Liquidation Preference plus
    accumulated but unpaid dividends (whether or not earned or
    declared) plus a premium expressed as a percentage or
    percentages of the
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Liquidation Preference or expressed as a formula using specified
    variables as determined by the Board of Directors after
    consultation with the Broker-Dealers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Pricing Service&#148; </B>means any of the following:
    Bloomberg Financial Service, Bridge Information Services, Data
    Resources Inc., FT Interactive, International Securities Market
    Association, Merrill Lynch
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Securities Pricing Service, Muller Data Corp., Reuters,
    S&#38;P/J.J. Kenny, Telerate, Trepp Pricing and Wood Gundy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Public Equity Large-Cap&#148; </B>means any equity
    issuer with a market capitalization in excess of
    $10&#160;billion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Public Equity Mid-Cap&#148; </B>means any equity issuer
    with a market capitalization in excess of $1&#160;billion but
    less than or equal to $10&#160;billion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Public Equity Small-Cap&#148; </B>means any equity
    issuer with a market capitalization of less than or equal to
    $1&#160;billion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Quarterly Valuation Date&#148; </B>means the last
    Business Day of each March, June, September and December of each
    year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Rating Agency&#148; </B>means Moody&#146;s and S&#38;P
    as long as such rating agency is then rating the Series&#160;E
    Preferred Stock at the Corporation&#146;s request or any other
    rating agency then rating the Series&#160;E Preferred Stock at
    the Corporation&#146;s request.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Redemption&#160;Date&#148; </B>has the meaning set
    forth in paragraph&#160;3(e) of Article&#160;I of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Redemption&#160;Default&#148; </B>has the meaning set
    forth in paragraph&#160;3(e) of Article&#160;I of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Redemption&#160;Price&#148; </B>shall mean
    (a)&#160;with respect to a Dividend Period that is not a Premium
    Call Period, the Liquidation Preference plus an amount equal to
    accumulated but unpaid dividends thereon (whether or not earned
    or declared) to the Redemption&#160;Date, or, (b)&#160;with
    respect to a Dividend Period that is a Premium Call Period, the
    Liquidation Preference plus an amount equal to accumulated but
    unpaid dividends thereon (whether or not earned or declared) to
    the Redemption&#160;Date plus a redemption premium, if any,
    determined by the Board of Directors after consultation with the
    Broker-Dealers and set forth in the notice describing any
    applicable Specific Redemption&#160;Provisions. For the purposes
    of these Articles&#160;Supplementary,
    &#147;Redemption&#160;Price&#148; shall have a correlative
    meaning with respect to any other class or series of Preferred
    Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Reference Rate&#148; </B>means, with respect to the
    determination of the Default Rate, the applicable &#147;AA&#148;
    Financial Composite Commercial Paper Rate for a Dividend Period
    of 184&#160;days or fewer or the applicable Treasury Index Rate
    for a Dividend Period of longer than 184&#160;days and, with
    respect to the determination of the Maximum Rate, the
    &#147;AA&#148; Financial Composite Commercial Paper Rate or the
    Treasury Index Rate, as appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Registrar&#148; </B>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 Corporation to
    serve as registrar.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;S&#38;P&#148; </B>means Standard&#160;&#38; Poor&#146;s
    Ratings Services, or its successors at law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;S&#38;P Rating Factor&#148; </B>means, with respect to
    a S&#38;P Eligible Asset specified below, the following
    applicable number:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="71%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Asset Class&#160;Obligor<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Advance<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Overcollateralization<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>(Collateral)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Rates&#160;(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Factors&#160;(1)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Public Equity Small-Cap
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Public Equity Mid-Cap
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    186.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Public Equity Large-Cap
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Cash and Other Deposit Securities
    with Maturities of 30&#160;days or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    For an S&#38;P rating of AAA.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;S&#38;P Eligible Assets&#148; </B>means:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Deposit Assets;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;common stocks that satisfy all of the following
    conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;such common stock (including the common stock of any
    predecessor or constituent issuer) has been traded on a
    recognized national securities exchange or quoted on the
    National Market System (or any equivalent or successor thereto)
    of Nasdaq for at least 450&#160;days,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;the Market Capitalization of such issuer of common
    stock exceeds $100&#160;million,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;the issuer of such common stock is not an entity that
    is treated as a partnership for federal income tax purposes,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;if such issuer is organized under the laws of any
    jurisdiction other than the United States, any state thereof,
    any possession or territory thereof or the District of Columbia,
    the common stock of such issuer held by the Corporation is
    traded on a recognized national securities exchange or quoted on
    the National Market System of Nasdaq either directly or in the
    form of depository receipts,&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;if such issuer is registered as an investment company
    under the 1940 Act, such issuer does not invest more than 25% of
    the value of its gross assets in securities that are not S&#38;P
    Eligible Assets by reason of clause&#160;(iv) above;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    provided, however, that the Corporation&#146;s holdings of the
    common stock of any single issuer that satisfies the conditions
    set forth in clauses&#160;(i) through (v)&#160;above shall be
    included in S&#38;P Eligible Assets only to the extent that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;such holdings may be sold publicly by the Corporation
    at any time without registration,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;to the extent remaining eligible after the operation of
    item (1)&#160;above, such holdings do not exceed a number of
    shares representing the average weekly trading volume of such
    common stock during the preceding 30&#160;day period,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;to the extent remaining eligible after the operation of
    items (1)&#160;and (2)&#160;above, the aggregate Market Value of
    such holdings, when added to the aggregate Market Value of the
    Corporation&#146;s holdings of all other similarly eligible
    shares of common stock of issuers in the same Industry
    Classification, does not exceed 10% of the aggregate Market
    Value of the Corporation&#146;s S&#38;P Eligible Assets,&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;to the extent remaining eligible after the operation of
    items (1)&#160;through (3)&#160;above, the aggregate Market
    Value of the Corporation&#146;s holdings of each of the three
    largest issuers is not in excess of 5% of the aggregate Market
    Value of the Corporation&#146;s S&#38;P Eligible Assets, and of
    the remaining issuers, is not in excess of 2% of the aggregate
    Market Value of the Corporation&#146;s S&#38;P Eligible Assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Preferred Stocks, on such basis as S&#38;P may
    determine in response to a request from the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, an asset will not be considered
    an S&#38;P Eligible Asset if it is held in a margin account, is
    subject to any material lien, mortgage, pledge, security
    interest or security agreement of any kind or has been deposited
    irrevocably for the payment of dividends, redemption payments or
    any other payment or obligation under the Corporation&#146;s
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;S&#38;P Hedging Transactions&#148; </B>has the meaning
    set forth in paragraph&#160;11(b)(i) of Article&#160;I of these
    Articles&#160;Supplementary.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Securities Depository&#148; </B>means The Depository
    Trust Company and its successors and assigns or any successor
    securities depository selected by the Corporation that agrees to
    follow the procedures required to be followed by such securities
    depository in connection with the Series&#160;E Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Series&#160;E Asset Coverage Cure Date&#148; </B>means,
    with respect to the failure by the Corporation to maintain Asset
    Coverage (as required by paragraph&#160;9(a)(i)(A) of
    Article&#160;I of these Articles&#160;Supplementary) as of an
    applicable Quarterly Valuation Date, 10 Business Days following
    such Quarterly Valuation Date, and shall, for the purposes of
    these Articles&#160;Supplementary, have a correlative meaning
    with respect to any other class or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Series&#160;E Preferred Stock&#148; </B>means shares of
    the Corporation&#146;s Series&#160;E Auction Rate Preferred
    Stock, par value $.001&#160;per share, liquidation preference
    $25,000&#160;per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Short-Term Money Market Instrument&#148; </B>means the
    following types of instruments if, on the date of purchase or
    other acquisition thereof by the Corporation, the remaining term
    to maturity thereof is not in excess of 180&#160;days:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;commercial paper rated
    <FONT style="white-space: nowrap">A-1</FONT> if such
    commercial paper matures in 30&#160;days, or
    <FONT style="white-space: nowrap">A-1+</FONT> if such
    commercial paper matures in over 30&#160;days;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;AAAm rated money market funds;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;demand or time deposits in, and banker&#146;s
    acceptances and certificates of deposit of (i)&#160;a depository
    institution or trust company incorporated under the laws of the
    United States of America or any state thereof or the District of
    Columbia (ii)&#160;a United States branch office or agency of a
    foreign depository institution (provided that such branch office
    or agency is subject to banking regulation under the laws of the
    United States, any state thereof or the District of Columbia),
    or
    <FONT style="white-space: nowrap">(iii)&#160;A-1+</FONT>
    rated institutions;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;overnight funds;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;U.S.&#160;Government Obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Special Dividend Period&#148; </B>means a Dividend
    Period that is not a Standard Dividend Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Specific Redemption&#160;Provisions&#148; </B>means,
    with respect to any Special Dividend Period of more than one
    year, either, or any combination of (i)&#160;a Non-Call Period
    and (ii)&#160;a Premium Call Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Standard Dividend Period&#148; </B>means a Dividend
    Period of seven days, subject to increase or decrease to the
    extent necessary for the next Auction Date and Dividend Payment
    Date to each be Business Days.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Submission Deadline&#148; </B>means 1:30&#160;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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Transfer Agent&#148; </B>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 Corporation
    to serve as transfer agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Treasury Index Rate&#148; </B>means the average yield
    to maturity for actively traded marketable U.S.&#160;Treasury
    fixed interest rate securities having the same number of
    <FONT style="white-space: nowrap">30-day</FONT>
    periods to maturity as the length of the applicable Dividend
    Period, determined, to the extent necessary, by linear
    interpolation based upon the yield for such securities having
    the next shorter and next longer number of
    <FONT style="white-space: nowrap">30-day</FONT>
    periods to maturity treating all Dividend Periods with a length
    greater than the longest maturity for such securities as having
    a length equal to such longest maturity, in all cases based upon
    data set forth in the most recent weekly statistical release
    published by the Board of Governors of the Federal Reserve
    System (currently in H.15 (519)); provided, however, if the most
    recent such statistical release shall not have been published
    during the 15&#160;days preceding the date of computation, the
    foregoing computations shall be based upon the average of
    comparable data as quoted to the Corporation by at least three
    recognized dealers in U.S.&#160;Government Obligations selected
    by the Corporation.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;U.S.&#160;Government Obligations&#148; </B>means direct
    obligations of the United States or by its agencies or
    instrumentalities that are entitled to the full faith and credit
    of the United States and that, other than United States Treasury
    Bills, provide for the periodic payment of interest and the full
    payment of principal at maturity or call for redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Valuation Date&#148; </B>means the last Business Day of
    each week, or such other date as the Corporation and Rating
    Agencies may agree to for purposes of determining the Basic
    Maintenance Amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Voting Period&#148; </B>has the meaning set forth in
    paragraph&#160;6(b) of Article&#160;I of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.&#160;Interpretation. References to sections, subsections,
    clauses, sub-clauses, paragraphs and subparagraphs that do not
    reference a specific Article of these
    Articles&#160;Supplementary or another document shall refer to
    the Article of these Articles&#160;Supplementary in which the
    reference occurs, unless the context otherwise requires.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Article&#160;II:<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Auction
    Procedures
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Certain Definitions. Unless the context or use indicates
    another or different meaning or intent, each of the following
    terms when used in these Articles&#160;Supplementary shall have
    the meaning ascribed to it below, whether such term is used in
    the singular or plural and regardless of tense:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Agent Member&#148; </B>means a member of or participant
    in the Securities Depository that will act on behalf of a Bidder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Available Preferred Shares&#148; </B>has the meaning
    set forth in paragraph&#160;4(a)(i) of Article&#160;II of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Existing Holder&#148; </B>means (a)&#160;a Person who
    beneficially owns those shares of Preferred Stock, including
    Series&#160;E Preferred Stock, listed in that Person&#146;s name
    in the records of the Corporation or Auction Agent, as the case
    may be, or (b)&#160;the beneficial owner of those shares of
    Series&#160;E Preferred Stock which are listed under such
    person&#146;s Broker-Dealer&#146;s name in the records of the
    Auction Agent, which Broker-Dealer shall have signed a Master
    Purchaser&#146;s Letter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Hold Order&#148; </B>has the meaning set forth in
    paragraph&#160;2(a) of Article&#160;II of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Master Purchaser&#146;s Letter&#148; </B>means the
    letter which is required to be executed by each prospective
    purchaser of Series&#160;E Preferred Stock or by the
    Broker-Dealer through whom the shares will be held.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Order&#148; </B>has the meaning set forth in
    paragraph&#160;2(a) of Article&#160;II of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Potential Holder&#148; </B>means (a)&#160;any Existing
    Holder who may be interested in acquiring additional
    Series&#160;E Preferred Stock or (b)&#160;any other Person who
    may be interested in acquiring Series&#160;E Preferred Stock and
    who has signed a Master Purchaser&#146;s Letter or whose shares
    will be listed under such person&#146;s Broker-Dealer&#146;s
    name on the records of the Auction Agent which Broker-Dealer
    shall have executed a Master Purchaser&#146;s Letter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Sell Order&#148; </B>has the meaning set forth in
    paragraph&#160;2(a) of Article&#160;II of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Submitted Bid&#148; </B>has the meaning set forth in
    paragraph&#160;4(a) of Article&#160;II of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Submitted Hold Order&#148; </B>has the meaning set
    forth in paragraph&#160;4(a) of Article&#160;II of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Submitted Order&#148; </B>has the meaning set forth in
    paragraph&#160;4(a) of Article&#160;II of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Submitted Sell Order&#148; </B>has the meaning set
    forth in paragraph&#160;4(a) of Article&#160;II of these
    Articles&#160;Supplementary.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Sufficient Clearing Bids&#148; </B>has the meaning set
    forth in paragraph&#160;4(a)(ii) of Article&#160;II of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Sufficient Clearing Orders&#148; </B>means that all
    shares of Series&#160;E Preferred Stock are the subject of
    Submitted Hold Orders or that the number of shares of
    Series&#160;E Preferred Stock that are the subject of Submitted
    Bids by Potential Holders specifying one or more rates equal to
    or less than the Maximum Rate exceeds or equals the sum of
    (a)&#160;the number of shares of Series&#160;E Preferred Stock
    that are subject of Submitted Bids by Existing Holders
    specifying one or more rates higher than the Maximum Rate and
    (b)&#160;the number of shares of Series&#160;E Preferred Stock
    that are subject to Submitted Sell Orders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#147;Winning Bid Rate&#148; </B>means the lowest rate
    specified in the Submitted Bids which if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;(i)&#160;each such Submitted Bid of Existing Holders
    specifying such lowest rate&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;(ii)&#160;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;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;(i)&#160;each such Submitted Bid of Potential Holders
    specifying such lowest rate&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;(ii)&#160;all other such Submitted Bids
    of Potential Holders specifying lower rates were accepted;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    would result in such Existing Holders described in
    subclause&#160;(a) above continuing to hold an aggregate number
    of Outstanding shares of Series&#160;E Preferred Stock which,
    when added to the number of Outstanding shares of Series&#160;E
    Preferred Stock to be purchased by such Potential Holders
    described in subclause&#160;(b) above, would equal not less than
    the Available Preferred Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Orders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;On or prior to the Submission Deadline on each Auction
    Date for Series&#160;E Preferred Stock:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;each Beneficial Owner of Series&#160;E Preferred Stock
    may submit to its Broker-Dealer by telephone or otherwise
    information as to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;the number of Outstanding shares of Series&#160;E
    Preferred Stock, if any, held by such Beneficial Owner which
    such Beneficial Owner desires to continue to hold without regard
    to the Applicable Rate for the next succeeding Dividend Period;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;the number of Outstanding shares of Series&#160;E
    Preferred Stock, if any, held by such Beneficial Owner which
    such Beneficial Owner offers to sell if the Applicable Rate for
    the next succeeding Dividend Period shall be less than the rate
    per annum specified by such Beneficial Owner; and/or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (C)&#160;the number of Outstanding shares of Series&#160;E
    Preferred Stock, if any, held by such Beneficial Owner which
    such Beneficial Owner offers to sell without regard to the
    Applicable Rate for the next succeeding Dividend Period;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;each Broker-Dealer, 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 of Series&#160;E
    Preferred Stock, if any, that each such potential Beneficial
    Owner offers to purchase if the Applicable Rate for the next
    succeeding Dividend Period shall not be less than the rate per
    annum specified by such potential Beneficial Owner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 clauses&#160;(a)(i) or (a)(ii) of this
    paragraph&#160;(2)&#160;is hereinafter referred to as an
    &#147;<U>Order</U>&#148; and collectively as
    &#147;<U>Orders</U>&#148; and each Beneficial Owner and each
    potential Beneficial Owner placing an Order with a
    Broker-Dealer, and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    such Broker-Dealer placing an Order with the Auction Agent, is
    hereinafter referred to as a &#147;<U>Bidder</U>&#148; and
    collectively as &#147;<U>Bidders</U>;&#148; an Order containing
    the information referred to in clause&#160;(a)(i)(A) of this
    paragraph&#160;(2)&#160;is hereinafter referred to as a
    &#147;<U>Hold Order</U>&#148; and collectively as &#148;<U>Hold
    Orders</U>;&#148; an Order containing the information referred
    to in clauses&#160;(a)(i)(B) or (a)(ii) of this
    paragraph&#160;(2)&#160;is hereinafter referred to as a
    &#147;<U>Bid</U>&#148; and collectively as
    &#147;<U>Bids</U>;&#148; and an Order containing the information
    referred to in clause&#160;(a)(i)(C) of this
    paragraph&#160;(2)&#160;is hereinafter referred to as a
    &#147;<U>Sell Order</U>&#148; and collectively as &#147;<U>Sell
    Orders.</U>&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;A Bid by a Beneficial Owner or an Existing Holder of
    Series&#160;E Preferred Stock subject to an Auction on any
    Auction Date shall constitute an irrevocable offer to sell if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;the number of Outstanding shares of Series&#160;E
    Preferred Stock specified in such Bid if the Applicable Rate
    determined on such Auction Date shall be less than the rate
    specified therein;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;such number or a lesser number of Outstanding shares of
    Series&#160;E Preferred Stock to be determined as set forth in
    paragraph&#160;5(a)(iv) if the Applicable Rate for Series&#160;E
    Preferred Stock determined on such Auction Date shall be equal
    to the rate specified therein;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (C)&#160;the number of Outstanding shares of Series&#160;E
    Preferred Stock specified in such Bid if the rate specified
    therein shall be higher than the Maximum Rate, or such number or
    a lesser number of Outstanding shares of Series&#160;E Preferred
    Stock to be determined as set forth in paragraph&#160;5(b)(iii)
    if the rate specified therein shall be higher than the Maximum
    Rate and Sufficient Clearing Bids do not exist.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;A Sell Order by a Beneficial Owner or an Existing
    Holder of Series&#160;E Preferred Stock subject to an Auction on
    any Auction Date shall constitute an irrevocable offer to sell:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;the number of Outstanding shares of Series&#160;E
    Preferred Stock specified in such Sell Order;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;such number or a lesser number of Outstanding shares of
    Series&#160;E Preferred Stock as set forth in
    paragraph&#160;5(b)(iii) if Sufficient Clearing Bids do not
    exist; provided, however, that a Broker-Dealer that is an
    Existing Holder with respect to Series&#160;E Preferred Stock
    shall not be liable to any Person for failing to sell such
    shares pursuant to a Sell Order described in the proviso to
    paragraph&#160;3(c) if (1)&#160;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 Corporation) with the
    provisions of paragraph&#160;6 or (2)&#160;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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;A Bid by a Potential Holder of Series&#160;E Preferred
    Stock subject to an Auction on any Auction Date shall constitute
    an irrevocable offer to purchase if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;the number of Outstanding shares of Series&#160;E
    Preferred Stock specified in such Bid if the Applicable Rate
    determined on such Auction Date shall be higher than the rate
    specified therein;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;such number or a lesser number of Outstanding shares of
    Series&#160;E Preferred Stock as set forth in
    paragraph&#160;5(a)(v) if the Applicable Rate determined on such
    Auction Date shall be equal to the rate specified therein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;No Order for any number of shares of Series&#160;E
    Preferred Stock other than whole shares shall be valid.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    39
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Submission of Orders by Broker-Dealers to Auction Agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Each Broker-Dealer shall submit in writing to the
    Auction Agent prior to the Submission Deadline on each Auction
    Date all Orders for Series&#160;E Preferred Stock subject to an
    Auction on such Auction Date obtained by such Broker-Dealer,
    designating itself (unless otherwise permitted by the
    Corporation) 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:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;the name of the Bidder placing such Order (which shall
    be the Broker-Dealer unless otherwise permitted by the
    Corporation);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;the aggregate number of shares of Series&#160;E
    Preferred Stock that are the subject of such Order;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;to the extent that such Bidder is an Existing Holder
    of Series&#160;E Preferred Stock:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;the number of shares of Series&#160;E Preferred Stock,
    if any, subject to any Hold Order of such Existing Holder;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;the number of shares of Series&#160;E Preferred Stock,
    if any, subject to any Bid of such Existing Holder and the rate
    specified in such Bid;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (C)&#160;the number of shares of Series&#160;E Preferred Stock,
    if any, subject to any Sell Order of such Existing
    Holder;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;to the extent such Bidder is a Potential Holder of
    Series&#160;E Preferred Stock, the rate and number of shares of
    Series&#160;E Preferred Stock specified in such Potential
    Holder&#146;s Bid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;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%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;If an Order or Orders covering all of the Outstanding
    shares of Series&#160;E Preferred Stock 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 Series&#160;E
    Preferred Stock held by such Existing Holder and not subject to
    Orders submitted to the Auction Agent; provided, however, that
    if an Order or Orders covering all of the Outstanding
    Series&#160;E Preferred Stock 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 calendar 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
    Series&#160;E Preferred Stock held by such Existing Holder and
    not subject to Orders submitted to the Auction Agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;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 Series&#160;E Preferred
    Stock subject to an Auction held by such Existing Holder, such
    Orders shall be considered valid in the following order of
    priority:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;all Hold Orders shall be considered valid, but only up
    to and including in the aggregate the number of Outstanding
    shares of Series&#160;E Preferred Stock held by such Existing
    Holder, and if the number of shares subject to such Hold Orders
    exceeds the number of Outstanding shares of Series&#160;E
    Preferred Stock 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 Series&#160;E
    Preferred Stock held by such Existing Holder;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;any Bid for Series&#160;E Preferred Stock shall be
    considered valid up to and including the excess of the number of
    Outstanding shares of Series&#160;E Preferred Stock held by such
    Existing Holder over the number of shares of Series&#160;E
    Preferred Stock subject to any Hold Orders referred to in
    clause&#160;(d)(i) above;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    40
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;subject to subclause&#160;(d)(ii)(A), if more than one
    Bid of an Existing Holder for Series&#160;E Preferred Stock is
    submitted to the Auction Agent with the same rate and the number
    of Outstanding shares of Series&#160;E Preferred Stock 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 Series&#160;E Preferred Stock
    subject to each Bid with the same rate shall be reduced pro rata
    to cover the number of shares equal to such excess;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (C)&#160;subject to subclauses&#160;(d)(ii)(A) and (B), if more
    than one Bid of an Existing Holder for Series&#160;E Preferred
    Stock 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;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (D)&#160;in any such event, the number, if any, of such
    Outstanding shares of Series&#160;E Preferred Stock subject to
    any portion of Bids considered not valid in whole or in part
    under this paragraph&#160;3(d)(ii) shall be treated as the
    subject of a Bid by or on behalf of a Potential Holder at the
    rate specified therein;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;all Sell Orders for Series&#160;E Preferred Stock
    shall be considered valid up to and including the excess of the
    number of Outstanding shares of Series&#160;E Preferred Stock
    held by such Existing Holder over the sum of Outstanding shares
    of Series&#160;E Preferred Stock subject to valid Hold Orders
    referred to in paragraph&#160;3(d)(i) above and valid Bids
    referred to in paragraph&#160;3(d)(ii) above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;If more than one Bid for Series&#160;E Preferred Stock
    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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Determination of Sufficient Clearing Bids, Winning Bid
    Rate and Applicable Rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Not earlier than the Submission Deadline on each
    Auction Date for Series&#160;E Preferred Stock, the Auction
    Agent shall assemble all valid Orders submitted or deemed
    submitted to it by the Broker-Dealers (each such Order as
    submitted or deemed submitted by a Broker-Dealer being
    hereinafter referred to individually as a &#147;<U>Submitted
    Hold Order</U>,&#148; a &#147;<U>Submitted Bid</U>&#148; or a
    &#147;<U>Submitted Sell Order</U>,&#148; as the case may be, or
    as a &#147;<U>Submitted Order</U>&#148; and collectively as
    &#147;<U>Submitted Hold Orders</U>,&#148; &#147;<U>Submitted
    Bids</U>&#148; or &#147;<U>Submitted Sell Orders</U>,&#148; as
    the case may be, or as &#148;<U>Submitted Orders</U>&#148;) and
    shall determine:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;the excess of the number of Outstanding shares of
    Series&#160;E Preferred Stock over the number of Outstanding
    shares of Series&#160;E Preferred Stock subject to Submitted
    Hold Orders (such excess being hereinafter referred to as the
    &#147;<U>Available Preferred Shares</U>&#148;);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;from the Submitted Orders for Series&#160;E Preferred
    Stock whether:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;the number of Outstanding shares of Series&#160;E
    Preferred Stock subject to Submitted Bids of Potential Holders
    specifying one or more rates equal to or lower than the Maximum
    Rate exceeds or is equal to the sum of
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;the number of Outstanding shares of Series&#160;E
    Preferred Stock subject to Submitted Bids of Existing Holders
    specifying one or more rates higher than the Maximum
    Rate;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 13%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (C)&#160;the number of Outstanding shares of Series&#160;E
    Preferred Stock subject to Submitted Sell Orders (in the event
    such excess or such equality exists (other than because the
    number of shares of Series&#160;E Preferred Stock in
    clauses&#160;(a)(ii)(A) and (B)&#160;above is zero because all
    of the Outstanding shares of Series&#160;E Preferred Stock are
    subject to Submitted Hold Orders), such Submitted Bids in
    clause&#160;(a)(ii)(A) above being hereinafter referred to
    collectively as &#147;<U>Sufficient Clearing Bids</U>&#148;); and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    41
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;if Sufficient Clearing Bids exist, the Winning Bid
    Rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Not later than 9:30&#160;A.M., New York City time, on
    each Auction Date, the Auction Agent shall advise the
    Corporation of the Maximum Rate for the Series&#160;E Preferred
    Stock for which an Auction is being held on the Auction Date
    and, based on such determination, promptly after the Auction
    Agent has made the determinations pursuant to
    paragraph&#160;4(a), the Auction Agent shall advise the
    Corporation of the Applicable Rate for the next succeeding
    Dividend Period thereof as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;if Sufficient Clearing Bids exist, that the Applicable
    Rate for the next succeeding Dividend Period thereof shall be
    equal to the Winning Bid Rate so determined;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;if Sufficient Clearing Bids do not exist (other than
    because all of the Outstanding shares of such series are subject
    to Submitted Hold Orders), that the Applicable Rate for the next
    succeeding Dividend Period thereof shall be equal to the Maximum
    Rate; or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;if all of the Outstanding shares of Series&#160;E
    Preferred Stock are subject to Submitted Hold Orders, that the
    Applicable Rate for the next succeeding Dividend Period thereof
    shall be the All Hold Rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Acceptance and Rejection of Submitted Bids and Submitted
    Sell Orders and Allocation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Existing Holders shall continue to hold the shares of
    Series&#160;E Preferred Stock that are subject to Submitted Hold
    Orders, and, based on the determinations made pursuant to
    paragraph&#160;4(a), 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:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;If Sufficient Clearing Bids for shares of Series&#160;E
    Preferred Stock have been made, all Submitted Sell Orders shall
    be accepted and, subject to the provisions of
    paragraphs&#160;5(d) and 5(e), Submitted Bids shall be accepted
    or rejected as follows in the following order of priority and
    all other Submitted Bids shall be rejected:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Existing Holders&#146; Submitted Bids for Series&#160;E
    Preferred Stock specifying any rate that is higher than the
    Winning Bid Rate shall be accepted, thus requiring each such
    Existing Holder to sell the Series&#160;E Preferred Stock
    subject to such Submitted Bids;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Existing Holders&#146; Submitted Bids for shares
    Series&#160;E Preferred Stock specifying any rate that is lower
    than the Winning Bid Rate shall be rejected, thus entitling each
    such Existing Holder to continue to hold the Series&#160;E
    Preferred Stock subject to such Submitted Bids;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Potential Holders&#146; Submitted Bids for shares of
    Series&#160;E Preferred Stock specifying any rate that is lower
    than the Winning Bid Rate shall be accepted;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;each Existing Holder&#146;s Submitted Bid for shares
    of Series&#160;E Preferred Stock specifying a rate that is equal
    to the Winning Bid Rate shall be rejected, thus entitling such
    Existing Holder to continue to hold the Series&#160;E Preferred
    Stock subject to such Submitted Bid, unless the number of
    Outstanding shares of Series&#160;E Preferred Stock subject to
    all such Submitted Bids shall be greater than the number of
    shares of Series&#160;E Preferred Stock (&#147;remaining
    shares&#148;) in the excess of the Available Preferred Shares
    over the number of shares of Series&#160;E Preferred Stock
    subject to Submitted Bids described in paragraphs&#160;5(a)(ii)
    and 5(a)(iii), 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 Series&#160;E
    Preferred Stock subject to such Submitted Bid, but only in an
    amount equal to the shares of Series&#160;E Preferred Stock
    obtained by multiplying the number of remaining shares by a
    fraction, the numerator of which shall be the number of
    Outstanding shares of Series&#160;E Preferred Stock held by such
    Existing Holder subject to such Submitted Bid and the
    denominator of which shall be the aggregate number of
    Outstanding shares of Series&#160;E Preferred Stock subject to
    such Submitted Bids made by all such Existing Holders that
    specified a rate equal to the Winning Bid Rate;&#160;and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    42
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;each Potential Holder&#146;s Submitted Bid for
    Series&#160;E Preferred Stock specifying a rate that is equal to
    the Winning Bid Rate shall be accepted but only in an amount
    equal to the number of shares obtained by multiplying the number
    of shares of Series&#160;E Preferred Stock in the excess of the
    Available Preferred Shares over the number of shares of
    Series&#160;E Preferred Stock subject to Submitted Bids
    described in paragraph&#160;5(a)(ii) through (iv)&#160;by a
    fraction, the numerator of which shall be the number of
    Outstanding shares of Series&#160;E Preferred Stock subject to
    such Submitted Bid and the denominator of which shall be the
    aggregate number of Outstanding shares of Series&#160;E
    Preferred Stock subject to such Submitted Bids made by all such
    Potential Holders that specified a rate equal to the Winning Bid
    Rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;If Sufficient Clearing Bids for Series&#160;E Preferred
    Stock have not been made (other than because all of the
    Outstanding shares are subject to Submitted Hold Orders),
    subject to the provisions of paragraph&#160;5(d), Submitted
    Orders shall be accepted or rejected as follows in the following
    order of priority and all other Submitted Bids for Series&#160;E
    Preferred Stock shall be rejected:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Existing Holders&#146; Submitted Bids for Series&#160;E
    Preferred Stock specifying any rate that is equal to or lower
    than the Maximum Rate shall be rejected, thus entitling such
    Existing Holders to continue to hold the Series&#160;E Preferred
    Stock subject to such Submitted Bids;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Potential Holders&#146; Submitted Bids for
    Series&#160;E Preferred Stock specifying any rate that is equal
    to or lower than the Maximum Rate shall be accepted;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Each Existing Holder&#146;s Submitted Bid for
    Series&#160;E Preferred Stock specifying any rate that is higher
    than the Maximum Rate and the Submitted Sell Orders 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 Series&#160;E
    Preferred Stock subject to such Submitted Bid or Submitted Sell
    Order, but in both cases only in an amount equal to the number
    of shares of Series&#160;E Preferred Stock obtained by
    multiplying the number of shares of Series&#160;E Preferred
    Stock subject to Submitted Bids described in
    paragraph&#160;5(b)(ii) by a fraction, the numerator of which
    shall be the number of Outstanding shares of Series&#160;E
    Preferred Stock 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
    Series&#160;E Preferred Stock subject to all such Submitted Bids
    and Submitted Sell Orders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;If all of the Outstanding shares of Series&#160;E
    Preferred Stock are subject to Submitted Hold Orders, all
    Submitted Bids for such shares shall be rejected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;If, as a result of the procedures described in
    paragraph&#160;5(a)(iv) or (v)&#160;or paragraph&#160;5(b)(iii),
    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 Series&#160;E Preferred Stock 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 Series&#160;E Preferred Stock 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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;If, as a result of the procedures described in
    paragraph&#160;5(a)(v) any Potential Holder would be entitled or
    required to purchase less than a whole share of Series&#160;E
    Preferred Stock on any Auction Date, the Auction Agent shall, in
    such manner as it shall determine in its sole discretion,
    allocate Series&#160;E Preferred Shares for purchase among
    Potential Holders so that only whole shares 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 Series&#160;E Preferred Stock
    on such Auction Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Based on the results of each Auction for Series&#160;E
    Preferred Stock, the Auction Agent shall determine the aggregate
    number of such shares to be purchased and the aggregate number
    of such shares 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
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    43
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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, Series&#160;E Preferred
    Stock. Notwithstanding any provision of the Auction Procedures
    to the contrary, in the event an Existing Holder or Beneficial
    Owner of Series&#160;E Preferred Stock 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 Series&#160;E Preferred Stock that have
    been made in respect of Potential Holders&#146; or Potential
    Beneficial Owners&#146; Submitted Bids for Series&#160;E
    Preferred Stock that have been accepted in whole or in part
    shall constitute good delivery to such Potential Holders and
    Potential Beneficial Owners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;Neither the Corporation 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 Series&#160;E
    Preferred Stock or to pay for Series&#160;E Preferred Stock sold
    or purchased pursuant to the Auction Procedures or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;Transfer of Series&#160;E Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise permitted by the Corporation, a Beneficial
    Owner or an Existing Holder may sell, transfer or otherwise
    dispose of Series&#160;E Preferred Stock 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
    Article&#160;II or to a Broker-Dealer; <I>provided, however</I>,
    that (a)&#160;a sale, transfer or other disposition of
    Series&#160;E Preferred Stock 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 paragraph&#160;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)&#160;in the case of all transfers other
    than pursuant to Auctions, the Broker-Dealer (or other Person,
    if permitted by the Corporation) to whom such transfer is made
    shall advise the Auction Agent of such transfer.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;III<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ABILITY OF
    BOARD OF DIRECTORS TO MODIFY THE ARTICLES<BR>
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">SUPPLEMENTARY
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The calculation of Adjusted Value, Basic Maintenance Amount and
    the elements of each of them and the definitions of such terms
    and elements may be modified by action of the Board of Directors
    without further action by the stockholders if the Board of
    Directors determines that such modification is necessary to
    prevent a reduction in rating of the shares of Preferred Stock
    by the Rating Agencies rating such shares at the request of the
    Corporation or is in the best interests of the holders of Common
    Stock and is not adverse to the Holders of Preferred Stock in
    view of advice to the Corporation by the relevant Rating
    Agencies that such modification would not adversely affect the
    then-current rating of the Series&#160;E Preferred Stock. To the
    extent the Corporation is unable to obtain an opinion of counsel
    to the effect that operation of the foregoing sentence is
    enforceable in the circumstances then obtaining, the calculation
    of Adjusted Value, Basic Maintenance Amount and the elements of
    each of them and the definitions of such terms and the elements
    thereof shall be adjusted from time to time without further
    action by the Board of Directors and the stockholders only to
    reflect changes made thereto independently by a Rating Agency
    then rating Preferred Stock at the request of the Corporation if
    such Rating Agency has advised the Corporation in writing
    separately (a)&#160;of such adjustments and (b)&#160;that the
    revised calculation definition would not cause such Rating
    Agency to reduce or withdraw its then-current rating of the
    shares of Preferred Stock or any other Rating Agency then rating
    Preferred Stock at the request of the Corporation to reduce or
    withdraw its then-current rating. The adjustments contemplated
    by the preceding sentence shall be made effective upon the time
    the Corporation receives the notice from such Rating Agency to
    the effect specified in clause&#160;(b) of the preceding
    sentence.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    44
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any such modification may be rescinded or further modified by
    action of the Board of Directors and stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, subject to compliance with applicable law, the
    Board of Directors may amend the definition of Maximum Rate to
    increase the applicable percentage by which the Reference Rate
    is multiplied to determine the Maximum Rate shown therein
    without the vote or consent of the Holders of shares of
    Preferred Stock, including the Series&#160;E Preferred Stock, or
    any other stockholder of the Corporation, after consultation
    with the Broker-Dealers, and with confirmation from each Rating
    Agency that immediately following any such increase the
    Corporation would meet the Basic Maintenance Test.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the provisions of the preceding paragraph, to
    the extent permitted by law, the Board of Directors, without the
    vote of the Holders of the Series&#160;E Preferred Stock or any
    other capital stock of the Corporation, may amend the provisions
    of these Articles&#160;Supplementary to resolve any
    inconsistency or ambiguity or to remedy any formal defect so
    long as the amendment does not materially adversely affect any
    of the contract rights of holders of shares of the Series&#160;E
    Preferred Stock or any other capital stock of the Corporation or
    adversely affect the then current rating on the Series&#160;E
    Preferred Stock by any Rating Agency.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    45
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    IN WITNESS WHEREOF, The Gabelli Equity Trust Inc. has caused
    these presents to be signed in its name and on its behalf by a
    duly authorized officer, and its corporate seal to be hereunto
    affixed and attested by its Secretary, and the said officers of
    the Corporation further acknowledge said instrument to be the
    corporate act of the Corporation, and state that to the best of
    their knowledge, information and belief under penalty of perjury
    the matters and facts herein set forth with respect to approval
    are true in all material respects, all on October&#160;3, 2003.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="5%"></TD>
    <TD width="46%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display: inline; text-align: center; width: 90%">/s/&#160;&#160;Gus
    A. Coutsorous</DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 54%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 54%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name: Gus A. Coutsorous
</DIV>

<DIV align="left" style="margin-left: 54%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 54%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;Vice President and Treasurer
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attest:
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="display: inline; text-align: center; width: 90%">/s/&#160;&#160;James
    E. McKee</DIV>
</DIV>

<DIV style="font-size: 2pt; margin-right: 49%; width: 85%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=227 -->

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name: James E. McKee
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;Secretary
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    46
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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.A.VI
<SEQUENCE>4
<FILENAME>y26698a2exv99w2wawvi.htm
<DESCRIPTION>EX-99.2.A.VI: ARTICLES SUPPLEMENTARY FOR SERIES F
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.2.A.VI</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit
    2(a)(vi)</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Form
    of<BR>
    ARTICLES&#160;SUPPLEMENTARY<BR>
    THE GABELLI EQUITY TRUST&#160;INC.<BR>
    <BR>
    CREATING AND FIXING THE RIGHTS OF<BR>
    [&#160;&#160;&#160;&#160;&#160;]% SERIES&#160;F CUMULATIVE
    PREFERRED STOCK</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Gabelli Equity Trust Inc., a Maryland corporation, having
    its principal office in Baltimore City, Maryland (hereinafter
    called the &#147;<U>Corporation</U>&#148;), hereby certifies to
    the State Department of Assessments and Taxation of Maryland
    that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FIRST: The Board of Directors of the Corporation, at a meeting
    duly convened and held on May&#160;17, 2006, pursuant to
    authority expressly vested in it by Article&#160;V of the
    Charter of the Corporation, adopted resolutions classifying up
    to 7,000,000 authorized and unissued shares of the Corporation,
    previously classified as shares of the Corporation&#146;s common
    stock (&#147;Common Stock&#148;), par value $0.001&#160;per
    share, as shares of Series&#160;F Cumulative Preferred Stock,
    and authorizing such shares of Series&#160;F Cumulative
    Preferred Stock for issuance by the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SECOND: The Pricing Committee of the Board of Directors of the
    Corporation, at a meeting duly convened and held on [DATE], 2006
    pursuant to
    <FONT style="white-space: nowrap">Section&#160;2-411</FONT>
    of the Maryland General Corporation Law and authority granted it
    by the Board of Directors of the Corporation at its May&#160;17,
    2006 meeting, approved the designation and issuance by the
    Corporation of
    [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;]&#160;shares
    of [&#160;&#160;&#160;&#160;&#160;]% Series&#160;F Cumulative
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THIRD: The preferences, rights, voting powers, restrictions,
    limitations as to dividends and distributions, qualifications,
    and terms and conditions of redemption of the
    [&#160;&#160;&#160;&#160;&#160;]% Series&#160;F Cumulative
    Preferred Stock, par value $.001&#160;per share, are as follows:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESIGNATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Series&#160;F Preferred Stock: A series of
    [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;]&#160;shares
    of preferred stock, par value $0.001&#160;per share, liquidation
    preference $25&#160;per share, is hereby designated
    &#147;Series&#160;F Cumulative Preferred Stock&#148; (the
    &#147;Series&#160;F Preferred Stock&#148;). Each share of
    Series&#160;F Preferred Stock may be issued on a date to be
    determined by the Board of Directors of the Corporation; shall
    have an initial dividend rate stated as a rate per annum, an
    initial Dividend Period and an initial Dividend Payment Date as
    shall be determined in advance of the issuance thereof by the
    Board of Directors of the Corporation; and shall have such other
    preferences, rights, voting powers, restrictions, limitations as
    to dividends and distributions, qualifications and terms and
    conditions of redemption, in addition to those required by
    applicable law or set forth in the Governing Documents
    applicable to Preferred Stock of the Corporation, as are set
    forth in these Articles&#160;Supplementary. The Series&#160;F
    Preferred Stock shall constitute a separate series of Preferred
    Stock.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;I
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    DEFINITIONS
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless the context or use indicates another or different meaning
    or intent, each of the following terms when used in these
    Articles&#160;Supplementary shall have the meaning ascribed to
    it below, whether such term is used in the singular or plural
    and regardless of tense:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Accountant&#146;s Confirmation</U>&#148; means a letter
    from an Independent Accountant delivered to Moody&#146;s with
    respect to certain Basic Maintenance Reports substantially to
    the effect that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;the Independent Accountant has read the Basic
    Maintenance Report or Reports prepared by the Administrator
    during the referenced calendar year that are referred to in such
    letter;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;with respect to the issue size compliance, issuer
    diversification and industry diversification calculations, such
    calculations and the resulting Market Value of the Moody&#146;s
    Eligible Assets included in the Reports and the Adjusted Value
    of the Moody&#146;s Eligible Assets included in the Reports are
    numerically correct;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;with respect to the excess or deficiency of the
    Adjusted Value of the Moody&#146;s Eligible Assets included in
    the Reports when compared to the Basic Maintenance Amount
    calculated for Moody&#146;s, the results of the calculation set
    forth in the Reports have been recalculated and are numerically
    correct;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;with respect to the Moody&#146;s ratings on corporate
    evidences of indebtedness, convertible corporate evidences of
    indebtedness and preferred stock listed in the Reports, that
    information has been traced and agrees with the information
    provided directly or indirectly by the respective rating
    agencies (in the event such information does not agree or such
    information is not listed in the accounting records of the
    Corporation, the Independent Accountants will inquire of the
    rating agencies what such information is and provide a listing
    in their letter of such differences, if any);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;with respect to issuer name and coupon or dividend rate
    listed in the Reports, that information has been traced and
    agrees with information listed in the accounting records of the
    Corporation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;with respect to issue size listed in the Reports, that
    information has been traced and agrees with information provided
    by a Pricing Service or such other services as Moody&#146;s may
    authorize from time to time;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;with respect to the prices (or alternative permissible
    factors used in calculating the Market Value as provided by
    these Articles&#160;Supplementary) provided by the Administrator
    of the Corporation&#146;s assets for purposes of valuing
    securities in the portfolio, the Independent Accountant has
    traced the price used in the Reports to the price provided by
    such Administrator (in accordance with the procedures provided
    in these Articles Supplementary) and verified that such
    information agrees (in the event such information does not
    agree, the Independent Accountants will provide a listing in
    their letter of such differences);&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;with respect to the description of each security
    included in the Reports, the description of Moody&#146;s
    Eligible Assets has been compared to the definition of
    Moody&#146;s Eligible Assets contained in these
    Articles&#160;Supplementary, and the description as appearing in
    the Reports agrees with the definition of Moody&#146;s Eligible
    Assets as described in these Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each such letter may state that: (i)&#160;such Independent
    Accountant has made no independent verification of the accuracy
    of the description of the investment securities listed in the
    Reports or the Market Value of those securities nor has it
    performed any procedures other than those specifically outlined
    above for the purposes of issuing such letter; (ii)&#160;unless
    otherwise stated in the letter, the procedures specified therein
    were limited to a comparison of numbers or a verification of
    specified computations applicable to numbers appearing in the
    Reports and the schedule(s) thereto; (iii)&#160;the foregoing
    procedures do not constitute an examination in accordance with
    generally accepted auditing standards and the Reports contained
    in the letter do not extend to any of the Corporation&#146;s
    financial statements taken as a whole; (iv)&#160;such
    Independent Accountant does not express an opinion as to whether
    such procedures would enable such Independent Accountant to
    determine that the methods followed in the preparation of the
    Reports would correctly determine the Market Value or Discounted
    Value of the investment portfolio; and (v)&#160;accordingly,
    such Independent Accountant expresses no opinion as to the
    information set forth in the Reports or in the schedule(s)
    thereto and makes no representation as to the sufficiency of the
    procedures performed for the purposes of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Such letter shall also state that the Independent Accountant is
    an &#147;independent accountant&#148; with respect to the
    Corporation within the meaning of the Securities Act of 1933, as
    amended, and the related published rules and regulations
    thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Adjusted Value</U>&#148; of each Moody&#146;s Eligible
    Asset shall be computed as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;cash shall be valued at 100% of the face value
    thereof;&#160;and
</DIV>

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    <BR>
    2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;all other Moody&#146;s Eligible Assets shall be valued
    at the Discounted Value thereof;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;each asset that is not a Moody&#146;s Eligible Asset
    shall be valued at zero.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Administrator</U>&#148; means the other party to the
    Administration Agreement with the Corporation, which shall
    initially be Gabelli Funds, LLC, a New York limited liability
    company, and will include, as appropriate, any sub-administrator
    appointed by the Administrator.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>ADRs</U>&#148; means U.S.&#160;dollar-denominated
    American Depository Receipts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Adviser</U>&#148; means Gabelli Funds, LLC, a New York
    limited liability company, or such other person as shall be
    serving as the investment adviser of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Annual Valuation Date</U>&#148; means the Valuation
    Date each calendar year so designated by the Corporation,
    commencing in the calendar year 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Asset Coverage</U>&#148; means asset coverage, as
    determined in accordance with Section&#160;18(h) of the 1940
    Act, of at least 200% with respect to all outstanding senior
    securities of the Corporation which are stock, including all
    Outstanding shares of Series&#160;F Preferred Stock (or such
    other asset coverage as may in the future be specified in or
    under the 1940 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),
    determined on the basis of values calculated as of a time within
    48&#160;hours (not including Saturdays, Sundays or holidays)
    next preceding the time of such determination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Basic Maintenance Amount</U>&#148; means, as of any
    Valuation Date, the dollar amount equal to (a)&#160;the sum of
    (i)&#160;the product of the number of shares of each class or
    series of Preferred Stock Outstanding on such Valuation Date
    multiplied by the Liquidation Preference per share; (ii)&#160;to
    the extent not included in (i)&#160;the aggregate amount of cash
    dividends and distributions (whether or not earned or declared)
    that will have accumulated for each Outstanding share of
    Preferred Stock from the most recent Dividend Payment Date to
    which dividends and distributions have been paid or duly
    provided for (or, in the event the Basic Maintenance Amount is
    calculated on a date prior to the initial Dividend Payment Date
    with respect to a class or series of the Preferred Stock, then
    from the Date of Original Issue) through the Valuation Date plus
    all dividends and distributions to accumulate on the Preferred
    Stock then Outstanding during the 70&#160;days following such
    Valuation Date or, if less, during the number of days following
    such Valuation Date that shares of Preferred Stock called for
    redemption are scheduled to remain Outstanding; (iii)&#160;the
    Corporation&#146;s other liabilities due and payable as of such
    Valuation Date (except that dividends and other distributions
    payable by the Corporation on Common Stock shall not be included
    as a liability) and such liabilities projected to become due and
    payable by the Corporation during the 90&#160;days following
    such Valuation Date (excluding liabilities for investments to be
    purchased and for dividends and other distributions not declared
    as of such Valuation Date); and (iv)&#160;any current
    liabilities of the Corporation as of such Valuation Date to the
    extent not reflected in (or specifically excluded by) any of
    (a)(i) through (a)(iii) (including, without limitation, and
    immediately upon determination, any amounts due and payable by
    the Corporation pursuant to reverse repurchase agreements and
    any payables for assets purchased as of such Valuation Date)
    less (b)(i) the Adjusted Value of any of the Corporation&#146;s
    assets or (ii)&#160;the face value of any of the
    Corporation&#146;s assets if, in the case of both (b)(i) and
    (b)(ii), such assets are either cash or evidences of
    indebtedness which mature prior to or on the date of redemption
    or repurchase of shares of Preferred Stock or payment of another
    liability and are either U.S.&#160;Government Obligations or
    evidences of indebtedness which have a rating assigned by
    Moody&#146;s of at least Aaa,
    <FONT style="white-space: nowrap">P-1,</FONT> VMIG-1
    or MIG-1 or by S&#38;P of at least AAA,
    <FONT style="white-space: nowrap">SP-1+</FONT> or
    <FONT style="white-space: nowrap">A-1+,</FONT> and
    are irrevocably held by the Corporation&#146;s custodian bank in
    a segregated account or deposited by the Corporation with the
    Dividend-Disbursing Agent for the payment of the amounts needed
    to redeem or repurchase Preferred Stock subject to redemption or
    repurchase or any of (a)(ii) through (a)(iv); and provided that
    in the event the Corporation has repurchased Preferred Stock and
    irrevocably segregated or deposited assets as described above
    with its custodian bank or the Dividend-Disbursing Agent for the
    payment of the repurchase price the Corporation may deduct 100%
    of the Liquidation Preference of such Preferred Stock to be
    repurchased from (a)&#160;above. Basic
</DIV>

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    <BR>
    3
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Maintenance Amount shall, for purposes of these
    Articles&#160;Supplementary, have a correlative meaning with
    respect to any other class or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Basic Maintenance Amount Cure Date</U>&#148; means,
    with respect to the Series&#160;F Preferred Stock, 10 Business
    Days following a Valuation Date, such date being the last day
    upon which the Corporation&#146;s failure to comply with
    paragraph&#160;6(a)(ii)(A) of Article&#160;II hereof could be
    cured, and for the purposes of these Articles Supplementary
    shall have a correlative meaning with respect to any other class
    or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Basic Maintenance Report</U>&#148; or
    &#147;<U>Report</U>&#148; means, with respect to the
    Series&#160;F Preferred Stock, a report prepared by the
    Administrator which sets forth, as of the related Valuation
    Date, Moody&#146;s Eligible Assets sufficient to meet or exceed
    the Basic Maintenance Amount, the Market Value and Discounted
    Value thereof (seriatim and in the aggregate), and the Basic
    Maintenance Amount, and for the purposes of these Articles
    Supplementary shall have a correlative meaning with respect to
    any other class or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Board of Directors</U>&#148; means the Board of
    Directors of the Corporation or any duly authorized committee
    thereof as permitted by applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Business Day</U>&#148; means a day on which the New
    York Stock Exchange is open for trading and that is neither a
    Saturday, Sunday nor any other day on which banks in the City of
    New York, New York are authorized or obligated by law to close.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>By-Laws</U>&#148; means the By-Laws of the Corporation,
    as amended from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Charter</U>&#148; means the Articles of Incorporation
    of the Corporation, as amended and supplemented (including by
    these Articles&#160;Supplementary), as filed with the State
    Department of Assessments and Taxation of Maryland.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Common Stock</U>&#148; means the Common Stock, par
    value $.001&#160;per share, of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Cure Date</U>&#148; shall have the meaning set forth in
    paragraph&#160;4(a) of Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Date of Original Issue</U>&#148; means
    [&#160;&#160;&#160;&#160;&#160;], and for the purposes of these
    Articles&#160;Supplementary shall mean with respect to any other
    class or series of Preferred Stock the date upon which shares of
    such class or series are first issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Deposit Assets</U>&#148; means cash, Short-Term Money
    Market Instruments and U.S.&#160;Government Obligations. Except
    for determining whether the Corporation has Moody&#146;s
    Eligible Assets with an Adjusted Value equal to or greater than
    the Basic Maintenance Amount, each Deposit Asset shall be deemed
    to have a value equal to its principal or face amount payable at
    maturity plus any interest payable thereon after delivery of
    such Deposit Asset but only if payable on or prior to the
    applicable payment date in advance of which the relevant deposit
    is made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Discounted Value&#148;</U> means, as applicable,
    (a)&#160;the quotient of the Market Value of an Eligible Asset
    divided by the applicable Moody&#146;s Discount Factor or
    (b)&#160;such other formula for determining the discounted value
    of an Eligible Asset as may be established by an applicable
    Rating Agency, provided, in either case that with respect to an
    Eligible Asset that is currently callable, Discounted Value will
    be equal to the applicable quotient or product as calculated
    above or the call price, whichever is lower, and that with
    respect to an Eligible Asset that is prepayable, Discounted
    Value will be equal to the applicable quotient or product as
    calculated above or the par value, whichever is lower.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Dividend-Disbursing Agent</U>&#148; means, with respect
    to the Series&#160;F Preferred Stock, Computershare Trust
    Company, N.A. and its successors or any other
    dividend-disbursing agent appointed by the Corporation and, with
    respect to any other class or series of Preferred Stock, the
    Person appointed by the Corporation as dividend-disbursing or
    paying agent with respect to such class or series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Dividend Payment Date</U>&#148; means with respect to
    the Series&#160;F Preferred Stock, any date on which dividends
    and distributions declared by the Board of Directors thereon are
    payable pursuant to the provisions
</DIV>

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    <BR>
    4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of paragraph&#160;2(a) of Article&#160;II of these
    Articles&#160;Supplementary and shall for the purposes of these
    Articles&#160;Supplementary have a correlative meaning with
    respect to any other class or series of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Dividend Period</U>&#148; shall have the meaning set
    forth in paragraph&#160;2(a) of Article&#160;II hereof, and for
    the purposes of these Articles&#160;Supplementary shall have a
    correlative meaning with respect to any other class or series of
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Eligible Assets</U>&#148; means Moody&#146;s Eligible
    Assets (if Moody&#146;s is then rating the Series&#160;F
    Preferred Stock at the request of the Corporation), S&#38;P
    Eligible Assets (if S&#38;P is then rating the Series&#160;F
    Preferred Shares at the request of the Corporation)
    <FONT style="white-space: nowrap">and/or</FONT> Other
    Rating Agency Eligible Assets if any Other Rating Agency is then
    rating the Series&#160;F Preferred Stock or any other
    outstanding series of Preferred Stock, whichever is applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Governing Documents</U>&#148; means the Charter and the
    By-Laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Independent Accountant</U>&#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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Liquidation Preference</U>&#148; shall, with respect to
    the Series&#160;F Preferred Stock, have the meaning set forth in
    paragraph&#160;3(a) of Article&#160;II hereof, and for the
    purposes of these Articles&#160;Supplementary shall have a
    correlative meaning with respect to any other class or series of
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Market Value</U>&#148; means the amount determined by
    the Corporation with respect to Moody&#146;s Eligible Assets in
    accordance with valuation policies adopted from time to time by
    the Board of Directors as being in compliance with the
    requirements of the 1940 Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, &#147;Market Value&#148; may, at
    the option of the Corporation with respect to any of its assets,
    mean the amount determined with respect to specific Moody&#146;s
    Eligible Assets of the Corporation in the manner set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;as to any common or preferred stock which is a
    Moody&#146;s Eligible Asset, (i)&#160;if the stock is traded on
    a national securities exchange or quoted on the Nasdaq System,
    the last sales price reported on the Valuation Date or
    (ii)&#160;if there was no reported sales price on the Valuation
    Date, the lower of two bid prices for such stock provided to the
    Administrator by two recognized securities dealers with minimum
    capitalizations of $25,000,000 (or otherwise approved for such
    purpose by Moody&#146;s) or by one such securities dealer and
    any other source (provided that the utilization of such source
    would not adversely affect Moody&#146;s then-current rating of
    the Series&#160;F Preferred Stock), at least one of which shall
    be provided in writing or by telecopy, telex, other electronic
    transcription, computer obtained quotation reducible to written
    form or similar means, and in turn provided to the Corporation
    by any such means by such Administrator, or, if two bid prices
    cannot be obtained, such Moody&#146;s Eligible Asset shall have
    a Market Value of zero;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;as to any U.S.&#160;Government Obligation, Short Term
    Money Market Instrument (other than demand deposits, federal
    funds, bankers&#146; acceptances and next Business Day
    repurchase agreements) and commercial paper with a maturity of
    greater than 60&#160;days, the product of (i)&#160;the principal
    amount (accreted principal to the extent such instrument
    accretes interest) of such instrument, and (ii)&#160;the lower
    of the bid prices for the same kind of instruments having, as
    nearly as practicable, comparable interest rates and maturities
    provided by two recognized securities dealers having a minimum
    capitalization of $25,000,000 (or otherwise approved for such
    purpose by Moody&#146;s) or by one such dealer and any other
    source (provided that the utilization of such source would not
    adversely affect Moody&#146;s then-current rating of the
    Series&#160;F Preferred Stock) to the Administrator, at least
    one of which shall be provided in writing or by telecopy, telex,
    other electronic transcription, computer obtained quotation
    reducible to written form or similar means, and in turn provided
    to the Corporation by any such means by such Administrator, or,
    if two bid prices cannot be obtained, such Moody&#146;s Eligible
    Asset will have a Market Value of zero;
</DIV>

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    <BR>
    5
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;as to cash, demand deposits, federal funds,
    bankers&#146; acceptances and next Business Day repurchase
    agreements included in Short-Term Money Market Instruments, the
    face value thereof;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;as to any U.S.&#160;Government Obligation, Short-Term
    Money Market Instrument or commercial paper with a maturity of
    60&#160;days or fewer, amortized cost unless the Board of
    Directors determines that such value does not constitute fair
    value;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;as to any other evidence of indebtedness which is a
    Moody&#146;s Eligible Asset, (i)&#160;the product of
    (A)&#160;the unpaid principal balance of such indebtedness as of
    the Valuation Date and (B)(1) if such indebtedness is traded on
    a national securities exchange or quoted on the Nasdaq System,
    the last sales price reported on the Valuation Date or
    (2)&#160;if there was no reported sales price on the Valuation
    Date or if such indebtedness is not traded on a national
    securities exchange or quoted on the Nasdaq System, the lower of
    two bid prices for such indebtedness provided by two recognized
    dealers with a minimum capitalization of $25,000,000 (or
    otherwise approved for such purpose by Moody&#146;s) or by one
    such dealer and any other source (provided that the utilization
    of such source would not adversely affect Moody&#146;s
    then-current rating of the Series&#160;F Preferred Stock) to the
    Administrator, at least one of which shall be provided in
    writing or by telecopy, telex, other electronic transcription,
    computer obtained quotation reducible to written form or similar
    means, and in turn provided to the Corporation by any such means
    by such Administrator, plus (ii)&#160;accrued interest on such
    indebtedness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Monthly Valuation Date</U>&#148; means the last
    Valuation Date of each calendar month.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Moody&#146;s</U>&#148; means Moody&#146;s Investors
    Service, Inc., or its successors at law. In the event that
    Moody&#146;s is no longer rating the Series&#160;F Preferred
    Stock at the request of the Corporation,
    &#147;Moody&#146;s&#148; shall be deemed to refer to any other
    nationally recognized securities rating agency designated by the
    Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Moody&#146;s Discount Factor&#148; means, with respect to
    a Moody&#146;s Eligible Asset specified below, the following
    applicable number:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="23%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Moody&#146;s <BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Discount <BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Factor</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Short Term Money Market
    Instruments (other than U.S.&#160;Government Obligations set
    forth below) and other commercial paper:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Treasury Securities with
    final maturities that are less than or equal to 60&#160;days
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Demand or time deposits,
    certificates of deposit and bankers&#146; acceptances includible
    in Short Term Money Market Instruments
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">P-1</FONT> by
    Moody&#146;s maturing in 30&#160;days or less
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Commercial paper rated
    <FONT style="white-space: nowrap">P-1</FONT> by
    Moody&#146;s maturing in more than 30&#160;days but in
    270&#160;days or less Commercial paper rated
    <FONT style="white-space: nowrap">A-1+</FONT> by
    S&#38;P maturing in 270&#160;days or less
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.25
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Repurchase obligations includible
    in Short Term Money Market Instruments if term is less than
    30&#160;days and counterparty is rated at least A2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">1.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Other repurchase obligations
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">Discount Factor applicable<BR>
    to underlying assets
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">U.S.&#160;Common Stocks and Common
    Stocks of foreign issuers for which ADR&#146;s are traded: Large
    Cap Stocks (Market Capitalization in excess of $10&#160;billion)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.00
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Mid Cap Stocks (Market
    Capitalization in between $2&#160;billion and $10&#160;billion)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.05
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Small Cap Stocks (Market
    Capitalization less than $2&#160;billion)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">2.20
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Common Stocks of foreign issuers
    (in existence for at least five years) for which no ADR&#146;s
    are traded
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">4.00
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Discount Factors are for a
    <FONT style="white-space: nowrap">7-week</FONT>
    exposure period; the Discount Factor applicable to
    Rule&#160;144A securities shall be increased by 20%. Unless
    conclusions regarding liquidity risk and estimates of both the
    probability </TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    and severity of default for the Corporation&#146;s assets can be
    derived from other sources, securities rated below B by
    Moody&#146;s and unrated securities, which are securities rated
    by neither Moody&#146;s, S&#38;P nor Fitch, are limited to 10%
    of Moody&#146;s Eligible Assets. If a convertible corporate debt
    security is unrated by Moody&#146;s, S&#38;P or Fitch, the
    Corporation will use the percentage set forth under
    &#147;NR&#148; in this table. Ratings assigned by S&#38;P or
    Fitch are generally accepted by Moody&#146;s at face value.
    However, adjustments to face value may be made to particular
    categories of credits for which the S&#38;P
    <FONT style="white-space: nowrap">and/or</FONT> Fitch
    rating does not seem to approximate a Moody&#146;s rating
    equivalent. Securities with different ratings assigned by
    S&#38;P and Fitch will be accepted at the lower of the two
    ratings.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Moody&#146;s <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Discount <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Factor</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Convertible Preferred Stocks
    and Convertible Corporate Debt Securities having a delta range
    of:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">.8-.4 (investment grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">.8-.4 (below investment grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1-.8 (investment grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1-.8 (below investment grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Convertible Preferred Stocks and
    Convertible Corporate Debt Securities that are unrated Preferred
    stocks:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Auction rate preferred stocks
    Other preferred stock rated:
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aaa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Baa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ba
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Less than B or not rated
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">DRD Preferred (investment grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">DRD Preferred (below investment
    grade)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">U.S.&#160;Government
    Obligations (other than U.S.&#160;Treasury Securities Strips set
    forth below) with remaining terms to maturity of:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Moody&#146;s <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Discount <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Factor</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">U.S.&#160;Treasury Securities
    Strips with remaining terms to maturity of:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Corporate Debt:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Convertible corporate debt
    having a delta range of .4-0, and non-convertible corporate
    debt, rated at least Aa1 with remaining terms to maturity
    of:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Convertible corporate debt
    having a delta range of .4-0, and non-convertible corporate
    debt, rated at least Aa3 with remaining terms to maturity
    of:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Moody&#146;s <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Discount <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Factor</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Convertible corporate debt
    having a delta range of .4-0, and non-convertible corporate
    debt, rated at least A3 with remaining terms to maturity
    of:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;year s or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Convertible corporate debt
    having a delta range of .4-0, and non-convertible corporate
    debt, rated at least Baa3 with remaining terms of maturity
    of:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Convertible corporate debt
    having a delta range of .4-0, and non-convertible corporate
    debt, rated at least Ba3 with remaining terms of maturity
    of:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.37
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Moody&#146;s <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Discount <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Moody&#146;s Eligible Asset:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Factor</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Convertible corporate debt
    having a delta range of .4-0, and non-convertible corporate
    debt, rated at least B1 and B2 with remaining terms of maturity
    of:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1&#160;year or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">4&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">5&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">7&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">10&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">15&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">20&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">30&#160;years or less
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Greater than 30&#160;years
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Discount Factors are for a
    <FONT style="white-space: nowrap">7-week</FONT>
    exposure period; the Discount Factor applicable to
    Rule&#160;144A securities shall be increased by 20%. Unless
    conclusions regarding liquidity risk and estimates of both the
    probability and severity of default for the Corporation&#146;s
    assets can be derived from other sources, securities rated below
    B by Moody&#146;s and unrated securities, which are securities
    rated by neither Moody&#146;s, S&#38;P nor Fitch, are limited to
    10% of Moody&#146;s Eligible Assets. If a convertible corporate
    debt security is unrated by Moody&#146;s, S&#38;P or Fitch, the
    Corporation will use the percentage set forth under
    &#147;NR&#148; in this table. Ratings assigned by S&#38;P or
    Fitch are generally accepted by Moody&#146;s at face value.
    However, adjustments to face value may be made to particular
    categories of credits for which the S&#38;P
    <FONT style="white-space: nowrap">and/or</FONT> Fitch
    rating does not seem to approximate a Moody&#146;s rating
    equivalent. Securities with different ratings assigned by
    S&#38;P and Fitch will be accepted at the lower of the two
    ratings.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Moody&#146;s Eligible Assets</U>&#148; means:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;cash (including, for this purpose, receivables for
    investments sold to a counterparty whose senior debt securities
    are rated at least Baa3 by Moody&#146;s or a counterparty
    approved by Moody&#146;s and payable within five Business Days
    following such Valuation Date and dividends and interest
    receivable within 70&#160;days on investments);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Short-Term Money Market Instruments;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;commercial paper that is not includible as a Short-Term
    Money Market Instrument having on the Valuation Date a rating
    from Moody&#146;s of at least
    <FONT style="white-space: nowrap">P-1</FONT> and
    maturing within 270&#160;days;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;preferred stocks including convertible preferred
    (i)&#160;which either (A)&#160;are issued by issuers whose
    senior debt securities are rated at least Baa1 by Moody&#146;s,
    (B)&#160;are rated at least Baa3 by Moody&#146;s or (C)&#160;in
    the event an issuer&#146;s senior debt securities or preferred
    stock is not rated by Moody&#146;s, which either (1)&#160;are
    issued by an issuer whose senior debt securities are rated at
    least A&#8722; by S&#38;P or (2)&#160;are rated at least A- by
    S&#38;P and for this purpose have been assigned a Moody&#146;s
    equivalent rating of at least Baa3, (ii)&#160;of issuers which
    have (or, in the case of issuers which are special purpose
    corporations, whose parent companies have) common stock listed
    on the New York Stock Exchange, the American Stock Exchange or
    the Nasdaq National Market System, (iii)&#160;which have a
    minimum issue size (when taken together with other of the
    issuer&#146;s issues of similar tenor) of $40,000,000,
    (iv)&#160;which have paid cash dividends consistently during the
    preceding three-year period (or, in the case of new issues
    without a dividend history, are rated at least A1 by
    Moody&#146;s or, if not rated by Moody&#146;s, are rated at
    least A+ by S&#38;P), (v)&#160;which pay cumulative cash
    dividends in U.S.&#160;dollars, (vi)&#160;which do not have
    warrants attached, (vii)&#160;which are not issued by issuers in
    the transportation industry and (viii)&#160;in the case of
    auction rate
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    preferred stocks, which are rated at least Aa3 by Moody&#146;s,
    or if not rated by Moody&#146;s, AA- by S&#38;P, AA- by Fitch or
    are otherwise approved in writing by Moody&#146;s and have never
    had a failed auction; <I>provided, however, </I>that for this
    purpose the aggregate Market Value of the Corporation&#146;s
    holdings of any single issue of auction rate preferred stock
    shall not be more than 1% of the Corporation&#146;s total assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;common stocks (i)&#160;(A)&#160;which are traded on a
    nationally recognized stock exchange or in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market, (B)&#160;if cash dividend paying, pay cash dividends in
    U.S.&#160;dollars and (C)&#160;which may be sold without
    restriction by the Corporation; <I>provided, however, </I>that
    (y)&#160;common stock which, while a Moody&#146;s Eligible Asset
    owned by the Corporation, ceases paying any regular cash
    dividend will no longer be considered a Moody&#146;s Eligible
    Asset until 71&#160;days after the date of the announcement of
    such cessation, unless the issuer of the common stock has senior
    debt securities rated at least A3 by Moody&#146;s and
    (z)&#160;the aggregate Market Value of the Corporation&#146;s
    holdings of the common stock of any issuer in excess of 4% in
    the case of utility common stock and 6% in the case of
    non-utility common stock of the aggregate Market Value of the
    Corporation&#146;s holdings shall not be Moody&#146;s Eligible
    Assets, (ii)&#160;which are securities denominated in any
    currency other than the U.S.&#160;dollar or securities of
    issuers formed under the laws of jurisdictions other than the
    United States, its states and the District of Columbia for which
    there are dollar-denominated ADRs or their equivalents which are
    traded in the United States on exchanges or
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    and are issued by banks formed under the laws of the United
    States, its states or the District of Columbia or
    (iii)&#160;which are securities of issuers formed under the laws
    of jurisdictions other than the United States (and in existence
    for at least five years) for which no ADRs are traded;
    <I>provided, however,</I> that the aggregate Market Value of the
    Corporation&#146;s holdings of securities denominated in
    currencies other than the U.S.&#160;dollar and ADRs in excess of
    (A)&#160;6% of the aggregate Market Value of the outstanding
    shares of common stock of such issuer thereof or (B)&#160;10% of
    the Market Value of the Corporation&#146;s Moody&#146;s Eligible
    Assets with respect to issuers formed under the laws of any
    single such
    <FONT style="white-space: nowrap">non-U.S.&#160;jurisdiction</FONT>
    other than Australia, Belgium, Canada, Denmark, Finland, France,
    Germany, Ireland, Italy, Japan, Luxembourg, the Netherlands, New
    Zealand, Norway, Portugal, Spain, Sweden, Switzerland and the
    United Kingdom, shall not be a Moody&#146;s Eligible Asset;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;ADR securities, based on the following guidelines:
    (i)&#160;Sponsored ADR program or (ii)&#160;Level&#160;II or
    Level&#160;III ADRs. Private placement Rule&#160;144A ADRs are
    not eligible for collateral consideration. Global GDR programs
    will be evaluated on a case by case basis;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;U.S.&#160;Government Obligations;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;corporate evidences of indebtedness (i)&#160;which may
    be sold without restriction by the Corporation which are rated
    at least B3 (Caa subordinate) by Moody&#146;s (or, in the event
    the security is not rated by Moody&#146;s, the security is rated
    at least B&#8722; by S&#38;P and which for this purpose is
    assigned a Moody&#146;s equivalent rating of one full rating
    category lower), with such rating confirmed on each Valuation
    Date, (ii)&#160;which have a minimum issue size of at least
    (A)&#160;$100,000,000 if rated at least Baa3 or
    (B)&#160;$50,000,000 if rated B or Ba3, (iii)&#160;which are not
    convertible or exchangeable into equity of the issuing
    corporation and have a maturity of not more than 30&#160;years
    and (iv)&#160;for which, if rated below Baa3 or not rated, the
    aggregate Market Value of the Corporation&#146;s holdings do not
    exceed 10% of the aggregate Market Value of any individual issue
    of corporate evidences of indebtedness calculated at the time of
    original issuance;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;convertible corporate evidences of indebtedness
    (i)&#160;which are issued by issuers whose senior debt
    securities are rated at least B2 by Moody&#146;s (or, in the
    event an issuer&#146;s senior debt securities are not rated by
    Moody&#146;s, which are issued by issuers whose senior debt
    securities are rated at least B by S&#38;P and which for this
    purpose is assigned a Moody&#146;s equivalent rating of one full
    rating category lower), (ii)&#160;which are convertible into
    common stocks which are traded on the New York Stock Exchange or
    the American Stock Exchange or are quoted on the Nasdaq National
    Market System and (iii)&#160;which, if cash dividend paying, pay
    cash dividends in U.S.&#160;dollars; <I>provided, however,
    </I>that once convertible corporate evidences of indebtedness
    have been converted into common stock, the common stock issued
    upon
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    conversion must satisfy the criteria set forth in
    clause&#160;(e) above and other relevant criteria set forth in
    this definition in order to be a Moody&#146;s Eligible Asset;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>provided, however, </I>that the Corporation&#146;s
    investments in auction rate preferred stocks described in
    clause&#160;(d) above shall be included in Moody&#146;s Eligible
    Assets only to the extent that the aggregate Market Value of
    such stocks does not exceed 10% of the aggregate Market Value of
    all of the Corporation&#146;s investments meeting the criteria
    set forth in clauses&#160;(a) through (g)&#160;above less the
    aggregate Market Value of those investments excluded from
    Moody&#146;s Eligible Assets pursuant to the paragraph appearing
    after clause&#160;(j) below;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;no assets which are subject to any lien or irrevocably
    deposited by the Corporation for the payment of amounts needed
    to meet the obligations described in clauses&#160;(a)(i) through
    (a)(iv) of the definition of &#147;Basic Maintenance
    Amount&#148; may be includible in Moody&#146;s Eligible Assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding anything to the contrary in the preceding
    clauses&#160;(a)-(j), the Corporation&#146;s investment in
    preferred stock, common stock, corporate evidences of
    indebtedness and convertible corporate evidences of indebtedness
    shall not be treated as Moody&#146;s Eligible Assets except to
    the extent they satisfy the following diversification
    requirements (utilizing Moody&#146;s Industry and
    <FONT style="white-space: nowrap">Sub-industry</FONT>
    Categories) with respect to the Market Value of the
    Corporation&#146;s holdings:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuer:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Moody&#146;s Rating&#160;(1 2)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Single Issuer&#160;(1 2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Single Issuer&#160;(3 4)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aaa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">CS/CB, Baa&#160;(5)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ba
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B1/B2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B3 or below
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Industry
    and State:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Utility<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Moody&#146;s Rating&#160;(1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Single Industry&#160;(3)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Single
    <FONT style="white-space: nowrap">Sub-Industry&#160;(3</FONT>
    6)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Single Industry&#160;(3)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aaa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Aa
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">A
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">CS/CB, Baa&#160;(5)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
    %&#160;(7)
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Ba
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %&#160;(7)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B1/B2
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">B3 or below
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Unless conclusions regarding liquidity risk as well as estimates
    of both the probability and severity of default for the
    Corporation&#146;s assets can be derived from other sources,
    securities rated below B by Moody&#146;s and unrated securities,
    which are securities rated by neither Moody&#146;s, S&#38;P nor
    Fitch, are limited to 10% of Moody&#146;s Eligible Assets. If a
    corporate, municipal or other debt security is unrated by
    Moody&#146;s, S&#38;P or Fitch, the Corporation will use the
    percentage set forth under &#147;B3 or below&#148; in this
    table. Ratings assigned by S&#38;P or Fitch are generally
    accepted by Moody&#146;s at face value. However, adjustments to
    face value may be made to particular categories of credits for
    which the S&#38;P
    <FONT style="white-space: nowrap">and/or</FONT> Fitch
    rating does not seem to approximate a Moody&#146;s rating
    equivalent.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Corporate evidences of indebtedness from issues ranging
    $50,000,000 to $100,000,000 are limited to 20% of Moody&#146;s
    Eligible Assets.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    The referenced percentages represent maximum cumulative totals
    only for the related Moody&#146;s rating category and each lower
    Moody&#146;s rating category.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Issuers subject to common ownership of 25% or more are
    considered as one name.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    CS/CB refers to common stock and convertible corporate evidences
    of indebtedness, which are diversified independently from the
    rating level.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    In the case of utility common stock, utility preferred stock,
    utility evidences of indebtedness and utility convertible
    evidences of indebtedness, the definition of industry refers to
    sub-industries (electric, water, hydro power, gas, diversified).
    Investments in other sub-industries are eligible only to the
    extent that the combined sum represents a percentage position of
    the Moody&#146;s Eligible Assets less than or equal to the
    percentage limits in the diversification tables above.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Such percentage shall be 15% in the case of utilities regulated
    by California, New York and Texas.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Moody&#146;s Industry Classifications</U>&#148; means
    for the purposes of determining Moody&#146;s Eligible Assets,
    each of the following industry classifications (or such other
    classifications as Moody&#146;s may from time to time approve
    for application to the Series&#160;F Preferred Stock).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Aerospace and Defense: Major Contractor, Subsystems,
    Research, Aircraft Manufacturing, Arms, Ammunition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Automobile: Automobile Equipment, Auto-Manufacturing,
    Auto Parts Manufacturing, Personal Use Trailers, Motor Homes,
    Dealers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Banking: Bank Holding, Savings and Loans, Consumer
    Credit, Small Loan, Agency, Factoring, Receivables.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Beverage, Food and Tobacco: Beer and Ale, Distillers,
    Wines and Liquors, Distributors, Soft Drink Syrup, Bottlers,
    Bakery, Mill Sugar, Canned Foods, Corn Refiners, Dairy Products,
    Meat Products, Poultry Products, Snacks, Packaged Foods,
    Distributors, Candy, Gum, Seafood, Frozen Food, Cigarettes,
    Cigars, Leaf/Snuff, Vegetable Oil.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Buildings and Real Estate: Brick, Cement, Climate
    Controls, Contracting, Engineering, Construction, Hardware,
    Forest Products (building-related only), Plumbing, Roofing,
    Wallboard, Real Estate, Real Estate Development, REITs, Land
    Development.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;Chemicals, Plastics and Rubber: Chemicals
    (non-agricultural), Industrial Gases, Sulphur, Plastics, Plastic
    Products, Abrasives, Coatings, Paints, Varnish, Fabricating
    Containers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;Packaging and Glass: Glass, Fiberglass, Containers made
    of: Glass, Metal, Paper, Plastic, Wood or Fiberglass.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;Personal and Non-Durable Consumer Products
    (Manufacturing Only): Soaps, Perfumes, Cosmetics, Toiletries,
    Cleaning Supplies, School Supplies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;Diversified/Conglomerate Manufacturing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.&#160;Diversified/Conglomerate Service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.&#160;Diversified Natural Resources, Precious Metals and
    Minerals: Fabricating, Distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.&#160;Ecological: Pollution Control, Waste Removal, Waste
    Treatment and Waste Disposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.&#160;Electronics: Computer Hardware, Electric Equipment,
    Components, Controllers, Motors, Household Appliances,
    Information Service Communication Systems, Radios, TVs, Tape
    Machines, Speakers, Printers, Drivers, Technology.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14.&#160;Finance: Investment Brokerage, Leasing, Syndication,
    Securities.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.&#160;Farming and Agriculture: Livestock, Grains, Produce,
    Agriculture Chemicals, Agricultural Equipment, Fertilizers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.&#160;Grocery: Grocery Stores, Convenience Food Stores.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    17.&#160;Healthcare, Education and Childcare: Ethical Drugs,
    Proprietary Drugs, Research, Health Care Centers, Nursing Homes,
    HMOs, Hospitals, Hospital Supplies, Medical Equipment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    18.&#160;Home and Office Furnishings, Housewares, and Durable
    Consumer Products: Carpets, Floor Coverings, Furniture, Cooking,
    Ranges.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    19.&#160;Hotels, Motels, Inns and Gaming.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    20.&#160;Insurance: Life, Property and Casualty, Broker, Agent,
    Surety.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    21.&#160;Leisure, Amusement, Motion Pictures, Entertainment:
    Boating, Bowling, Billiards, Musical Instruments, Fishing, Photo
    Equipment, Records, Tapes, Sports, Outdoor Equipment (Camping),
    Tourism, Resorts, Games, Toy Manufacturing, Motion Picture
    Production Theaters, Motion Picture Distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    22.&#160;Machinery (Non-Agricultural, Non-Construction,
    Non-Electronic): Industrial, Machine Tools, Steam Generators.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    23.&#160;Mining, Steel, Iron and Non-Precious Metals: Coal,
    Copper, Lead, Uranium, Zinc, Aluminum, Stainless Steel,
    Integrated Steel, Ore Production, Refractories, Steel Mill
    Machinery, Mini-Mills, Fabricating, Distribution and Sales of
    the foregoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    24.&#160;Oil and Gas: Crude Producer, Retailer, Well Supply,
    Service and Drilling.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    25.&#160;Printing, Publishing, and Broadcasting: Graphic Arts,
    Paper, Paper Products, Business Forms, Magazines, Books,
    Periodicals, Newspapers, Textbooks, Radio, T.V., Cable
    Broadcasting Equipment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    26.&#160;Cargo Transport: Rail, Shipping, Railroads, Rail-car
    Builders, Ship Builders, Containers, Container Builders, Parts,
    Overnight Mail, Trucking, Truck Manufacturing, Trailer
    Manufacturing, Air Cargo, Transport.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    27.&#160;Retail Stores: Apparel, Toy, Variety, Drugs,
    Department, Mail Order Catalog, Showroom.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    28.&#160;Telecommunications: Local, Long Distance, Independent,
    Telephone, Telegraph, Satellite, Equipment, Research, Cellular.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    29.&#160;Textiles and Leather: Producer, Synthetic Fiber,
    Apparel Manufacturer, Leather Shoes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    30.&#160;Personal Transportation: Air, Bus, Rail, Car Rental.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    31.&#160;Utilities: Electric, Water, Hydro Power, Gas.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    32.&#160;Diversified Sovereigns: Semi-sovereigns, Canadian
    Provinces, Supra-national Agencies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Corporation will use SIC codes in determining which industry
    classification is applicable to a particular investment, in
    consultation with the Independent Accountant and Moody&#146;s,
    to the extent the Corporation considers necessary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>1933&#160;Act</U>&#148; means the Securities Act of
    1933, as amended, or any successor statute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>1940 Act</U>&#148; means the Investment Company Act of
    1940, as amended, or any successor statute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Notice of Redemption</U>&#148; shall have the meaning
    set forth in paragraph&#160;4(c)(i) of Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Other Rating Agency</U>&#148; means any rating agency
    other than Moody&#146;s then providing a rating for the
    Series&#160;F Preferred Stock at the request of the Corporation.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END LOGICAL PAGE -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Outstanding</U>&#148; means, as of any date, Preferred
    Stock theretofore issued by the Corporation except:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;any such share of Preferred Stock theretofore cancelled
    by the Corporation or delivered to the Corporation for
    cancellation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;any such share of Preferred Stock other than auction
    rate Preferred Stock as to which a notice of redemption shall
    have been given and for whose payment at the redemption thereof
    Deposit Assets in the necessary amount are held by the
    Corporation in trust for, or have been irrevocably deposited
    with the relevant disbursing agent for payment to, the holder of
    such share pursuant to these Articles&#160;Supplementary with
    respect thereto;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;in the case of auction rate Preferred Stock, any such
    shares theretofore delivered to the auction agent for
    cancellation or with respect to which the Corporation has given
    notice of redemption and irrevocably deposited with the paying
    agent sufficient funds to redeem such shares;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;any such share in exchange for or in lieu of which
    other shares have been issued and delivered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, (i)&#160;for purposes of voting
    rights (including the determination of the number of shares
    required to constitute a quorum), any shares of Preferred Stock
    as to which any subsidiary of the Corporation is the holder will
    be disregarded and deemed not Outstanding, and (ii)&#160;in
    connection with any auction of shares of auction rate Preferred
    Stock as to which the Corporation or any Person known to the
    auction agent to be a subsidiary of the Corporation is the
    holder will be disregarded and not deemed Outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Person</U>&#148; means and includes an individual, a
    partnership, the Corporation, a trust, a corporation, a limited
    liability company, an unincorporated association, a joint
    venture or other entity or a government or any agency or
    political subdivision thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Preferred Stock</U>&#148; means the preferred stock,
    par value $.001&#160;per share, of the Corporation, and includes
    the Series&#160;F Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Pricing Service</U>&#148; means any of the following:
    Bloomberg Financial Service, Bridge Information Services, Data
    Resources Inc., FT Interactive, International Securities Market
    Association, Merrill Lynch Securities Pricing Service, Muller
    Data Corp., Reuters, S&#38;P/J.J. Kenny, Telerate, Trepp Pricing
    and Wood Gundy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Redemption&#160;Price</U>&#148; has the meaning set
    forth in paragraph&#160;4(a) of Article&#160;II hereof, and for
    the purposes of these Articles&#160;Supplementary shall have a
    correlative meaning with respect to any other class or series of
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>S&#38;P</U>&#148; means Standard&#160;&#38; Poor&#146;s
    Ratings Services, or its successors at law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Series&#160;F Preferred Stock</U>&#148; means the
    [&#160;&#160;&#160;&#160;&#160;]% Series&#160;F Cumulative
    Preferred Stock, par value $.001&#160;per share, of the
    Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Series&#160;F Asset Coverage Cure Date</U>&#148; means,
    with respect to the failure by the Corporation to maintain Asset
    Coverage (as required by paragraph&#160;6(a)(i) of
    Article&#160;II hereof) as of the last Business Day of each
    March, June, September and December of each year, 60&#160;days
    following such Business Day.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Short-Term Money Market Instruments</U>&#148; means the
    following types of instruments if, on the date of purchase or
    other acquisition thereof by the Corporation, the remaining term
    to maturity thereof is not in excess of 180&#160;days:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;commercial paper rated
    <FONT style="white-space: nowrap">A-1</FONT> if such
    commercial paper matures in 30&#160;days or
    <FONT style="white-space: nowrap">A-1+</FONT> if such
    commercial paper matures in over 30&#160;days;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;demand or time deposits in, and banker&#146;s
    acceptances and certificates of deposit of (A)&#160;a depository
    institution or trust company incorporated under the laws of the
    United States of America or any state thereof or the District of
    Columbia or (B)&#160;a United States branch office or agency of
    a foreign
</DIV>

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    <BR>
    15
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    depository institution (provided that such branch office or
    agency is subject to banking regulation under the laws of the
    United States, any state thereof or the District of Columbia);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;overnight funds;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;U.S.&#160;Government Obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>U.S.&#160;Government Obligations</U>&#148; means direct
    obligations of the United States or by its agencies or
    instrumentalities that are entitled to the full faith and credit
    of the United States and that, other than United States Treasury
    Bills, provide for the periodic payment of interest and the full
    payment of principal at maturity or call for redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Valuation Date</U>&#148; means the last Business Day of
    each month, or such other date as the Corporation and
    Moody&#146;s may agree to for purposes of determining the Basic
    Maintenance Amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;<U>Voting Period</U>&#148; shall have the meaning set
    forth in paragraph&#160;5(b) of Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;II
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SERIES&#160;F PREFERRED STOCK
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Number of Shares; Ranking.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The initial number of authorized shares constituting
    the Series&#160;F Preferred Stock to be issued is
    [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;].
    No fractional shares of Series&#160;F Preferred Stock shall be
    issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Shares of Series&#160;F Preferred Stock which at any
    time have been redeemed or purchased by the Corporation shall,
    after such redemption or purchase, have the status of authorized
    but unissued shares of Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The Series&#160;F Preferred Stock shall rank on a
    parity with any other series of Preferred Stock as to the
    payment of dividends, distributions and liquidation preference
    to which such stock is entitled.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;No holder of Series&#160;F Preferred Stock shall have,
    solely by reason of being such a holder, any preemptive or other
    right to acquire, purchase or subscribe for any shares of any
    Preferred Stock or Common Stock or other securities of the
    Corporation which it may hereafter issue or sell.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Dividends and Distributions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Holders of shares of Series&#160;F Preferred Stock
    shall be entitled to receive, when, as and if declared by the
    Board of Directors, out of funds legally available therefor,
    cumulative cash dividends and distributions at the rate of
    [&#160;&#160;] per annum (computed on the basis of a
    <FONT style="white-space: nowrap">360-day</FONT> year
    consisting of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months) of the Liquidation Preference on the Series&#160;F
    Preferred Stock and no more, payable quarterly on
    March&#160;26th, June&#160;26th, September&#160;26th&#160;and
    December&#160;26th&#160;in each year (each a &#147;<U>Dividend
    Payment Date</U>&#148;) commencing on December&#160;26, 2006
    (or, if any such day is not a Business Day, then on the next
    succeeding Business Day) to holders of record of Series&#160;F
    Preferred Stock as they appear on the stock register of the
    Corporation at the close of business on the fifth preceding
    Business Day in preference to dividends and distributions on
    shares of Common Stock and any other capital stock of the
    Corporation ranking junior to the Series&#160;F Preferred Stock
    in payment of dividends and distributions. Dividends and
    distributions on shares of Series&#160;F Preferred Stock shall
    accumulate from the date on which such shares are originally
    issued. Each period beginning on and including a Dividend
    Payment Date (or the Date of Original Issue, in the case of the
    first dividend period after issuance of such shares) and ending
    on but excluding the next succeeding Dividend Payment Date is
    referred to herein as a &#147;<U>Dividend Period.</U>&#148;
    Dividends and distributions on account of arrears for any past
    Dividend Period or in connection with the redemption of
    Series&#160;F Preferred Stock may be declared and paid at any
    time, without reference to any Dividend Payment Date, to holders
    of record on such date not exceeding 30&#160;days preceding the
    payment date thereof as shall be fixed by the Board of Directors.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;(i)&#160;No full dividends or distributions shall be
    declared or paid on shares of Series&#160;F Preferred Stock for
    any Dividend Period or part thereof unless full cumulative
    dividends and distributions due through the most recent Dividend
    Payment Dates therefor for all series of Preferred Stock of the
    Corporation ranking on a parity with the Series&#160;F Preferred
    Stock as to the payment of dividends and distributions have been
    or contemporaneously are declared and paid through the most
    recent Dividend Payment Dates therefor. If full cumulative
    dividends and distributions due have not been paid on all
    Outstanding shares of such Preferred Stock, any dividends and
    distributions being paid on such shares of Preferred Stock
    (including the Series&#160;F Preferred Stock) will be paid as
    nearly pro rata as possible in proportion to the respective
    amounts of dividends and distributions accumulated but unpaid on
    each such series of Preferred Stock on the relevant Dividend
    Payment Date. No holders of shares of Series&#160;F Preferred
    Stock shall be entitled to any dividends or distributions,
    whether payable in cash, property or stock, in excess of full
    cumulative dividends and distributions as provided in this
    paragraph&#160;2(b)(i) on shares of Series&#160;F Preferred
    Stock. No interest or sum of money in lieu of interest shall be
    payable in respect of any dividend payments on any shares of
    Series&#160;F Preferred Stock that may be in arrears.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;For so long as shares of Series&#160;F Preferred Stock
    are Outstanding, the Corporation shall not pay 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 Series&#160;F Preferred Stock as to payment of dividends and
    the distribution of assets upon liquidation) in respect of the
    Common Stock or any other stock of the Corporation ranking
    junior to the Series&#160;F Preferred Stock as to payment of
    dividends and the distribution of assets upon liquidation, or
    call for redemption, redeem, purchase or otherwise acquire for
    consideration any shares of Common Stock or any other stock of
    the Corporation ranking junior to the Series&#160;F Preferred
    Stock as to payment of dividends and the distribution of assets
    upon liquidation (except by conversion into or exchange for
    stock of the Corporation ranking junior to the Series&#160;F
    Preferred Stock as to payment of dividends and the distribution
    of assets upon liquidation), unless, in each case,
    (A)&#160;immediately thereafter, the aggregate Adjusted Value of
    the Corporation&#146;s Moody&#146;s Eligible Assets shall equal
    or exceed the Basic Maintenance Amount and the Corporation shall
    have Asset Coverage, (B)&#160;all cumulative dividends and
    distributions on all shares of Series&#160;F 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 applicable
    Dividend-Disbursing Agent) and (C)&#160;the Corporation has
    redeemed the full number of shares of Series&#160;F Preferred
    Stock to be redeemed mandatorily pursuant to any provision
    contained herein for mandatory redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Any dividend payment made on the shares of
    Series&#160;F Preferred Stock shall first be credited against
    the dividends and distributions accumulated with respect to the
    earliest Dividend Period for which dividends and distributions
    have not been paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Not later than the Business Day immediately preceding
    each Dividend Payment Date, the Corporation shall deposit with
    the Dividend-Disbursing Agent Deposit Assets having an initial
    combined value sufficient to pay the dividends and distributions
    that are payable on such Dividend Payment Date, which Deposit
    Assets shall mature on or prior to such Dividend Payment Date.
    The Corporation may direct the Dividend-Disbursing Agent with
    respect to the investment of any such Deposit Assets, provided
    that such investment consists exclusively of Deposit Assets and
    provided further that the proceeds of any such investment will
    be available at the opening of business on such Dividend Payment
    Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Liquidation Rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;In the event of any liquidation, dissolution or winding
    up of the affairs of the Corporation, whether voluntary or
    involuntary, the holders of shares of Series&#160;F Preferred
    Stock shall be entitled to receive out of the assets of the
    Corporation available for distribution to stockholders, after
    satisfying claims of creditors but before any distribution or
    payment shall be made in respect of the Common Stock or any
    other stock of the Corporation ranking junior to the
    Series&#160;F Preferred Stock as to liquidation payments, a
    liquidation distribution in the amount of $25.00&#160;per share
    (the &#147;<U>Liquidation Preference</U>&#148;), plus an amount
    equal to all unpaid dividends and distributions accumulated to
    and including the date fixed for such distribution or
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    payment (whether or not earned or declared by the Corporation,
    but excluding interest thereon), and such holders shall be
    entitled to no further participation in any distribution or
    payment in connection with any such liquidation, dissolution or
    winding up.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;If, upon any liquidation, dissolution or winding up of
    the affairs of the Corporation, whether voluntary or
    involuntary, the assets of the Corporation available for
    distribution among the holders of all Outstanding shares of
    Series&#160;F Preferred Stock, and any other Outstanding shares
    of a class or series of Preferred Stock of the Corporation
    ranking on a parity with the Series&#160;F Preferred Stock as to
    payment upon liquidation, shall be insufficient to permit the
    payment in full to such holders of Series&#160;F Preferred Stock
    of the Liquidation Preference plus accumulated and unpaid
    dividends and distributions and the amounts due upon liquidation
    with respect to such other Preferred Stock, then such available
    assets shall be distributed among the holders of shares of
    Series&#160;F Preferred Stock and such other Preferred Stock
    ratably in proportion to the respective preferential liquidation
    amounts to which they are entitled. Unless and until the
    Liquidation Preference plus accumulated and unpaid dividends and
    distributions has been paid in full to the holders of shares of
    Series&#160;F Preferred Stock, no dividends or distributions
    will be made to holders of the Common Stock or any other stock
    of the Corporation ranking junior to the Series&#160;F Preferred
    Stock as to liquidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares of the Series&#160;F Preferred Stock shall be redeemed by
    the Corporation as provided below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Mandatory Redemptions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Corporation is required to redeem any shares of Preferred
    Stock (which may include Series&#160;F Preferred Stock) pursuant
    to paragraphs&#160;6(b) or 6(c) of Article&#160;II hereof, then
    the Corporation shall, to the extent permitted by the 1940 Act
    and Maryland law, by the close of business on such Series&#160;F
    Asset Coverage Cure Date or Basic Maintenance Amount Cure Date
    (herein collectively referred to as a &#147;<U>Cure
    Date</U>&#148;), as the case may be, fix a redemption date and
    proceed to redeem shares as set forth in paragraph&#160;4(c)
    hereof. On such redemption date, the Corporation shall redeem,
    out of funds legally available therefor, the number of shares of
    Preferred Stock, which, to the extent permitted by the 1940 Act
    and Maryland law, at the option of the Corporation may include
    any proportion of Series&#160;F Preferred Stock or any other
    series of Preferred Stock, equal to the minimum number of shares
    the redemption of which, if such redemption had occurred
    immediately prior to the opening of business on such Cure Date,
    would have resulted in the Corporation having Asset Coverage or
    an Adjusted Value of its Moody&#146;s Eligible Assets equal to
    or greater than the Basic Maintenance Amount, as the case may
    be, immediately prior to the opening of business on such Cure
    Date or, if Asset Coverage or an Adjusted Value of its Eligible
    Assets equal to or greater than the Basic Maintenance Amount, as
    the case may be, cannot be so restored, all of the Outstanding
    shares of Series&#160;F Preferred Stock, at a price equal to
    $25.00&#160;per share plus accumulated but unpaid dividends
    (whether or not earned or declared by the Corporation) through
    the date of redemption (the
    &#147;<U>Redemption&#160;Price</U>&#148;). In the event that
    shares of Preferred Stock are redeemed pursuant to
    paragraphs&#160;6(b) or 6(c) of Article&#160;II hereof, the
    Corporation may, but is not required to, redeem a sufficient
    number of shares of Series&#160;F Preferred Stock pursuant to
    this paragraph&#160;4(a) which, when aggregated with other
    shares of Preferred Stock redeemed by the Corporation, permits
    the Corporation to have with respect to the shares of Preferred
    Stock (including the Series&#160;F Preferred Stock) remaining
    Outstanding after such redemption (i)&#160;Asset Coverage of as
    much as 220% and (ii)&#160;Moody&#146;s Eligible Assets with
    Adjusted Value of as great as 110% of the Basic Maintenance
    Amount. In the event that all of the shares of Series&#160;F
    Preferred Stock then Outstanding are required to be redeemed
    pursuant to paragraph&#160;6 of Article&#160;II hereof, the
    Corporation shall redeem such shares at the
    Redemption&#160;Price and proceed to do so as set forth in
    paragraph&#160;4(c) hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Optional Redemptions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to
    [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;],
    2011 the shares of Series&#160;F Preferred Stock are not subject
    to optional redemption by the Corporation unless such redemption
    is necessary, in the judgment of the Board of Directors, to
    maintain the Corporation&#146;s status as a regulated investment
    company under Subchapter M of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the Internal Revenue Code of 1986, as amended. Commencing on
    [&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;],
    2011 and thereafter, and prior thereto to the extent necessary
    to maintain the Corporation&#146;s status as a regulated
    investment company under Subchapter M of the Internal Revenue
    Code of 1986, as amended, to the extent permitted by the 1940
    Act and Maryland law, the Corporation may at any time upon
    Notice of Redemption redeem the Series&#160;F Preferred Stock in
    whole or in part at the Redemption&#160;Price per share, which
    notice shall specify a redemption date of not fewer than
    15&#160;days nor more than 40&#160;days after the date of such
    notice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Procedures for Redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;If the Corporation shall determine or be required to
    redeem shares of Series&#160;F Preferred Stock pursuant to this
    paragraph&#160;4, it shall mail a written notice of redemption
    (&#147;<U>Notice of Redemption</U>&#148;) with respect to such
    redemption by first class mail, postage prepaid, to each holder
    of the shares to be redeemed at such holder&#146;s address as
    the same appears on the stock books of the Corporation on the
    close of business on such date as the Board of Directors may
    determine, which date shall not be earlier than the second
    Business Day prior to the date upon which such Notice of
    Redemption is mailed to the holders of Series&#160;F Preferred
    Stock. Each such Notice of Redemption shall state: (A)&#160;the
    redemption date as established by the Board of Directors;
    (B)&#160;the number or percentage of shares of Series&#160;F
    Preferred Stock to be redeemed; (C)&#160;the CUSIP number(s) of
    such shares; (D)&#160;the Redemption&#160;Price (specifying the
    amount of accumulated dividends to be included therein);
    (E)&#160;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 in respect of such
    redemption; (F)&#160;that dividends and distributions on the
    shares to be redeemed will cease to accrue on such redemption
    date; (G)&#160;the provisions of this paragraph&#160;4 under
    which such redemption is made; and (H)&#160;in the case of a
    redemption pursuant to paragraph&#160;4(b), any conditions
    precedent to such redemption. If fewer than all shares of
    Series&#160;F Preferred Stock held by any holder are to be
    redeemed, the Notice of Redemption mailed to such holder also
    shall specify the number or percentage of shares to be redeemed
    from such holder. No defect in the Notice of Redemption or the
    mailing thereof shall affect the validity of the redemption
    proceedings, except as required by applicable law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;If the Corporation shall give a Notice of Redemption,
    then by the close of business on the Business Day preceding the
    redemption date specified in the Notice of Redemption (so long
    as any conditions precedent to such redemption have been met)
    or, if the Dividend-Disbursing Agent so agrees, another date not
    later than the redemption date, the Corporation shall
    (A)&#160;deposit with the Dividend-Disbursing Agent Deposit
    Assets that shall mature on or prior to such redemption date
    having an initial combined value sufficient to effect the
    redemption of the shares of Series&#160;F Preferred Stock to be
    redeemed and (B)&#160;give the Dividend-Disbursing Agent
    irrevocable instructions and authority to pay the
    Redemption&#160;Price to the holders of the shares of
    Series&#160;F Preferred Stock called for redemption on the
    redemption date. The Corporation may direct the
    Dividend-Disbursing Agent with respect to the investment of any
    Deposit Assets so deposited provided that the proceeds of any
    such investment will be available at the opening of business on
    such redemption date. Upon the date of such deposit (unless the
    Corporation shall default in making payment of the
    Redemption&#160;Price), all rights of the holders of the shares
    of Series&#160;F Preferred Stock so called for redemption shall
    cease and terminate except the right of the holders thereof to
    receive the Redemption&#160;Price thereof and such shares shall
    no longer be deemed Outstanding for any purpose. The Corporation
    shall be entitled to receive, promptly after the date fixed for
    redemption, any cash in excess of the aggregate Redemption Price
    of the shares of Series&#160;F Preferred Stock called for
    redemption on such date and any remaining Deposit Assets. Any
    assets so deposited that are unclaimed at the end of two years
    from such redemption date shall, to the extent permitted by law,
    be repaid to the Corporation, after which the holders of the
    shares of Series&#160;F Preferred Stock so called for redemption
    shall look only to the Corporation for payment of the
    Redemption&#160;Price thereof. The Corporation shall be entitled
    to receive, from time to time after the date fixed for
    redemption, any interest on the Deposit Assets so deposited.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;On or after the redemption date, each holder of
    shares of Series&#160;F Preferred Stock that are subject to
    redemption shall surrender the certificate evidencing such
    shares to the Corporation at the place
</DIV>

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    <BR>
    19
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    designated in the Notice of Redemption and shall then be
    entitled to receive the cash Redemption&#160;Price, without
    interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;In the case of any redemption of less than all of the
    shares of Series&#160;F Preferred Stock pursuant to these
    Articles&#160;Supplementary, such redemption shall be made pro
    rata from each holder of shares of Series&#160;F Preferred Stock
    in accordance with the respective number of shares held by each
    such holder on the record date for such redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;Notwithstanding the other provisions of this
    paragraph&#160;4, the Corporation shall not redeem shares of
    Series&#160;F Preferred Stock unless all accumulated and unpaid
    dividends and distributions on all Outstanding shares of
    Series&#160;F Preferred Stock and other Preferred Stock ranking
    on a parity with the Series&#160;F Preferred Stock with respect
    to dividends and distributions for all applicable past Dividend
    Periods (whether or not earned or declared by the Corporation)
    shall have been or are contemporaneously paid or declared and
    Deposit Assets for the payment of such dividends and
    distributions shall have been deposited with the
    Dividend-Disbursing Agent as set forth in paragraph&#160;2(c) of
    Article&#160;II hereof, provided, however, that the foregoing
    shall not prevent the purchase or acquisition of outstanding
    shares of Preferred Stock pursuant to the successful completion
    of an otherwise lawful purchase or exchange offer made on the
    same terms to holders of all Outstanding shares of Series&#160;F
    Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Corporation shall not have funds legally available for
    the redemption of, or is otherwise unable to redeem, all the
    shares of the Series&#160;F Preferred Stock or other Preferred
    Stock designated to be redeemed on any redemption date, the
    Corporation shall redeem on such redemption date the number of
    shares of Series&#160;F Preferred Stock and other Preferred
    Stock so designated as it shall have legally available funds, or
    is otherwise able, to redeem ratably on the basis of the
    Redemption&#160;Price from each holder whose shares are to be
    redeemed, and the remainder of the shares of the Series&#160;F
    Preferred Stock and other Preferred Stock designated to be
    redeemed shall be redeemed on the earliest practicable date on
    which the Corporation shall have funds legally available for the
    redemption of, or is otherwise able to redeem, such shares upon
    Notice of Redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Voting Rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;General.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise provided by law or as specified in the
    Charter, each holder of shares of Series&#160;F Preferred Stock
    and any other Preferred Stock shall be entitled to one vote for
    each share held on each matter submitted to a vote of
    stockholders of the Corporation, and the holders of Outstanding
    shares of Preferred Stock, including Series&#160;F Preferred
    Stock, and of shares of Common Stock shall vote together as a
    single class; <I>provided, however</I>, that at any meeting of
    the stockholders of the Corporation held for the election of
    directors, the holders of Outstanding shares of Preferred Stock,
    including Series&#160;F Preferred Stock, shall be entitled, as a
    class, to the exclusion of the holders of all other securities
    and classes of capital stock of the Corporation, to elect a
    number of the Corporation&#146;s directors, such that following
    the election of directors at the meeting of the stockholders,
    the Corporation&#146;s Board of Directors shall contain two
    directors elected by the holders of the Outstanding shares of
    Preferred Stock, including the Series&#160;F Preferred Stock.
    Subject to paragraph&#160;5(b) of Article&#160;II hereof, the
    holders of outstanding shares of capital stock of the
    Corporation, including the holders of Outstanding shares of
    Preferred Stock, including the Series&#160;F Preferred Stock,
    voting as a single class, shall elect the balance of the
    directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Right to Elect Majority of Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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;<U>Voting Period</U>&#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 pursuant to paragraph&#160;5(a) above,
    would constitute a majority of the Board of Directors as so
    increased by such smallest number; and the holders of shares of
    Preferred Stock shall be entitled, voting separately as one
    class (to the exclusion of the holders of all other securities
    and classes of capital stock of the Corporation), to elect such
    smallest number of additional
</DIV>

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    <BR>
    20
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    directors, together with the two directors that such holders are
    in any event entitled to elect pursuant to paragraph&#160;5(a)
    above. The Corporation and the Board of Directors shall take all
    necessary action, including amending the Corporation&#146;s
    bylaws, to effect an increase in the number of directors as
    described in the preceding sentence. A Voting Period shall
    commence:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;if at any time accumulated dividends and distributions
    (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 Series&#160;F Preferred Stock equal to at
    least two full years&#146; dividends and distributions shall be
    due and unpaid and sufficient cash or specified securities shall
    not have been deposited with the Dividend-Disbursing Agent for
    the payment of such accumulated dividends and
    distributions;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;if at any time holders of any other shares of
    Preferred Stock are entitled to elect a majority of the
    Directors of the Corporation under the 1940 Act or
    Articles&#160;Supplementary creating such shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the termination of a Voting Period, the voting rights
    described in this paragraph&#160;5(b) shall cease, subject
    always, however, to the reverting of such voting rights in the
    holders of Preferred Stock upon the further occurrence of any of
    the events described in this paragraph&#160;5(b).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Voting Procedures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;As soon as practicable after the accrual of any right
    of the holders of shares of Preferred Stock to elect additional
    directors as described in paragraph&#160;5(b) above, the
    Corporation shall call a special meeting of such holders and
    instruct the Dividend-Disbursing Agent to mail a notice of such
    special meeting to such holders, such meeting to be held not
    less than 10 nor more than 20&#160;days after the date of
    mailing of such notice. If the Corporation fails to send such
    notice to the Dividend-Disbursing Agent or if the Corporation
    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 day on which such
    notice is mailed or such other date as the Board of Directors
    shall determine. At any such special meeting and at each meeting
    held during a Voting Period, such holders of Preferred Stock,
    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&#160;5(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 such holders present in person or by
    proxy shall have the power to adjourn the meeting without
    notice, other than by an announcement at the meeting, to a date
    not more than 90&#160;days after the original record date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;For purposes of determining any rights of the holders
    of Series&#160;F Preferred Stock to vote on any matter or the
    number of shares required to constitute a quorum, whether such
    right is created by these Articles Supplementary, by the other
    provisions of the Charter, by statute or otherwise, a share of
    Series&#160;F Preferred Stock which is not Outstanding shall not
    be counted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;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 Series&#160;F Preferred Stock, to
    elect directors, shall continue following such meeting,
    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 two
    incumbent directors elected by the holders of Preferred Stock,
    including Series&#160;F Preferred Stock, and the remaining
    incumbent directors elected by the holders of the Common Stock
    and Preferred Stock, shall constitute the duly elected directors
    of the Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;Upon the expiration of a Voting Period, the terms of
    office of the additional directors elected by the holders of
    Preferred Stock pursuant to paragraph&#160;5(b) above shall
    expire at the earliest time permitted by law and the remaining
    directors shall constitute the directors of the Corporation and
    the voting rights of such holders of Preferred Stock, including
    Series&#160;F Preferred Stock, to elect additional directors
    pursuant to paragraph&#160;5(b) above shall cease, subject to
    the provisions of the last sentence of paragraph&#160;5(b). Upon
    the expiration of the terms of the directors elected by the
    holders of Preferred
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stock pursuant to paragraph&#160;5(b) above, the number of
    directors shall be automatically reduced to the number and
    composition of directors on the Board immediately preceding such
    Voting Period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Exclusive Remedy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise required by law, the holders of shares of
    Series&#160;F Preferred Stock shall not have any rights or
    preferences other than those specifically set forth herein. The
    holders of shares of Series&#160;F Preferred Stock shall have no
    preemptive rights or rights to cumulative voting. In the event
    that the Corporation fails to pay any dividends and
    distributions on the shares of Series&#160;F Preferred Stock,
    the exclusive remedy of the holders shall be the right to vote
    for directors pursuant to the provisions of this
    paragraph&#160;5.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Notification to Moody&#146;s.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event a vote of holders of Series&#160;F Preferred Stock
    is required pursuant to the provisions of Section&#160;13(a) of
    the 1940 Act, as long as the Series&#160;F Preferred Stock is
    rated by Moody&#146;s at the Corporation&#146;s request, the
    Corporation shall, not later than ten Business Days prior to the
    date on which such vote is to be taken, notify Moody&#146;s that
    such vote is to be taken and the nature of the action with
    respect to which such vote is to be taken and, not later than
    ten Business Days after the date on which such vote is taken,
    notify Moody&#146;s of the result of such vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;Coverage Tests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Determination of Compliance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For so long as any shares of Series&#160;F Preferred Stock are
    Outstanding, the Corporation shall make the following
    determinations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Asset Coverage. The Corporation shall have Asset
    Coverage as of the last Business Day of each March, June,
    September and December of each year in which any share of
    Series&#160;F Preferred Stock is Outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Basic Maintenance Amount Requirement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (A)&#160;For so long as any shares of Series&#160;F Preferred
    Stock are Outstanding and are rated by Moody&#146;s at the
    Corporation&#146;s request, the Corporation shall maintain, on
    each Valuation Date, Moody&#146;s Eligible Assets having an
    Adjusted Value at least equal to the Basic Maintenance Amount,
    each as of such Valuation Date. Upon any failure to maintain
    Moody&#146;s Eligible Assets having an Adjusted Value at least
    equal to the Basic Maintenance Amount, the Corporation shall use
    all commercially reasonable efforts to retain Moody&#146;s
    Eligible Assets having an Adjusted Value at least equal to the
    Basic Maintenance Amount on or prior to the Basic Maintenance
    Amount Cure Date, by altering the composition of its portfolio
    or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (B)&#160;The Administrator shall prepare a Basic Maintenance
    Report relating to each Valuation Date. On or before
    5:00&#160;P.M., New York City time, on the fifth Business Day
    after the first Valuation Date following the Date of Original
    Issue of the Series&#160;F Preferred Stock and after each
    (1)&#160;Annual Valuation Date, (2)&#160;Valuation Date on which
    the Corporation fails to satisfy the requirements of
    paragraph&#160;6(a)(ii)(A) above, (3)&#160;Basic Maintenance
    Amount Cure Date following a Valuation Date on which the
    Corporation fails to satisfy the requirements of
    paragraph&#160;6(a)(ii)(A) above and (4)&#160;Valuation Date and
    any immediately succeeding Business Day on which the Adjusted
    Value of the Corporation&#146;s Moody&#146;s Eligible Assets
    exceeds the Basic Maintenance Amount by 5% or less, the
    Corporation shall complete and deliver to Moody&#146;s a Basic
    Maintenance Report, which will be deemed to have been delivered
    to Moody&#146;s if Moody&#146;s receives a copy or telecopy,
    telex or other electronic transcription or transmission of the
    Basic Maintenance Report and on the same day the Corporation
    mails to Moody&#146;s for delivery on the next Business Day the
    Basic Maintenance Report. A failure by the Corporation to
    deliver a Basic Maintenance Report under this
    paragraph&#160;6(a)(ii)(B) shall be deemed to be delivery of a
    Basic Maintenance Report indicating an
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adjusted Value of the Corporation&#146;s Moody&#146;s Eligible
    Assets less than the Basic Maintenance Amount, as of the
    relevant Valuation Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (C)&#160;Within thirty (30)&#160;Business Days after the date of
    delivery to Moody&#146;s of a Basic Maintenance Report in
    accordance with paragraph&#160;6(a)(ii)(B) above relating to an
    Annual Valuation Date, the Corporation shall deliver to
    Moody&#146;s an Accountant&#146;s Confirmation relating to such
    Basic Maintenance Report that was prepared by the Corporation
    during the quarter ending on such Annual Valuation Date. Also,
    within fifteen (15)&#160;Business Days after the date of
    delivery to Moody&#146;s of a Basic Maintenance Report in
    accordance with paragraph&#160;6(a)(ii)(B) above relating to a
    Valuation Date on which the Corporation fails to satisfy the
    requirements of paragraph&#160;6(a)(ii)(A) and any Basic
    Maintenance Amount Cure Date, the Corporation shall deliver to
    Moody&#146;s an Accountant&#146;s Confirmation relating to such
    Basic Maintenance Report.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (D)&#160;In the event the Adjusted Value of the
    Corporation&#146;s Moody&#146;s Eligible Assets shown in any
    Basic Maintenance Report prepared pursuant to
    paragraph&#160;6(a)(ii)(B) above is less than the applicable
    Basic Maintenance Amount, the Corporation shall have until the
    Basic Maintenance Amount Cure Date to achieve an Adjusted Value
    of the Corporation&#146;s Moody&#146;s Eligible Assets at least
    equal to the Basic Maintenance Amount, and upon such achievement
    (and not later than such Basic Maintenance Amount Cure Date) the
    Corporation shall inform Moody&#146;s of such achievement in
    writing by delivery of a revised Basic Maintenance Report
    showing an Adjusted Value of the Corporation&#146;s Moody&#146;s
    Eligible Assets at least equal to the Basic Maintenance Amount
    as of the date of such revised Basic Maintenance Report.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (E)&#160;On or before 5:00&#160;P.M., New York City time, on no
    later than the fifth Business Day after the next Valuation Date
    following each date on which the Corporation has repurchased
    more than 1% of its Common Stock since the most recent date of
    delivery of a Basic Maintenance Report, the Corporation shall
    complete and deliver to Moody&#146;s a Basic Maintenance Report.
    A Basic Maintenance Report delivered as provided in
    paragraph&#160;6(a)(ii)(B) above also shall be deemed to have
    been delivered pursuant to this paragraph&#160;6(a)(ii)(E).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Failure to Meet Asset Coverage.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Corporation fails to have Asset Coverage as provided in
    paragraph&#160;6(a)(i) hereof and such failure is not cured as
    of the related Series&#160;F Asset Coverage Cure Date,
    (i)&#160;the Corporation shall give a Notice of Redemption as
    described in paragraph&#160;4 of Article&#160;II hereof with
    respect to the redemption of a sufficient number of shares of
    Preferred Stock, which at the Corporation&#146;s determination
    (to the extent permitted by the 1940 Act and Maryland law) may
    include any proportion of Series&#160;F Preferred Stock, to
    enable it to meet the requirements of paragraph&#160;6(a)(i)
    above, and, at the Corporation&#146;s discretion, such
    additional number of shares of Series&#160;F Preferred Stock or
    other Preferred Stock in order that the Corporation have Asset
    Coverage with respect to the shares of Series&#160;F Preferred
    Stock and any other Preferred Stock remaining Outstanding after
    such redemption as great as 220%, and (ii)&#160;deposit with the
    Dividend-Disbursing Agent Deposit Securities having an initial
    combined value sufficient to effect the redemption of the shares
    of Series&#160;F Preferred Stock or other Preferred Stock to be
    redeemed, as contemplated by paragraph&#160;4(a) of
    Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Failure to Maintain Moody&#146;s Eligible Assets having
    an Adjusted Value at Least Equal to the Basic Maintenance Amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Corporation fails to have Moody&#146;s Eligible Assets
    having an Adjusted Value at least equal to the Basic Maintenance
    Amount as provided in paragraph&#160;6(a)(ii)(A) above and such
    failure is not cured, the Corporation shall, on or prior to the
    Basic Maintenance Amount Cure Date, (i)&#160;give a Notice of
    Redemption as described in paragraph&#160;4 of Article&#160;II
    hereof with respect to the redemption of a sufficient number of
    shares of Series&#160;F Preferred Stock or other Preferred Stock
    to enable it to meet the requirements of
    paragraph&#160;6(a)(ii)(A) above, and, at the Corporation&#146;s
    discretion, such additional number of shares of Series&#160;F
    Preferred Stock or other Preferred Stock in order that the
    Corporation have Adjusted Assets with respect to the remaining
    shares of Series&#160;F Preferred Stock and any other Preferred
    Stock remaining Outstanding after such
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    redemption as great as 110% of the Basic Maintenance Amount, and
    (ii)&#160;deposit with the Dividend-Disbursing Agent Deposit
    Assets having an initial combined value sufficient to effect the
    redemption of the shares of Series&#160;F Preferred Stock or
    other Preferred Stock to be redeemed, as contemplated by
    paragraph&#160;4 of Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Status of Shares&#160;Called for Redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of determining whether the requirements of
    paragraphs&#160;6(a)(i) and 6(a)(ii)(A) hereof are satisfied,
    (i)&#160;no share of the Series&#160;F Preferred Stock shall be
    deemed to be Outstanding for purposes of any computation if,
    prior to or concurrently with such determination, sufficient
    Deposit Assets to pay the full Redemption&#160;Price for such
    share shall have been deposited in trust with the
    Dividend-Disbursing Agent (or applicable paying agent) and the
    requisite Notice of Redemption shall have been given, and
    (ii)&#160;such Deposit Assets deposited with the
    Dividend-Disbursing Agent (or paying agent) shall not be
    included.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;Certain Other Restrictions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;For so long as the Series&#160;F Preferred Stock is
    rated by Moody&#146;s at the request of the Corporation, the
    Corporation will not, and will cause the Adviser not to,
    (i)&#160;knowingly and willfully purchase or sell any asset for
    the specific purpose of causing, and with the actual knowledge
    that the effect of such purchase or sale will be to cause, the
    Corporation to have Moody&#146;s Eligible Assets having an
    Adjusted Value as of the date of such purchase or sale to be
    less than the Basic Maintenance Amount as of such date,
    (ii)&#160;in the event that, as of the immediately preceding
    Valuation Date, the Adjusted Value of the Corporation&#146;s
    Moody&#146;s Eligible Assets exceeded the Basic Maintenance
    Amount by 5% or less, alter the composition of the
    Corporation&#146;s assets in a manner reasonably expected to
    reduce the Adjusted Value of the Corporation&#146;s Moody&#146;s
    Eligible Assets, unless the Corporation shall have confirmed
    that, after giving effect to such alteration, the Adjusted Value
    of the Corporation&#146;s Moody&#146;s Eligible Assets exceeded
    the Basic Maintenance Amount or (iii)&#160;declare or pay any
    dividend or other distribution on any shares of Common Stock or
    repurchase any shares of Common Stock, unless the Corporation
    shall have confirmed that, after giving effect to such
    declaration, other distribution or repurchase, the Corporation
    continued to satisfy the requirements of
    paragraph&#160;6(a)(ii)(A) of Article&#160;II hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;For so long as the Series&#160;F Preferred Stock is
    rated by Moody&#146;s at the request of the Corporation, unless
    the Corporation shall have received written confirmation from
    Moody&#146;s, the Corporation may engage in the lending of its
    portfolio securities only in an amount of up to 20% of the
    Corporation&#146;s total assets, provided that the Corporation
    receives cash collateral for such loaned securities which is
    maintained at all times in an amount equal to at least 100% of
    the current market value of the loaned securities and, if
    invested, is invested only in Short-Term Money Market
    Investments or in money market mutual funds meeting the
    requirements of
    <FONT style="white-space: nowrap">Rule&#160;2a-7</FONT>
    under the 1940 Act that maintain a constant $1.00&#160;per share
    net asset value and treat the loaned securities rather than the
    collateral as the assets of the Corporation for purposes of
    determining compliance with paragraph&#160;6 of Article&#160;II
    hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;For so long as the Series&#160;F Preferred Stock is
    rated by Moody&#146;s at the request of the Corporation, the
    Corporation shall not consolidate the Corporation with, merge
    the Corporation into, sell or otherwise transfer all or
    substantially all of the Corporation&#146;s assets to another
    Person or adopt a plan of liquidation of the Corporation, in
    each case without providing prior written notification to
    Moody&#146;s.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;Limitation on Incurrence of Additional Indebtedness and
    Issuance of Additional Preferred Stock
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;So long as any shares of Series&#160;F Preferred Stock
    are Outstanding the Corporation may issue and sell one or more
    series of a class of senior securities of the Corporation
    representing indebtedness under Section&#160;18 of the 1940 Act
    <FONT style="white-space: nowrap">and/or</FONT>
    otherwise create or incur indebtedness, provided that
    immediately after giving effect to the incurrence of such
    indebtedness and to its receipt and application of the proceeds
    thereof, the Corporation shall have an &#147;asset
    coverage&#148; for all senior securities representing
    indebtedness, as defined in Section&#160;18(h) of the 1940 Act,
    of at least 300% of the amount of all indebtedness of the
    Corporation then Outstanding and no such additional indebtedness
    shall have any preference or priority over any other
    indebtedness of the Corporation upon the distribution of the
    assets of the Corporation or in respect of the payment of
    interest. Any possible liability resulting from lending
    <FONT style="white-space: nowrap">and/or</FONT>
    borrowing
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    portfolio securities, entering into reverse repurchase
    agreements, entering into futures contracts and writing options,
    to the extent such transactions are made in accordance with the
    investment restrictions of the Corporation then in effect, shall
    not be considered to be indebtedness limited by this
    paragraph&#160;8(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;So long as any shares of Series&#160;F Preferred Stock
    are Outstanding, the Corporation may issue and sell shares of
    one or more other series of Preferred Stock constituting a
    series of a class of senior securities of the Corporation
    representing stock under Section&#160;18 of the 1940 Act in
    addition to the shares of Series&#160;F Preferred Stock,
    provided that (i)&#160;the Corporation shall, immediately after
    giving effect to the issuance of such additional Preferred Stock
    and to its receipt and application of the proceeds thereof,
    including, without limitation, to the redemption of Preferred
    Stock for which a Redemption&#160;Notice has been mailed prior
    to such issuance, have an &#147;asset coverage&#148; for all
    senior securities which are stock, as defined in
    Section&#160;18(h) of the 1940 Act, of at least 200% of the sum
    of the liquidation preference of the shares of Series&#160;F
    Preferred Stock and all other Preferred Stock of the Corporation
    then Outstanding, and (ii)&#160;no such additional Preferred
    Stock shall have any preference or priority over any other
    Preferred Stock of the Corporation upon the distribution of the
    assets of the Corporation or in respect of the payment of
    dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;<U>Termination.</U>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that no Series&#160;F Preferred Stock are
    Outstanding, (1)&#160;all rights and preferences of such shares
    established and designated hereunder shall cease and terminate,
    and all obligations of the Corporation under these
    Articles&#160;Supplementary shall terminate and (2)&#160;the
    terms of office of all directors elected solely by the holders
    of the Preferred Stock voting together as a class pursuant to
    paragraphs&#160;5(a) and 5(b) shall expire. Upon the expiration
    of the terms of such directors, the number of directors shall be
    automatically reduced by the number of directors elected solely
    by the holders of Preferred Stock voting together as a class.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;III<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ABILITY OF
    BOARD OF DIRECTORS TO MODIFY THESE ARTICLES&#160;SUPPLEMENTARY
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Modification to Prevent Ratings Reduction or Withdrawal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors, without the vote or consent of any
    holders of Series&#160;F Preferred Stock or the holders of any
    other shares of Preferred Stock of the Corporation, or any other
    stockholder of the Corporation, may from time to time amend,
    alter or repeal the provisions of paragraph&#160;7 of
    Part&#160;I of these Articles&#160;Supplementary, as well as any
    or all of the definitions contained within these
    Articles&#160;Supplementary (and any terms defined within, or
    related to, such definitions), add covenants and other
    obligations of the Corporation, or confirm the applicability of
    covenants and other obligations set forth herein, all in
    connection with obtaining or maintaining the rating of
    Moody&#146;s or any Other Rating Agency then rating the
    Series&#160;F Preferred Stock, and any such amendment,
    alteration or repeal will be deemed not to affect the
    preferences,
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    rights or powers of the holders of Series&#160;F Preferred Stock
    or the holders of any other shares of preferred stock of the
    Corporation expressly set forth in the Charter, provided that
    the Board of Directors shall have obtained written confirmation
    from Moody&#146;s (if Moody&#146;s is then rating the
    Series&#160;F Preferred Stock) and from any Other Rating Agency
    then rating the Series&#160;F Preferred Stock (with such
    confirmation in no event being required to be obtained from a
    particular Rating Agency with respect to definitions or other
    provisions relevant only to and adopted in connection with
    another Rating Agency&#146;s rating of the Series&#160;F
    Preferred Stock) that any such amendment, alteration or repeal
    would not adversely affect the rating then assigned by such
    Rating Agency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Other Modification.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The affirmative vote of the holders of a majority, as
    defined in the 1940 Act, of shares of Series&#160;F Preferred
    Stock (or of any other series of Preferred Stock), voting
    separately from any other series of Preferred Stock (to the
    extent its rights are affected differently), shall be required
    with respect to any matter that materially and adversely affects
    the rights, preferences or powers of that series in a manner
    different from that
</DIV>

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    <BR>
    25
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of other series or classes of the Corporation&#146;s shares of
    capital stock. For purposes of the foregoing, no matter shall be
    deemed to adversely affect any rights, preference or power
    unless such matter (i)&#160;adversely alters or abolishes any
    preferential right of such series; (ii)&#160;creates, adversely
    alters or abolishes any right in respect of redemption of such
    series; or (iii)&#160;creates or adversely alters (other than to
    abolish) any restriction on transfer applicable to such series.
    An increase in the number of authorized shares of Preferred
    Stock pursuant to the Charter or the issuance of additional
    shares of any series of Preferred Stock (including the
    Series&#160;F Preferred Stock) pursuant to the Charter shall not
    in and of itself be considered to adversely affect the contract
    rights of the holders of Preferred Stock. The vote of holders of
    any series described in this paragraph&#160;2(a) of
    Article&#160;III will in each case be in addition to a separate
    vote of the requisite percentage of Common Stock and Preferred
    Stock, if any, necessary to authorize the action in question.
    The holders of the Series&#160;F Preferred Stock shall not be
    entitled to vote on any matter that affects the rights or
    interests of only one or more series of Preferred Stock other
    than the Series&#160;F Preferred Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The affirmative vote of the holders of a majority, as
    defined in the 1940 Act, of the shares of Preferred Stock,
    voting separately as one class (including the Series&#160;F
    Preferred Stock), shall be required to amend, alter or repeal
    the provisions of the Governing Documents, whether by merger,
    consolidation or otherwise, if such amendment, alteration or
    repeal would affect adversely the rights, preferences or powers
    expressly set forth in any Articles&#160;Supplementary of the
    Preferred Stock, including the Series&#160;F Preferred Stock,
    unless, in each case, the Corporation obtains written
    confirmation from Moody&#146;s (if Moody&#146;s is then rating
    the Series&#160;F Preferred Stock) or any Other Rating Agency
    then rating the Series&#160;F Preferred Stock that such
    amendment, alteration or repeal would not impair the rating then
    assigned by such rating agency to the Series&#160;F Preferred
    Stock, in which case the vote or consent of the holders of the
    Series&#160;F Preferred Stock is not required. For purposes of
    the foregoing, no matter shall be deemed to adversely affect any
    rights, preference or power unless such matter
    (i)&#160;adversely alters or abolishes any preferential right of
    the Series&#160;F Preferred Stock; (ii)&#160;creates, adversely
    alters or abolishes any right in respect of redemption of the
    Series&#160;F Preferred Stock; or (iii)&#160;creates or
    adversely alters (other than to abolish) any restriction on
    transfer applicable to the Series&#160;F Preferred Stock. An
    increase in the number of authorized shares of Preferred Stock
    pursuant to the Charter or the issuance of additional shares of
    any series of Preferred Stock (including the Series&#160;F
    Preferred Stock) pursuant to the Charter shall not in and of
    itself be considered to adversely affect the contract rights of
    the holders of Preferred Stock. The vote of holders of any
    Series&#160;F Preferred Stock described in this
    paragraph&#160;2(b) of Article&#160;III will in each case be in
    addition to a separate vote of the requisite percentage, if any,
    of Common Stock and Preferred Stock necessary to authorize the
    action in question.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Notwithstanding the provisions of Article&#160;III, to
    the extent permitted by law, the Board of Directors, without the
    vote of the holders of the Series&#160;F Preferred Shares or any
    other capital stock of the Corporation, may amend the provisions
    of these Articles&#160;Supplementary to resolve any
    inconsistency or ambiguity or to remedy any formal defect so
    long as the amendment does not in the aggregate adversely affect
    the rights and preferences of the Series&#160;F Preferred Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Unless a higher percentage is required under the
    Governing Documents or applicable provisions of the Maryland
    General Corporation Law or the 1940 Act, the affirmative vote of
    the holders of a majority, as defined in the 1940 Act, of the
    shares of Outstanding Preferred Stock, including the
    Series&#160;F Preferred Stock, voting together as a single
    class, will be required to approve any plan of reorganization
    adversely affecting the Preferred Stock or any action requiring
    a vote of security holders under Section&#160;13(a) of the 1940
    Act. The vote of holders of any series described in this
    paragraph&#160;2(d) of Article&#160;III will in each case be in
    addition to a separate vote of the requisite percentage of
    Common Stock and Preferred Stock, if any, necessary to authorize
    the action in question.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;For purposes of these Article&#160;III, the phrase
    &#147;vote of the Holders of a majority of the Outstanding
    shares of Preferred Stock&#148; (or any like phrase) shall mean,
    in accordance with Section&#160;2(a)(42) of the 1940 Act, the
    vote, at the annual or a special meeting of the stockholders of
    the Corporation duly called (A)&#160;of 67&#160;percent or more
    of the shares of Preferred Stock present at such meeting, if the
    Holders of more than 50&#160;percent of the Outstanding shares
    of Preferred Stock are present or represented by proxy; or
    (B)&#160;of more than 50&#160;percent of the Outstanding shares
    of Preferred Stock, whichever is less.
</DIV>

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    <BR>
    26
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;The provisions of this Article&#160;III are subject to
    the provisions of paragraph&#160;7 of Article&#160;II of these
    Articles&#160;Supplementary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Notice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of any modification of these
    Articles&#160;Supplementary pursuant to paragraph&#160;2 of this
    Article&#160;III, the Corporation shall provide notice of such
    modification to the Rating Agencies 10 Business Days prior to
    the date such modification takes effect.
</DIV>

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    <BR>
    27
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    IN WITNESS WHEREOF, The Gabelli Equity Trust Inc. has caused
    these Articles&#160;Supplementary to be signed in its name and
    on its behalf by a duly authorized officer, and witnessed by its
    Secretary, and the said officers of the Corporation further
    acknowledge said instrument to be the corporate act of the
    Corporation, and state that to the best of their knowledge,
    information and belief under penalty of perjury the matters and
    facts herein set forth with respect to authorization and
    approval are true in all material respects, all on [DATE].
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE GABELLI EQUITY TRUST&#160;INC.
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

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    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
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<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display: inline; text-align: left; width: 90%">&#160;&#160;&#160;<FONT style="font-variant: SMALL-CAPS">&#160;</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 0pt; margin-left: 53%; width: 43%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=200 -->

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;Bruce N. Alpert
</DIV>

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Title:&#160;President
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Witness:
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="display: inline; text-align: center; width: 90%">&#160;&#160;&#160;<FONT style="font-variant: SMALL-CAPS">&#160;</FONT></DIV>
</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 49%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=227 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;James E. McKee
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    Title:&#160;</TD>
    <TD align="left">
    Secretary
</TD>
</TR>

</TABLE>

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    <BR>
    28
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<DOCUMENT>
<TYPE>EX-99.2.H
<SEQUENCE>5
<FILENAME>y26698a2exv99w2wh.htm
<DESCRIPTION>EX-99.2.H: FORM OF UNDERWRITING AGREEMENT
<TEXT>
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<TITLE>EX-99.2.H</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit
(h)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">THE GABELLI EQUITY TRUST INC.
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; Shares, &#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; Series&nbsp;F Cumulative Preferred Stock

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>FORM OF PURCHASE AGREEMENT</U>

</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">November __, 2006
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CITIGROUP GLOBAL MARKETS INC.<BR>
MERRILL LYNCH &#038; CO.<BR>
MERRILL LYNCH, PIERCE, FENNER &#038; SMITH<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INCORPORATED<BR>
as Representatives of the several Underwriters<BR>
c/o Merrill Lynch &#038; Co.<BR>
Merrill Lynch, Pierce, Fenner &#038; Smith<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incorporated<BR>
4 World Financial Center<BR>
New York, New York 10080

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gabelli Equity Trust Inc., a Maryland corporation (the &#147;Fund&#148;), and Gabelli Funds, LLC, a
limited liability company organized under the laws of the state of New York (the &#147;Investment
Adviser&#148;), confirm their agreement with Citigroup Global Markets Inc. (&#147;Citigroup&#148;), Merrill Lynch
&#038; Co. and Merrill Lynch, Pierce, Fenner &#038; Smith Incorporated (&#147;Merrill Lynch&#148;), and each of the
other Underwriters named in Schedule&nbsp;A hereto (collectively, the &#147;Underwriters,&#148; which term shall
also include any underwriter substituted as hereinafter provided in Section&nbsp;10 hereof), for whom
Merrill Lynch and Citigroup are acting as Representatives (in such capacity, the
&#147;Representatives&#148;), with respect to the issue and sale by the Fund and the purchase by the
Underwriters, acting severally and not jointly, of the respective number of shares set forth in
said Schedule&nbsp;A of an aggregate of &#95;&#95;&#95; shares of the Fund&#146;s Series&nbsp;F Cumulative Preferred Stock
(the &#147;Securities&#148;). The Securities will be authorized by, and subject to the terms and conditions
of, the Articles of Incorporation of the Fund, as amended and supplemented through November &#95;&#95;&#95;,
2006 (the &#147;Charter&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund understands that the Underwriters propose to make a public offering of the Securities
as soon as the Representatives deem advisable after this Agreement has been executed and delivered.
The Fund has filed with the Securities and Exchange Commission (the &#147;Commission&#148;) a registration
statement on Form&nbsp;N-2 (No.&nbsp;333-137298 and No.&nbsp;811-04700) covering the registration of the
Securities under the Securities Act of 1933, as amended (the &#147;1933 Act&#148;), including the related
preliminary prospectus or prospectuses, and a notification on Form N-8A of registration (the &#147;1940
Act Notification&#148;) of the Fund as an investment company under the Investment Company Act of 1940,
as amended (the &#147;1940 Act&#148;), and the rules and regulations of the Commission under the 1933 Act and
the 1940 Act (the &#147;Rules and Regulations&#148;). Promptly after execution and delivery of this
Agreement, the Fund will prepare
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and file a prospectus in accordance with the provisions of Rule&nbsp;430A (&#147;Rule&nbsp;430A&#148;) of the
Rules and Regulations and paragraph (c)&nbsp;or (h)&nbsp;of Rule&nbsp;497 (&#147;Rule&nbsp;497&#148;) of the Rules and
Regulations. The information included in any such prospectus that was omitted from such
registration statement at the time it became effective but that is deemed to be part of such
registration statement at the time it became effective pursuant to paragraph (b)&nbsp;of Rule&nbsp;430A is
referred to as &#147;Rule&nbsp;430A Information.&#148; Each prospectus used before such registration statement
became effective, and any prospectus that omitted the Rule&nbsp;430A Information, that was used after
such effectiveness and prior to the execution and delivery of this Agreement, including in each
case any Statement of Additional Information incorporated therein by reference, is herein called a
&#147;preliminary prospectus.&#148; Such registration statement, including the exhibits thereto and
schedules thereto at the time it became effective and including the Rule&nbsp;430A Information is herein
called the &#147;Registration Statement.&#148; Any registration statement filed pursuant to Rule 462(b) of
the Rules and Regulations is herein referred to as the &#147;Rule&nbsp;462(b) Registration Statement,&#148; and
after such filing the term &#147;Registration Statement&#148; shall include the Rule 462(b) Registration
Statement. The final prospectus in the form first furnished to the Underwriters for use in
connection with the offering of the Securities, including the Statement of Additional Information
incorporated therein by reference, is herein called the &#147;Prospectus.&#148; For purposes of this
Agreement, all references to the Registration Statement, any preliminary prospectus or the
Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the
copy filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval
system (&#147;EDGAR&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All references in this Agreement to financial statements and schedules and other information
which is &#147;contained,&#148; &#147;included&#148; or &#147;stated&#148; in the Registration Statement, any preliminary
prospectus or the Prospectus (or other references of like import) shall be deemed to mean and
include all such financial statements and schedules and other information which is incorporated by
reference in the Registration Statement, any preliminary prospectus or the Prospectus, as the case
may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1. <U>Representations and Warranties</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Representations and Warranties by the Fund and the Investment Adviser</I>. The Fund and the
Investment Adviser jointly and severally represent and warrant to each Underwriter as of the date
hereof, the Applicable Time referred to in Section&nbsp;1(a)(i) hereof and as of the Closing Time
referred to in Section 2(c) hereof, and agree with each Underwriter, as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Compliance with Registration Requirements</U>. Each of the Registration
Statement and any Rule 462(b) Registration Statement has become effective under the 1933 Act
and no stop order suspending the effectiveness of the Registration Statement or any Rule
462(b) Registration Statement has been issued under the 1933 Act, or order of suspension or
revocation of registration pursuant to Section 8(e) of the 1940 Act, and no proceedings for
any such purpose have been instituted or are pending or, to the knowledge of the Fund or the
Investment Adviser, are contemplated by the Commission, and any request on the part of the
Commission for additional information has been complied with.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the respective times the Registration Statement, any Rule 462(b) Registration
Statement and any post-effective amendments thereto became effective and at the Closing
Time, the Registration Statement, the Rule 462(b) Registration Statement, the notification
on Form N-8A and any amendments and supplements thereto complied and will comply in all
material respects with the requirements of the 1933 Act, the 1940 Act and the Rules and
Regulations and did not and will not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements
therein not misleading. Neither the Prospectus nor any amendments or supplements thereto, at
the time the Prospectus or any such amendment or supplement was issued and at the Closing
Time, included or will include an untrue statement of a material fact or omitted or will
omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Statutory Prospectus (as defined below) as of the Applicable Time and the
information included on Schedule&nbsp;C hereto as of the Applicable Time, all considered together
(collectively, the &#147;General Disclosure Package&#148;), did not include any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this subsection and elsewhere in this Agreement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Applicable Time&#148; means &#091;&#95;&#95;&#95;&#093; &#091;p.m.&#093; (Eastern time) on &#091;&#95;&#95;&#95;&#093;, 2006 or such other
time as agreed by the Fund and the Representatives.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Statutory Prospectus&#148; as of any time means the prospectus relating to the Securities
that is included in the Registration Statement immediately prior to that time, including any
document incorporated by reference therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each preliminary prospectus and the prospectus filed as part of the Registration
Statement as originally filed or as part of any amendment thereto, or filed pursuant to Rule
497 under the 1933 Act, complied when so filed in all material respects with the Rules and
Regulations and each preliminary prospectus and the Prospectus delivered to the Underwriters
for use in connection with this offering was identical to the electronically transmitted
copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted
by Regulation&nbsp;S-T.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Rule 462(b) Registration Statement is required in connection with the offering and
sale of the Securities, the Fund has complied or will comply with the requirements of Rule
111 under the 1933 Act Regulations relating to the payment of filing fees thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <U>Independent Accountants</U>. The accountants who certified the financial
statements and supporting schedules included in the Registration Statement are independent
public accountants as required by the 1933 Act and the 1933 Act Regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <U>Financial Statements</U>. The financial statements included in the
Registration Statement, the General Disclosure Package and the Prospectus, together with the
related schedules and notes, present fairly the financial position of the Fund at the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">dates indicated and the statement of operations, stockholders&#146; equity and cash flows of
the Fund for the periods specified; said financial statements have been prepared in
conformity with generally accepted accounting principles (&#147;GAAP&#148;) applied on a consistent
basis throughout the periods involved. The supporting schedules, if any, present fairly in
accordance with GAAP the information required to be stated therein. The selected financial
data and the summary financial information included in the Prospectus present fairly the
information shown therein and have been compiled on a basis consistent with that of the
audited financial statements included in the Registration Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <U>No Material Adverse Change</U>. Since the respective dates as of which
information is given in the Registration Statement, the General Disclosure Package or the
Prospectus, except as otherwise stated therein, (A)&nbsp;there has been no material adverse
change in the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Fund considered as one enterprise, whether or not arising in the
ordinary course of business (a &#147;Material Adverse Effect&#148;), (B)&nbsp;there have been no
transactions entered into by the Fund, other than those in the ordinary course of business,
which are material with respect to the Fund and (C)&nbsp;there has been no dividend or
distribution of any kind declared, paid or made by the Fund on any class of its capital
stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <U>Good Standing of the Fund</U>. The Fund has been duly organized and is validly
existing as a corporation in good standing under the laws of the State of Maryland and has
corporate power and authority to own, lease and operate its properties and to conduct its
business as described in the Prospectus and the Statutory Prospectus and to enter into and
perform its obligations under this Agreement; and the Fund is duly qualified as a foreign
corporation to transact business and is in good standing in each other jurisdiction in which
such qualification is required, whether by reason of the ownership or leasing of property or
the conduct of business, except where the failure so to qualify or to be in good standing
would not result in a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <U>No Subsidiaries</U>. The Fund has no subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <U>Investment Company Status</U>. The Fund is duly registered with the
Commission under the 1940 Act as a closed-end, non-diversified management investment
company, and, no order of suspension or revocation of such registration has been issued or
proceedings therefor initiated or to the Fund&#146;s knowledge, threatened by the Commission.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) <U>Officers and Directors</U>. No person is serving or acting as an officer,
director or investment adviser of the Fund except in accordance with the provisions of the
1940 Act and the Rules and Regulations and the Investment Advisers Act of 1940, as amended
(the &#147;Advisers Act&#148;), and the rules and regulations of the Commission promulgated under the
Advisers Act (the &#147;Advisers Act Rules and Regulations&#148;). Except as disclosed in the
Registration Statement, the Prospectus and the General Disclosure Package (or any amendment
or supplement to any of them), to the knowledge of the Fund or the Investment Adviser after
due inquiry, no director of the Fund is an &#147;interested
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">person&#148; (as defined in the 1940 Act) of the Fund or an &#147;affiliated person&#148; (as defined
in the 1940 Act) of any Underwriter listed in Schedule&nbsp;A hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) <U>Capitalization</U>. The authorized, issued and outstanding capital stock of
the Fund is as set forth in the Prospectus and the Statutory Prospectus as of the date
thereof under the caption &#147;Description of Capital Stock and Other Securities&#148;. All issued
and outstanding shares of capital stock of the Fund have been duly authorized and validly
issued and are fully paid and non-assessable; none of the outstanding shares of capital
stock of the Fund was issued in violation of the preemptive or other similar rights of any
securityholder of the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <U>Authorization of Agreement</U>. This Agreement has been duly authorized,
executed and delivered by the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) <U>Authorization of Securities</U>. The Securities have been duly authorized
and, at the Closing Time will have been duly executed by the Fund and, when issued and
delivered against payment of the purchase price therefor as provided in this Agreement, will
constitute valid and binding obligations of the Fund, and are fully paid and nonassessable
and free of any preemptive or similar rights.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) <U>Description of the Securities</U>. The Securities will conform in all
material respects to the statements relating thereto contained in the Prospectus and the
Statutory Prospectus and will be in substantially the forms filed or incorporated by
reference, as the case may be, as an exhibit to the Registration Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) <U>Absence of Defaults and Conflicts</U>. The Fund is not in violation of its
charter or by-laws or in default in the performance or observance of any obligation,
agreement, covenant or condition contained in any contract, indenture, mortgage, deed of
trust, loan or credit agreement, note, lease or other agreement or instrument to which the
Fund is a party or by which it may be bound, or to which any of the property or assets of
the Fund is subject (collectively, &#147;Agreements and Instruments&#148;) except for such defaults
that do not involve Material Fund Agreements (as defined below) and material instruments
that would not result in a Material Adverse Effect; and the execution, delivery and
performance of this Agreement or the Investment Advisory Agreement
dated as of &#95;&#95;&#95; among
&#95;&#95;&#95;, the Custodian Agreement dated as of &#95;&#95;&#95; among &#95;&#95;&#95;, the Registrar, Transfer Agent
and Service Agreement dated as of &#95;&#95;&#95; among &#95;&#95;&#95;, and the Dividend Reinvestment and Cash
Repurchase Plan dated as of &#95;&#95;&#95; (each, a &#147;Material Fund Agreement&#148;) and the consummation
of the transactions contemplated herein and in the Registration Statement (including the
issuance and sale of the Securities and the use of the proceeds from the sale of the
Securities as described in the Prospectus under the caption &#147;Use of Proceeds&#148;) and
compliance by the Fund with its obligations hereunder have been duly authorized by all
necessary corporate action and do not and will not, whether with or without the giving of
notice or passage of time or both, conflict with or constitute a breach of, or default
under, or result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Fund pursuant to, any Material Fund Agreement (except for such
conflicts, breaches, defaults or liens, charges or encumbrances that would not result in a
Material Adverse Effect), nor
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">will such action result in any violation of the provisions of the charter or by-laws of
the Fund or any applicable law, statute, rule, regulation, judgment, order, writ or decree
of any government, government instrumentality or court, domestic or foreign, having
jurisdiction over the Fund or any of its assets, properties or operations, except for
violations that would not result in a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) <U>Absence of Proceedings</U>. There is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or body, domestic or
foreign, now pending, or, to the knowledge of the Fund or the Investment Adviser,
threatened, against or affecting the Fund, which is required to be disclosed in the
Registration Statement (other than as disclosed therein), or which might result in a
Material Adverse Effect, or which might materially and adversely affect the properties or
assets of the Fund or the consummation of the transactions contemplated in this Agreement or
the performance by the Fund of its obligations hereunder; the aggregate of all pending legal
or governmental proceedings to which the Fund or any subsidiary is a party or of which any
of their respective property or assets is the subject which are not described in the
Registration Statement, including ordinary routine litigation incidental to the business,
could not result in a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) <U>Accuracy of Exhibits</U>. There are no contracts or documents which are
required to be described in the Registration Statement, the Prospectus, the Statutory
Prospectus or the documents incorporated by reference therein or to be filed as exhibits
thereto which have not been so described and filed as required.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) <U>Absence of Manipulation</U>. Neither the Fund nor any affiliate of the Fund
has taken, nor will the Fund or any affiliate take, directly or indirectly, any action which
is designed to or which has constituted or which would be expected to cause or result in
stabilization or manipulation of the price of any security of the Fund to facilitate the
sale or resale of the Securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) <U>Absence of Further Requirements</U>. No filing with, or authorization,
approval, consent, license, order, registration, qualification or decree of, any court or
governmental authority or agency is necessary or required for the performance by the Fund of
its obligations hereunder, in connection with the offering, issuance or sale of the
Securities hereunder or the consummation of the transactions contemplated by this Agreement,
except such as have been already obtained or as may be required under the 1933 Act or the
1933 Act Regulations, the Securities Exchange Act of 1934 (the &#147;1934 Act&#148;) or state
securities laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) <U>Possession of Licenses and Permits</U>. The Fund possesses such permits,
licenses, approvals, consents and other authorizations (collectively, &#147;Governmental
Licenses&#148;) issued by the appropriate federal, state, local or foreign regulatory agencies or
bodies necessary to conduct the business now operated by it, except where the failure so to
possess would not, singly or in the aggregate, result in a Material Adverse Effect; the Fund
is in compliance with the terms and conditions of all such Governmental Licenses, except
where the failure so to comply would not, singly or in the aggregate, result in a Material
Adverse Effect; all of the Governmental Licenses are valid and in full force and
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">effect, except when the invalidity of such Governmental Licenses or the failure of such
Governmental Licenses to be in full force and effect would not, singly or in the aggregate,
result in a Material Adverse Effect; and the Fund has not received any notice of proceedings
relating to the revocation or modification of any such Governmental Licenses which, singly
or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would
result in a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) <U>Title to Property</U>. The Fund has good and marketable title to all real
property owned by the Fund and good title to all other properties owned by it, in each case,
free and clear of all mortgages, pledges, liens, security interests, claims, restrictions or
encumbrances of any kind except such as (a)&nbsp;are described in the Prospectus or the General
Disclosure Package or (b)&nbsp;do not, singly or in the aggregate, materially affect the value of
such property and do not interfere with the use made and proposed to be made of such
property by the Fund; and all of the leases and subleases material to the business of the
Fund, considered as one enterprise, and under which the Fund holds properties described in
the Prospectus and the General Disclosure Package, are in full force and effect, and the
Fund has not received any notice of any material claim of any sort that has been asserted by
anyone adverse to the rights of the Fund under any of the leases or subleases mentioned
above, or affecting or questioning the rights of the Fund to the continued possession of the
leased or subleased premises under any such lease or sublease.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) <U>Advertisements</U>. Any advertising, sales literature or other promotional
material (including &#147;prospectus wrappers,&#148; &#147;broker kits,&#148; &#147;road show slides&#148; and &#147;road show
scripts&#148;) authorized in writing by or prepared by the Fund or the Investment Adviser for use
in connection with the public offering of the Securities (collectively, &#147;sales material&#148;)
does not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading.
Moreover, all sales material complied and will comply in all material respects with the
applicable requirements of the 1933 Act, the 1940 Act, the Rules and Regulations and the
rules and interpretations of the National Association of Securities Dealers, Inc. (&#147;NASD&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) <U>Subchapter M</U>. The Fund intends to direct the investment of the proceeds
of the offering described in the Registration Statement in such a manner as to comply with
the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended
(&#147;Subchapter M of the Code&#148; and the &#147;Code,&#148; respectively), and, at all times since its
inception, has qualified as a regulated investment Fund under Subchapter M of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) <U>Distribution of Offering Materials</U>. The Fund has not distributed and,
prior to the later to occur of (A)&nbsp;the Closing Time and (B)&nbsp;completion of the distribution
of the Securities, will not distribute any offering material in connection with the offering
and sale of the Securities other than the Registration Statement, a preliminary prospectus,
the Prospectus, the Statutory Prospectus, or other materials, if any, permitted by the 1933
Act or the 1940 Act or the Rules and Regulations.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) <U>Accounting Controls and Disclosure Controls</U>. The Fund maintains a
system of internal accounting controls sufficient to provide reasonable assurances that (1)
transactions are executed in accordance with management&#146;s general or specific authorization
and with the applicable requirements of the 1940 Act, the Rules and Regulations and the
Code; (2)&nbsp;transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain accountability for assets and to maintain
compliance with the books and records requirements under the 1940 Act and the Rules and
Regulations; (3)&nbsp;access to assets is permitted only in accordance with management&#146;s general
or specific authorization; and (4)&nbsp;the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to
any differences.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund employs disclosure controls and procedures that are designed to ensure that
information required to be disclosed by the Fund in the reports that it files or submits
under the 1940 Act is recorded, processed, summarized and reported, within the time periods
specified in the Commission&#146;s rules and forms, and is accumulated and communicated to the
Fund&#146;s management, including its principal executive officer or officers and principal
financial officer or officers, as appropriate, to allow timely decisions regarding
disclosure.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) <U>Compliance with the Sarbanes-Oxley Act</U>. There is and has been no
failure on the part of the Fund or any of the Fund&#146;s directors or officers, in their
capacities as such, to comply in all material respects with any provision of the
Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith
(the &#147;Sarbanes-Oxley Act&#148;), including Section&nbsp;402 related to loans and Sections&nbsp;302 and 906
related to certifications.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) <U>Pending Proceedings and Examinations</U>. The Registration Statement is not
the subject of a pending proceeding or examination under Section 8(d) or 8(e) of the 1933
Act, and the Fund is not the subject of a pending proceeding under Section 8(e) of the 1933
Act in connection with the offering of the Securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) <U>Absence of Undisclosed Payments</U>. To the Fund&#146;s knowledge, neither the
Fund nor any employee or agent of the Fund has made any payment of funds of the Fund or
received or retained any funds, which payment, receipt or retention of funds is of a
character required to be disclosed in the Prospectus or the Statutory Prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) <U>Material Agreements</U>. Each of this Agreement and each Material Fund
Agreement has each been duly authorized by all requisite action on the part of the Fund,
executed and delivered by the Fund, as of the dates noted therein, and each complies with
all applicable provisions of the 1940 Act. Assuming due authorization, execution and
delivery by the other parties thereto with respect to this Agreement and each Material Fund
Agreement, each such agreement constitutes a valid and binding agreement of the Fund,
enforceable in accordance with its terms, except as affected by bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors&#146; rights generally, and general equitable principles (whether considered
in a proceeding in equity or at law).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxviii) <U>Registration Rights</U>. There are no persons with registration rights or
other similar rights to have any securities of the Fund registered pursuant to the
Registration Statement or otherwise registered by the Fund under the 1933 Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxix) <U>NYSE Listing</U>. The Fund&#146;s shares of common stock are duly listed on the
New York Stock Exchange (&#147;NYSE&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxx) <U>Ratings</U>. The Securities have been, or prior to the Closing Date will be,
assigned a rating of &#147;Aaa&#148; by Moody&#146;s Investors Service, Inc. (&#147;Moody&#146;s&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxi) <U>Leverage</U>. The Fund has no liability for borrowed money, including under
any reverse repurchase agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U><I>Officer&#146;s Certificates</I></U>. Any certificate signed by any officer of the Fund or the
Investment Adviser delivered to the Representatives or to counsel for the Underwriters shall be
deemed a representation and warranty by the Fund to each Underwriter as to the matters covered
thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U><I>Representations and Warranties by the Investment Adviser</I></U>. The Investment Adviser
represents and warrants to each Underwriter as of the date hereof, as of the Closing Time referred
to in Section 2(c) hereof as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Good Standing of the Investment Adviser</U>. The Investment Adviser has been
duly organized and is validly existing and in good standing as a limited liability company
under the laws of the State of New York with full corporate power and authority to own,
lease and operate its properties and to conduct its business as described in the Prospectus
and is duly qualified as a foreign corporation to transact business and is in good standing
in each other jurisdiction in which such qualification is required except where the failure
so to register or to qualify does not have a material adverse effect on the condition
(financial or other), business, business prospects, properties, net assets or results of
operations of the Investment Adviser to perform its obligations under this Agreement and the
Management Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <U>Investment Adviser Status</U>. The Investment Adviser is duly registered and
in good standing with the Commission as an investment adviser under the Advisers Act, and is
not prohibited by the Advisers Act or the 1940 Act, or the rules and regulations under such
acts, from acting under the Management Agreement for the Fund as contemplated by the
Prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <U>Description of Investment Adviser</U>. The description of the Investment
Adviser in the Registration Statement, the Prospectus and the General Disclosure Package
(and any amendment or supplement to either of them) complied and comply in all material
respects with the provisions of the 1933 Act, the 1940 Act, the Advisers Act, the Rules and
Regulations and the Advisers Act Rules and Regulations and is true and correct and does not
contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <U>Capitalization</U>. The Investment Adviser has the financial resources
available to it necessary for the performance of its services and obligations as
contemplated in the Prospectus, the General Disclosure Package, this Agreement and under the
Management Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <U>Authorization of Agreements; Absence of Defaults and Conflicts</U>. This
Agreement and the Management Agreement have each been duly authorized, executed and
delivered by the Investment Adviser, and the Management Agreement constitutes a valid and
binding obligation of the Investment Adviser, enforceable in accordance with its terms,
except as affected by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors&#146; rights generally and
general equitable principles (whether considered in a proceeding in equity or at law); and
neither the execution and delivery of this Agreement or the Management Agreement nor the
performance by the Investment Adviser of its obligations hereunder or thereunder will
conflict with, or result in a breach of any of the terms and provisions of, or constitute,
with or without the giving of notice or lapse of time or both, a default under, (i)&nbsp;any
agreement or instrument to which the Investment Adviser is a party or by which it is bound,
(ii)&nbsp;the certificate of formation, the by laws or other organizational documents of the
Investment Adviser, or (iii)&nbsp;to the Investment Adviser&#146;s knowledge, by any law, order,
decree, rule or regulation applicable to it of any jurisdiction, court, federal or state
regulatory body, administrative agency or other governmental body, stock exchange or
securities association having jurisdiction over the Investment Adviser or its respective
properties or operations other than, with respect to clauses (i)&nbsp;and (iii), any conflict,
breach or default that would not, individually or in the aggregate, be expected to cause a
Material Adverse Effect; and no consent, approval, authorization or order of any court or
governmental authority or agency is required for the consummation by the Investment Adviser
of the transactions contemplated by this Agreement or the Management Agreement, except as
have been obtained or may be required under the 1933 Act, the 1940 Act, the 1934 Act or
state securities laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <U>No Material Adverse Change</U>. Since the respective dates as of which
information is given in the Registration Statement, the Prospectus and the Statutory
Prospectus, except as otherwise stated therein, there has not occurred any event which
should reasonably be expected to have a material adverse effect on the ability of the
Investment Adviser to perform its obligations under this Agreement and the Management
Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <U>Absence of Proceedings</U>. There is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or body, domestic or
foreign, now pending, or, to the knowledge of the Investment Adviser, threatened against or
affecting the Investment Adviser or any &#147;affiliated person&#148; of the Investment Adviser (as
such term is defined in the 1940 Act) or any partners, directors, officers or employees of
the foregoing, whether or not arising in the ordinary course of business, which might
reasonably be expected to result in any material adverse change in the condition, financial
or otherwise, or earnings, business affairs or business prospects of the Investment Adviser,
materially and adversely affect the properties or assets of the Investment Adviser or
materially impair or adversely affect the ability of the Investment
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Adviser to function as an Investment Adviser or perform its obligations under the
Management Agreement, or which is required to be disclosed in the Registration Statement,
the Prospectus and the Statutory Prospectus that has not been disclosed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) <U>Absence of Violation or Default</U>. The Investment Adviser is not in
violation of its certificate of formation, by-laws or other organizational documents or in
default under any agreement, indenture or instrument except for such violations or defaults
that would not result in a material adverse change in the condition, financial or otherwise,
or in the earnings, business affairs or business prospects of the Investment Adviser or the
Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2. <U>Sale and Delivery to Underwriters; Closing</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Securities</I>. On the basis of the representations and warranties herein contained and
subject to the terms and conditions herein set forth, the Fund agrees to sell to each Underwriter,
severally and not jointly, and each Underwriter, severally and not jointly, agrees to purchase from
the Fund, at the price set forth in Schedule&nbsp;B, the number of Securities set forth in Schedule&nbsp;A
opposite the name of such Underwriter, plus any additional Securities which such Underwriter may
become obligated to purchase pursuant to the provisions of Section&nbsp;10 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Payment</I>. Payment of the purchase price for, and delivery of certificates for, the
Securities shall be made at the offices of Simpson Thacher &#038; Bartlett LLP, 425 Lexington Avenue,
New York, New York 10017, or at such other place as shall be agreed upon by the Representatives and
the Fund, at 10:00&nbsp;A.M. (Eastern time) on the third (fourth, if the pricing occurs after 4:30 P.M.
(Eastern time) on any given day) business day after the date hereof (unless postponed in accordance
with the provisions of Section&nbsp;10), or such other time not later than ten business days after such
date as shall be agreed upon by the Representatives and the Fund (such time and date of payment and
delivery being herein called &#147;Closing Time&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment shall be made to the Fund by wire transfer of immediately available funds to a bank
account designated by the Fund, against delivery to the Representatives for the respective accounts
of the Underwriters of certificates for the Securities to be purchased by them. It is understood
that each Underwriter has authorized the Representatives, for its account, to accept delivery of,
receipt for, and make payment of the purchase price for, the Securities which it has agreed to
purchase. Merrill Lynch, individually and not as representative of the Underwriters, may (but
shall not be obligated to) make payment of the purchase price for the Securities to be purchased by
any Underwriter whose funds have not been received by the Closing Time, but such payment shall not
relieve such Underwriter from its obligations hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3. <U>Covenants of the Fund</U>. The Fund and the Investment Adviser jointly and
severally covenant with each Underwriter as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Compliance with Securities Regulations and Commission Requests; Payment of Filing Fees</I>.
The Fund, subject to Section&nbsp;3(a)(ii), will comply with the requirements of Rule&nbsp;430A and will
notify the Representatives immediately, and confirm the notice in writing, (i)&nbsp;when any
post-effective amendment to the Registration Statement or new registration statement relating to
the Securities shall become effective, or any supplement to the Prospectus,
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the General Disclosure Package or any amended Prospectus shall have been filed, (ii)&nbsp;of the
receipt of any comments from the Commission, (iii)&nbsp;of any request by the Commission for any
amendment to the Registration Statement or the filing of a new registration statement or any
amendment or supplement to the Prospectus or any document incorporated by reference therein or
otherwise deemed to be a part thereof or for additional information, (iv)&nbsp;of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration Statement or such new
registration statement or of any order preventing or suspending the use of any preliminary
prospectus, or of the suspension of the qualification of the Securities for offering or sale in any
jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes. The
Fund will effect the filings necessary under Rule&nbsp;497, in the manner and within the time period
required by Rule&nbsp;497 and will take such steps as it deems necessary to ascertain promptly whether
the form of prospectus transmitted for filing under Rule&nbsp;497 was received for filing by the
Commission and, in the event that it was not, it will promptly file such prospectus. The Fund will
make every reasonable effort to prevent the issuance of any stop order and, if any stop order or
order of supervision or revocation of registration pursuant to Section 8(e) of the 1940 Act is
issued, to obtain the lifting thereof at the earliest possible moment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Filing of Amendments</I>. The Fund will give the Representatives notice of its intention to
file or prepare any amendment to the Registration Statement (including any filing under Rule
462(b)) or any amendment, supplement or revision to the prospectus included in the Registration
Statement at the time it became effective or to the Prospectus, whether pursuant to the 1933 Act,
the 1934 Act or otherwise, and the Fund will furnish the Representatives with copies of any such
documents a reasonable amount of time prior to such proposed filing or use, as the case may be, and
will not file or use any such document to which the Representatives or counsel for the Underwriters
shall reasonably object.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<I>Delivery of Registration Statements</I>. The Fund has furnished or will deliver to the
Representatives and counsel for the Underwriters, without charge, signed copies of the Registration
Statement and of each amendment thereto (including exhibits filed therewith or incorporated by
reference therein and documents incorporated or deemed to be incorporated by reference therein or
otherwise deemed to be a part thereof) and signed copies of all consents and certificates of
experts, and will also deliver to the Representatives, without charge, a conformed copy of the
Registration Statement and of each amendment thereto (without exhibits) for each of the
Underwriters. The copies of the Registration Statement and each amendment thereto furnished to the
Underwriters will be identical to the electronically transmitted copies thereof filed with the
Commission pursuant to EDGAR, except to the extent permitted by Regulation&nbsp;S-T.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<I>Delivery of Prospectuses</I>. The Fund has delivered to each Underwriter, without charge, as
many copies of each preliminary prospectus as such Underwriter reasonably requested, and the Fund
hereby consents to the use of such copies for purposes permitted by the 1933 Act. The Fund will
furnish to each Underwriter, without charge, during the period when the Prospectus is required to
be delivered under the 1933 Act, such number of copies of the Prospectus (as amended or
supplemented) as such Underwriter may reasonably request. The Prospectus and any amendments or
supplements thereto furnished to the Underwriters will be identical to the electronically
transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent
permitted by Regulation&nbsp;S-T.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<I>Continued Compliance with Securities Laws</I>. The Fund will comply with the 1933 Act and the
1933 Act Regulations, the 1934 Act and the 1934 Act Regulations so as to permit the completion of
the distribution of the Securities as contemplated in this Agreement and in the Prospectus. If at
any time when a prospectus is required by the 1933 Act to be delivered in connection with sales of
the Securities, any event shall occur or condition shall exist as a result of which it is
necessary, in the opinion of counsel for the Underwriters or for the Fund, to amend the
Registration Statement or amend or supplement the Prospectus in order that the Prospectus will not
include any untrue statements of a material fact or omit to state a material fact necessary in
order to make the statements therein not misleading in the light of the circumstances existing at
the time it is delivered to a purchaser, or if it shall be necessary, in the opinion of such
counsel, at any such time to amend the Registration Statement or to file a new registration
statement or amend or supplement the Prospectus in order to comply with the requirements of the
1933 Act or the 1933 Act Regulations, the Fund will promptly prepare and file with the Commission,
subject to Section&nbsp;3(b), such amendment, supplement or new registration statement as may be
necessary to correct such statement or omission or to comply with such requirements, the Fund will
use its best efforts to have such amendment or new registration statement declared effective as
soon as practicable and the Fund will furnish to the Underwriters such number of copies of such
amendment, supplement or new registration statement as the Underwriters may reasonably request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<I>Blue Sky Qualifications</I>. The Fund will use its best efforts, in cooperation with the
Underwriters, to qualify the Securities for offering and sale under the applicable Securities laws
of such states and other jurisdictions as the Representatives may designate and to maintain such
qualifications in effect for a period of not less than one year from the date hereof; provided,
however, that the Fund shall not be obligated to file any general consent to service of process or
to qualify as a foreign corporation or as a dealer in Securities in any jurisdiction in which it is
not so qualified or so subject itself to taxation in respect of doing business in any jurisdiction
in which it is not otherwise so subject. The Fund will also supply the Underwriters with such
information as is necessary for the determination of the legality of the Securities for investment
under the laws of such jurisdictions as the Underwriters may request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<I>Rule&nbsp;158</I>. The Fund will timely file such reports pursuant to the 1934 Act as are
necessary in order to make generally available to its securityholders as soon as practicable an
earnings statement for the purposes of, and to provide to the Underwriters the benefits
contemplated by, the last paragraph of Section 11(a) of the 1933 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<I>Use of Proceeds</I>. The Fund will use the net proceeds received by it from the sale of the
Securities in the manner specified in the Prospectus under &#147;Use of Proceeds.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<I>Reporting Requirements</I>. The Fund, during the period when the Prospectus is required to be
delivered under the 1933 Act or the 1934 Act, including in such circumstances where such
requirement would be satisfied by Section&nbsp;172 of the 1933 Act, will file all documents required to
be filed with the Commission pursuant to the 1934 Act and the 1940 Act within the time periods
required by the 1934 Act and the 1940 Act and the rules and regulations of the Commission
thereunder, respectively.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Subchapter M</U>. The Fund will comply with the requirements of Subchapter M of
the Code to qualify as a regulated investment Fund under the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <U>No Manipulation of Market for Securities</U>. The Fund will not (a)&nbsp;take,
directly or indirectly, any action designed to cause or to result in, or that might
reasonably be expected to constitute, the stabilization or manipulation of the price of any
security of the Fund to facilitate the sale or resale of the Securities, and (b)&nbsp;until the
Closing Date, or the Date of Delivery, if any, (i)&nbsp;sell, bid for or purchase the Securities
or pay any person any compensation for soliciting purchases of the Securities or (ii)&nbsp;pay or
agree to pay to any person any compensation for soliciting another to purchase any other
Securities of the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <U>Rule&nbsp;462(b) Registration Statement</U>. If the Fund elects to rely upon Rule
462(b), the Fund shall file a Rule 462(b) Registration Statement with the Commission in
compliance with Rule 462(b) by 10:00&nbsp;P.M., Washington, D.C. time, on the date of this
Agreement, and the Fund shall at the time of filing either pay to the Commission the filing
fee for the Rule 462(b) Registration Statement or give irrevocable instructions for the
payment of such fee pursuant to Rule 111(b) under the 1933 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Except as provided in this Agreement, the Fund will not sell, contract to sell or
otherwise dispose of any of its preferred shares of the same series as the Securities or any
Securities convertible into or exercisable or exchangeable for its preferred shares of the same
series as the Securities, or grant any options or warrants to purchase its preferred shares of the
same series as the Securities, for a period of 180&nbsp;days after the date of the Prospectus, without
the prior written consent of the Representatives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4. <U>Payment of Expenses</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Expenses</I>. The Fund will pay all expenses incident to the performance of its obligations
under this Agreement, including (i)&nbsp;the preparation, printing and filing of the Registration
Statement (including financial statements and exhibits) as originally filed and of each amendment
thereto, (ii)&nbsp;the preparation, printing and delivery to the Underwriters of this Agreement, any
Agreement among Underwriters and such other documents as may be required in connection with the
offering, purchase, sale, issuance or delivery of the Securities, (iii)&nbsp;the preparation, issuance
and delivery of the certificates for the Securities to the Underwriters, including any stock or
other transfer taxes and any stamp or other duties payable upon the sale, issuance or delivery of
the Securities to the Underwriters, (iv)&nbsp;the fees and disbursements of the Fund&#146;s counsel,
accountants and other advisors, (v)&nbsp;the qualification of the Securities under Securities laws in
accordance with the provisions of Section 3(f) hereof, including filing fees and the reasonable
fees and disbursements of counsel for the Underwriters in connection therewith and in connection
with the preparation of the Blue Sky Survey and any supplement thereto, (vi)&nbsp;the printing and
delivery to the Underwriters of copies of each preliminary prospectus, the Prospectus and any
amendments or supplements thereto and any costs associated with electronic delivery of any of the
foregoing by the Underwriters to investors, (vii)&nbsp;the preparation, printing and delivery to the
Underwriters of copies of the Blue Sky Survey and any supplement thereto, any transfer agent or
registrar for the Securities, (viii)&nbsp;the fees and expenses incurred in connection with the rating
of the Securities, (ix)&nbsp;the printing of any sales material, and (viii)&nbsp;the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">transportation and other expenses incurred by or on behalf of Fund representatives in
connection with presentations to prospective purchasers of the Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Termination of Agreement</I>. If this Agreement is terminated by the Representatives in
accordance with the provisions of Section&nbsp;5 or Section 9(a) hereof, the Fund and the Investment
Adviser jointly and severally agree that they shall reimburse the Underwriters for all of their
out-of-pocket expenses, including the reasonable fees and disbursements of counsel for the
Underwriters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5. <U>Conditions of Underwriters&#146; Obligations</U>. The obligations of the several
Underwriters hereunder are subject to the accuracy of the representations and warranties of the
Fund and the Investment Adviser contained in Section&nbsp;1 hereof or in certificates of any officer of
the Fund or the Investment Adviser delivered pursuant to the provisions hereof, to the performance
by the Fund and the Investment Adviser of their respective covenants and other obligations
hereunder, and to the following further conditions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Effectiveness of Registration Statement; Filing of Prospectus; Payment of Filing Fee</I>. The
Registration Statement, including any Rule 462(b) Registration Statement, has become effective and
at Closing Time no stop order suspending the effectiveness of the Registration Statement shall have
been issued under the 1933 Act, no notice or order pursuant to Section 8(e) of the 1940 Act shall
have been issued, and no proceedings with respect to either shall have been initiated or threatened
by the Commission, and any request on the part of the Commission for additional information shall
have been complied with to the reasonable satisfaction of counsel to the Underwriters. A
prospectus containing the Rule&nbsp;430A Information shall have been filed with the Commission in
accordance with Rule&nbsp;497 (or a post-effective amendment providing such information shall have been
filed and become effective in accordance with the requirements of Rule&nbsp;430A).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Opinion of Counsel for Fund and the Investment Adviser</I>. At Closing Time, the
Representatives shall have received the favorable opinion, dated as of Closing Time, of Willkie
Farr &#038; Gallagher LLP, counsel for the Fund, and Venable LLP, special Maryland counsel for the
Fund&#093;, in form and substance satisfactory to counsel for the Underwriters, together with signed or
reproduced copies of such letter for each of the other Underwriters to the effect set forth in
Exhibit&nbsp;A hereto and to such further effect as counsel to the Underwriters may reasonably request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<I>Opinion of Counsel for Underwriters</I>. At Closing Time, the Representatives shall have
received the favorable opinion, dated as of Closing Time, of Simpson Thacher &#038; Bartlett LLP,
counsel for the Underwriters, together with signed or reproduced copies of such letter for each of
the other Underwriters with respect to the matters set forth in clauses (i), (ii), (vi)&nbsp;through
(xii), inclusive, and the penultimate paragraph of Exhibit&nbsp;A hereto. In giving such opinion such
counsel may rely, as to all matters governed by the laws of jurisdictions other than the law of the
State of New York and the federal law of the United States, upon the opinions of counsel
satisfactory to the Representatives. Such counsel may also state that, insofar as such opinion
involves factual matters, they have relied, to the extent they deem proper, upon certificates of
officers of the Fund and the Investment Adviser and certificates of public officials.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<I>Officers&#146; Certificates</I>. At Closing Time, there shall not have been, since the date hereof
or since the respective dates as of which information is given in the Prospectus and the General
Disclosure Package, any material adverse change in the condition, financial or otherwise, or in the
earnings, business affairs or business prospects of the Fund, whether or not arising in the
ordinary course of business, and the Representatives shall have received a certificate of a duly
authorized officer of the Fund and of the chief financial or chief accounting officer of the Fund
and of the President or a Vice President or Managing Director of the Investment Adviser, dated as
of Closing Time, to the effect that (i)&nbsp;there has been no such material adverse change, (ii)&nbsp;the
representations and warranties in Sections 1(a) and (b)&nbsp;hereof are true and correct with the same
force and effect as though expressly made at and as of Closing Time, (iii)&nbsp;each of the Fund and the
Investment Adviser, respectively, has complied with all agreements and satisfied all conditions on
its part to be performed or satisfied at or prior to Closing Time, (iv)&nbsp;there has been no material
adverse change in the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Fund or the Investment Adviser, whether or not arising in the ordinary
course of business and (v)&nbsp;to the knowledge of such officers, no stop order suspending the
effectiveness of the Registration Statement, or order of suspension or revocation of registration
pursuant to Section 8(e) of the 1940 Act, has been issued and no proceedings for any such purpose
have been instituted or are pending or are contemplated by the Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<I>Accountant&#146;s Comfort Letter</I>. At the time of the execution of this Agreement, the
Representatives shall have received from PricewaterhouseCoopers LLP a letter dated such date, in
form and substance satisfactory to the Representatives, together with signed or reproduced copies
of such letter for each of the other Underwriters containing statements and information of the type
ordinarily included in accountants&#146; &#147;comfort letters&#148; to underwriters with respect to the financial
statements and certain financial information contained in the Registration Statement, the
Prospectus and the Statutory Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<I>Bring-down Comfort Letter</I>. At Closing Time, the Representatives shall have received from
PricewaterhouseCoopers LLP a letter, dated as of Closing Time, to the effect that they reaffirm the
statements made in the letter furnished pursuant to subsection (e)&nbsp;of this Section, except that the
specified date referred to shall be a date not more than three business days prior to Closing Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<I>Maintenance of Rating</I>. At Closing Time, the Securities shall be rated at least Aaa by
Moody&#146;s Investor&#146;s Service Inc. and the Fund shall have delivered to the Representatives a letter
dated the Closing Time, from such rating agency, or other evidence satisfactory to the
Representatives, confirming that the Securities have such rating; and since the date of this
Agreement, there shall not have occurred a downgrading or an announcement of potential downgrade in
the rating assigned to the Securities or any of the Fund&#146;s other securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<I>Additional Documents</I>. At Closing Time, counsel for the Underwriters shall have been
furnished with such documents and opinions as they may require for the purpose of enabling them to
pass upon the issuance and sale of the Securities as herein contemplated, or in order to evidence
the accuracy of any of the representations or warranties, or the fulfillment of any of the
conditions, herein contained; and all proceedings taken by the Fund and the Investment Adviser in
connection with the organization and registration of the Fund under the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1940 Act and the issuance and sale of the Securities as herein contemplated shall be
satisfactory in form and substance to the Representatives and counsel for the Underwriters.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<I>Termination of Agreement</I>. If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement may be terminated by the
Representatives by notice to the Fund at any time at or prior to Closing Time, and such
termination shall be without liability of any party to any other party except as provided in
Section&nbsp;4 and except that Sections&nbsp;1, 6, 7 and 8 shall survive any such termination and remain in
full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6. <U>Indemnification</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Indemnification of Underwriters</I>. The Fund and the Investment Adviser, jointly and
severally, agree to indemnify and hold harmless each Underwriter, its affiliates, as such term is
defined in Rule 501(b) under the 1933 Act (each, an &#147;Affiliate&#148;), its selling agents and each
person, if any, who controls any Underwriter within the meaning of Section&nbsp;15 of the 1933 Act or
Section&nbsp;20 of the 1934 Act as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement (or any amendment thereto), including the Rule&nbsp;430A
Information, or the omission or alleged omission therefrom of a material fact required to be
stated therein or necessary to make the statements therein not misleading or arising out of
any untrue statement or alleged untrue statement of a material fact contained in any
preliminary prospectus, or the Prospectus (or any amendment or supplement thereto), or the
omission or alleged omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 6(d) below) any such
settlement is effected with the written consent of the Fund;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) against any and all expense whatsoever, as incurred (including the reasonable
fees and disbursements of counsel chosen by the Representatives), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under (i)&nbsp;or (ii)
above;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>provided</U>, <U>however</U>, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with written
information
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">furnished to the Fund by any Underwriter through the Representatives expressly for use in the
Registration Statement (or any amendment thereto), including the Rule&nbsp;430A Information or any
preliminary prospectus, any Prospectus (or any amendment or supplement thereto).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding this paragraph (a), the Investment Advisor shall be liable to any party to be
indemnified under this section 6(a) in any case only to the extent that the Fund fails to indemnify
and hold harmless the indemnified party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Indemnification of the Fund, the Investment Adviser, Directors and Officers</I>. Each
Underwriter severally and not jointly agrees to indemnify and hold harmless the Fund and the
Investment Adviser and their respective directors, officers of the Fund who signed the Registration
Statement, and each person, if any, who controls the Fund or the Investment Adviser within the
meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act against any and all loss,
liability, claim, damage and expense described in the indemnity contained in subsection (a)(i) of
this Section, as incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Registration Statement (or any amendment thereto),
including the Rule&nbsp;430A Information or any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with written information
furnished to the Fund by such Underwriter through the Representatives expressly for use therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<I>Indemnification for Marketing Materials</I>. In addition to the foregoing indemnification,
the Fund and the Investment Adviser also, jointly and severally, agree to indemnify and hold
harmless each Underwriter and each person, if any, who controls any Underwriter within the meaning
of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act, against any and all loss, liability,
claim, damage and expense described in the indemnity contained in Section&nbsp;6(a), as limited by the
proviso set forth therein, with respect to any sales material that has been prepared by or
authorized for use in writing by the Fund or the Investment Adviser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<I>Actions against Parties; Notification</I>. Each indemnified party shall give notice as
promptly as reasonably practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party
shall not relieve such indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it from any liability
which it may have otherwise than on account of this indemnity agreement. In the case of parties
indemnified pursuant to Section&nbsp;6(a)(1) above, counsel to the indemnified parties shall be selected
by the Representatives, and, in the case of parties indemnified pursuant to Section 6(b) above,
counsel to the indemnified parties shall be selected by the Fund and the Investment Adviser. An
indemnifying party may participate at its own expense in the defense of any such action; provided,
however, that counsel to the indemnifying party shall not (except with the consent of the
indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying
parties be liable for fees and expenses of more than one counsel (in addition to any local counsel)
separate from their own counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior written consent of
the indemnified parties, settle or compromise or consent to the entry of any
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">judgment with respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section&nbsp;6 or Section&nbsp;7 hereof (whether
or not the indemnified parties are actual or potential parties thereto), unless such settlement,
compromise or consent (i)&nbsp;includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and (ii)&nbsp;does not
include a statement as to or an admission of fault, culpability or a failure to act by or on behalf
of any indemnified party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<I>Settlement without Consent if Failure to Reimburse</I>. If at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses
of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature
contemplated by Section&nbsp;6(a)(1) (ii)&nbsp;effected without its written consent if (i)&nbsp;such settlement is
entered into more than 45&nbsp;days after receipt by such indemnifying party of the aforesaid request,
(ii)&nbsp;such indemnifying party shall have received notice of the terms of such settlement at least 30
days prior to such settlement being entered into and (iii)&nbsp;such indemnifying party shall not have
reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7. <U>Contribution</U>. If the indemnification provided for in Section&nbsp;6 hereof is
for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, (i)&nbsp;in such proportion as is appropriate
to reflect the relative benefits received by the Fund and the Investment Adviser on the one hand
and the Underwriters on the other hand from the offering of the Securities pursuant to this
Agreement or (ii)&nbsp;if the allocation provided by clause (i)&nbsp;is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits referred to in clause
(i)&nbsp;above but also the relative fault of the Fund and the Investment Adviser on the one hand and of
the Underwriters on the other hand in connection with the statements or omissions which resulted in
such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable
considerations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The relative benefits received by the Fund and the Investment Adviser on the one hand and the
Underwriters on the other hand in connection with the offering of the Securities pursuant to this
Agreement shall be deemed to be in the same respective proportions as the total net proceeds from
the offering of the Securities pursuant to this Agreement (before deducting expenses) received by
the Fund and the total underwriting discount received by the Underwriters, in each case as set
forth on the cover of the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The relative fault of the Fund and the Investment Adviser on the one hand and the Underwriters
on the other hand shall be determined by reference to, among other things, whether any such untrue
or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Fund and the Investment Adviser or by the Underwriters
and the parties&#146; relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund, the Investment Adviser and the Underwriters agree that it would not be just and
equitable if contribution pursuant to this Section&nbsp;7 were determined by pro rata allocation (even
if the Underwriters were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to above in this
Section&nbsp;7. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by
an indemnified party and referred to above in this Section&nbsp;7 shall be deemed to include any legal
or other expenses reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the provisions of this Section&nbsp;7, no Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which the Securities
underwritten by it and distributed to the public were offered to the public exceeds the amount of
any damages which such Underwriter has otherwise been required to pay by reason of any such untrue
or alleged untrue statement or omission or alleged omission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Section&nbsp;7, each person, if any, who controls an Underwriter within the
meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act and each Underwriter&#146;s
Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and
each director of the Fund and each director of the Investment Adviser, respectively, each officer
of the Fund who signed the Registration Statement, and each person, if any, who controls the Fund
or the Investment Adviser within the meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the
1934 Act shall have the same rights to contribution as the Fund and the Investment Adviser,
respectively. The Underwriters&#146; respective obligations to contribute pursuant to this Section&nbsp;7
are several in proportion to the number of shares set forth opposite their respective names in
Schedule&nbsp;A hereto and not joint.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8. <U>Representations, Warranties and Agreements to Survive</U>. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Fund or the Investment Adviser submitted pursuant hereto, shall remain operative
and in full force and effect regardless of (i)&nbsp;any investigation made by or on behalf of any
Underwriter or its Affiliates or selling agents, any person controlling any Underwriter, its
officers or directors or any person controlling the Fund, and (ii)&nbsp;delivery of and payment for the
Securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9. <U>Termination of Agreement</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Termination; General</I>. The Representatives may terminate this Agreement, by notice to the
Fund, at any time at or prior to Closing Time (i)&nbsp;if there has been, since the time of execution of
this Agreement or since the respective dates as of which information is given in the Prospectus
(exclusive of any supplement thereto) or the General Disclosure Package, any material adverse
change in the condition, financial or otherwise, or in the earnings, business
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">affairs or business prospects of the Fund or the Investment Adviser, whether or not arising in
the ordinary course of business, or (ii)&nbsp;if there has occurred any material adverse change in the
financial markets in the United States or the international financial markets, any outbreak of
hostilities or escalation thereof or other calamity or crisis or any change or development
involving a prospective change in national or international political, financial or economic
conditions, in each case the effect of which is such as to make it, in the judgment of the
Representatives, impracticable or inadvisable to market the Securities or to enforce contracts for
the sale of the Securities, or (iii)&nbsp;if trading in any securities of the Fund has been suspended or
materially limited by the Commission or the New York Stock Exchange, or if trading generally on the
American Stock Exchange or the New York Stock Exchange or in the Nasdaq National Market has been
suspended or materially limited, or minimum or maximum prices for trading have been fixed, or
maximum ranges for prices have been required, by any of said exchanges or by such system or by
order of the Commission, the National Association of Securities Dealers, Inc. or any other
governmental authority, or a material disruption has occurred in commercial banking or Securities
settlement, or (iv)&nbsp;a material disruption has occurred in commercial banking or Securities
settlement or clearance services in the United States, or (v)&nbsp;if a banking moratorium has been
declared by either Federal or New York authorities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Liabilities</I>. If this Agreement is terminated pursuant to this Section, such termination
shall be without liability of any party to any other party except as provided in Section&nbsp;4 hereof,
and provided further that Sections&nbsp;1, 6, 7 and 8 shall survive such termination and remain in full
force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 10. <U>Default by One or More of the Underwriters</U>. If one or more of the
Underwriters shall fail at Closing Time to purchase the Securities which it or they are obligated
to purchase under this Agreement (the &#147;Defaulted Securities&#148;), the Representatives shall have the
right, within 24 hours thereafter, to make arrangements for one or more of the non-defaulting
Underwriters, or any other underwriters, to purchase all, but not less than all, of the Defaulted
Securities in such amounts as may be agreed upon and upon the terms herein set forth; if, however,
the Representatives shall not have completed such arrangements within such 24-hour period, then:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;if the number of Defaulted Securities does not exceed 10% of the aggregate principal
amount of the Securities to be purchased hereunder, each of the non-defaulting Underwriters shall
be obligated, severally and not jointly, to purchase the full amount thereof in the proportions
that their respective underwriting obligations hereunder bear to the underwriting obligations of
all non-defaulting Underwriters, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;if the number of Defaulted Securities exceeds 10% of the aggregate principal amount of the
Securities to be purchased hereunder, this Agreement shall terminate without liability on the part
of any non-defaulting Underwriter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No action taken pursuant to this Section shall relieve any defaulting Underwriter from
liability in respect of its default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any such default which does not result in a termination of this Agreement,
either the Representatives or the Fund shall have the right to postpone Closing Time for a period
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">not exceeding seven days in order to effect any required changes in the Registration Statement
or Prospectus or in any other documents or arrangements. As used herein, the term &#147;Underwriter&#148;
includes any person substituted for an Underwriter under this Section&nbsp;10.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 11. <U>Tax Disclosure</U>. Notwithstanding any other provision of this Agreement,
immediately upon commencement of discussions with respect to the transactions contemplated hereby,
the Fund and the Investment Adviser (and each employee, representative or other agent of the Fund)
may disclose to any and all persons, without limitation of any kind, the tax treatment and tax
structure of the transactions contemplated by this Agreement and all materials of any kind
(including opinions or other tax analyses) that are provided to the Fund relating to such tax
treatment and tax structure. For purposes of the foregoing, the term &#147;tax treatment&#148; is the
purported or claimed federal income tax treatment of the transactions contemplated hereby, and the
term &#147;tax structure&#148; includes any fact that may be relevant to understanding the purported or
claimed federal income tax treatment of the transactions contemplated hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 12. <U>Notices</U>. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Underwriters shall be directed to the Representatives at
Merrill Lynch &#038; Co., Merrill Lynch, Pierce, Fenner &#038; Smith Incorporated, 4 World Financial Center,
New York, New York 10080, attention of <FONT style="font-family: Wingdings">&#108;</FONT>; and notices to the Fund or the Investment Adviser
shall be directed to it c/o The Gabelli Equity Trust Inc., One Corporate Center, Rye, New York
10580-1422, attention of the Legal Department.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 13. <U>No Advisory or Fiduciary Relationship</U>. The Fund acknowledges and agrees
that (a)&nbsp;the purchase and sale of the Securities pursuant to this Agreement, including the
determination of the public offering price of the Securities and any related discounts and
commissions, is an arm&#146;s-length commercial transaction between the Fund, on the one hand, and the
several Underwriters, on the other hand, (b)&nbsp;in connection with the offering contemplated hereby
and the process leading to such transaction each Underwriter is and has been acting solely as a
principal and is not the agent or fiduciary of the Fund, or its stockholders, creditors, employees
or any other party, (c)&nbsp;no Underwriter has assumed or will assume an advisory or fiduciary
responsibility in favor of the Fund with respect to the offering contemplated hereby or the process
leading thereto (irrespective of whether such Underwriter has advised or is currently advising the
Fund on other matters) and no Underwriter has any obligation to the Fund with respect to the
offering contemplated hereby except the obligations expressly set forth in this Agreement, (d)&nbsp;the
Underwriters and their respective affiliates may be engaged in a broad range of transactions that
involve interests that differ from those of the Fund, and (e)&nbsp;the Underwriters have not provided
any legal, accounting, regulatory or tax advice with respect to the offering contemplated hereby
and the Fund has consulted its own legal, accounting, regulatory and tax advisors to the extent it
deemed appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 14. <U>Integration</U>. This Agreement supersedes all prior agreements and
understandings (whether written or oral) between the Fund and the Underwriters, or any of them,
with respect to the subject matter hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 15. <U>Parties</U>. This Agreement shall each inure to the benefit of and be binding
upon the Underwriters, the Investment Adviser and the Fund and their respective successors.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any
person, firm or corporation, other than the Underwriters, the Investment Adviser and the Fund and
their respective successors and the controlling persons and officers and directors referred to in
Sections&nbsp;6 and 7 and their heirs and legal Representatives, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision herein contained. This Agreement and
all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the
Underwriters, the Investment Adviser and the Fund and their respective successors, and said
controlling persons and officers and directors and their heirs and legal Representatives, and for
the benefit of no other person, firm or corporation. No purchaser of Securities from any
Underwriter shall be deemed to be a successor by reason merely of such purchase.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 16. <U>GOVERNING LAW</U>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 17. <U>TIME</U>. TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS
OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 18. <U>Counterparts</U>. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 19. <U>Effect of Headings</U>. The Section headings herein are for convenience only
and shall not affect the construction hereof.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Fund a counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement among the Underwriters, the Fund and the Investment Adviser in
accordance with its terms.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Very truly yours,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">The Gabelli Equity Trust Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Gabelli Funds, LLC</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CONFIRMED AND ACCEPTED,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as of the date first above written:

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>By:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>CITIGROUP GLOBAL MARKETS INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>By: MERRILL LYNCH, PIERCE, FENNER &#038; SMITH INCORPORATED</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Authorized Signatory</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For themselves and as Representatives of the other Underwriters named in Schedule&nbsp;A hereto.<BR>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SCHEDULE A
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Number of</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name of Underwriter</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Shares</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR><TD align="left" valign="top" style="font-size:6pt">&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Citigroup Global Markets Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Merrill Lynch, Pierce, Fenner &#038; Smith
Incorporated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Sch A-1
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SCHEDULE B
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The
purchase price to be paid by the Underwriters for the Securities
shall be $ <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Sch B-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SCHEDULE C
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oral information, if any, included as part of the General Disclosure Package.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend Rate (cumulative from _____)</DIV></TD>

<TD><U>&nbsp;&nbsp;&nbsp;&nbsp;&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>%</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Settlement Date</DIV></TD>
    <TD><U>&nbsp;&nbsp;&nbsp;&nbsp;&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></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->Sch C-1<!-- /Folio -->
</DIV>

</BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.L.I
<SEQUENCE>6
<FILENAME>y26698a2exv99w2wlwi.htm
<DESCRIPTION>EX-99.2.L.I: OPINION AND CONSENT OF WILLKIE FARR & GALLAGHER LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.2.L.I</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit
    I(i)</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">[WILLKIE
    FARR&#160;&#38; GALLAGHER LLP LETTERHEAD]</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    November&#160;6, 2006
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Gabelli Equity Trust Inc.
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    One Corporate Center
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rye, New York 10580
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ladies and Gentlemen:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have acted as counsel to The Gabelli Equity Trust Inc. (the
    &#147;Fund&#148;), a corporation organized under the laws of the
    State of Maryland, in connection with the preparation of a
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-2</FONT>
    (as amended, the &#147;Registration Statement&#148;) relating to
    the offer and sale of 5,000,000&#160;shares of the Fund&#146;s
    Series&#160;F Cumulative Preferred Stock, with a par value of
    $0.001 and a liquidation preference of $25 (the
    &#147;Shares&#148;). Unless otherwise defined herein,
    capitalized terms used herein shall have the meanings assigned
    to them in the Registration Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have examined copies of the Articles of Incorporation and
    By-Laws of the Fund, and any amendments thereto, the form of
    Articles&#160;Supplementary relating to the Shares, the
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-2</FONT>
    with respect to the Shares (Securities Act Registration File
    <FONT style="white-space: nowrap">No.&#160;333-137298,</FONT>
    Investment Company Act File
    <FONT style="white-space: nowrap">No.&#160;811-04700),</FONT>
    all resolutions adopted by the Fund&#146;s Board of Directors
    (the &#147;Board&#148;) relating to the classification,
    designation and authorization of the sale and issuance of the
    Shares (the &#147;Resolutions&#148;), and other records and
    documents that we have deemed necessary for the purpose of this
    opinion. We have also examined such other documents, papers,
    statutes and authorities as we have deemed necessary to form a
    basis for the opinion hereinafter expressed. We have assumed
    that the Fund has no &#147;Principal Shareholder&#148; as
    defined in Article&#160;VIII of the Fund&#146;s Articles of
    Incorporation and have relied upon a certificate of the
    Secretary of the Fund to the effect that the Fund has no
    knowledge of any such Principal Shareholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our examination of material, we have assumed the genuineness
    of all signatures and the conformity to original documents of
    all copies submitted to us. As to various questions of fact
    material to our opinion, we have relied on statements and
    certificates of officers and representatives of the Fund and
    others. As to matters governed by the laws of the State of
    Maryland, we have relied on the opinion of Venable LLP appended
    to this letter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on and subject to the foregoing, we are of the opinion
    that the issuance of the Shares has been duly authorized and,
    when and if delivered against payment therefor in accordance
    with the Resolutions and the determination of certain terms of
    issuance of Shares by the Board of Director&#146;s duly
    authorized pricing committee, the Shares will be validly issued,
    fully paid and nonassessable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We hereby consent to the filing of this opinion as an exhibit to
    the Registration Statement and to the reference to us in the
    Prospectus included as part of the Registration Statement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Very truly yours,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="display: inline; text-align: left; width: 90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">WILLKIE
    FARR &#38; GALLAGHER LLP</FONT></DIV>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.L.II
<SEQUENCE>7
<FILENAME>y26698a2exv99w2wlwii.htm
<DESCRIPTION>EX-99.2.L.II: OPINION AND CONSENT OF VENABLE LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.2.L.II</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit
    I(ii)</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">[LETTERHEAD
    OF VENABLE LLP]</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">November&#160;6,
    2006
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Willkie Farr&#160;&#38; Gallagher LLP
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    787 Seventh Avenue
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New York, New York 10019
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Re: Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;N-2:</FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1933&#160;Act File No.:
    <FONT style="white-space: nowrap">333-137298</FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <U>1940 Act File No.:
    <FONT style="white-space: nowrap">811-04700</FONT>
    </U>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ladies and Gentlemen:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have served as Maryland counsel to The Gabelli Equity Trust
    Inc., a Maryland corporation registered under the Investment
    Company Act of 1940, as amended (the &#147;1940 Act&#148;), as a
    closed-end management investment company (the
    &#147;Company&#148;), in connection with certain matters of
    Maryland law arising out of the registration of
    5,000,000&#160;shares of preferred stock, $.001&#160;par value
    per share, of the Company classified and designated as
    Series&#160;F Cumulative Preferred Stock (the
    &#147;Series&#160;F Preferred Stock&#148;), covered by the
    above-referenced Registration Statement, and all amendments
    thereto (the &#147;Registration Statement&#148;), filed by the
    Company with the Securities and Exchange Commission (the
    &#147;Commission&#148;) under the Securities Act of 1933, as
    amended (the &#147;1933&#160;Act&#148;), and the 1940 Act.
    Unless otherwise defined herein, capitalized terms used herein
    shall have the meanings assigned to them in the Registration
    Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 (hereinafter
    collectively referred to as the &#147;Documents&#148;):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;The Registration Statement, substantially in the form
    transmitted to the Commission under the 1933&#160;Act and the
    1940 Act;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;The charter of the Company (the &#147;Charter&#148;),
    certified as of a recent date by the State Department of
    Assessments and Taxation of Maryland (the &#147;SDAT&#148;);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;The form of Articles&#160;Supplementary relating to the
    Series&#160;F Preferred Stock (the &#147;Series&#160;F
    Articles&#160;Supplementary&#148;), substantially in the form to
    be filed by the Company with the SDAT, certified as of the date
    hereof by an officer of the Company;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;The Bylaws of the Company, certified as of the date
    hereof by an officer of the Company;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Resolutions adopted by the Board of Directors (the
    &#147;Board of Directors&#148;) of the Company (the
    &#147;Resolutions&#148;) relating to the classification,
    designation and authorization of the sale and issuance of the
    Series&#160;F Preferred Stock, certified as of the date hereof
    by an officer of the Company;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;A certificate executed by an officer of the Company,
    dated as of the date hereof;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;A certificate as of a recent date of the SDAT as to the
    good standing of the Company;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;Such other documents and matters as we have deemed
    necessary or appropriate to express the opinion set forth below,
    subject to the assumptions, limitations and qualifications
    stated herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In expressing the opinion set forth below, we have assumed the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Each individual executing any of the Documents, whether
    on behalf of such individual or any other person, is legally
    competent to do so.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Each individual executing any of the Documents on behalf
    of a party (other than the Company) is duly authorized to do so.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;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&#146;s obligations set forth therein are legal, valid
    and binding and are enforceable in accordance with all stated
    terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;All Documents submitted to us as originals are
    authentic. The form and content of all Documents submitted to us
    as unexecuted drafts do not differ in any respect relevant to
    this opinion from the form and content of such Documents as
    executed and delivered. 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 representations, warranties,
    statements and information contained in the Documents are true
    and complete. There has been no oral or written modification of
    or amendment to any of the Documents, and there has been no
    waiver of any provision of any of the Documents, by action or
    omission of the parties or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Prior to the issuance of any of the shares of
    Series&#160;F Preferred Stock, a duly authorized pricing
    committee of the Board of Directors will determine certain terms
    of issuance of such shares, and the Series&#160;F
    Articles&#160;Supplementary will be filed with, and accepted for
    record by, the SDAT (the &#147;Corporate Proceedings&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;None of the shares of Series&#160;F Preferred Stock will
    be issued to a Principal Shareholder (as defined in the Charter).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based upon the foregoing, and subject to the assumptions,
    limitations and qualifications stated herein, it is our opinion
    that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;The Company is a corporation duly incorporated, validly
    existing and in good standing under and by virtue of the laws of
    the State of Maryland.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;The issuance of the shares of Series&#160;F Preferred
    Stock has been duly authorized and, when and if delivered
    against payment therefor in accordance with the Resolutions and
    the Corporate Proceedings, the shares of Series&#160;F Preferred
    Stock will be validly issued, fully paid and nonassessable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 federal or state securities laws, including the securities
    laws of the State of Maryland.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The opinion expressed herein is limited to the matters
    specifically set forth herein and no other opinion shall be
    inferred beyond the matters expressly stated. 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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may rely on this opinion in rendering your opinion to the
    Company that is to be filed with the Commission as an exhibit to
    the Registration Statement. We consent to the filing of this
    opinion as an exhibit to the Registration Statement. In giving
    this consent, we do not admit that we are within the category of
    persons whose consent is required by Section&#160;7 of the
    1933&#160;Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Very truly yours,
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <DIV style="display: inline; text-align: left; width: 90%">/s/&#160;&#160;VENABLE
    LLP</DIV>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.N
<SEQUENCE>8
<FILENAME>y26698a2exv99w2wn.htm
<DESCRIPTION>EX-99.2.N: CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.2.N</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</U>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We hereby consent to the incorporation by reference in this Registration Statement on Form N-2 of
our report dated February&nbsp;28, 2006, relating to the financial statements and financial highlights
which appears in the December&nbsp;31, 2005 Annual Report to Shareholders of The Gabelli Equity Trust
Inc., which is also incorporated by reference into the Registration Statement. We also consent to
the references to us under the headings &#147;Financial Highlights&#148;, &#147;Experts&#148;, &#147;Audit Committee&#148;,
&#147;Counsel and Independent Registered Public Accounting Firm&#148; and &#147;Financial Statements&#148; in such
Registration Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">New York, New York<BR>
November&nbsp;6, 2006
</DIV>
<P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/&nbsp;&nbsp;&nbsp;&nbsp;PricewaterhouseCoopers
LLP</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>10
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<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>11
<FILENAME>filename11.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>LETTER TO THE S.E.C.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The Gabelli Equity Trust Inc.
</DIV>

<DIV align="center" style="font-size: 10pt">One Corporate Center</DIV>


<DIV align="center" style="font-size: 10pt">Rye, New York 10580-1422</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">November&nbsp;6, 2006<BR>
<BR>
Securities and Exchange Commission<BR>
100 F Street N.E.<BR>
Washington, D.C. 20549

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Re:</TD>
    <TD>&nbsp;</TD>
    <TD>The Gabelli Equity Trust Inc.<br>
Pre-Effective Amendment No.&nbsp;2 to Registration Statement on Form&nbsp;N-2<br>
<u>Registration Nos. 333-137298, 811-04700</u></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This letter is provided to the Securities and Exchange Commission (the &#147;Commission&#148;) in connection
with the above-referenced filing made by The Gabelli Equity Trust Inc. (the &#147;Registrant&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Registrant acknowledges that, with respect to filings made by the Registrant with the
Commission and reviewed by the staff of the Commission (the &#147;Staff&#148;):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Registrant is responsible for the adequacy and accuracy of the disclosure in the
filings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Staff comments or changes to disclosure in response to Staff comments in the filings
reviewed by the Staff do not foreclose the Commission from taking any action with respect
to the filings; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Registrant may not assert Staff comments as a defense in any proceeding initiated
by the Commission or any person under the federal securities laws of the United States.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Very truly yours,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">THE GABELLI EQUITY TRUST INC.</FONT>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>

    <TD align="left" valign="top" colspan="2">/s/ Bruce N. Alpert
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:&nbsp;
</DIV></TD>
    <TD align="left" valign="top" colspan="2">Bruce N. Alpert</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD align="left" valign="top" colspan="2">President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><u>VIA EDGAR</u>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">November&nbsp;6, 2006

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
100 F Street N.E.<BR>
Washington, D.C. 20549

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Re:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Gabelli Equity Trust Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration Statement on Form&nbsp;N-2</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>(File No.&nbsp;333-137298)</U></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to Rule&nbsp;461 under the Securities Act of 1933, as amended, we hereby request that the
effective date for the Registrant&#146;s Registration Statement on Form N-2 referenced above be
accelerated so that it will become effective on November&nbsp;7, 2006 or as soon as practicable
thereafter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Very truly yours,
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:&nbsp;
</DIV></TD>
    <TD align="left" valign="top">/s/ Bruce N. Alpert
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="left" valign="top">Name: Bruce N. Alpert</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: President and Principal Executive Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Willkie Farr &#038; Gallagher LLP Letterhead
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">November&nbsp;6, 2006
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>VIA EDGAR</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
100 F Street, N.E.<BR>
Washington, DC 20549

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Re:</TD>
    <TD>&nbsp;</TD>
    <TD>The Gabelli Equity Trust Inc. (the &#147;Fund&#148;) Registration Statement on Form&nbsp;N-2<br>
(Securities Act File No.&nbsp;333-137298, Investment Company Act File No.&nbsp;811-04700)<BR>
<U>Pre-Effective Amendment No.&nbsp;2</U></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Ms.&nbsp;Hatch:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On behalf of the Fund, I hereby transmit for filing under the Securities Act of 1933, as amended,
and the Investment Company Act of 1940, as amended, Pre-Effective Amendment No.&nbsp;2 (&#147;Amendment No.
2&#148;) to the Fund&#146;s Registration Statement on Form N-2 (the &#147;Registration Statement&#148;) which pursuant
to Section&nbsp;310 of Regulation&nbsp;S-T, has been tagged to indicate the changes from Pre-Effective
Amendment No.&nbsp;1 to the Fund&#146;s Registration Statement filed with the Securities and Exchange
Commission (the &#147;Commission&#148;) on November&nbsp;2, 2006. No material changes have been made since
Amendment No.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to Rule&nbsp;430A under the Securities Act of 1933, the following items will be omitted from
the form of prospectus:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>dividend rate and quarterly payment date for the Series&nbsp;F Preferred</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>underwriting discounts and discounts to dealers</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the first potential redemption date for the Series&nbsp;F Preferred
at the option of the Fund</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Aaron D. Wasserman, Esq.<BR>
November&nbsp;6, 2006

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any questions or comments regarding this letter should be directed to the undersigned at
(212)&nbsp;728-8622.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Very truly yours,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Aaron D. Wasserman

</DIV>

<DIV align="left" style="margin-top: 12pt">
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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">cc:</TD>
    <TD>&nbsp;</TD>
    <TD>Laura Hatch, Division of Investment Management, SEC<br>
Rose F. DiMartino, Esq., Willkie Farr &#038; Gallagher LLP<br>
Bruce N. Alpert, The Gabelli Equity Trust Inc.<br>
James E. McKee, Esq., The Gabelli Equity Trust Inc.</TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">-2-
</DIV>



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