<SEC-DOCUMENT>0000950123-11-060856.txt : 20110919
<SEC-HEADER>0000950123-11-060856.hdr.sgml : 20110919

<ACCEPTANCE-DATETIME>20110622163419

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000950123-11-060856

CONFORMED SUBMISSION TYPE:	N-2/A

PUBLIC DOCUMENT COUNT:		13

FILED AS OF DATE:		20110622

DATE AS OF CHANGE:		20110630


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:	333-173819

		FILM NUMBER:		11925908



	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:		11925909



	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>y91816nv2za.htm
<DESCRIPTION>FORM N-2/A
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<TITLE>nv2za</TITLE>
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<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt">As filed with the Securities and Exchange Commission on June&nbsp;22, 2011
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Securities Act File No.&nbsp;333-173819</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 0pt">Investment Company Act File No.&nbsp;811-04700
</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt; margin-top: 10pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM N-2</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>
(Check Appropriate Box or Boxes)</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B><FONT style="font-family: Wingdings">&#254;</FONT> Registration Statement under the Securities Act of 1933</b></div>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 12pt"><b><FONT style="font-family: Wingdings">&#254;</FONT> Pre-Effective Amendment No.&nbsp;1</b></div>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 12pt"><b><FONT style="font-family: Wingdings">&#111;</FONT> Post-Effective Amendment No. &#95;&#95;&#95;&#95;&#95;</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>and/or</B></DIV>

<DIV align="center" style="font-size: 12pt"><B><FONT style="font-family: Wingdings">&#254;</FONT> Registration Statement under the Investment Company Act of 1940</b></div>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 12pt"><b><FONT style="font-family: Wingdings">&#254;</FONT> Amendment No.&nbsp;46</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>THE GABELLI EQUITY TRUST INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">
(Exact Name of Registrant as Specified in Charter)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>One Corporate Center, Rye, New York 10580-1422</B><BR>
(Address of Principal Executive Offices)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Registrant&#146;s Telephone Number, Including Area Code: (800)&nbsp;422-3554</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Bruce N. Alpert<BR>
The Gabelli Equity Trust Inc.<BR>
One Corporate Center<BR>
Rye, New York 10580-1422<BR>
(914)&nbsp;921-5100</B><BR>
(Name and Address of Agent for Service)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><I>Copies to:</I></DIV>


<DIV align="left"><FONT size="1">

</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="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>David M. Goldman, Esq.</B><BR>
The Gabelli Equity Trust Inc. <BR>
One Corporate Center <BR>
Rye, New York 10580-1422<BR>
(914)&nbsp;921-5100
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Rose F. DiMartino, Esq.</B><BR>
Willkie Farr &#038; Gallagher LLP<BR>
787 Seventh Avenue<BR>
New York, New York 10019-6099<BR>
(212)&nbsp;728-8000</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Approximate date of proposed public offering: From time to time after the effective date of this
Registration Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any securities being registered on this form will be offered on a delayed or continuous
basis in reliance on Rule&nbsp;415 under the Securities Act of 1933, as amended, other than securities
offered in connection with a dividend reinvestment plan, check the following box. <FONT style="font-family: Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is proposed that this filing will become effective (check appropriate box)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#254;</FONT> When declared effective pursuant to section 8(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If appropriate, check the following box:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> This &#091;post-effective&#093; amendment designates a new effective date for a previously filed
&#091;post-effective amendment&#093; &#091;registration statement&#093;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT> This form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act and the Securities Act registration number of the earlier effective
registration statement for the same offering is
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933</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="31%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount Being</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed Maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed Maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount of</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="left"><B>Title of Securities</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Offering Price Per Share</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Aggregate Offering Price (1)</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registration Fee</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Common Stock (2)</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><FONT style="font-family: Wingdings">&#111;</FONT> Shares</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$<FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$<FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$<FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Preferred Stock (2)</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><FONT style="font-family: Wingdings">&#111;</FONT> Shares</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$<FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$<FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$<FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><FONT style="font-family: Wingdings">&#111;</FONT> Shares</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$<FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$500,000,000        (3)</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$58,050       (4)</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 3pt; width: 18%; border-top: px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated pursuant to Rule&nbsp;457 solely for the purpose of determining the registration fee. The proposed maximum offering
price per security will be determined, from time to time, by the Registrant in connection with the sale by the Registrant
of the securities registered under this registration statement.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Subject to Note 3 below, there is being registered hereunder an indeterminate principal amount of common stock or preferred
stock as may be sold, from time to time, including subscription rights to purchase common stock or preferred stock.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>In no event will the aggregate offering price of all securities offered from time to time pursuant to this Registration
Statement exceed $500&nbsp;million.</TD>
</TR>


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

<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Previously paid in connection with the filing of the initial registration statement for these securities on April&nbsp;29, 2011
(including an unused registration fee that was previously paid in connection with the filing of a registration statement
for the Registrant on October&nbsp;11, 2007).</TD>
</TR>
<TR><TD><FONT size="1">

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


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY
TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY
STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH
SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING PURSUANT TO SAID SECTION
8(a), MAY DETERMINE.
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P style="padding: 5px; border: 3px double #000000; font-size: 11pt; color: #FF0000">The information in this preliminary 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 preliminary 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.


<DIV align="center" style="font-size: 10pt; margin-top: 18pt; color: #FF0000"><B>Subject to Completion,</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>Preliminary Base Prospectus dated June&nbsp;22, 2011</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PRELIMINARY PROSPECTUS</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 18pt"><B>$500,000,000</B>
</DIV>


<DIV align="Center" style="font-size: 18pt; margin-top: 6pt"><B>The Gabelli Equity Trust Inc.</B>
</DIV>

<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><B>Common Stock<BR>
Preferred Stock</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investment Objectives. </I>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&nbsp;20, 1986 and commenced its investment operations on
August&nbsp;21, 1986. An investment in the Fund is not appropriate for all investors. We cannot assure
you that the Fund&#146;s objectives will be achieved.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer, from time to time, in one or more offerings, shares of our common stock or
preferred stock, each having a par value of $0.001 per share. Shares may be offered at prices and
on terms to be set forth in one or more supplements to this Prospectus (each a &#147;Prospectus
Supplement&#148;). You should read this Prospectus and the applicable Prospectus Supplement carefully
before you invest in our shares.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our shares may be offered directly to one or more purchasers, through agents designated from
time to time by us, or to or through underwriters or dealers. The Prospectus Supplement relating to
the offering will identify any agents or underwriters involved in the sale of our shares, and will
set forth any applicable purchase price, fee, commission, or discount arrangement between us and
our agents or underwriters, or among our underwriters, or the basis upon which such amount may be
calculated. The Prospectus Supplement relating to any sale of shares of preferred stock will set
forth the liquidation preference and information about the dividend period, dividend rate, any call
protection or non-call period, and other matters. We may not sell any of our shares through agents,
underwriters or dealers without delivery of a Prospectus Supplement describing the method and terms
of the particular offering of our shares. Shares of our common stock are listed on the New York
Stock Exchange (&#147;NYSE&#148;) under the symbol &#147;GAB.&#148; Currently, the Fund&#146;s Series&nbsp;D Cumulative
Preferred Stock and Series&nbsp;F Cumulative Preferred Stock are listed on the NYSE under the symbol
&#147;GAB PrD&#148; and &#147;GAB PrF,&#148; respectively. Any future series of fixed rate preferred shares would also
likely be listed on a stock exchange. On June&nbsp;21, 2011, the last reported NYSE sale price of shares
of our common stock was $5.92 per share. The net asset value of shares of the Fund&#146;s common stock
at the close of business on June&nbsp;21, 2011 was $5.97 per share. <B>Shares of closed-end funds often
trade at a discount from net asset value. This creates a risk of loss for an investor purchasing
shares in a public offering.</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in the Fund&#146;s shares involves risks. See &#147;Risk Factors and Special Considerations&#148;
on page 19 for factors that should be considered before investing in shares of the Fund.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved these securities or determined if this Prospectus is truthful or complete.
Any representation to the contrary is a criminal offense.</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus may not be used to consummate sales of shares by us through agents,
underwriters, or dealers unless accompanied by a Prospectus Supplement.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus sets forth concisely the information about the Fund that a prospective
investor should know before investing. You should read this Prospectus, which contains important
information about the Fund, before deciding whether to invest in the shares, and retain it for
future reference. A Statement of Additional Information, dated June&nbsp;22, 2011, containing additional
information about the Fund, has been filed with the Securities and Exchange Commission and is
incorporated by reference in its entirety into this Prospectus. You may request a free copy of our
annual and semi-annual reports, request a free copy of the Statement of Additional Information, the
table of contents of which is on page 52 of this Prospectus, request other information about us and
make shareholder inquiries by calling (800)&nbsp;GABELLI (422-3554) or by writing to the Fund, or obtain
a copy (and other information regarding the Fund) from the Securities and Exchange Commission&#146;s web
site (http://www.sec.gov).
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by,
any bank or other insured depository institution, and are not federally insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>You should rely only on the information contained or incorporated by reference in this Prospectus.
The Fund has not authorized anyone to provide you with different information. The Fund is not
making an offer to sell these securities in any state where the offer or sale is not permitted. You
should not assume that the information contained in this Prospectus is accurate as of any date
other than the date of this Prospectus.</B>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<!--TOC-->
</DIV>
<DIV align="left">
<!--A name="tocpage"--><!--/A-->
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>


<DIV align="left"><FONT size="1">

</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#101"-->Prospectus Summary<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#102"-->Summary Of Fund Expenses<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#103"-->Financial Highlights<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#104"-->Use Of Proceeds<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#105"-->The Fund<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#106"-->Investment Objectives And Policies<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#107"-->Risk Factors And Special Considerations<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#108"-->How the Fund Manages Risk<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#109"-->Management Of The Fund<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#110"-->Portfolio Transactions<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#111"-->Dividends And Distributions<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#112"-->Issuance Of Common Stock<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#113"-->Automatic Dividend Reinvestment And Voluntary Cash Purchase Plan<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#114"-->Description Of The Capital Stock<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#115"-->Anti-Takeover Provisions Of The Fund&#146;s Governing Documents<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#116"-->Closed-End Fund Structure<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#117"-->Repurchase Of Common Stock<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#118"-->Rights Offerings<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#119"-->Net Asset Value<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#120"-->Limitation on Directors&#146; and Officers&#146; Liability<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#121"-->Taxation<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#122"-->Custodian, Transfer Agent And Dividend Disbursing Agent<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#123"-->Plan Of Distribution<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#124"-->Legal Matters<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#125"-->Independent Registered Public Accounting Firm<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#126"-->Additional Information<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#127"-->Privacy Principles Of The Fund<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#128"-->Table of Contents Of Statement Of Additional Information<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

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



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="Y91816101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS SUMMARY</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>This is only a summary. This summary may not contain all of the information that you should
consider before investing in our shares. You should review the more detailed information contained
in this Prospectus and the Statement of Additional Information, dated June&nbsp;22, 2011 (the &#147;SAI&#148;).</I></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Fund</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gabelli Equity Trust Inc. is a closed-end, non-diversified management investment company
organized as a Maryland corporation on May&nbsp;20, 1986. Throughout this Prospectus, we refer to The
Gabelli Equity Trust Inc. as the &#147;Fund&#148; or as &#147;we.&#148; See &#147;The Fund.&#148;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s outstanding shares of common stock, par value $0.001 per share, are listed on the
New York Stock Exchange under the symbol &#147;GAB.&#148; As of March&nbsp;31, 2011, the net assets of the Fund
attributable to its common stock were $1,128,777,453. As of March&nbsp;31, 2011, the Fund had
outstanding 181,682,556 shares of common stock; 2,880 shares of Series&nbsp;C Auction Rate Cumulative
Preferred Stock, liquidation preference $25,000 per share (the &#147;Series&nbsp;C Auction Rate Preferred&#148;);
2,363,860 shares of 5.875% Series&nbsp;D Cumulative Preferred Stock, liquidation preference $25 per
share (the &#147;Series&nbsp;D Preferred&#148;); 1,120 shares of Series&nbsp;E Auction Rate Cumulative Preferred Stock,
liquidation preference $25,000 per share (the &#147;Series&nbsp;E Auction Rate Preferred&#148;); and 5,850,402
shares of 6.20% Series&nbsp;F Cumulative Preferred Stock, liquidation preference $25 per share (the
&#147;Series&nbsp;F Preferred&#148;). The Fund completed its redemption of its 7.25% Tax Advantaged Cumulative
Preferred Stock (the &#147;Series&nbsp;A Preferred&#148;) and its 7.20% Tax Advantaged Series&nbsp;B Cumulative
Preferred Stock (the &#147;Series&nbsp;B Preferred&#148;) on June&nbsp;17, 2003 and January&nbsp;8, 2007, respectively. The
Series&nbsp;C Auction Rate Preferred, Series&nbsp;D Preferred, Series&nbsp;E Auction Rate Preferred and Series&nbsp;F
Preferred have the same seniority with respect to distributions and liquidation preference.</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Offering</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer, from time to time, in one or more offerings, our common stock, $0.001 par value
per share and our preferred stock, $0.001 par value per share. The shares may be offered at prices
and on terms to be set forth in one or more supplements to this Prospectus (each a &#147;Prospectus
Supplement&#148;). We may also offer subscription rights to purchase our common stock or preferred
stock. The offering price per share of our common stock will not be less than the net asset value
per share of our common stock at the time we make the offering, exclusive of any underwriting
commissions or discounts, provided that transferable rights offerings that meet certain conditions
may be offered at a price below the then current net asset value. See &#147;Rights Offerings.&#148; You
should read this Prospectus and the applicable Prospectus Supplement carefully before you invest in
our shares. Our shares may be offered directly to one or more purchasers, through agents designated
from time to time by us, or to or through underwriters or dealers. The Prospectus Supplement
relating to the offering will identify any agents, underwriters or dealers involved in the sale of
our shares, and will set forth any applicable purchase price, fee, commission or discount
arrangement between us and our agents or underwriters, or among our underwriters, or the basis upon
which such amount may be calculated. The Prospectus Supplement relating to any sale of preferred
stock will set forth the liquidation preference and information about the dividend period, dividend
rate, any call protection or non-call period and other matters. We may not sell any of our shares
through agents, underwriters or dealers without delivery of a Prospectus Supplement describing the
method and terms of the particular offering of our shares. Shares of our common stock are listed
on the New York Stock Exchange (&#147;NYSE&#148;) under the symbol &#147;GAB.&#148; Currently, the Fund&#146;s Series&nbsp;D
Cumulative Preferred Stock and Series&nbsp;F Cumulative Preferred Stock are listed on the NYSE under the
symbol &#147;GAB PrD&#148; and &#147;GAB PrF,&#148; respectively. Any future series of fixed rate preferred shares
would also likely be listed on a stock exchange. On June&nbsp;21, 2011, the last reported NYSE sale
price of shares of our common stock was $5.92 per share. The net asset value of shares of the
Fund&#146;s common stock at the close of business on June&nbsp;21, 2011 was $5.97 per share.</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Objectives and Policies</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 shareholder
approval. The Fund will provide shareholders with notice at least 60&nbsp;days prior to the
implementation of any change in the 80% Policy.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Investors Service, Inc. (&#147;Moody&#146;s&#148;) or D by Standard &#038; Poor&#146;s, a
Division of The McGraw-Hill Companies, Inc. (&#147;S&#038;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&#038;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 align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund invests in equity securities across all market capitalization ranges. 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 emerging markets.</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No assurance can be given that the Fund&#146;s investment objectives will be achieved. See
&#147;Investment Objectives and Policies.&#148;</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, 246,000,000 of the Fund&#146;s capital stock, which includes the common stock being
registered with this registration statement, have been classified by the Board of Directors (the
&#147;Board&#148;) of the Fund or any duly authorized committee thereof as common stock, par value $0.001 per
share. Holders of the common stock are entitled to one vote per share held. Holders of the common
stock are entitled to share equally in distributions authorized by the Fund&#146;s 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 Fund 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&#146;s preferred
stock ranking senior to the shares of common stock of the Fund. As of March&nbsp;31, 2011, 181,682,556
shares of common stock of the Fund were outstanding.</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Preferred Stock</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, 24,000,000 shares of the Fund&#146;s capital stock, which includes the preferred stock
being registered with this registration statement, have been classified by the Board of the Fund or
any duly authorized committee thereof as preferred stock, par value $0.001 per share. The Fund&#146;s
Board may reclassify authorized and unissued shares of the Fund, previously classified as common
stock, as preferred stock prior to the completion of any offering. The terms of each series of
preferred stock may be fixed by the Board and may materially limit and/or qualify the rights of
holders of the Fund&#146;s common stock. If the Fund&#146;s Board determines that it may be advantageous to
the holders of the Fund&#146;s common stock for the Fund to utilize additional leverage, the Fund may
issue additional series of fixed rate preferred stock (&#147;Fixed Rate Preferred Stock&#148;) or additional
series of auction rate preferred stock (&#147;Auction Rate Preferred Stock&#148;). Any Fixed Rate Preferred
Stock or Auction Rate Preferred Stock issued by the Fund will pay, as applicable, distributions at
a fixed rate or at rates that will be reset frequently based on short-term interest rates. (As of
March&nbsp;31, 2011, 2,880 shares of Series&nbsp;C Auction Rate Preferred, 2,363,860 shares of Series&nbsp;D
Preferred, 1,120 shares of Series&nbsp;E Auction Rate Preferred and 5,850,402 shares of Series&nbsp;F
Preferred were outstanding.) Leverage creates a greater risk of loss as well as a potential for
more gains for the common shares than if leverage were not used. See &#147;Risk Factors and Special
Considerations&#151;Leverage Risk&#148; and &#147;Certain Investment Practices&#151;Leveraging.&#148; The Fund may also
engage in investment management techniques which will not be considered senior securities if the
Fund establishes in a segregated account cash or other liquid securities equal to the Fund&#146;s
obligations in respect of such techniques. The Fund may borrow money in accordance with its
investment restrictions,</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">including as a temporary measure for extraordinary or emergency purposes. The Fund will not borrow
for investment purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Dividends and Distributions</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Preferred Stock Distributions. </I>In accordance with the Fund&#146;s Articles of Incorporation
(together with any amendments or supplements thereto, including any articles supplementary of the
Fund establishing a series of preferred stock (the &#147;Articles Supplementary&#148; and together with the
Articles of Incorporation, the &#147;Charter&#148;) and as required by the 1940 Act, 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, any distributions on such preferred stock 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 align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 current and accumulated earnings and profits allocable to such
shares, the excess distributions will generally be treated as a tax-free return of capital (to the
extent of the shareholder&#146;s tax basis in the shares). The amount treated as a tax-free return of
capital will reduce a shareholder&#146;s adjusted tax basis in the preferred stock, thereby increasing
the shareholder&#146;s potential taxable gain or reducing the potential taxable loss on the sale of the
stock. The Fund made return of capital distributions to its preferred shareholders during the year
ended December&nbsp;31, 2010.</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Common Stock Distributions. </I>In order to allow its common shareholders 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 shareholders. 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 preferred stock. 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&nbsp;31, 2010, the Fund made distributions of $0.51 per share of common stock, of which $0.51
per share was deemed a return of capital. The total 2010 distributions of $0.51 per common share
consisted of $0.51 per share in the form of cash distributions. The Fund has made quarterly
distributions with respect to its common stock since 1987. All distributions to common shareholders
for the past three years have constituted a return of capital. In addition, a portion of the
distributions to common shareholders during thirteen of the twenty-four fiscal years since the
Fund&#146;s inception has constituted a return of capital.</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Fund&#146;s distribution policy, the Fund declares and pays quarterly distributions from
net investment income, capital gains, and paid-in capital. The actual source of the distribution is
determined after the end of the year. Pursuant to this policy, distributions during the year may be
made in excess of required distributions. To the extent such distributions are made from current
earnings and profits, they are considered ordinary income or long-term capital gains. The Fund&#146;s
current distribution policy may restrict the Fund&#146;s ability to pass through to shareholders all of
its net realized long-term capital gains as a capital gain dividend, subject to the maximum federal
income tax rate of 15%, and may cause such gains to be treated as ordinary income subject to a
maximum federal income tax rate of 35%. Distributions sourced from paid-in capital should not be
considered as dividend yield or the total return from an investment in the Fund. Shareholders who
periodically receive the payment of a dividend or other distribution consisting of a return of
capital may be under the impression that they are receiving net profits when they are not.
Shareholders should not assume that the source of a distribution from the Fund is net profit. 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&nbsp;31, 2011.</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Use of Proceeds</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will use the net proceeds from the offering to purchase portfolio securities in
accordance with its investment objectives and policies as appropriate investment opportunities are
identified, which is expected to substantially be completed within three months; however, changes
in market conditions could result in the Fund&#146;s anticipated investment period extending to as long
as six months. See &#147;Use of Proceeds.&#148;</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exchange Listing</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s outstanding shares of common stock are listed on the NYSE, under the trading or
&#147;ticker&#148; symbol &#147;GAB.&#148; Currently, the Series&nbsp;D Preferred and Series&nbsp;F Preferred are listed on the
NYSE under the symbol &#147;GAB PrD&#148; and &#147;GAB PrF,&#148; respectively. See &#147;Description of Capital Stock.&#148;
Any additional series of Fixed Rate Preferred Stock issued by the Fund would also likely be listed
on the NYSE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Price of Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common shares of closed-end investment companies often trade at prices lower than their net
asset value. Common shares of closed-end investment companies may trade during some periods at
prices higher than their net asset value and during other periods at prices lower than their net
asset value. The Fund cannot assure you that its common stock will trade at a price higher than,
equal to or above net asset value. The Fund&#146;s net asset value will be reduced immediately following
an offering by the sales load and the amount of the offering expenses paid by the Fund. See &#147;Use of
Proceeds.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to net asset value, the market price of the Fund&#146;s common shares may be affected
by such factors as the Fund&#146;s dividend and distribution levels (which are affected by expenses) and
stability, market liquidity, market supply and demand, unrealized gains, general market and
economic conditions, and other factors. See &#147;Risk Factors and Special Considerations,&#148; &#147;Description
of the Capital Stock&#148; and &#147;Repurchase of Common Stock.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common shares are designed primarily for long-term investors, and you should not purchase
common shares of the Fund if you intend to sell them shortly after purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed rate preferred shares, if issued, may also trade at premiums to or discounts from their
liquidation preference for a variety of reasons, including changes in interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risk Factors and Special Considerations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk is inherent in all investing. Therefore, before investing in shares of the Fund, you
should consider the following risks carefully.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Leverage Risk</I>. The Fund currently uses, and intends to continue to use, financial leverage for
investment purposes by issuing preferred stock. As of March&nbsp;31, 2011, the amount of leverage
represented approximately 21% of the Fund&#146;s net assets. The Fund&#146;s leveraged capital structure
creates special risks not associated with unleveraged funds having similar investment objectives
and policies. The use of leverage, which can be described as exposure to changes in price at a
ratio greater than the amount of equity invested magnifies both the favorable and unfavorable
effects of price movements in the investments made by the Fund. To the extent that the Fund
determines to employ additional leverage in its investment operations, the Fund is subject to
additional substantial risk of loss. The Fund cannot assure you that the issuance of preferred
shares will result in a higher yield or return to the holders of shares of common stock. Also, as
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 pay dividends or 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;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Special Risks to Holders of Fixed Rate Preferred Stock. </I>Prior to any offering, there will be
no public market for any additional series of Fixed Rate Preferred Stock. In the event any
additional series of Fixed Rate Preferred Stock are issued, prior application will have been made
to list such shares on a national securities exchange, which will likely be the NYSE. However,
during an initial period, which is not expected to exceed 30&nbsp;days after the date of its initial
issuance, such shares may not be listed on any securities exchange. During such period, the
underwriters may make a market in such shares, although they will have no obligation to do so.
Consequently, an investment in such shares may be illiquid during such period. Shares of Fixed Rate
Preferred Stock may trade at a premium to or discount from liquidation value for various reasons,
including changes in interest rates.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Special Risks for Holders of Auction Rate Preferred Stock.</I></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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Auction Risk. </I>Since February&nbsp;2008, the auctions for the Auction Rate Preferred Stock
have failed and have continued to fail. Failing means that more Auction Rate Preferred
Stock is offered for sale than there are buyers for those shares. During this period while
auctions have continued to fail, holders of the Fund&#146;s Auction Rate Preferred
</TD>
</TR>
</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock who wanted to sell their shares at par through the auction process have been unable to
do so. Holders have continued to receive dividends on their Auction Rate Preferred Stock at
a maximum rate determined by reference to short term rates, rather than at a price set by
auction. At present the maximum rate is equal to 150% of the &#147;AA&#148; Financial Composite
Commercial Paper Rate, determined on each calculation date. For the fiscal quarter ended
March&nbsp;31, 2011, the dividend rates for the Series&nbsp;C Auction Rate Preferred and the Series&nbsp;E
Auction Rate Preferred ranged from 0.180% to 0.285% and 0.130% to 0.285%, respectively. A
failed auction is not a default and the Fund has no obligation under its Charter to redeem
its Auction Rate Preferred Stock because the auctions continue to fail. The Fund cannot
estimate when or if auction markets for the Auction Rate Preferred Stock will resume
functioning. There appears to be a secondary market in certain auction market preferred
issues, although the Fund is not aware whether there is or will be an active trading market
for the Fund&#146;s shares.</TD>
</TR>

</TABLE>
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the auctions were to resume, which management does not consider to be likely, other risks
would apply. For example, if you place an order (a hold order) at an auction to retain
Auction Rate Preferred Stock only at a specified rate that exceeds the rate set at the
auction, you will not retain your Auction Rate Preferred Stock. Additionally, if you place a
hold order without specifying a rate below which you would not wish to continue to hold your
shares and the auction sets a below-market rate, you will receive a lower rate of return on
your shares than the market rate. Finally, the dividend period may be changed, subject to
certain conditions and with notice to the holders of the Auction Rate Preferred Stock, which
could also affect the liquidity of your investment.</TD>
</TR>

</TABLE>
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Secondary Market Risk. </I>If you try to sell your Auction Rate Preferred Stock between
auctions, you may not be able to sell them for their liquidation preference per share or
such amount per share plus accumulated dividends. If the Fund has designated a special
dividend period of more than seven days, changes in interest rates could affect the price
you would receive if you sold your shares in the secondary market. Broker-dealers that
maintain a secondary trading market for the Auction Rate Preferred Stock are not required
to maintain this market and the Fund is not required to redeem Auction Rate Preferred Stock
if either an auction or an attempted secondary market sale fails because of a lack of
buyers. The Auction Rate Preferred Stock will not be registered on a stock exchange. If you
sell your Auction Rate Preferred Stock to a broker-dealer or other party between auctions,
you may receive less than the price you paid for them.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Common Stock Distribution Policy Risk. </I>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 shareholders. 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 preferred stock. All distributions to common shareholders for the past three years have
constituted a return of capital. In addition, a portion of the distributions to holders of common
stock during thirteen of the twenty-four fiscal years since the Fund&#146;s inception has constituted a
return of capital. Under the Fund&#146;s distribution policy, the Fund declares and pays quarterly
distributions from net investment income, capital gains, and paid-in capital. The actual source of
the distribution is determined after the end of the year. Pursuant to this policy, distributions
during the year may be made in excess of required distributions. To the extent such distributions
are made from current earnings and profits, they are considered ordinary income or long-term
capital gains. The Fund&#146;s current distribution policy may restrict the Fund&#146;s ability to pass
through to shareholders all of its net realized long-term capital gains as a capital gain dividend,
subject to the maximum federal income tax rate of 15%, and may cause such gains to be treated as
ordinary income subject to a maximum federal income tax rate of 35%. Distributions sourced from
paid-in capital should not be considered as dividend yield or the total return from an investment
in the Fund.</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Discount Risk. </I>Common shares of closed-end investment companies often trade at a
discount from net asset value. This characteristic of shares of a closed-end fund is a risk
separate and distinct from the risk that the Fund&#146;s net asset value may decrease. The Investment
Adviser cannot predict whether the Fund&#146;s shares will trade at, below or above net asset value. The
risk of holding shares of a closed-end fund that might trade at a discount is more pronounced for
shareholders who wish to sell their shares in a relatively short period of time after acquiring
them because, for those investors, realization of a gain or loss on their investments is likely to
be more dependent upon the existence of a premium or discount than upon portfolio performance. The
Fund&#146;s common shares are not subject to redemption. Shareholders desiring liquidity may, subject to
applicable securities laws, trade their shares in the Fund on the NYSE or other markets on which
such shares may trade at the then current market value, which may differ from the then current net
asset value.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Non-Diversified Status</I>. 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</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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;Non-Diversified Status.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Industry Concentration Risk</I>. 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;Industry Concentration Risk.&#148;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest Rate Transactions. </I>The Fund may enter into swap transactions in connection with
Auction Rate Preferred Stock. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Foreign Securities</I>. 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 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 U.S. 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. In addition, it may be difficult to effect repatriation of
capital invested in certain countries. Also, with respect to certain countries, there are 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There may be less publicly available information about a foreign company than a U.S. company.
Foreign securities markets may have substantially less volume than U.S. securities markets and some
foreign company securities are less liquid than securities of otherwise comparable U.S. 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-U.S. securities markets and the increased costs of maintaining the custody
of foreign securities.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lower Grade Securities. </I>The Fund may invest up to 10% of its total assets in fixed income
securities rated below investment grade by recognized statistical rating agencies or unrated
securities of comparable quality. These securities, which may be preferred stock or debt, are
predominantly speculative and involve major risk exposure to adverse conditions. Debt securities
that are not rated or that are rated lower than &#147;BBB&#148; by S&#038;P or lower than &#147;Baa&#148; by Moody&#146;s are
referred to in the financial press as &#147;junk bonds.&#148;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, such lower grade securities and unrated securities of comparable quality offer a
higher current yield than is offered by higher rated securities, but also (i)&nbsp;will likely have some
quality and protective characteristics that, in the judgment of the rating organizations, are
outweighed by large uncertainties or major risk exposures to adverse conditions and (ii)&nbsp;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 securities. In addition, such 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 grade 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</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">issuer&#146;s operating history, financial resources and 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 in
response to changes in the economy or the financial markets.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lower grade securities 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, as the principal value of nonconvertible bonds and preferred stocks moves inversely with
movements in interest rates, in the event of rising 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 regular income streams.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of its investment in lower grade securities, the Fund may invest in securities of
issuers in default. The Fund will make an investment in securities of issuers in default only when
the Investment Adviser believes that such issuers will honor their obligations or emerge from
bankruptcy protection under a plan pursuant to which the securities received by the Fund in
exchange for its defaulted securities will have a value in excess of the Fund&#146;s investment. By
investing in 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 otherwise appreciate.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to using recognized rating agencies and other sources, the Investment Adviser also
performs its own analysis of issues in seeking investments that it believes to be underrated (and
thus higher yielding) in light of the financial condition of the issuer. Its analysis of issuers
may include, among other things, current and anticipated cash flow and borrowing requirements,
value of assets in relation to historical cost, strength of management, responsiveness to business
conditions, credit standing, and current anticipated results of operations. In selecting
investments for the Fund, the Investment Adviser may also consider general business conditions,
anticipated changes in interest rates, and the outlook for specific industries.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to its purchase by the Fund, an issuer of securities may cease to be rated or its
rating may be reduced. In addition, it is possible that statistical rating agencies may change
their ratings of a particular issuer to reflect subsequent events. Moreover, such ratings do not
assess the risk of a decline in market value. None of these events will require the sale of the
securities by the Fund, although the Investment Adviser will consider these events in determining
whether the Fund should continue to hold the securities.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market for lower grade and comparable unrated securities has experienced several periods
of significantly adverse price and liquidity, particularly at or around times of economic
recessions. Past market recessions have adversely affected the value of such securities as well as
the ability of certain issuers of such securities to repay principal and pay interest thereon or to
refinance such securities. The market for those securities may react in a similar fashion in the
future.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Derivative Transactions. </I>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. 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">
<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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fact that skills needed to use these strategies are different from those
needed to select portfolio securities;
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 7 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possible absence of a liquid secondary market for any particular instrument
at any time;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possible need to defer closing out certain hedged positions to avoid adverse
tax consequences; and</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 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>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Risk Factors and Special Considerations&#151;Special Risks of Derivative Transactions.&#148;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Futures Transactions</I>. The Fund may make investments in futures and options on futures. Risks
include, but are not limited to, the following:</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no assurance that futures contracts or options on futures can be offset at
favorable prices;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible reduction of the yield of the Fund due to the use of hedging;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible reduction in value of both the securities hedged and the hedging
instrument;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible lack of liquidity due to daily limits or price fluctuations;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>imperfect correlation between the contracts and the securities being hedged; and</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>losses from investing in futures transactions that are potentially unlimited and
the segregation requirements for such transactions.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Forward Currency Exchange Contracts. </I>The use of forward currency exchange 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.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Counterparty Risk. </I>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 proceeding. The Fund may obtain only a limited recovery or may
obtain no recovery in such circumstances.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Management Risk. </I>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;Management Risk.&#148;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dependence on Key Personnel</I>. The Investment Adviser is dependent upon the expertise of Mr.
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.&nbsp;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.
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;Dependence on Key Personnel.&#148;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Geopolitical Events. </I>As a result of the terrorist attacks on domestic U.S. targets on
September&nbsp;11, 2001, some of the U.S. securities markets were closed for a four-day period. These
terrorists attacks, the wars in Iraq and Afghanistan and their aftermath and other geopolitical
events have led to, and may in the future lead to, increased short-term market volatility and may
have long-term effects on U.S. and world economies and markets. The nature, scope and duration of
the war and occupation cannot be predicted with any certainty. Similar events in the future or
other disruptions of financial markets could affect interest rates, securities exchanges, auctions,
secondary trading, ratings, credit risk, inflation, energy prices, and other factors relating to
the common stock.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Anti-Takeover Provisions. </I>The Charter and the By-Laws of the Fund, as amended from time to
time (the &#147;By-Laws&#148; and together with the Charter, the &#147;Governing Documents&#148;) 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.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation. </I>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</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 8 -<!-- /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">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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Temporary Investments. </I>During temporary defensive periods and during inopportune periods to be
fully invested, the Fund may invest in U.S. government securities and in money market mutual funds
that invest in those securities. Obligations of certain agencies and instrumentalities of the U.S.
government, such as the Government National Mortgage Association, are supported by the &#147;full faith
and credit&#148; of the U.S. 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 U.S. Treasury; others, such as
those of the Federal National Mortgage Association, are supported by the discretionary authority of
the U.S. 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 U.S. government would provide financial support to U.S.
government-sponsored instrumentalities if it is not obligated to do so by law.</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Emerging Markets Risk. </I>The Fund may invest up to 35% of its total assets in foreign
securities, including securities of issuers whose primary operations or principal trading market is
in an &#147;emerging market.&#148; An &#147;emerging market&#148; country is any country that is considered to be an
emerging or developing country by the International Bank for Reconstruction and Development (the
&#147;World Bank&#148;). Investing in securities of companies in emerging markets may entail special risks
relating to potential political and economic instability and the risks of expropriation,
nationalization, confiscation or the imposition of restrictions on foreign investment, the lack of
hedging instruments and restrictions on repatriation of capital invested. Emerging securities
markets are substantially smaller, less developed, less liquid and more volatile than the major
securities markets. The limited size of emerging securities markets and limited trading value
compared to the volume of trading in U.S. securities could cause prices to be erratic for reasons
apart from factors that affect the quality of the securities. For example, limited market size may
cause prices to be unduly influenced by traders who control large positions. Adverse publicity and
investors&#146; perceptions, whether or not based on fundamental analysis, may decrease the value and
liquidity of portfolio securities, especially in these markets. Other risks include high
concentration of market capitalization and trading volume in a small number of issuers representing
a limited number of industries, as well as a high concentration of investors and financial
intermediaries; overdependence on exports, including gold and natural resources exports, making
these economies vulnerable to changes in commodity prices; overburdened infrastructure and obsolete
or unseasoned financial systems; environmental problems; less developed legal systems; and less
reliable securities custodial services and settlement practices.</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Management and Fees</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gabelli Funds, LLC (the &#147;Investment Adviser&#148;) 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 currently
outstanding Series&nbsp;C Auction Rate Preferred, Series&nbsp;D Preferred, Series&nbsp;E Auction Rate Preferred
and Series&nbsp;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 the
Series&nbsp;C Auction Rate Preferred, Series&nbsp;D Preferred, Series&nbsp;E Auction Rate Preferred or Series&nbsp;F
Preferred 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 shareholder&#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;Management of the Fund.&#148;</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 9 -<!-- /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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the year ended December&nbsp;31, 2010, the Fund&#146;s total return on the net asset value of the
common stock exceeded the stated dividend rate or corresponding swap rate of Series&nbsp;C Auction Rate
Preferred, Series&nbsp;D Preferred, Series&nbsp;E Auction Rate Preferred and Series&nbsp;F Preferred. Thus,
management fees were accrued on these assets.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A discussion regarding the basis for the Board&#146;s approval of the continuation of the
investment advisory contract of the Fund is available in the Fund&#146;s semi-annual report to
shareholders dated June&nbsp;30, 2010.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Repurchase of Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Board has authorized the Fund (and the Fund accordingly reserves freedom of action)
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. Although the Board has authorized such repurchases,
the Fund is not required to repurchase its shares. The Board has not established a limit on the
amount of common stock that could be repurchased. Such repurchases are subject to certain notice
and other requirements under the 1940 Act. Through December&nbsp;31, 2010, the Fund has not repurchased
shares of its common stock under this authorization. See &#147;Repurchase of Common Stock.&#148;</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Anti-Takeover Provisions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain provisions of the Governing Documents, 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 vote of the holders of 66<SUP style="FONT-size: 85%; vertical-align: text-top">2</SUP>/<SUB style="FONT-size: 85%; vertical-align: text-bottom">3</SUB>% 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. 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
Governing Documents.&#148;</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Custodian, Transfer Agent and Dividend Disbursing Agent</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York Mellon Corporation, located at 135 Santilli Highway, Everett,
Massachusetts 02149, serves as the custodian (the &#147;Custodian&#148;) 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 will receive a monthly fee paid by the Fund
based upon, among other things, the average value of the total assets of the Fund, plus certain
charges for securities transactions and out-of-pocket expenses.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rules adopted under the 1940 Act permit the Fund to maintain its foreign securities in the
custody of certain eligible foreign banks and securities depositories. Pursuant to those rules, any
foreign securities in the portfolio of the Fund may be held by subcustodians approved by the Board
in accordance with the regulations of the Securities and Exchange Commission (the &#147;SEC&#148;). Selection
of any such subcustodians will be made by the Board following a consideration of a number of
factors, including but not limited to the reliability and financial stability of the institution,
the ability of the institution to perform capably custodial services for the Fund, the reputation
of the institution in its national market, the political and economic stability of the country or
countries in which the subcustodians are located, and risks of potential nationalization or
expropriation of assets of the Fund.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computershare Trust Company, N.A. (&#147;Computershare&#148;), located at 250 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 Fund&#146;s common shares.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computershare also serves as the transfer agent, registrar, dividend disbursing agent and
redemption agent with respect to the Series&nbsp;D Preferred and Series&nbsp;F Preferred.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York Mellon, 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&nbsp;C Auction Rate Preferred and the Series&nbsp;E Auction Rate Preferred. See
&#147;Custodian, Transfer Agent and Dividend Disbursing Agent.&#148;</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 10 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="Y91816102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY OF FUND EXPENSES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the Fund&#146;s expenses, including preferred stock offering expenses, as
a percentage of net assets attributable to common stock.
</DIV>


<DIV align="left"><FONT size="1">

</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Shareholder Transaction Expenses</B></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">Sales Load (as a percentage of offering price)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.08                  </TD>
    <TD nowrap>%(1)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering Expenses Borne by the Fund (excluding Preferred Stock Offering Expenses) (as a
percentage of offering price)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.02                  </TD>
    <TD nowrap>%(1)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend Reinvestment Plan Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right">None</TD>
    <TD  align="right" nowrap>(2)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred Stock Offering Expenses Borne by the Fund (as a percentage of net assets attributable
to common shares)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.03                  </TD>
    <TD nowrap>%(3)</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>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of Net</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assets<br> Attributable</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>to Common Stock (5)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Annual Expenses</B></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">Management Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.40                               </TD>
    <TD nowrap>%(4)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on Borrowed Funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right">None</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.14                               </TD>
    <TD nowrap>%(4)</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: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Annual Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.54</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends on Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.99                               </TD>
    <TD nowrap>%(5)</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" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Annual Expenses and Dividends on Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.53</TD>
    <TD nowrap>%</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="left"><FONT size="1">

</FONT></DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated maximum amount based on offering of $250&nbsp;million in
shares of common stock and $250&nbsp;million in shares of preferred
stock. The actual amounts in connection with any offering will be
set forth in the Prospectus Supplement if applicable.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Shareholders participating in the Fund&#146;s Automatic Dividend
Reinvestment and Voluntary Cash Purchase Plans would pay $0.75
plus their pro rata share of brokerage commissions per
transaction to purchase shares and $2.50 plus their pro rata
share of brokerage commissions per transaction to sell shares.
<I>See </I>&#147;Automatic Dividend Reinvestment and Voluntary Cash Purchase
Plans.&#148;</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Assumes issuance of $250&nbsp;million in liquidation preference of
fixed rate preferred stock and net assets attributable to common
stock of $1.39&nbsp;billion (which includes issuance of $250&nbsp;million
in common shares). The actual amounts in connection with any
offering will be set forth in the Prospectus Supplement if
applicable.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>The Investment Adviser&#146;s fee is 1.00% annually 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.
Consequently, if the Fund has preferred stock outstanding, the
investment management fees and other expenses as a percentage of
net assets attributable to common stock will be higher than if
the Fund does not utilize a leveraged capital structure. &#147;Other
Expenses&#148; are based on estimated amounts for the current year
assuming completion of the proposed issuances.</TD>
</TR>

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Dividends on Preferred Stock represent the aggregate of (1)&nbsp;the
estimated annual distributions on the existing preferred stock
outstanding and (2)&nbsp;the distributions that would be made assuming
$250&nbsp;million of preferred stock is issued with a fixed dividend
rate of 6.00%. There can, of course, be no guaranty that any
preferred stock would be issued or, if issued, the terms thereof.</TD>
</TR>
<TR><TD><FONT size="1">

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of the table above and the example below is to help you understand all fees and
expenses that you, as a holder of common stock, would bear directly or indirectly.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 11 -<!-- /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"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following example illustrates the expenses (including the maximum estimated sales load of
$10 and estimated offering expenses of $0.25 from the issuance of $250&nbsp;million in common stock) you
would pay on a $1,000 investment in common stock, assuming a 5% annual portfolio total return.* The
actual amounts in connection with any offering will be set forth in the Prospectus Supplement if
applicable.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>3 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>10 Years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Expenses Incurred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">387</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD><B>The example should not be considered a representation of future
expenses. </B>The example is based on Total Annual Expenses and
Dividends on Preferred Stock shown in the table above and assumes
that the amounts set forth in the table do not change and that all
distributions are reinvested at net asset value. Actual expenses
may be greater or less than those assumed. Moreover, the Fund&#146;s
actual rate of return may be greater or less than the hypothetical
5% return shown in the example.</TD>
</TR>
<TR><TD><FONT size="1">

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



<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The example includes Dividends on Preferred Stock. If Dividends on Preferred Stock were not
included in the example calculation, the expenses would be as follows (based on the same
assumptions as above).
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>3 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>10 Years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Expenses Incurred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">192</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left">
<A name="Y91816103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FINANCIAL HIGHLIGHTS</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selected data below sets forth the per share operating performance and ratios for the
periods presented. The financial information was derived from and should be read in conjunction
with the Financial Statements of the Fund and Notes thereto, which are incorporated by reference
into this Prospectus and the SAI. The financial information for the fiscal year ended December&nbsp;31,
2010 and for each of the preceding fiscal periods presented, has been audited by
PricewaterhouseCoopers LLP (&#147;PwC&#148;), the Fund&#146;s independent registered public accounting firm, whose
unqualified report on such Financial Statements is incorporated by reference into the SAI.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selected data for a share outstanding throughout each period:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Selected data for a share outstanding throughout each period:</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating Performance:</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net asset value, beginning of
period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.10</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net realized and unrealized
gain/(loss) on investments,
written options, futures
contracts, swap contracts, and
foreign currency transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.18</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total from investment
operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.18</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.36</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #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>
    <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>
    <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><DIV style="margin-left:15px; text-indent:-15px"><B>Distributions to Preferred
Shareholders:(a)</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.05</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.07</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.11</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net realized gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.12</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Return of capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total distributions to
preferred shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.07</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.07</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.11</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.14</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.15</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 12 -<!-- /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"><FONT size="1">

</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Increase/(Decrease) in Net
Assets Attributable to Common
Shareholders Resulting from
Operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.29</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.21</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #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>
    <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>
    <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><DIV style="margin-left:15px; text-indent:-15px"><B>Distributions to Common
Shareholders:</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.00      </TD>
    <TD nowrap>)(e)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.00       </TD>
    <TD nowrap>)(e)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.16</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net realized gain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.57</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.72</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Return of capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.51</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.72</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.80</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.61</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total distributions to
common shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.51</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.72</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.80</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.30</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.88</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #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>
    <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>
    <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" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Fund Share Transactions:</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase in net asset value from
common stock share transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00       </TD>
    <TD nowrap>(e)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Increase in net asset value from
repurchase of preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00       </TD>
    <TD nowrap>(e)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00        </TD>
    <TD nowrap>(e)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Recapture of gain on sale of Fund
shares by an affiliate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00       </TD>
    <TD nowrap>(e)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering costs for preferred
shares charged to paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00        </TD>
    <TD nowrap>(e)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering costs for issuance of
rights charged to paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.00</TD>
    <TD nowrap>)(e)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total fund share transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00       </TD>
    <TD nowrap>(e)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00       </TD>
    <TD nowrap>(e)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #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>
    <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>
    <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><DIV style="margin-left:15px; text-indent:-15px"><B>Net Asset Value Attributable to
Common Shareholders, End of
Period</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.40</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 nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NAV total return &#134;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">28.15</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">44.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(49.06</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">28.17</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market value, end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.41</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 nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment total return &#134;&#134;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.96</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">61.56</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54.77</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.75</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.42</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Ratios to Average Net Assets
and Supplemental Data:</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net assets including liquidation
value of preferred shares, end of
period (in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,364,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,215,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,106,614</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,990,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,114,399</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net assets attributable to common
shares, end of period (in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,058,815</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">910,269</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">724,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,586,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,586,906</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of net investment income to
average net assets attributable
to common shares before preferred
distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.92</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.16</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.12</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of operating expenses to
average net assets attributable
to common shares before fees
waived</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.74</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of operating expenses to
average net assets attributable
to common shares net of fee
reduction, if any</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.72</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.46</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.43</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 13 -<!-- /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"><FONT size="1">

</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of operating expenses to
average net assets including
liquidation value of preferred
shares before fees waived</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.22</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of operating expenses to
average net assets including
liquidation value of preferred
shares net of fee reduction, if
any</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.89</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.17</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.11</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Portfolio turnover rate &#134;&#134;&#134;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">17.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 0px solid #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>
    <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>
    <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" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Preferred Stock:</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>7.200% Series&nbsp;B Cumulative
Preferred Stock</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidation value, end of period
(in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">123,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total shares outstanding (in
000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidation preference per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average market value (b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset coverage per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Auction Rate Series&nbsp;C Cumulative
Preferred Stock</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidation value, end of period
(in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">117,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total shares outstanding (in
000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidation preference per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average market value (c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset coverage per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">111,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">123,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100,211</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>5.875% Series&nbsp;D Cumulative
Preferred Stock</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidation value, end of period
(in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">73,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">73,743</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total shares outstanding (in
000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidation preference per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average market value (b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23.98</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset coverage per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">111.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">123.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Auction Rate Series&nbsp;E Cumulative
Preferred Stock</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidation value, end of period
(in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">45,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total shares outstanding (in
000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidation preference per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average market value (c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset coverage per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">111,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">123,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100,211</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>6.200% Series&nbsp;F Cumulative
Preferred Stock</B></DIV></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>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidation value, end of period
(in 000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">146,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">148,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 14 -<!-- /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"><FONT size="1">

</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total shares outstanding (in
000&#146;s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidation preference per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average market value (b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25.12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset coverage per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">111.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">99.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">72.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">123.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Asset Coverage (d)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">447</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">398</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">289</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">493</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">401</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>Based on net asset value per share, adjusted for reinvestment of distributions at prices obtained
under the Fund&#146;s dividend reinvestment plan.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">&#134;&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>Based on market value per share, adjusted for reinvestment of distributions at prices determined
under the Fund&#146;s dividend reinvestment plan.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">&#134;&#134;&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the
portfolio turnover rate to include cash proceeds due to mergers. Had this policy been adopted
retroactively, the portfolio turnover rate for the years ended December&nbsp;31, 2007 and 2006, would
have been 27.3% and 33.1%, respectively.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(a)</TD>
    <TD>&nbsp;</TD>
    <TD>Calculated based upon average common shares outstanding on the record dates throughout the periods.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(b)</TD>
    <TD>&nbsp;</TD>
    <TD>Based on weekly prices.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(c)</TD>
    <TD>&nbsp;</TD>
    <TD>Based on weekly auction prices. Since February&nbsp;2008, the weekly auctions have failed. Holders that
have submitted orders have not been able to sell any or all of their shares in the auctions.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(d)</TD>
    <TD>&nbsp;</TD>
    <TD>Asset coverage is calculated by combining all series of preferred stock.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(e)</TD>
    <TD>&nbsp;</TD>
    <TD>Amount represents less than $0.005 per share.</TD>
</TR>

</TABLE>


<DIV align="left">
<A name="Y91816104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser expects that it will initially invest the proceeds of the offering in
high quality short-term debt securities and instruments. The Investment Adviser anticipates that
the investment of the proceeds will be made in accordance with the Fund&#146;s investment objectives and
policies as appropriate investment opportunities are identified, which is expected to substantially
be completed within three months; however, changes in market conditions could result in the Fund&#146;s
anticipated investment period extending to as long as six months.
</DIV>
<DIV align="left">
<A name="Y91816105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE FUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;20, 1986. The Fund commenced its
investment operations on August&nbsp;21, 1986. The Fund&#146;s principal office is located at One Corporate
Center, Rye, New York 10580-1422. and its telephone number is (800)&nbsp;422-3554.
</DIV>
<DIV align="left">
<A name="Y91816106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INVESTMENT OBJECTIVES AND POLICIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Objectives</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 15 -<!-- /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">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)&nbsp;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)&nbsp;more than 50% of the outstanding shares of the applicable class.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 shareholder approval. The Fund
will provide shareholders with notice at least 60&nbsp;days prior to the implementation of any change in
the 80% Policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&#038;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&#038;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 align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund invests in equity securities across all market capitalization ranges. 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 emerging markets.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No assurance can be given that the Fund&#146;s investment objectives will be achieved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Methodology of the Fund</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In selecting securities for the Fund, the Investment Adviser normally will consider the
following factors, among others:
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Investment Adviser&#146;s own evaluations of the private market value (as defined below),
cash flow, earnings per share and other fundamental aspects of the underlying assets and
business of the company;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the potential for capital appreciation of the securities;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the interest or dividend income generated by the securities;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the prices of the securities relative to other comparable securities;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the securities are entitled to the benefits of call protection or other
protective covenants;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the existence of any anti-dilution protections or guarantees of the security; and</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the diversification of the portfolio of the Fund as to issuers.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Certain Investment Practices</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Foreign Securities</I>. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 16 -<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Temporary Defensive Investments</I>. 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 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. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lower Grade Securities. </I>The Fund may invest up to 10% of its total assets in fixed income
securities rated below investment grade by recognized statistical rating agencies or unrated
securities of comparable quality. These securities, which may be preferred stock or debt, are
predominantly speculative and involve major risk exposure to adverse conditions. Debt securities
that are not rated or that are rated lower than &#147;BBB&#148; by S&#038;P or lower than &#147;Baa&#148; by Moody&#146;s are
referred to in the financial press as &#147;junk bonds.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, such lower grade securities and unrated securities of comparable quality offer a
higher current yield than is offered by higher rated securities, but also (i)&nbsp;will likely have some
quality and protective characteristics that, in the judgment of the rating organizations, are
outweighed by large uncertainties or major risk exposures to adverse conditions and (ii)&nbsp;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 securities. In addition, such 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 grade 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 and 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 in
response to changes in the economy or the financial markets. Lower grade securities 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, as the principal value of
nonconvertible bonds and preferred stocks moves inversely with movements in interest rates, in the
event of rising 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 regular income streams.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of its investment in lower grade securities, the Fund may invest in securities of
issuers in default. The Fund will make an investment in securities of issuers in default only when
the Investment Adviser believes that such issuers will honor their obligations or emerge from
bankruptcy protection under a plan pursuant to which the securities received by the Fund in
exchange for its defaulted securities will have a value in excess of the Fund&#146;s investment. By
investing in 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 otherwise appreciate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to using recognized rating agencies and other sources, the Investment Adviser also
performs its own analysis of issues in seeking investments that it believes to be underrated (and
thus higher yielding) in light of the financial condition of the issuer. Its analysis of issuers
may include, among other things, current and anticipated cash flow and borrowing
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 17 -<!-- /Folio -->
</DIV>

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<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">requirements, value of assets in relation to historical cost, strength of management,
responsiveness to business conditions, credit standing, and current anticipated results of
operations. In selecting investments for the Fund, the Investment Adviser may also consider general
business conditions, anticipated changes in interest rates, and the outlook for specific
industries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to its purchase by the Fund, an issue of securities may cease to be rated or its
rating may be reduced. In addition, it is possible that statistical rating agencies may change
their ratings of a particular issue to reflect subsequent events. Moreover, such ratings do not
assess the risk of a decline in market value. None of these events will require the sale of the
securities by the Fund, although the Investment Adviser will consider these events in determining
whether the Fund should continue to hold the securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market for lower grade and comparable unrated securities has experienced several periods
of significantly adverse price and liquidity, particularly at or around times of economic
recessions. Past market recessions have adversely affected the value of such securities as well as
the ability of certain issuers of such securities to repay principal and pay interest thereon or to
refinance such securities. The market for those securities may react in a similar fashion in the
future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Futures Contracts and Options on Futures</I>. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Forward Currency Exchange Contracts</I>. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Repurchase Agreements</I>. 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 SEC 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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Loans of Portfolio Securities</I>. To increase income, the Fund may lend its portfolio securities
to securities broker-dealers or financial institutions if (i)&nbsp;the loan is collateralized in
accordance with applicable regulatory requirements and (ii)&nbsp;no loan
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 18 -<!-- /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">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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Borrowing</I>. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Leveraging</I>. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further information on the investment objectives and policies of the Fund is set forth in the
SAI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investment Restrictions</I>. 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 Articles Supplementary of each
series of preferred stock, 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Portfolio Turnover</I>. 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 shareholders. 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&nbsp;31, 2009 and 2010 were 6.7%
and 5.5%, 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>
<DIV align="left">
<A name="Y91816107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS AND SPECIAL CONSIDERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors should consider the following risk factors and special considerations associated
with investing in the Fund:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Leverage Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund uses financial leverage for investment purposes by issuing preferred stock. As of
March&nbsp;31, 2011, the amount of leverage represented approximately 21% of the Fund&#146;s net assets. The
Series&nbsp;C Auction Rate Preferred, Series&nbsp;D Preferred, Series&nbsp;E Auction Rate Preferred, and Series&nbsp;F
Preferred have the same seniority with respect to distributions and liquidation preference.
Preferred stock has seniority over common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s use of leverage, which can be described as exposure to changes in price at a ratio
greater than the amount of equity invested, either through the issuance of preferred stock or other
forms of market exposure, magnifies both the favorable and unfavorable effects of price movements
in the investments made by the Fund. The Fund&#146;s leveraged capital structure creates special risks
not associated with unleveraged funds having similar investment objectives and policies. The
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 19 -<!-- /Folio -->
</DIV>

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<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">Fund cannot assure that the issuance of preferred stock will result in a higher yield or return to
the holders of the common stock.
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Preferred Stock Risk</B>. The issuance of preferred stock causes the net asset value and
market value of the common stock to become more volatile. If the dividend rate on the
preferred stock approaches the net rate of return on the Fund&#146;s investment portfolio, the
benefit of leverage to the holders of the common stock would be reduced. If the dividend
rate on the preferred stock plus the management fee annual rate of 1.00% (as applicable)
exceeds the net rate of return on the Fund&#146;s portfolio, the leverage will result in a lower
rate of return to the holders of common stock than if the Fund had not issued preferred
stock.</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any decline in the net asset value of the Fund&#146;s investments would be borne entirely by the
holders of common stock. Therefore, if the market value of the Fund&#146;s portfolio declines,
the leverage will result in a greater decrease in net asset value to the holders of common
stock than if the Fund were not leveraged. This greater net asset value decrease will also
tend to cause a greater decline in the market price for the common stock. The Fund might be
in danger of failing to maintain the required asset coverage of the preferred stock or of
losing its ratings on the preferred stock or, in an extreme case, the Fund&#146;s current
investment income might not be sufficient to meet the dividend requirements on the preferred
stock. In order to counteract such an event, the Fund might need to liquidate investments in
order to fund a redemption of some or all of the preferred stock.</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition, the Fund would pay (and the holders of common stock will bear) all costs and
expenses relating to the issuance and ongoing maintenance of the preferred shares, including
the advisory fees on the incremental assets attributable to such shares.</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holders of preferred stock may have different interests than holders of common stock and may
at times have disproportionate influence over the Fund&#146;s affairs. Holders of preferred
stock, voting separately as a single class, would have the right to elect two members of the
Board at all times and in the event dividends become two full years in arrears would have
the right to elect a majority of the Directors until such arrearage is completely
eliminated. In addition, preferred shareholders have class voting rights on certain matters,
including changes in fundamental investment restrictions and conversion of the fund to
open-end status, and accordingly can veto any such changes.</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Restrictions imposed on the declarations and payment of dividends or other distributions to
the holders of the Fund&#146;s 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 its preferred stock 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.</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Portfolio Guidelines of Rating Agencies for Preferred Stock and/or Credit Facility</B>. In
order to obtain and maintain attractive credit quality ratings for preferred stock, the
Fund must comply with investment quality, diversification and other guidelines established
by the relevant rating agencies. These guidelines could affect portfolio decisions and may
be more stringent than those imposed by the 1940 Act.</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Impact on Common Stock</B><I>. </I>The following table is furnished in response to requirements of
the SEC. It is designed to illustrate the effect of leverage on common stock total return,
assuming investment portfolio total returns (comprised of net investment income of the
Fund, realized gains or losses of the Fund and changes in the value of the securities held
in the Fund&#146;s portfolio) of -10%, -5%, 0%, 5% and 10%. These assumed investment portfolio
returns are hypothetical figures and are not necessarily indicative of the investment
portfolio returns experienced or expected to be experienced by the Fund. See &#147;Risks.&#148; The
table further reflects leverage representing 22% of the Fund&#146;s net assets, the Fund&#146;s
current projected blended annual average leverage dividend or interest rate of 4.15%, a
management fee at an annual rate of 1.00% of the liquidation preference of any outstanding
preferred shares and estimated annual incremental expenses attributable to any outstanding
preferred shares of 0.01% of the Fund&#146;s net assets attributable to common shares.</TD>
</TR>

</TABLE>
</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assumed Portfolio Total
Return (Net of Expenses)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Stock Total Return</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(14.28</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7.87</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.46</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.95</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11.37</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 20 -<!-- /Folio -->
</DIV>

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<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 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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Common stock total return is composed of two elements &#151; the common share distributions paid
by the Fund (the amount of which is largely determined by the taxable income of the Fund
(including realized gains or losses) after paying interest on any debt and/or dividends on
any preferred shares) and unrealized gains or losses on the value of the securities the Fund
owns. As required by SEC rules, the table assumes that the Fund is more likely to suffer
capital losses than to enjoy total return. For example, to assume a total return of 0% the
Fund must assume that the income it receives on its investments is entirely offset by
expenses and losses in the value of those investments.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Special Risks to Holders of Fixed Rate Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Illiquidity Prior to Exchange Listing. </I>Prior to the offering, there will be no public market
for any additional series of Fixed Rate Preferred Stock. In the event any additional series of
Fixed Rate Preferred Stock are issued, prior application will have been made to list such shares on
a national securities exchange, which will likely be the NYSE. However, during an initial period,
which is not expected to exceed 30&nbsp;days after the date of its initial issuance, such shares may not
be listed on any securities exchange. During such period, the underwriters may make a market in
such shares, though, they will have no obligation to do so. Consequently, an investment in such
shares may be illiquid during such period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Price Fluctuation</I>. Shares of Fixed Rate Preferred Stock may trade at a premium to or
discount from liquidation value for various reasons, including changes in interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Special Risks for Holders of Auction Rate Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Auction Risk. </I>Sine February&nbsp;2008, the auctions for the Auction Rate Preferred Stock have
failed and have continued to fail. Failing means that more Auction Rate Preferred Stock is offered
for sale than there are buyers for those shares. During this period while auctions have continued
to fail, holders of the Fund&#146;s Auction Rate Preferred Stock who wanted to sell their shares at par
through the auction process have been unable to do so. Holders have continued to receive dividends
on their Auction Rate Preferred Stock at a maximum rate determined by reference to short term
rates, rather than at a price set by auction. At present the maximum rate is equal to 150% of the
&#147;AA&#148; Financial Composite Commercial Paper Rate, determined on each calculation date. For the
fiscal quarter ended March&nbsp;31, 2011, the dividend rates for the Series&nbsp;C Auction Rate Preferred and
the Series&nbsp;E Auction Rate Preferred ranged from 0.180% to 0.285% and 0.130% to 0.285%,
respectively. A failed auction is not a default and the Fund has no obligation under its Charter
to redeem its Auction Rate Preferred Stock because the auctions continue to fail. The Fund cannot
estimate when or if auction markets for the Auction Rate Preferred Stock will resume functioning.
There appears to be a secondary market in certain auction market preferred issues, although the
Fund is not aware whether there is or will be an active trading market for the Fund&#146;s shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the auctions were to resume, which management does not consider to be likely, other risks would
apply. For example, if you place an order (a hold order) at an auction to retain Auction Rate
Preferred Stock only at a specified rate that exceeds the rate set at the auction, you will not
retain your Auction Rate Preferred Stock. Additionally, if you place a hold order without
specifying a rate below which you would not wish to continue to hold your shares and the auction
sets a below-market rate, you will receive a lower rate of return on your shares than the market
rate. Finally, the dividend period may be changed, subject to certain conditions and with notice to
the holders of the Auction Rate Preferred Stock, which could also affect the liquidity of your
investment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Secondary Market Risk. </I>If you try to sell your Auction Rate Preferred Stock between auctions,
you may not be able to sell them for their liquidation preference per share or such amount per
share plus accumulated dividends. If the Fund has designated a special dividend period of more than
seven days, changes in interest rates could affect the price you would receive if you sold your
shares in the secondary market. Broker-dealers that maintain a secondary trading market for the
Auction Rate Preferred Stock are not required to maintain this market and the Fund is not required
to redeem Auction Rate Preferred Stock if either an auction or an attempted secondary market sale
fails because of a lack of buyers. The Auction Rate Preferred Stock will not be registered on a
stock exchange. If you sell your Auction Rate Preferred Stock to a broker-dealer or other party
between auctions, you may receive less than the price you paid for them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock Distribution Policy Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
shareholders. 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 preferred
stock. 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&nbsp;31, 2010, the Fund
</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">made distributions of $0.51 per share of common stock, of which $0.51 per share was deemed a return
of capital. The total 2010 distributions of $0.51 per share of common stock consisted of $0.51 per
share in the form of cash distributions. The Fund has made quarterly distributions with respect to
its common stock since 1987. A portion of the distributions to common shareholders during thirteen
of the twenty-four 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 the end of the calendar year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Value Investing Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 and/or flexible
equity style mandates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Non-Diversified Status</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 in the proportion of its assets that may be invested in the
securities of a single issuer. 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. To
qualify as a &#147;regulated investment company,&#148; or &#147;RIC,&#148; for purposes of the Code, the Fund has in
the past conducted and intends to conduct its operations in a manner that will relieve it of any
liability for federal income tax to the extent its earnings are distributed to shareholders. To so
qualify as a &#147;regulated investment company,&#148; among other requirements, the Fund will limit its
investments so that, at the close of each quarter of the taxable year:
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not more than 25% of the market 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, any two or more issuers in which the fund owns 20% or more of the
voting securities 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); and</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at least 50% of the market 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 its assets and not more than 10% of the
outstanding voting securities of such issuer.</TD>
</TR>
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Value and Net Asset Value</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 shares of a closed-end fund is a risk
separate and distinct from the risk that its net asset value may 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
March&nbsp;31, 2011, the shares closed at a discount of 0.48%. Shareholders desiring liquidity may,
subject to applicable securities laws, trade their Fund shares on the NYSE or other markets on
which such shares may trade at the then-current market value, which may differ from the
then-current net asset value. Shareholders will incur brokerage or other transaction costs to sell
stock.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Industry Concentration Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
</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">materials, fuel and other operating expenses; 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Special Risks Related to Preferred Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are special risks associated with the Fund&#146;s investing in preferred securities,
including:
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Deferral. </I>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>

</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Non-Cumulative Dividends. </I>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>

</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Subordination</I>. 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>

</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Liquidity. </I>Preferred securities may be substantially less liquid than many other
securities, such as common stocks or U.S. government securities.</TD>
</TR>

</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Limited Voting Rights. </I>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 directors 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>

</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Special Redemption Rights. </I>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>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Market Disruption Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. 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 capitalizations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Interest Rate Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may enter into interest rate swap or cap transactions in relation to all or a portion
of its Auction Rate Preferred Stock in order to manage the impact on its portfolio of changes in
the dividend rate of such stock. Through these transactions the Fund may, for example, obtain the
equivalent of a fixed rate for such Auction Rate Preferred Stock 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 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Foreign Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest up to 35% of its total assets in securities of foreign issuers, determined
at the time of purchase. Investments in the securities of foreign issuers involve certain
considerations and risks not ordinarily associated with
</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">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. In addition, it may be difficult to effect repatriation of
capital invested in certain countries. Also, with respect to certain countries, there are 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 that the Fund
receives from foreign securities may not be eligible for the special tax treatment applicable to
qualified dividend income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Emerging Markets</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund may invest up to 35% of its total assets in foreign securities, including securities of
issuers whose primary operations or principal trading market is in an &#147;emerging market.&#148; An
&#147;emerging market&#148; country is any country that is considered to be an emerging or developing country
by the International Bank for Reconstruction and Development (the &#147;World Bank&#148;). Investing in
securities of companies in emerging markets may entail special risks relating to potential
political and economic instability and the risks of expropriation, nationalization, confiscation or
the imposition of restrictions on foreign investment, the lack of hedging instruments and
restrictions on repatriation of capital invested. Emerging securities markets are substantially
smaller, less developed, less liquid and more volatile than the major securities markets. The
limited size of emerging securities markets and limited trading value compared to the volume of
trading in U.S. securities could cause prices to be erratic for reasons apart from factors that
affect the quality of the securities. For example, limited market size may cause prices to be
unduly influenced by traders who control large positions. Adverse publicity and investors&#146;
perceptions, whether or not based on fundamental analysis, may decrease the value and liquidity of
portfolio securities, especially in these markets. Other risks include high concentration of market
capitalization and trading volume in a small number of issuers representing a limited number of
industries, as well as a high concentration of investors and financial intermediaries;
overdependence on exports, including gold and natural resources exports, making these economies
vulnerable to changes in commodity prices; overburdened infrastructure and obsolete or unseasoned
financial systems; environmental problems; less developed legal systems; and less reliable
securities custodial services and settlement practices.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Smaller Companies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in smaller companies that 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Companies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
</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">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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Lower Grade Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest up to 10% of its total assets in fixed income securities rated below
investment grade by recognized statistical rating agencies or unrated securities of comparable
quality. These securities, which may be preferred stock or debt, are predominantly speculative and
involve major risk exposure to adverse conditions. Debt securities that are not rated or that are
rated lower than &#147;BBB&#148; by S&#038;P or lower than &#147;Baa&#148; by Moody&#146;s are referred to in the financial press
as &#147;junk bonds.&#148; Such securities are subject to greater risks than investment grade securities,
which reflect their speculative character, including the following:
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>greater volatility;</TD>
</TR>

</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>greater credit risk;</TD>
</TR>

</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potentially greater sensitivity to general economic or industry conditions;</TD>
</TR>

</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential lack of attractive resale opportunities (illiquidity); and</TD>
</TR>

</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>additional expenses to seek recovery from issuers who default.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed income securities purchased by the Fund may be rated as low as C by Moody&#146;s or D by S&#038;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&#038;P is in default or is expected to default
upon maturity of payment date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of its investment in lower grade securities, the Fund may invest in securities of
issuers in default. The Fund will make an investment in securities of issuers in default only when
the Investment Adviser believes that such issuers will honor their obligations or emerge from
bankruptcy protection under a plan pursuant to which the securities received by the Fund in
exchange for its defaulted securities will have a value in excess of the Fund&#146;s investment. By
investing in 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 otherwise appreciate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Special Risks of Derivative Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 and interest rate markets are 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">
<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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fact that skills needed to use these strategies are different from those needed to
select portfolio securities;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possible absence of a liquid secondary market for any particular instrument at any
time;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possible need to defer closing out certain hedged positions to avoid adverse tax
consequences; and
</TD>
</TR>
</TABLE>
</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 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="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Futures Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures and options on futures entail certain risks, including but not limited to the
following:
</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="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no assurance that futures contracts or options on futures can be offset at favorable
prices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible reduction of the yield of the Fund due to the use of hedging;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible reduction in value of both the securities hedged and the hedging instrument;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possible lack of liquidity due to daily limits or price fluctuations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>imperfect correlation between the contracts and the securities being hedged; 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="1%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>losses from investing in futures transactions that are potentially unlimited and the
segregation requirements for such transactions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a further description, see &#147;Investment Objectives and Policies&#151;Investment Practices&#148; in
the SAI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Forward Currency Exchange Contracts</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The use of forward currency exchange 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Counterparty Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 proceeding. The Fund may obtain only a limited recovery or may obtain no recovery in
such circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Loans of Portfolio Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a further description of such loans of portfolio securities, see &#147;Investment Objectives
and Policies&#151;Certain Investment Practices&#151;Loans of Portfolio Securities.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Management Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Dependence on Key Personnel</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mario J. Gabelli serves as the Fund&#146;s portfolio manager. The Investment Adviser is dependent
upon the expertise of Mr.&nbsp;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.&nbsp;Gabelli, its ability
to service the Fund could be adversely affected. There can be no assurance that a
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 26 -<!-- /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">suitable replacement could be found for Mr.&nbsp;Gabelli in the event of his death, resignation,
retirement or inability to act on behalf of the Investment Adviser.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Anti-Takeover Provisions of the Fund&#146;s Governing Documents</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Governing Documents 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 Governing Documents.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Status as a Regulated Investment Company</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has qualified, and intends to remain qualified, for federal income tax purposes as a
regulated investment company under Subchapter M of the Code. 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Temporary Investments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During temporary defensive periods and during inopportune periods to be fully invested, the
Fund may invest in U.S. government securities and in money market mutual funds that invest in those
securities. Obligations of certain agencies and instrumentalities of the U.S. government, such as
the Government National Mortgage Association, are supported by the &#147;full faith and credit&#148; of the
U.S. 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 U.S. Treasury; others, such as those of the
Federal National Mortgage Association, are supported by the discretionary authority of the U.S.
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 U.S. government would provide financial support to U.S. government-sponsored
instrumentalities if it is not obligated to do so by law.
</DIV>
<DIV align="left">
<A name="Y91816108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HOW THE FUND MANAGES RISK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Restrictions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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&#038;P on its preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Interest Rate Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may enter into interest rate swap or cap transactions in relation to all or a portion
of its Auction Rate Preferred Stock in order to manage the impact on its portfolio of changes in
the dividend rate of such stock. Through these transactions, the Fund may, for example, obtain the
equivalent of a fixed rate for such Auction Rate Preferred Stock that is lower than the Fund would
have to pay if it issued Fixed Rate Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 its Auction Rate
Preferred Stock. 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 Supplementary of the relevant series of the Auction Rate Preferred
Stock even if the counterparty defaulted. Depending on the general state of short-term interest
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 27 -<!-- /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">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 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 dividend
or distribution payments on the Auction Rate Preferred Stock. 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 Stock. A sudden and dramatic decline in interest
rates may result in a significant decline in the asset coverage. Under the Articles Supplementary
for each series of the preferred stock, 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 be
required to redeem some or all of these shares. The Fund generally may redeem any series of Auction
Rate Preferred Stock, 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 transactions.
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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will usually enter into swaps or caps on a net basis; that is, the two payment
streams will be netted out in a cash settlement on the payment date or dates specified in the
instrument, with the Fund receiving or paying, as the case may be, only the net amount of the two
payments. The Fund intends to 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>
<DIV align="left">
<A name="Y91816109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT OF THE FUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Investment Adviser</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gabelli Funds, LLC serves as the Fund&#146;s Investment Adviser pursuant to the Investment Advisory
Agreement with the Fund. The Investment Adviser is a New York limited liability company with
principal offices located at One Corporate Center, Rye, New York 10580-1422 and is registered under
the Investment Advisers Act of 1940, as amended. The Investment Adviser was organized in 1999 and
is the successor to Gabelli Funds, Inc., which was organized in 1980. As of March&nbsp;31, 2011, the
Investment Adviser acts as a registered investment adviser to 26 management investment companies
with aggregate net assets of $20.1&nbsp;billion. The Investment Adviser, together with the other
affiliated investment advisers noted below, had assets under management totaling approximately
$35.4&nbsp;billion as of March&nbsp;31, 2011. GAMCO Asset Management Inc. (&#147;GAMCO&#148;), 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 $14.7&nbsp;billion under management as of March&nbsp;31, 2011. Gabelli Securities, Inc., an
affiliate of the Investment Adviser, acts as investment adviser for investment partnerships and
entities having aggregate assets of approximately $547&nbsp;million under management as of March&nbsp;31,
2011. Teton Advisors, Inc., an affiliate of the Investment Adviser, acts as investment manager to
The GAMCO Westwood Funds and separately managed accounts having aggregate assets of approximately
$983.1&nbsp;million under management as of March&nbsp;31, 2011.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser is a wholly-owned subsidiary of GAMCO Investors, Inc., a New York
corporation whose Class&nbsp;A Common Stock is traded on the NYSE under the symbol &#147;GBL.&#148; Mr.&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser is obligated to pay expenses associated with providing the services
contemplated by the Fund&#146;s investment advisory agreement (the &#147;Advisory Agreement&#148;), 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 allocated costs of the chief
compliance
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 28 -<!-- /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">officer function and officers of the Fund that are employed by the Fund and are not employed by the
Investment Adviser), and the fees of all Directors of the Fund who are affiliated with the
Investment Adviser.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the fees of the Investment Adviser, the Fund is responsible for the payment of
all other expenses incurred in the operation of the Fund, which include, 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 shareholder 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, SEC 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 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Advisory Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Advisory Agreement, the Investment Adviser manages the portfolio of the
Fund in accordance with its stated investment objectives and policies, makes investment decisions
for the Fund, and 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 shareholders 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 year 2010,
the Fund reimbursed the Investment Adviser $45,000 in connection with the cost of computing the
Fund&#146;s net asset value.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Series&nbsp;C Auction Rate Preferred, Series&nbsp;D Preferred, Series
E Auction Rate Preferred and Series&nbsp;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 the Series&nbsp;C Auction Rate Preferred, Series&nbsp;D Preferred, Series&nbsp;E Auction Rate
Preferred or Series&nbsp;F Preferred 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 shareholder&#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 align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the year ended December&nbsp;31, 2010, the Fund&#146;s total return on the net asset value of the
common stock exceeded the stated dividend rate or corresponding swap rate of Series&nbsp;C Auction Rate
Preferred, Series&nbsp;D Preferred, Series&nbsp;E Auction Rate Preferred, and Series&nbsp;F Preferred. Thus,
management fees were accrued on these assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to its terms, the Advisory Agreement will remain in effect with respect to the Fund
from year to year if approved annually (i)&nbsp;by the Fund&#146;s Board or by the holders of a majority of
the Fund&#146;s outstanding voting securities and (ii)&nbsp;by a
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 29 -<!-- /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">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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;30, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Selection of Securities Brokers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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)&nbsp;direct Fund portfolio brokerage to Gabelli &#038; Company, Inc. (&#147;Gabelli &#038; Company&#148;) or other
broker-dealer affiliates of the Investment Adviser and (ii)&nbsp;pay commissions to brokers other than
Gabelli &#038; Company that are higher than might be charged by another qualified broker to obtain
brokerage and/or research services considered by the Investment Adviser to be useful or desirable
for its investment management of the Fund and/or 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Portfolio Managers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mario J. Gabelli is currently and has been responsible for the day-to-day management of the
Fund since its inception. Mr.&nbsp;Gabelli has served as Chairman and Chief Executive Officer of GAMCO
Investors, Inc. and its predecessors since 1976. Mr.&nbsp;Gabelli is the Chief Investment Officer &#151;
Value Portfolios for the Investment Adviser and GAMCO Asset Management Inc. Mr.&nbsp;Gabelli serves as
portfolio manager for several funds in the Gabelli fund family and is a director of several funds
in the Gabelli fund family. Because of the diverse nature of Mr.&nbsp;Gabelli&#146;s responsibilities, he
will devote less than all of his time to the day-to-day management of the Fund. Mr.&nbsp;Gabelli is also
Chief Executive Officer of GGCP, Inc., as well as Chairman of the Board of Lynch Interactive
Corporation, a multimedia and communication services company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Zahid Siddique has been an associate portfolio manager since August&nbsp;2010. Mr.&nbsp;Siddique
joined GAMCO in 2005 as a research analyst covering the global industrial and infrastructure
sectors. Previously, he worked as an equity analyst at Tribeca Investments, a Citigroup hedge fund.
Prior to that, he was a consultant at GE Capital and American Management Systems, where he advised
on several restructuring, strategic, and operational assignments. Mr.&nbsp;Siddique received a B.A. in
Mathematics from Hamilton College and a B.S. in Industrial Engineering from Columbia University,
where he was recognized by the National Industrial Engineering Honor Society. He also holds an MBA
from the Columbia University Graduate School of Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Sub-Administrator</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser has entered into a sub-administration agreement with BNY Mellon
Investment Servicing (US)&nbsp;Inc. (the &#147;Sub-Administrator&#148;) pursuant to which the Sub-Administrator
provides certain administrative services necessary for the Fund&#146;s operations that do not include
the investment and portfolio management services provided by the Investment Adviser. For these
services and the related expenses borne by the Sub-Administrator, the Investment Adviser pays a
prorated monthly fee at the annual rate of 0.0275% of the first $10&nbsp;billion of the aggregate
average net assets of the Fund and all other funds advised by the Investment Adviser and Teton
Advisors, Inc. and administered by the Sub-Administrator, 0.0125% of the aggregate average net
assets exceeding $10&nbsp;billion and 0.01% of the aggregate average net assets in excess of $15
billion. The Sub-Administrator has its principal office at 760 Moore Road, King of Prussia,
Pennsylvania 19406.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Regulatory Matters</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;24, 2008, the Investment Adviser entered into a settlement with the SEC to resolve an
inquiry regarding prior frequent trading activity in shares of the GAMCO Global Growth Fund (the
&#147;Global Growth Fund&#148;) by one investor who was banned from the Global Growth Fund in August&nbsp;2002. In
the administrative settlement order, the SEC found that the Investment Adviser had willfully
violated Section&nbsp;206(2) of the Advisers Act, Section 17(d) of the 1940 Act and Rule&nbsp;17d-1
thereunder, and had willfully aided and abetted and caused violations of Section&nbsp;12(d)(1)(B)(i) of
the 1940 Act. Under the terms of the settlement, the Investment Adviser, while neither admitting
nor denying the SEC&#146;s findings and allegations, paid $16&nbsp;million (which included a $5&nbsp;million civil
monetary penalty), approximately $12.8&nbsp;million of which is in the process of being paid to
shareholders of the Global Growth Fund in accordance with a plan developed by an independent
distribution
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 30 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">consultant and approved by the independent directors of the Global Growth Fund and acceptable to
the staff of the SEC, and agreed to cease and desist from future violations of the above-referenced
federal securities laws and rule. The SEC order also noted the cooperation that the Investment
Adviser had given the staff of the SEC during its inquiry. The settlement did not have a material
adverse impact on the Investment Adviser. On the same day, the SEC filed a civil action against the
Executive Vice President and Chief Operating Officer of the Investment Adviser, alleging violations
of certain federal securities laws arising from the same matter. The officer is also an officer of
the Fund, the Global Growth Fund and other funds in the Gabelli/GAMCO fund complex. The officer
denied the allegations and is continuing in his positions with the Investment Adviser and the
funds. The court dismissed certain claims and found that the SEC was not entitled to pursue various
remedies against the officer while leaving one remedy in the event the SEC were able to prove
violations of law. The court subsequently dismissed without prejudice the remaining remedy against
the officer, which allowed the SEC to appeal the court&#146;s rulings. On October&nbsp;29, 2010, the SEC
filed its appeal with the U.S. Court of Appeals for the Second Circuit regarding the lower court&#146;s
orders. The Investment Adviser currently expects that any resolution of the action against the
officer will not have a material adverse impact on the Investment Adviser or its ability to fulfill
its obligations under the Investment Advisory Agreement.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left">
<A name="Y91816110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PORTFOLIO TRANSACTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal transactions are not entered into with affiliates of the Fund. However, Gabelli &#038;
Company, Inc., an affiliate of the Investment Adviser, may execute portfolio transactions on stock
exchanges and in the over-the-counter markets on an agency basis and receive a stated commission
therefor. For a more detailed discussion of the Fund&#146;s brokerage allocation practices, see
&#147;Portfolio Transactions&#148; in the SAI.
</DIV>
<DIV align="left">
<A name="Y91816111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DIVIDENDS AND DISTRIBUTIONS</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 to common shareholders. The
Fund&#146;s quarterly distribution level is set at $0.13 per share for the first quarter of 2011. 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 shareholders 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. To avoid paying income tax at the
corporate level, the Fund distributes substantially all of its investment company taxable income
and net capital gain. All distributions to common shareholders for the past three years have
constituted a return of capital. Shareholders who periodically receive the payment of a dividend or
other distribution consisting of a return of capital may be under the impression that they are
receiving net profits when they are not. Shareholders should not assume that the source of a
distribution from the Fund is net profit.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Fund&#146;s distribution policy, the Fund declares and pays quarterly distributions from
net investment income, capital gains, and paid-in capital. The actual source of the distribution is
determined after the end of the year. Pursuant to this policy, distributions during the year may be
made in excess of required distributions. To the extent such distributions are made from current
earnings and profits, they are considered ordinary income or long-term capital gains. The Fund&#146;s
current distribution policy may restrict the Fund&#146;s ability to pass through to shareholders all of
its net realized long-term capital gains as a capital gain dividend, subject to the maximum federal
income tax rate of 15%, and may cause such gains to be treated as ordinary income subject to a
maximum federal income tax rate of 35%. Distributions sourced from paid-in capital should not be
considered as dividend yield or the total return from an investment in the Fund. Shareholders who
periodically receive the payment of a dividend or other distribution consisting of a return of
capital may be under the impression that they are receiving net profits when they are not.
Shareholders should not assume that the source of a distribution from the Fund is net profit. 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&nbsp;31, 2011.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, for any calendar year, the total quarterly distributions to common shareholders and the
amount of distributions on any preferred stock issued by the Fund exceed investment company taxable
income and net capital gain (prior to any adjustment for a capital loss carryover from a prior
year), the excess will generally be treated as a tax-free return of capital up to the amount of a
shareholder&#146;s tax basis in the stock. Any distributions to the holders of common or preferred stock
which
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 31 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">constitute tax-free return of capital will reduce a shareholder&#146;s tax basis in such stock, thereby
increasing such shareholder&#146;s potential taxable gain or reducing his or her potential taxable loss
on the sale of the stock. Any amounts distributed to a shareholder in excess of the basis in the
stock will generally be taxable to the shareholder as capital gain.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund, along with other closed-end registered investment companies advised by the
Investment Adviser, has obtained an exemption from Section 19(b) of the 1940 Act and Rule&nbsp;19b-1
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. See &#147;Automatic Dividend Reinvestment and
Voluntary Cash Purchase Plan.&#148;
</DIV>
<DIV align="left">
<A name="Y91816112"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ISSUANCE OF COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the twelve months ended December&nbsp;31, 2010, the Fund did not have any transactions in
shares of common stock or preferred stock. Gabelli &#038; Company, Inc., an affiliate of Gabelli Funds,
LLC, the Fund&#146;s Investment Adviser, may act as sales manager for future offerings.
</DIV>
<DIV align="left">
<A name="Y91816113"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Fund&#146;s Automatic Dividend Reinvestment and Voluntary Cash Purchase Plan (the
&#147;Plan&#148;), a shareholder whose common shares are registered in his or her 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 shareholder elects to receive cash. Distributions with
respect to shares 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 under the Plan, unless the
service is not provided by the broker or nominee or the shareholder elects to receive distributions
in cash. Investors who own common shares 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Enrollment in the Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the policy of the Fund to automatically reinvest dividends. As a &#147;registered&#148;
shareholder, you automatically become a participant in the Fund&#146;s Plan. The Plan authorizes the
Fund to issue common shares to participants upon an income dividend or a capital gains distribution
regardless of whether the shares are trading at a discount or a premium to net asset value. All
distributions to shareholders whose shares are registered in their own names will be automatically
reinvested pursuant to the Plan in additional shares of the Fund. Plan participants may send their
share certificates to Computershare to be held in their dividend reinvestment account. Registered
shareholders wishing to receive their distribution in cash must submit this request in writing to:
</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">c/o Computershare
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">P.O. Box 43010
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Providence, RI 02940-3010
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders requesting this cash election must include the shareholder&#146;s name and address as
they appear on the share certificate. Shareholders with additional questions regarding the Plan, or
requesting a copy of the terms of the Plan may contact Computershare at (800)&nbsp;336-6983.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 32 -<!-- /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 your shares are held in the name of a broker, bank, or nominee, you should contact such
institution. If such institution is not participating in the Plan, your account will be credited
with a cash dividend. In order to participate in the Plan through such institution, it may be
necessary for you to have your shares taken out of &#147;street name&#148; and re-registered in your own
name. Once registered in your own name, your dividends will be automatically reinvested. Certain
brokers participate in the Plan. Shareholders holding shares in &#147;street name&#148; at participating
institutions will have dividends automatically reinvested. Shareholders wishing a cash dividend at
such institution must contact their broker to make this change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of common shares distributed to participants in the Plan in lieu of cash dividends
is determined in the following manner. Under the Plan, whenever the market price of the Fund&#146;s
common shares is equal to or exceeds net asset value at the time shares are valued for purposes of
determining the number of shares equivalent to the cash dividends or capital gains distribution,
participants are issued common shares valued at the greater of (i)&nbsp;the net asset value as most
recently determined or (ii)&nbsp;95% of the then current market price of the Fund&#146;s common shares. The
valuation date is the dividend or distribution payment date or, if that date is not a NYSE trading
day, the next trading day. If the net asset value of the common shares at the time of valuation
exceeds the market price of the common shares, participants will receive shares from the Fund
valued at market price. If the Fund should declare a dividend or capital gains distribution payable
only in cash, Computershare will buy common shares in the open market, or 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 at net asset value if, following the
commencement of such purchases, the market value of the common shares exceed the then current net
asset value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The automatic reinvestment of dividends and capital gains distributions will not relieve
participants of any income tax which may be payable on such distributions. A participant in the
Plan will be treated for U.S. federal income tax purposes as having received, on a dividend payment
date, a dividend or distribution in an amount equal to the cash the participant could have received
instead of shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund reserves the right to amend or terminate the 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 the Plan at least 90&nbsp;days before the record date for such dividend or
distribution. The Plan also may be amended or terminated by Computershare on at least 90&nbsp;days&#146;
written notice to participants in the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Voluntary Cash Purchase Plan</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their
investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders
must have their shares registered in their own name.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants in the Voluntary Cash Purchase Plan have the option of making additional cash
payments to Computershare for investments in the Fund&#146;s shares at the then current market price.
Shareholders may send an amount from $250 to $10,000. Computershare will use these funds to
purchase shares in the open market on or about the 1st and 15th of each month. Computershare will
charge each shareholder 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 any voluntary cash payments be sent to Computershare, P.O.
Box 43010, Providence, RI 02940-3010 such that Computershare receives such payments approximately
10&nbsp;days before the 1st and 15th of the month. Funds not received at least five days before the
investment date shall be held for investment until the next purchase date. A payment may be
withdrawn without charge if notice is received by Computershare at least 48 hours before such
payment is to be invested.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders wishing to liquidate shares held at Computershare must do so in writing or by
telephone. Please submit your request to the above mentioned address or telephone number. Include
in your request your name, address and account number. The cost to liquidate shares is $2.50 per
transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less
than the usual brokerage charge for such transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For more information regarding the Automatic Dividend Reinvestment Plan and Voluntary Cash
Purchase Plan, brochures are available by calling (914)&nbsp;921-5070 or by writing directly to the
Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund reserves the right to amend or terminate the Plans 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 the Plan at least 90&nbsp;days before the record date for such dividend or
distribution. The Plan also may be amended or terminated by Computershare on at least 90&nbsp;days&#146;
written notice to participants in the Plan.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 33 -<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="Y91816114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF THE CAPITAL STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following is a brief description of the terms of the Fund&#146;s common stock and preferred
stock. This description does not purport to be complete and is qualified by reference to the
Fund&#146;s Governing Documents. For complete terms of the common stock and preferred stock, please
refer to the actual terms of such series, which are set forth in the Governing Documents.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to an amendment to the Fund&#146;s Articles of Incorporation that was approved by
shareholders 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 shareholder approval. The Fund is currently authorized to issue 246,000,000 shares of
common stock, par value $0.001 per share. Holders of the common stock are entitled to one vote per
share held. Holders of the common stock are entitled to share equally in distributions authorized
by the Fund&#146;s 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 Fund 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&#146;s preferred stock ranking senior to the shares of common stock of the Fund as
described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Offerings of stock require approval by the Board. Any additional offering of common stock will
be subject to the requirements of the 1940 Act, which provides that common stock may not be issued
at a price below the then current net asset value, exclusive of sales load, except in connection
with an offering to existing holders of common stock or with the consent of a majority of the
Fund&#146;s outstanding voting securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;1,
2009 through December&nbsp;31, 2009 was 1,590,000 shares. The average weekly trading volume of the
common stock on the NYSE during the period from January&nbsp;1, 2010 through December&nbsp;31, 2010 was
1,760,000 shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s net asset value per share will be reduced immediately following the offering of
common shares by the amount of the sales load and offering expenses paid by the Fund. See &#147;Use of
Proceeds.&#148; Unlike open-end funds, closed-end funds like the Fund do not continuously offer shares
and do not provide daily redemptions. Rather, if a shareholder determines to buy additional common
shares or sell shares already held, the shareholder may do so by trading through a broker on the
NYSE or otherwise.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of closed-end investment companies often trade on an exchange at prices lower than net
asset value. The Fund&#146;s shares of common stock have traded in the market at both premiums to and
discounts from net asset value. Over the Fund&#146;s twenty-four year history, the range fluctuated from
a 38% premium in June&nbsp;2002 to a 27% discount in December&nbsp;1987. Beginning in early 2001, the market
price of the Fund exceeded the net asset value and this premium continued through August&nbsp;2005. The
previous extended period over which the premium existed occurred during the twenty month period
from August&nbsp;1993 to March&nbsp;1995. During 2010, the market price of the Fund has closed below the net
asset value with an average discount of 4.15%. As of March&nbsp;31, 2011, the shares closed at a
discount of 0.48%. Because the market value of the common shares may be influenced by such factors
as dividend and distribution levels (which are in turn affected by expenses), dividend and
distribution stability, net asset value, market liquidity, relative demand for and supply of such
shares in the market, unrealized gains, general market and economic conditions and other factors
beyond the control of the Fund, the Fund cannot assure you that common shares will trade at a price
equal to or higher than net asset value in the future. The common shares are designed primarily for
long- term investors and you should not purchase the common shares if you intend to sell them soon
after purchase.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s common shareholders vote as a single class to elect the Fund&#146;s Board and on
additional matters with respect to which the 1940 Act, the Governing Documents or resolutions
adopted by the Directors provide for a vote of the Fund&#146;s common shareholders. The Fund&#146;s common
shareholders and preferred shareholders vote together as a single class, except that the preferred
shareholders vote as a separate class to elect two of the directors of the Fund. See &#147;Anti-Takeover
Provisions of the Fund&#146;s Governing Documents.&#148;
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may repurchase its shares of 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 (or such other percentage as the Board may determine from time
to time) from the net asset value of the shares. Although the Board has authorized such
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 34 -<!-- /Folio -->
</DIV>

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<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">repurchases, the Fund is not required to repurchase its shares. 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
December&nbsp;31, 2010, the Fund has not repurchased shares of its common stock under this
authorization.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Preferred Stock</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, 24,000,000 shares of the Fund&#146;s capital stock, which include the preferred stock
being registered with this registration statement, have been classified by the Board as preferred
stock, par value $0.001 per share. The Fund&#146;s Board may reclassify authorized and unissued shares
of the Fund, previously classified as common stock, as preferred stock prior to the completion of
any offering. The terms of each series of preferred stock may be fixed by the Board and may
materially limit and/or qualify the rights of the holders of the Fund&#146;s common stock. As of March
31, 2011, the Fund had 2,880 outstanding shares of Series&nbsp;C Auction Rate Preferred, 2,363,860
outstanding shares of Series&nbsp;D Preferred, 1,120 outstanding shares of Series&nbsp;E Auction Rate
Preferred, and 5,850,402 outstanding shares of Series&nbsp;F Preferred.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions on the Series&nbsp;C Auction Rate Preferred accumulate at a variable maximum
rate based on short term rates. At present the maximum rate is equal to 150% of the &#147;AA&#148;
Financial Composite Commercial Paper Rate determined on each calculation date. Prior to the
failing of auctions for the Fund&#146;s Series&nbsp;C Auction Rate Preferred, these securities paid dividends
set at a weekly auction (<I>See </I>&#147;Auctions for Auction Rate Preferred Stock&#148; below). The liquidation
preference of the Series&nbsp;C Auction Rate Preferred is $25,000 per share. The Fund generally may
redeem the outstanding Series&nbsp;C Auction Rate Preferred, in whole or in part, at any time other than
during a non-call period. The Series&nbsp;C Auction Rate Preferred is not traded on any public exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions on the Series&nbsp;D Preferred accumulate at an annual rate of 5.875% of the
liquidation preference of $25 per share, are cumulative from the date of original issuance thereof,
and are payable quarterly on March&nbsp;26, June&nbsp;26, September&nbsp;26 and December&nbsp;26 of each year. The
Fund&#146;s outstanding Series&nbsp;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 at any time. The
Series&nbsp;D Preferred is listed and traded on the NYSE under the symbol &#147;GAB PrD.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions on the Series&nbsp;E Auction Rate Preferred accumulate at a variable maximum
rate based on short term rates. At present the maximum rate is equal to 150% of the &#147;AA&#148;
Financial Composite Commercial Paper Rate determined on each calculation date. Prior to the
failing of auctions for the Fund&#146;s Series&nbsp;E Auction Rate Preferred, these securities paid dividends
set at a weekly auction (<I>See </I>&#147;Auctions for Auction Rate Preferred Stock&#148; below). The liquidation
preference of the Series&nbsp;E Auction Rate Preferred is $25,000 per share. The Fund generally may
redeem the outstanding Series&nbsp;E Auction Rate Preferred, in whole or in part, at any time other than
during a non-call period. The Series&nbsp;E Auction Rate Preferred is not traded on any public exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions on the Series&nbsp;F Preferred accumulate at an annual rate of 6.20% of the
liquidation preference of $25 per share, are cumulative from the date of original issuance thereof,
and are payable quarterly on March&nbsp;26, June&nbsp;26, September&nbsp;26 and December&nbsp;26 of each year. The
Fund&#146;s outstanding Series&nbsp;F 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
November&nbsp;10, 2011. The Series&nbsp;F Preferred is listed and traded on the NYSE under the symbol &#147;GAB
PrF.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund issues any additional series of preferred stock, it will pay dividends to the
holders at either a fixed rate or a rate that will be reset frequently based on short-term interest
rates, as described in the Prospectus Supplement accompanying each preferred stock offering.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows (i)&nbsp;the classes of capital stock authorized, (ii)&nbsp;the number of
shares authorized in each class, and (iii)&nbsp;the number of shares outstanding in each class as of
March&nbsp;31, 2011.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Title Of Class</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Authorized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Outstanding</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">246,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181,682,556</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;A Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,367,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;B Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,600,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;C Auction Rate Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,880</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;D Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,363,860</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;E Auction Rate Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;F Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,850,402</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,024,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 35 -<!-- /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;As of December&nbsp;31, 2010, the Fund does not hold any shares of capital stock for its account.
Upon a liquidation, each holder of preferred stock will be entitled to receive out of the assets of
the Fund available for distribution to shareholders (after payment of claims of the Fund&#146;s
creditors but before any distributions with respect to the Fund&#146;s common stock or any other class
of capital stock of the Fund ranking junior to the preferred stock 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 shareholders shall be entitled to no further participation in any
distribution or payment in connection with such liquidation. Each series of preferred stock ranks
on a parity with any other series of preferred stock of the Fund as to the payment of distributions
and the distribution of assets upon liquidation, and is junior to the Fund&#146;s obligations with
respect to any outstanding senior securities representing debt. The preferred stock carries one
vote per share on all matters on which such shares are entitled to vote. The preferred shares 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 capital stock senior to the preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Rating Agency Guidelines. </I>The Fund expects that it will be required under Moody&#146;s and S&#038;P
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 with respect to the
separate guidelines Moody&#146;s and S&#038;P has each 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 and S&#038;P 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; is equal to (i)&nbsp;the sum of (a)&nbsp;the aggregate
liquidation preference of any preferred shares 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)&nbsp;the total principal of any debt (plus accrued and projected interest), (c)&nbsp;certain Fund
expenses and (d)&nbsp;certain other current liabilities (excluding any unmade distributions on the
Fund&#146;s common stock) less (ii)&nbsp;the Fund&#146;s (a)&nbsp;cash and (b)&nbsp;assets consisting of indebtedness which
(y)&nbsp;mature prior to or on the date of redemption or repurchase of the preferred stock and are U.S.
government securities or evidences of indebtedness rated at least &#147;Aaa,&#148; &#147;P-1&#148;, &#147;VMIG-1&#148; or &#147;MIG-1&#148;
by Moody&#146;s or &#147;AAA&#148;, &#147;SP-1&#043;&#148; or &#147;A-1&#043;&#148; by S&#038;P, and (z)&nbsp;is held by the Fund for distributions, the
redemption or repurchase of preferred stock or the Fund&#146;s liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund does not cure in a timely manner 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 preferred stock at the request of the Fund,
the Fund may, and in certain circumstances will be required to, mandatorily redeem preferred stock,
as described below under &#147;&#151; Redemption.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 and S&#038;P. Failure to adopt any such modifications,
however, may result in a change in the relevant rating agency&#146;s ratings or a withdrawal of such
ratings altogether. In addition, any rating agency providing a rating for the preferred stock at
the request of the Fund may, at any time, change or withdraw any such rating. The Board, without
further action by the shareholders, 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 and S&#038;P, as the case may be, 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 and S&#038;P (or such other rating agency then rating the preferred stock at the request of the
Fund) that such modification would not adversely affect, as the case may be, its then current
rating of the preferred stock.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to Auction Rate Preferred Stock, the Board may amend the Articles Supplementary
definition of &#147;Maximum Rate&#148; (the &#147;maximum rate&#148; as defined below under &#147;&#151;Distributions on the
Preferred Shares&#151;Maximum Rate&#148;) to increase the percentage amount by which the applicable
reference rate is multiplied or to increase the applicable spread to which the reference rate is
added to determine the maximum rate without the vote or consent of the holders of the preferred
stock or any other shareholder of the Fund, but only after consultation with the broker-dealers and
with confirmation from each applicable rating agency that the Fund could meet applicable rating
agency asset coverage tests immediately following any such increase.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 36 -<!-- /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;As described by Moody&#146;s and S&#038;P, the ratings assigned to each series of preferred stock are
assessments of the capacity and willingness of the Fund to pay the obligations of each such series.
The ratings on these series of preferred stock are not recommendations to purchase, hold or sell
shares of any series, inasmuch as the ratings do 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 preferred stock will be able to sell such shares on an exchange, in an auction or
otherwise. The ratings are based on current information furnished to Moody&#146;s and S&#038;P by the Fund
and the Investment Adviser and information obtained from other sources. The ratings may be changed,
suspended or withdrawn as a result of changes in, or the unavailability of, such information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rating agency guidelines apply to each series of preferred stock only so long as such
rating agency is rating such series at the request of the Fund. The Fund pays fees to Moody&#146;s and
S&#038;P for rating the preferred stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Asset Maintenance Requirements</I>. 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. Under the 1940 Act, debt or additional preferred stock may
be issued only if immediately after such issuance the value of the Fund&#146;s total assets (less
ordinary course liabilities) is at least 300% of the amount of any debt outstanding and at least
200% of the amount of any preferred stock and debt outstanding. The Fund is required under the
applicable Articles Supplementary to determine whether it has, as of the last business day of each
March, June, September and December of each year for its Series&nbsp;D Preferred, Series&nbsp;E Preferred and
Series&nbsp;F Preferred, and as of the last business day of each month for its Series&nbsp;C Preferred, 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 debt or stock, including any outstanding preferred stock. If the
Fund fails to maintain the asset coverage required under the 1940 Act on such dates and such
failure is not cured on or before 60&nbsp;days, in the case of the Fixed Rate Preferred Stock, or 10
business days, in the case of the Auction Rate Preferred Stock, the Fund may, and in certain
circumstances will be required to, mandatorily redeem shares of preferred stock sufficient to
satisfy such asset coverage. See &#147;&#151;Redemption&#148; below.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Distributions</I>. In connection with the offering of one or more additional series of preferred
stock, an accompanying Prospectus Supplement will specify whether dividends on such preferred stock
will be based on a fixed or variable rate. If such Prospectus Supplement specifies that dividends
will be paid at a fixed rate, holders of such Fixed Rate Preferred Stock will be entitled to
receive, out of funds legally available therefor, cumulative cash distributions, at an annual rate
set forth in the applicable Prospectus Supplement, payable with such frequency as set forth in the
applicable Prospectus Supplement. Such distributions will accumulate from the date on which such
shares are issued.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the alternative, the Prospectus Supplement may state that the holders of one or more series
of Auction Rate Preferred Stock are entitled to receive cash distributions at annual rates stated
as a percentage of liquidation preference, that will vary from dividend period to dividend period.
The liquidation preference per share and the dividend rate for the initial dividend period for any
such series of preferred stock will be the rate set forth in the Prospectus Supplement for such
series. For subsequent dividend periods, each such series of preferred stock will pay distributions
based on a rate set at an auction, normally held weekly, but not in excess of a maximum rate.
Dividend periods generally will be seven days, and the dividend periods generally will begin on the
first business day after an auction. In most instances, distributions are also paid weekly, on the
business day following the end of the dividend period. The Fund, subject to some limitations, may
change the length of the dividend periods, designating them as &#147;special dividend periods,&#148; as
described below under &#147;&#151;Designation of Special Dividend Periods.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Distribution Payments</I>. Except as described below, the dividend payment date for a series of
Auction Rate Preferred Stock will be the first business day after the dividend period ends. The
dividend payment dates for special dividend periods of more (or less) than seven days will be set
out in the notice designating a special dividend period. See &#147;&#151;Designation of Special Dividend
Periods&#148; for a discussion of payment dates for a special dividend period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a dividend payment date for a series of Auction Rate Preferred Stock is not a business day
because the NYSE is closed for business for more than three consecutive business days due to an act
of God, natural disaster, act of war, civil or military disturbance, act of terrorism, sabotage,
riots or a loss or malfunction of utilities or communications services, or the dividend payable on
such date can not be paid for any such reason, then:
</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="1%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the dividend payment date for the affected dividend period will be the next business day on
which the Fund and its paying agent, if any, are able to cause the distributions to be paid
using their reasonable best efforts;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the affected dividend period will end on the day it would have ended had such event not
occurred and the dividend payment date had remained the scheduled date; and</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 37 -<!-- /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 style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</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="1%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the next dividend period will begin and end on the dates on which it would have begun and
ended had such event not occurred and the dividend payment date remained the scheduled date.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Determination of Dividend Rates</I>. The Fund computes the distributions per share for a series of
Auction Rate Preferred Stock by multiplying the applicable rate determined at the auction by a
fraction, the numerator of which normally is the number of days in such dividend period and the
denominator of which is 360. This applicable rate is then multiplied by the liquidation preference
per share of such series to arrive at the distribution per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Maximum Rate</I>. The dividend rate for a series of Auction Rate Preferred Stock that results from
an auction for such shares will not be greater than the applicable &#147;maximum rate.&#148; The maximum rate
for any standard dividend period will be the greater of the applicable percentage of the reference
rate or the reference rate plus the applicable spread. The reference rate will be the applicable
LIBOR Rate (as defined below) for a dividend period of fewer than 365&nbsp;days or the Treasury Index
Rate (as defined below) for a dividend period of 365&nbsp;days or more. The applicable percentage and
the applicable spread will be determined based on the lower of the credit ratings assigned to such
series of preferred shares by Moody&#146;s and S&#038;P on the auction date for such period (as set forth in
the table below). If Moody&#146;s and/or S&#038;P do not make such rating available, the rate will be
determined by reference to equivalent ratings issued by a substitute rating agency. In the case of
a special dividend period, (1)&nbsp;the Fund will communicate the maximum applicable rate in a notice of
special rate period for such dividend payment period, (2)&nbsp;the applicable percentage and applicable
spread will be determined on the date two business days before the first day of such special
dividend period and (3)&nbsp;the reference rate will be the applicable LIBOR Rate for a dividend period
of fewer than 365&nbsp;days or the Treasury Index Rate for a dividend period of 365&nbsp;days or more.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;LIBOR Rate,&#148; as described in greater detail in the Articles Supplementary, is the
applicable London Inter-Bank Offered Rate for deposits in U.S. dollars for the period most closely
approximating the applicable dividend period for the preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;Treasury Index Rate,&#148; as described in greater detail in the Articles Supplementary, is
the average yield to maturity for certain U.S. Treasury securities having substantially the same
length to maturity as the applicable dividend period for the preferred stock.
</DIV>


<DIV align="left"><FONT size="1">

</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="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Credit Ratings</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Applicable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Applicable</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Moody&#146;s</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>S&#038;P</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Spread</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">Aaa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AAA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">150</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.50</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">Aa3 to Aa1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AA&#150; to AA&#043;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">250</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.50</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">A3 to A1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">A&#150; to A&#043;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">350</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.50</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">Baa1 or lower</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="white-space: nowrap">BBB&#043; or lower</FONT></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">550</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.50</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund maintains an &#147;AAA&#148; and/or &#147;Aaa&#148; rating on the preferred stock, the practical
effect of the different methods used to determine the maximum rate is shown in the table below:
</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="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Applicable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Method Used to</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Rate Using the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Maximum Applicable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Determine the</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Applicable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Rate Using the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Maximum Applicable</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Reference Rate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Applicable Spread</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Rate</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">1%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1.50%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2.50%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Spread</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">2%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">3.00%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">3.50%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Spread</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">3%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">4.50%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">4.50%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Either</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">4%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6.00%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">5.50%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Percentage</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">5%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7.50%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6.50%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Percentage</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">6%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">9.00%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7.50%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Percentage</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 38 -<!-- /Folio -->
</DIV>

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<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">There is no minimum dividend rate in respect of any dividend period.
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Effect of Failure to Pay Distributions in a Timely Manner</I>. If the Fund fails to pay the paying
agent the full amount of any distribution or redemption price, as applicable, for a series of
Auction Rate Preferred Stock in a timely manner, the dividend rate for the dividend period
following such a failure to pay (such period referred to as the default period) and any subsequent
dividend period for which such default is continuing will be a default rate to be calculated under
the applicable Articles Supplementary. In the event that the Fund fully pays all default amounts
due during a dividend period, the dividend rate for the remainder of that dividend period will be,
as the case may be, the applicable rate (for the first dividend period following a dividend
default) or the then maximum rate (for any subsequent dividend period for which such default is
continuing).
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Designation of Special Dividend Periods</I>. The Fund may instruct the auction agent to hold
auctions more or less frequently than weekly and may designate dividend periods longer or shorter
than one week. The Fund may do this if, for example, the Fund expects that short-term rates might
increase or market conditions otherwise change, in an effort to optimize the potential benefit of
the Fund&#146;s leverage for holders of its common stock. The Fund does not currently expect to hold
auctions and pay distributions less frequently than weekly or establish dividend periods longer or
shorter than one week. If the Fund designates a special dividend period, changes in interest rates
could affect the price received if preferred shares are sold in the secondary market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any designation of a special dividend period for a series of Auction Rate Preferred Stock will
be effective only if (i)&nbsp;notice thereof has been given as provided for in the Governing Documents,
(ii)&nbsp;any failure to pay in a timely manner to the auction agent the full amount of any distribution
on, or the redemption price of, any preferred stock has been cured as provided for in the Governing
Documents, (iii)&nbsp;the auction immediately preceding the special dividend period was not a failed
auction, (iv)&nbsp;if the Fund has mailed a notice of redemption with respect to any preferred stock,
the Fund has deposited with the paying agent all funds necessary for such redemption and (v)&nbsp;the
Fund has confirmed that as of the auction date next preceding the first day of such special
dividend period, it has assets with an aggregate discounted value at least equal to the Basic
Maintenance Amount, and the Fund has provided notice of such designation and a Basic Maintenance
Report to each rating agency then rating the preferred stock at the request of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The dividend payment date for any such special dividend period will be set out in the notice
designating the special dividend period. In addition, for special dividend periods of at least 91
days, dividend payment dates will occur on the first business day of each calendar month within
such dividend period and on the business day following the last day of such dividend period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before the Fund designates a special dividend period: (i)&nbsp;at least seven business days (or two
business days in the event the duration of the dividend period prior to such special dividend
period is less than eight days) and not more than 30 business days before the first day of the
proposed special dividend period, the Fund will issue a press release stating its intention to
designate a special dividend period and inform the auction agent of the proposed special dividend
period by telephonic or other means and confirm it in writing promptly thereafter and (ii)&nbsp;the Fund
must inform the auction agent of the proposed special dividend period by 3:00 p.m., New York City
time on the second business day before the first day of the proposed special dividend period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Restrictions on Dividends and Other Distributions for the Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as any preferred stock 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 preferred stock as to the
payment of dividends or distributions and the distribution of assets upon liquidation), unless:
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Fund has declared and paid (or provided to the relevant dividend paying agent) all
cumulative distributions on the Fund&#146;s outstanding preferred stock due on or prior to the
date of such common stock dividend or distribution;</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Fund has redeemed the full number of shares of preferred stock to be redeemed pursuant
to any mandatory redemption provision in the Fund&#146;s Governing Documents; 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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>after making the distribution, the Fund meets applicable asset coverage requirements
described under &#147;&#151;Rating Agency Guidelines&#148; and &#147;&#151;Asset Maintenance Requirements.&#148;</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No full distribution will be declared or made on any series of preferred stock 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
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 39 -<!-- /Folio -->
</DIV>

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<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">preferred stock of the Fund ranking on a parity with such series 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 such series of preferred stock as to the payment of
distributions, any distributions being paid on the preferred stock 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. The Fund&#146;s obligation to make
distributions on the preferred stock will be subordinate to its obligations to pay interest and
principal, when due, on any senior securities representing debt.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Redemption</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mandatory Redemption Relating to Asset Coverage Requirements</I>. The Fund may, at its option,
consistent with its Governing Documents and the 1940 Act, and in certain circumstances will be
required to, mandatorily redeem preferred stock in the event that:
</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="1%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Fund fails to maintain the asset coverage requirements specified under the 1940 Act on
a quarterly valuation date and such failure is not cured on or before 60&nbsp;days, in the case of
the Fixed Rate Preferred Stock, or 10 business days, in the case of the Auction Rate
Preferred Stock, following such failure; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Fund fails to maintain the asset coverage requirements as calculated in accordance with
the applicable rating agency guidelines as of any monthly valuation date, and such failure is
not cured on or before 10 business days after such valuation date.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The redemption price for preferred stock subject to mandatory redemption will be the
liquidation preference, as stated in the Articles Supplementary of each existing series of
preferred stock or the Prospectus Supplement accompanying the issuance of any additional series of
preferred stock, plus an amount equal to any accumulated but unpaid distributions (whether or not
earned or declared) to the date fixed for redemption, plus (in the case of preferred stock having a
dividend period of more than one year) any applicable redemption premium determined by the Board
and included in the Articles Supplementary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Optional Redemption of Fixed Rate Preferred Stock</I>. Shares of Fixed Rate Preferred Stock are
not subject to optional redemption by the Fund until the date, if any, specified in the applicable
Prospectus or Prospectus Supplement, unless such redemption is necessary, in the judgment of the
Fund, to maintain the Fund&#146;s status as a regulated investment company under
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 40 -<!-- /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">the Code. Commencing on
such date and thereafter, the Fund may at any time redeem such Fixed Rate Preferred Stock in whole
or in part for cash at a redemption price per share equal to the liquidation preference per share
plus accumulated and unpaid distributions (whether or not earned or declared) to the redemption
date. Such redemptions are subject to the notice requirements set forth under &#147;&#151;Redemption
Procedures&#148; and the limitations of the Charter, the 1940 Act and Maryland law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Optional Redemption of Auction Rate Preferred Stock</I>. The Fund generally may redeem Auction
Rate Preferred Stock, 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. The Fund may designate a non-call
period during a dividend period of more than seven days. In the case of such preferred stock having
a dividend period of one year or less, the redemption price per share will equal the liquidation
preference plus an amount equal to any accumulated but unpaid distributions thereon (whether or not
earned or declared) to the redemption date, and in the case of such preferred stock having a
dividend period of more than one year, the redemption price per share will equal the liquidation
preference plus any redemption premium applicable during such dividend period. Such redemptions are
subject to the notice requirements set forth under &#147;&#151;Redemption Procedures&#148; and the limitations of
the limitations of the Charter, the 1940 Act and Maryland law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Redemption Procedures</I>. A notice of redemption with respect to an optional redemption will be
given to the holders of record of preferred stock selected for redemption not less than 15&nbsp;days
(subject to NYSE requirements), in the case of Fixed Rate Preferred Stock, and not less than seven
days, in the case of Auction Rate Preferred Stock, nor, in both cases, more than 40&nbsp;days prior to
the date fixed for redemption. Preferred shareholders may receive shorter notice in the event of a
mandatory redemption. Each notice of redemption will state (i)&nbsp;the redemption date, (ii)&nbsp;the number
or percentage of shares of preferred stock to be redeemed (which may be expressed as a percentage
of such shares outstanding), (iii)&nbsp;the CUSIP number(s) of such shares, (iv)&nbsp;the redemption price
(specifying the amount of accumulated distributions to be included therein), (v)&nbsp;the place or
places where such shares are to be redeemed, (vi)&nbsp;that distributions on the shares to be redeemed
will cease to accumulate on such redemption date, (vii)&nbsp;the provision of the Articles Supplementary
under which the redemption is being made and (viii)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of preferred shares, whether subject to a variable or fixed rate, will not have
the right to redeem any of their shares at their option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Liquidation Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any voluntary or involuntary liquidation, dissolution or winding up of the
Fund, the holders of preferred stock then outstanding will be entitled to receive a preferential
liquidating distribution, which is expected to equal the original purchase price per preferred
share plus accumulated and unpaid dividends, whether or not declared, before any distribution of
assets is made to holders of common stock. After payment of the full amount of the liquidating
distribution to which they are entitled, the holders of preferred stock will not be entitled to any
further participation in any distribution of assets by the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Voting Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 preferred stock shall be entitled
to one vote per share held on each matter submitted to a vote of the shareholders of the Fund and
will vote together with holders of common stock and of any other preferred stock then outstanding
as a single class.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the election of the Fund&#146;s Directors, holders of the outstanding shares 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 common stock and
holders of preferred stock, voting together as a single class. In addition, if (i)&nbsp;at any time
dividends and distributions on outstanding shares of 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)&nbsp;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 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 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 preferred stock,
voting together as a single class, at a special meeting of shareholders 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 shareholder on like notice. The terms of office of the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 41 -<!-- /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">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 common stock were entitled to vote or the two Directors
the holders of preferred stock have the right to elect as a separate class in any event) will
terminate automatically.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as shares of preferred stock 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, 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, S&#038;P or any such other rating agency then rating
the preferred stock that such amendment, alteration or repeal would not impair the rating then
assigned by such rating agency to the preferred stock, in which case the vote or consent of the
holders of the preferred stock 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)&nbsp;adversely alters or abolishes any
preferential right of such series; (ii)&nbsp;creates, adversely alters or abolishes any right in respect
of redemption of such series; or (iii)&nbsp;creates or adversely alters (other than to abolish) any
restriction on transfer applicable to such series.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, voting together as a single class, will be required to approve any plan of
reorganization adversely affecting the preferred stock. The approval of
66<SUP style="FONT-size: 85%; vertical-align: text-top">2</SUP>/<SUB style="FONT-size: 85%; vertical-align: text-bottom">3</SUB>% 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 13(a) of the 1940 Act (other than a conversion of the Fund
from a closed-end to an 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&nbsp;2(a)(42) of the 1940 Act, the
vote, at the annual or a special meeting of the shareholders of the Fund duly called (i)&nbsp;of 67% 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)&nbsp;more than
50% of the outstanding shares of preferred stock, whichever is less. The class vote of holders of
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>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 shareholders 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 and/or S&#038;P (or such other rating agency then rating the preferred
stock at the request of the Fund), as the case may be, 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 Fund
by the relevant rating agencies that such modification would not adversely affect its then-current
rating of the preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing voting provisions will not apply to any series of preferred stock 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 preferred stock will have no preemptive rights or rights to
cumulative voting.
</DIV>



<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 42 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limitation on Issuance of Preferred Stock</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund 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 shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Book Entry. </I>Shares of Fixed Rate Preferred Stock sold through this offering will initially be
held in the name of Cede &#038; Co. as nominee for DTC. The Fund will treat Cede &#038; Co. as the holder of
record of such shares for all purposes. In accordance with the procedures of DTC, however,
purchasers of Fixed Rate Preferred Stock will be deemed the beneficial owners of shares purchased
for purposes of dividends, voting and liquidation rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of Auction Rate Preferred Stock will initially be held by the auction agent as
custodian for Cede &#038; Co., in whose name the shares of Auction Rate Preferred Stock will be
registered. The Fund will treat Cede &#038; Co. as the holder of record of the such shares for all
purposes.
</DIV>
<DIV align="left">
<A name="Y91816115"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ANTI-TAKEOVER PROVISIONS OF THE FUND&#146;S GOVERNING DOCUMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund presently has provisions in its Governing Documents that could have the effect of
limiting, in each case:
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability of other entities or persons to acquire control of the Fund;</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Fund&#146;s freedom to engage in certain transactions; or</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability of the Fund&#146;s Directors or shareholders to amend the Governing Documents or
effectuate changes in the Fund&#146;s management.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These provisions of the Governing Documents may be regarded as &#147;anti-takeover&#148; provisions. The
Board 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 two years to change a majority of the Board. Further, one
Director in each of two of the classes of the Fund is elected solely by the holders of the Fund&#146;s
preferred stock and cannot be removed or replaced by the holders of the common stock. The
affirmative vote of a majority of the shares present at a meeting of stockholders duly called and
at which a quorum is present is required to elect a Director. A classified Board 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 by a vote of a majority of the votes entitled to be cast for the election of
Directors of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the affirmative vote of the holders of 66<SUP style="FONT-size: 85%; vertical-align: text-top">2</SUP>/<SUB style="FONT-size: 85%; vertical-align: text-bottom">3</SUB>% of the outstanding voting shares of the Fund,
and the vote of a majority (as defined in the 1940 Act) of the holders of preferred shares, voting
as a single class, 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">
<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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the merger or consolidation of the Fund with any entity;</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the issuance of any securities of the Fund for cash to any entity or person;</TD>
</TR>

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

</FONT></TD></TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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
over a 12-month period); or</TD>
</TR>
<TR><TD><FONT size="1">

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

</FONT></TD></TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the sale, lease or exchange to the Fund, in exchange for securities of the Fund, of any
assets of any entity or person (except assets having an aggregate fair market value of less
than $1,000,000 over a 12-month period);</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">if such person or entity is directly, or indirectly through affiliates, the beneficial owner of
more than 5% of the outstanding shares of the Fund. Such vote would not be required, however, when,
under certain circumstances, the Board approves the
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 43 -<!-- /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">transaction or when each class of voting securities of the entity that is the other party to any of the above-listed transactions is
(directly or indirectly) majority owned by the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Bylaws provide that the affirmative vote of two-thirds of the entire Board of
Directors shall be required to approve or declare advisable:
</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="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any amendment to the Charter to make the Fund&#146;s common stock a &#147;redeemable security&#148;
or to convert the Fund, whether by merger or otherwise, from a &#147;closed-end company&#148; to an
&#147;open-end company&#148; (as defined in the 1940 Act);</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="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The liquidation or dissolution of the Fund and any amendment to the Charter to effect
any such liquidation or dissolution; or</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="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any merger, consolidation, share exchange or sale or exchange of all or substantially
all of the assets of the Fund that Maryland law requires be approved by the stockholders
of the Fund.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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 align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland corporations that are subject to the Securities Exchange Act of 1934, as amended (the
&#147;1934 Act&#148;), 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
General Corporation Law, even if such provisions are inconsistent with the corporation&#146;s charter
and by-laws. Accordingly, notwithstanding the Fund&#146;s Governing Documents, under Maryland law the
Board may elect by resolution (and the filing of Articles Supplementary) to, among other things:
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>require that the call of special meetings by shareholders be permitted only at the request
of shareholders entitled to cast at least a majority of the votes entitled to be cast at such
meeting;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reserve for the Board the right to fix the number of Fund Directors;</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide that Directors are subject to removal only by the vote of the stockholders entitled
to cast two-thirds of the votes entitled to be cast generally in the election of Directors;
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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>retain for the Board sole authority to fill any vacancies on the Board, with any Director
so appointed to serve for the balance of the unexpired term rather than only until the next
annual meeting of shareholders.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Governing Documents of the Fund presently: (i)&nbsp;require holders of not less than a majority
of the votes entitled to be cast to call a special meeting of stockholders; and (ii)&nbsp;provide that
the Board shall fix the number of Fund Directors. On December&nbsp;3, 2010, in accordance with Maryland
law, the Fund&#146;s Board elected by resolution and approved Articles Supplementary to vest in the
Board the sole power to fill any vacancies on the Board, with any Director so elected to serve for
the full term of the directorship in which the vacancy occurred and until his or her successor is
duly elected and qualifies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Maryland General Corporation Law, if the directors have been divided into classes,
unless the charter provides otherwise (which the Charter does not), a director may be removed only
for cause by the affirmative vote of a majority of all the votes entitled to be cast generally for
the election of directors. The Board could elect in the future to be subject to the provision of
Maryland law that would increase the vote required to remove a Director to two-thirds of all the
votes entitled to be cast.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Bylaws provide that, with respect to an annual meeting of stockholders, nominations
or persons for election to the Board of Directors and the proposal of business to be considered by
stockholders may be made only (1)&nbsp;by or at the direction of the Board of Directors or (2)&nbsp;by a
stockholder who is entitled to vote at the meeting and who has complied with the advance notice procedures of the Bylaws. With respect to special meetings of stockholders, only
the business specified in the Fund&#146;s notice of the meeting may be brought before the meeting.
Nominations of persons for election to the Board of Directors at a special meeting may be made only
(1)&nbsp;by or at the direction of the Board of Directors or (2)&nbsp;provided that a
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 44 -<!-- /Folio -->
</DIV>

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<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">special meeting has been called for the purpose of electing directors, by a stockholder who is entitled to vote at the
meeting and who has complied with the advance notice provisions of the Bylaws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Bylaws provide that special meetings of stockholders may be called by the Board of
Directors and certain of the Fund&#146;s officers. Additionally, the Fund&#146;s Bylaws provide that, subject
to the satisfaction of certain procedural and informational requirements by the stockholders
requesting the meeting, a special meeting of stockholders will be called by the secretary of the
Fund upon the written request of stockholders entitled to cast not less than a majority of all the
votes entitled to be cast at such meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of the Governing Documents 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Governing Documents of the Fund are on file with the SEC.
</DIV>
<DIV align="left">
<A name="Y91816116"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CLOSED-END FUND STRUCTURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a non-diversified, closed-end management investment company (commonly referred to
as a closed-end fund). Closed-end funds differ from open-end funds (which are generally referred to
as mutual funds) in that closed-end funds generally list their shares for trading on a stock
exchange and do not redeem their shares at the request of a shareholder. This means that if you
wish to sell your shares of a closed-end fund you must trade them on the market like any other
stock at the prevailing market price at that time. In a mutual fund, if the shareholder wishes to
sell shares of the fund, the mutual fund will redeem or buy back the shares at &#147;net asset value.&#148;
Also, mutual funds generally offer new shares on a continuous basis to new investors, and
closed-end funds generally do not. The continuous inflows and outflows of assets in a mutual fund
can make it difficult to manage the fund&#146;s investments. By comparison, closed-end funds are
generally able to stay more fully invested in securities that are consistent with their investment
objectives, to have greater flexibility to make certain types of investments and to use certain
investment strategies such as financial leverage and investments in illiquid securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of closed-end funds often trade at a discount to their net asset value. Because of this
possibility and the recognition that any such discount may not be in the interest of shareholders,
the Fund&#146;s Board might consider from time to time engaging in open-market repurchases, tender
offers for shares or other programs intended to reduce a discount. We cannot guarantee or assure,
however, that the Fund&#146;s Board will decide to engage in any of these actions. Nor is there any
guarantee or assurance that such actions, if undertaken, would result in the shares trading at a
price equal or close to net asset value per share. The Board might also consider converting the
Fund to an open-end mutual fund, which would also require a supermajority vote of the shareholders
of the Fund and a separate vote of any outstanding preferred shares. We cannot assure you that the
Fund&#146;s common shares will not trade at a discount.
</DIV>
<DIV align="left">
<A name="Y91816117"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>REPURCHASE OF COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a non-diversified, closed-end management investment company and as such its
shareholders do not, and will not, have the right to require the Fund to repurchase their shares.
The Fund, however, may repurchase shares of its common stock from time to time as and when it deems
such a repurchase advisable. The Board has authorized such repurchases to be made when shares of
the Fund&#146;s common stock are trading at a discount from net asset value of 10% or more (or such
other percentage as the Board of the Fund may determine from time to time). Although the Board has
authorized such repurchases, the Fund is not required to repurchase shares of its common stock. The
Board has not established a limit on the number of shares that could be purchased during such
period. Pursuant to the 1940 Act, the Fund may repurchase shares of its common stock on a
securities exchange (provided that the Fund has informed its shareholders within the preceding six
months of its intention to repurchase such shares) or pursuant to tenders and may also repurchase
shares privately if the Fund meets certain conditions regarding, among other things, distribution
of net income for the preceding fiscal year, status of the seller, price paid, brokerage
commissions, prior notice to shareholders of an intention to purchase shares and purchasing in a
manner and on a basis that does not discriminate unfairly against the other shareholders through
their interests in the Fund.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares repurchased by the Fund will revert to the status of authorized but unissued shares and
will be available for reissuance. The Fund may incur debt to finance share repurchase transactions.
Any gain in the value of the investments of the Fund during the term of the borrowing that exceeds
the interest paid on the amount borrowed would cause the net asset value
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 45 -<!-- /Folio -->
</DIV>

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<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">of the Fund&#146;s shares to increase more rapidly than in the absence of borrowing. Conversely, any decline in the value of the
investments of the Fund would cause the net asset value of the Fund&#146;s shares to decrease more
rapidly than in the absence of borrowing. Borrowing money thus creates an opportunity for greater
capital gains but at the same time increases exposure to capital risk.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the Fund repurchases shares of its common stock for a price below net asset value, the
net asset value of the shares of common stock that remain outstanding shares will be enhanced, but
this does not necessarily mean that the market price of the outstanding common shares will be
affected, either positively or negatively. Further, interest on borrowings to finance share
repurchase transactions will reduce the net income of the Fund. The repurchase of common stock will
reduce the total assets of the Fund available for investment and may increase the Fund&#146;s expense
ratio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund does not currently have an established tender offer program or established schedule
for considering tender offers. No assurance can be given that the Board will decide to undertake
any such tender offers in the future, or, if undertaken, that they will reduce any market discount.
</DIV>
<DIV align="left">
<A name="Y91816118"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RIGHTS OFFERINGS</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may in the future, and at its discretion, choose to make offerings of subscription
rights to purchase its common stock or preferred stock. Any such future rights offering will be
made in accordance with the 1940 Act. Under the laws of Maryland, the Board is authorized to
approve rights offerings without obtaining shareholder approval. The staff of the SEC has
interpreted the 1940 Act as not requiring shareholder approval of a transferable rights offering at
a price below the then current net asset value so long as certain conditions are met, including:
(i)&nbsp;a good faith determination by a fund&#146;s Board that such offering would result in a net benefit
to existing shareholders; (ii)&nbsp;the offering fully protects shareholders&#146; preemptive rights and does
not discriminate among shareholders (except for the possible effect of not offering fractional
rights); (iii)&nbsp;management uses its best efforts to ensure an adequate trading market in the rights
for use by shareholders who do not exercise such rights; and (iv)&nbsp;the ratio of a transferable
rights offering does not exceed one new share for each three rights held.
</DIV>
<DIV align="left">
<A name="Y91816119"></A>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NET ASSET VALUE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The net asset value of the Fund&#146;s shares is computed based on the market value of the
securities it holds and determined daily as of the close of the regular trading day on the NYSE.
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 U.S. over-the-counter 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 closing bid price on that day. If no bid or asked prices are quoted on such day, 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio securities primarily traded on a foreign market are generally valued at the
preceding closing values of such securities on the relevant market, but may be fair valued pursuant
to procedures established by the Board if market conditions change significantly after the close of
the foreign market but prior to the close of business on the day the securities are being valued.
Debt instruments with remaining maturities of 60&nbsp;days or less that are not credit impaired 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 fair valued as determined by the Board. Debt
instruments having a maturity greater than 60&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities and assets for which market quotations are not readily available are fair valued as
determined by 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. dollar
value ADR securities at the close of the U.S. exchange; and evaluation of any other information
that could be indicative of the value of the security.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 46 -<!-- /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;The Fund obtains valuations 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 in good faith at fair value under procedures established by and under the
general supervision and responsibility of the Fund&#146;s Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 more than a minimal effect on the Fund&#146;s net 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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>NYSE Closings. </I>The holidays (as observed) on which the NYSE is closed, and therefore days upon
which shareholders cannot purchase or sell shares, currently are: New Year&#146;s Day, Martin Luther
King, Jr. Day, Presidents&#146; Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day and on the preceding Friday or subsequent Monday when a holiday
falls on a Saturday or Sunday, respectively.
</DIV>
<DIV align="left">
<A name="Y91816120"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LIMITATION ON DIRECTORS&#146; AND OFFICERS&#146; LIABILITY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Governing Documents provide that the Fund will indemnify its 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 positions with the Fund, to the fullest
extent permitted by law. However, nothing in the Governing Documents protects or indemnifies a
Director, officer, employee or agent of the Fund against any liability to which such person would
otherwise be subject in the event of such person&#146;s willful misfeasance, bad faith, gross negligence
or reckless disregard of the duties involved in the conduct of his or her position.
</DIV>
<DIV align="left">
<A name="Y91816121"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TAXATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is a brief summary of certain federal income tax considerations
affecting the Fund and the purchase, ownership and disposition of the Fund&#146;s shares. A more
complete discussion of the tax rules applicable to the Fund and its shareholders can be found in
the SAI that is incorporated by reference into this Prospectus. This discussion assumes you are a
U.S. person and that you hold your shares as capital assets. This discussion is based upon current
provisions of the Code, the regulations promulgated thereunder and judicial and administrative
authorities, all of which are subject to change or differing interpretations by the courts or the
Internal Revenue Service (the &#147;IRS&#148;), possibly with retroactive effect. No ruling has been or will
be sought from the IRS regarding any matter discussed herein. Counsel to the Fund has not rendered
and will not render any legal opinion regarding any tax consequences relating to the Fund or an
investment in the Fund. No attempt is made to present a detailed explanation of all federal tax
concerns affecting the Fund and its shareholders (including shareholders owning large positions in
the Fund).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The discussion set forth herein does not constitute tax advice and potential investors are
urged to consult their own tax advisers to determine the tax consequences to them of investing in
the Fund.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Taxation of the Fund</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, meet the following requirements regarding the source of its income and the
diversification of its assets:
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Fund must derive in each taxable year at least 90% of its gross income from the
following sources, which are referred to herein as &#147;Qualifying Income&#148;: (a)&nbsp;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, and 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 foreign currencies; and (b)&nbsp;interests in publicly traded partnerships that
are treated as partnerships for U.S. federal income tax purposes and that derive
less than 90% of their gross income from the items described in (a)&nbsp;above (each a
&#147;Qualified Publicly Traded Partnership&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Fund must diversify its holdings so that, at the end of each quarter of each
taxable year (a)&nbsp;at least 50% of the market value of the Fund&#146;s total assets is
represented by cash and cash items, U.S. government securities, the securities of other
regulated investment companies and other securities, with such other securities limited,
in</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 47 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>respect of any one issuer, to an amount not greater than 5% of the value of the Fund&#146;s
total assets and not more than 10% of the outstanding voting securities of such issuer and
(b)&nbsp;not more than 25% of the market value of the Fund&#146;s total assets is invested in the
securities (other than U.S. government securities and the securities of other regulated
investment companies) of (I)&nbsp;any one issuer, (II)&nbsp;any two or more issuers in which the
Fund owns 20% or more of the voting stock and that are determined to be engaged in the
same business or similar or related trades or businesses or (III)&nbsp;any one or more
Qualified Publicly Traded Partnerships.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a regulated investment company, the Fund generally will not be subject to U.S. federal
income tax on income and gains that the Fund distributes to its shareholders, provided that it
distributes each taxable year at least the sum of (i)&nbsp;90% of the Fund&#146;s investment company taxable
income (which includes, among other items, dividends, interest and the excess of any net short-term
capital gain over net long-term capital loss and other taxable income, other than any net long-term
capital gain, reduced by deductible expenses) determined without regard to the deduction for
dividends paid and (ii)&nbsp;90% of the Fund&#146;s net tax-exempt interest (the excess of its gross
tax-exempt interest over certain disallowed deductions). The Fund intends to distribute
substantially all of such income at least annually. The Fund will be subject to income tax at
regular corporation rates on any taxable income or gains that it does not distribute to its
shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Code imposes a 4% nondeductible excise tax on the Fund to the extent the Fund does not
distribute by the end of any calendar year an amount at least equal to the sum of (i)&nbsp;98% of its
ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii)
98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for
a one-year period generally ending on October&nbsp;31 of the calendar year (unless an election is made
to use the Fund&#146;s fiscal year). In addition, the minimum amounts that must be distributed in any
year to avoid the excise tax will be increased or decreased to reflect any under-distribution or
over-distribution, as the case may be, from the previous year. While the Fund intends to distribute
any income and capital gain in the manner necessary to minimize imposition of the 4% excise tax,
there can be no assurance that sufficient amounts of the Fund&#146;s taxable income and capital gain
will be distributed to entirely avoid the imposition of the excise tax. In that event, the Fund
will be liable for the excise tax only on the amount by which it does not meet the foregoing
distribution requirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Taxation of Shareholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions paid to you by the Fund from its net realized long-term capital gains, if any,
that the Fund reports as capital gains dividends (&#147;capital gain dividends&#148;) are taxable as
long-term capital gains, regardless of how long you have held your shares. All other dividends paid
to you by the Fund (including dividends from short-term capital gains) from its current or
accumulated earnings and profits (&#147;ordinary income dividends&#148;) are generally subject to tax as
ordinary income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special rules apply, however, to ordinary income dividends paid to individuals with respect to
taxable years beginning on or before December&nbsp;31, 2012. If you are an individual, any such ordinary
income dividend that you receive from the Fund generally will be eligible for taxation at the
Federal rates applicable to long-term capital gains (currently at a maximum rate of 15%) to the
extent that (i)&nbsp;the ordinary income dividend is attributable to &#147;qualified dividend income&#148; (i.e.,
generally dividends paid by U.S. corporations and certain foreign corporations) received by the
Fund, (ii)&nbsp;the Fund satisfies certain holding period and other requirements with respect to the
stock on which such qualified dividend income was paid and (iii)&nbsp;you satisfy certain holding period
and other requirements with respect to your shares. There can be no assurance as to what portion of
the Fund&#146;s ordinary income dividends will constitute qualified dividend income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning in 2013, a 3.8&nbsp;percent Medicare contribution tax will be imposed on net investment
income, including interest, dividends, and capital gain, of U.S. individuals with income exceeding
$200,000 (or $250,000 if married filing jointly), and of estates and trusts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any distributions you receive that are in excess of the Fund&#146;s current or accumulated earnings
and profits will be treated as a tax-free return of capital to the extent of your adjusted tax
basis in your shares, and thereafter as capital gain from the sale of shares. The amount of any
Fund distribution that is treated as a tax-free return of capital will reduce your adjusted tax
basis in your shares, thereby increasing your potential gain or reducing your potential loss on any
subsequent sale or other disposition of your shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends and other taxable distributions are taxable to you even if they are reinvested in
additional common shares of the Fund. Dividends and other distributions paid by the Fund are
generally treated under the Code as received by you at the time the dividend or distribution is
made. If, however, the Fund pays you a dividend in January that was declared in the previous
October, November or December and you were the shareholder of record on a specified date in one of
such months, then such
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 48 -<!-- /Folio -->
</DIV>

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<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">dividend will be treated for tax purposes as being paid by the Fund and
received by you on December&nbsp;31 of the year in which the dividend was declared.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will send you information after the end of each year setting forth the amount and tax
status of any distributions paid to you by the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sale or other disposition of shares of the Fund will generally result in capital gain or
loss to you, and will be long-term capital gain or loss if you have held such shares for more than
one year at the time of sale. Any loss upon the sale or exchange of shares 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 with respect to such
shares. Any loss you realize on a sale or exchange of shares will be disallowed if you acquire
other shares (whether through the automatic reinvestment of dividends or otherwise) within a 61-day
period beginning 30&nbsp;days before and ending 30&nbsp;days after your sale or exchange of the shares. In
such case, your tax basis in the shares acquired will be adjusted to reflect the disallowed loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may be required to withhold, for U.S. federal backup withholding tax purposes, a
portion of the dividends, distributions and redemption proceeds payable to shareholders who fail to
provide the Fund (or its agent) with their correct taxpayer identification number (in the case of
individuals, generally, their social security number) or to make required certifications, or who
have been notified by the IRS that they are subject to backup withholding. Certain shareholders are
exempt from backup withholding. Backup withholding is not an additional tax and any amount withheld
may be refunded or credited against your U.S. federal income tax liability, if any, provided that
you furnish the required information to the IRS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conclusion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
shareholders. These provisions are subject to change by legislative or administrative action, and
any such change may be retroactive.
</DIV>
<DIV align="left">
<A name="Y91816122"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CUSTODIAN, TRANSFER AGENT AND DIVIDEND DISBURSING AGENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York Mellon, 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 receives a monthly fee paid by the Fund based upon, among other things, the average
weekly value of the total assets of the Fund, plus certain charges for securities transactions and
out-of-pocket expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rules adopted under the 1940 Act permit the Fund to maintain its foreign securities in the
custody of certain eligible foreign banks and securities depositories. Pursuant to those rules, any
foreign securities in the portfolio of the Fund may be held by subcustodians approved by the Board
in accordance with the regulations of the SEC. Selection of any such subcustodians will be made by
the Board following a consideration of a number of factors, including but not limited to the
reliability and financial stability of the institution, the ability of the institution to perform
capably custodial services for the Fund, the reputation of the institution in its national market,
the political and economic stability of the country or countries in which the subcustodians are
located, and risks of potential nationalization or expropriation of assets of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computershare also serves as the Fund&#146;s transfer agent, registrar, dividend disbursing agent
and redemption agent with respect to the Series&nbsp;D Preferred and Series&nbsp;F Preferred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York Mellon, located at One Wall 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&nbsp;C Auction Rate Preferred and Series&nbsp;E Auction Rate Preferred.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 49 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="Y91816123"></A>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may sell shares through underwriters or dealers, directly to one or more purchasers,
through agents, to or through underwriters or dealers, or through a combination of any such methods
of sale. The applicable Prospectus Supplement will identify any underwriter or agent involved in
the offer and sale of our shares, any sales loads, discounts, commissions, fees or other
compensation paid to any underwriter, dealer or agent, the offering price, net proceeds and use of
proceeds and the terms of any sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The distribution of our shares may be effected from time to time in one or more transactions
at a fixed price or prices, which may be changed, at prevailing market prices at the time of sale,
at prices related to such prevailing market prices, or at negotiated prices, provided, however,
that the offering price per share in the case of common shares, must equal or exceed the net asset
value per share, exclusive of any underwriting commissions or discounts, of our common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may sell our shares directly to, and solicit offers from, institutional investors or others
who may be deemed to be underwriters as defined in the Securities Act of 1933 (the &#147;Securities
Act&#148;) for any resales of the securities. In this case, no underwriters or agents would be
involved. We may use electronic media, including the Internet, to sell offered securities
directly.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the sale of our shares, underwriters or agents may receive compensation
from us in the form of discounts, concessions or commissions. Underwriters may sell our shares to
or through dealers, and such dealers may receive compensation in the form of discounts, concessions
or commissions from the underwriters and/or commissions from the purchasers for whom they may act
as agents. Underwriters, dealers and agents that participate in the distribution of our shares may
be deemed to be underwriters under the Securities Act, and any discounts and commissions they
receive from us and any profit realized by them on the resale of our shares may be deemed to be
underwriting discounts and commissions under the Securities Act. Any such underwriter or agent
will be identified and any such compensation received from us will be described in the applicable
Prospectus Supplement. The maximum commission or discount to be received by any FINRA member or
independent broker-dealer will not exceed eight percent. We will not pay any compensation to any
underwriter or agent in the form of warrants, options, consulting or structuring fees or similar
arrangements.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Prospectus Supplement so indicates, we may grant the underwriters an option to purchase
additional shares at the public offering price, less the underwriting discounts and commissions,
within 45&nbsp;days from the date of the Prospectus Supplement, to cover any overallotments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under agreements into which we may enter, underwriters, dealers and agents who participate in
the distribution of our shares may be entitled to indemnification by us against certain
liabilities, including liabilities under the Securities Act. Underwriters, dealers and agents may
engage in transactions with us, or perform services for us, in the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If so indicated in the applicable Prospectus Supplement, we will ourselves, or will authorize
underwriters or other persons acting as our agents to solicit offers by certain institutions to
purchase our shares from us pursuant to contracts providing for payment and delivery on a future
date. Institutions with which such contacts may be made include commercial and savings banks,
insurance companies, pension funds, investment companies, educational and charitable institutions
and others, but in all cases such institutions must be approved by us. The obligation of any
purchaser under any such contract will be subject to the condition that the purchase of the shares
shall not at the time of delivery be prohibited under the laws of the jurisdiction to which such
purchaser is subject. The underwriters and such other agents will not have any responsibility in
respect of the validity or performance of such contracts. Such contracts will be subject only to
those conditions set forth in the Prospectus Supplement, and the Prospectus Supplement will set
forth the commission payable for solicitation of such contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent permitted under the 1940 Act and the rules and regulations promulgated
thereunder, the underwriters may from time to time act as brokers or dealers and receive fees in
connection with the execution of our portfolio transactions after the underwriters have ceased to
be underwriters and, subject to certain restrictions, each may act as a broker while it is an
underwriter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Prospectus and accompanying Prospectus Supplement in electronic form may be made available
on the websites maintained by underwriters. The underwriters may agree to allocate a number of
securities for sale to their online brokerage account holders. Such allocations of securities for
Internet distributions will be made on the same basis as other allocations.
In addition, securities may be sold by the underwriters to securities dealers who resell securities
to online brokerage account holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to comply with the securities laws of certain states, if applicable, our shares
offered hereby will be sold in such jurisdictions only through registered or licensed brokers or
dealers.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 50 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="Y91816124"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain legal matters will be passed on by Willkie Farr &#038; Gallagher LLP, 787 Seventh Avenue,
New York, New York 10019-6099, counsel to the Fund, in connection with the offering of the Fund&#146;s
securities. Counsel for the Fund will rely, as to certain matters of Maryland law, on Venable LLP,
750 E. Pratt Street, Baltimore, Maryland 21202.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left">
<A name="Y91816125"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PwC serves as the independent registered public accounting firm of the Fund and audits the
financial statements of the Fund. PwC is located at 300 Madison Avenue, New York, New York 10017.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left">
<A name="Y91816126"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is subject to the informational requirements of the 1934 Act and the 1940 Act, and in
accordance therewith files reports and other information with the SEC. Reports, proxy statements
and other information filed by the Fund with the SEC pursuant to the informational requirements of
such Acts can be inspected and copied at the public reference facilities maintained by the SEC, 100
F Street, N.E., Washington, D.C. 20549. The SEC 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 SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s common stock, Series&nbsp;D Preferred and Series&nbsp;F Preferred are listed on the NYSE.
Reports, proxy statements and other information concerning the Fund and filed with the SEC by the
Fund will be available for inspection at the NYSE, 11 Wall Street, New York, New York, 10005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus constitutes part of a Registration Statement filed by the Fund with the SEC
under the Securities Act 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 securities 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 SEC. Each such statement is
qualified in its entirety by such reference. The complete Registration Statement may be obtained
from the SEC upon payment of the fee prescribed by its rules and regulations or free of charge
through the SEC&#146;s web site (http://www.sec.gov).
</DIV>
<DIV align="left">
<A name="Y91816127"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRIVACY PRINCIPLES OF THE FUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is committed to maintaining the privacy of its shareholders and to safeguarding their
non-public personal information. The following information is provided to help you understand what
personal information the Fund collects, how the Fund protects that information and why, in certain
cases, the Fund may share information with select other parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, the Fund does not receive any non-public personal information relating to its
shareholders, although certain non-public personal information of its shareholders may become
available to the Fund. The Fund does not disclose any non-public personal information about its
shareholders or former shareholders to anyone, except as permitted by law or as is necessary in
order to service shareholder accounts (for example, to a transfer agent or third party
administrator).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund restricts access to non-public personal information about its shareholders to
employees of the Fund, the Investment Adviser, and its affiliates with a legitimate business need
for the information. The Fund maintains physical, electronic and procedural safeguards designed to
protect the non-public personal information of its shareholders.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 51 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="Y91816128"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An SAI dated as of June&nbsp;22, 2011, has been filed with the SEC and is incorporated by reference
in this Prospectus. An SAI may be obtained without charge by writing to the Fund at its address at
One Corporate Center, Rye, New York 10580-1422 or by calling the Fund toll-free at (800)&nbsp;GABELLI
(422-3554). The Table of Contents of the SAI is as follows:
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment Objectives and Policies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment Restrictions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Management of The Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends and Distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Auctions for Auction Rate Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Portfolio Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Portfolio Turnover</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Taxation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beneficial Owners</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">General Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Appendix&nbsp;A&#151;Proxy Voting Policy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No dealer, salesperson or other 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"><!-- Folio -->- 52 -<!-- /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"><B>$500,000,000</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><IMG src="y91816y9181600.gif" alt="(GABELLI LOGO)">
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Common Stock</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Preferred Stock</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PRELIMINARY PROSPECTUS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>June&nbsp;22, 2011</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></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="right" style="font-size: 10pt; margin-top: 12pt"><IMG src="y91816y9181600.gif" alt="(GABELLI LOGO)">
</DIV>


<P style="padding: 5px; border: 3px double #000000; font-size: 10pt; color: #FF0000">The information in this Prospectus Supplement is not complete and may be changed. The Fund 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 offers to buy these securities in any state where the offer or sale is not permitted.


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Filed Pursuant to Rule&nbsp;497(c)</div>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 0pt">Registration Statement No.&nbsp;333-173819
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt">PROSPECTUS SUPPLEMENT
</DIV>

<DIV align="left" style="font-size: 11pt; margin-top: 6pt">(To Prospectus dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2011)
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 18pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Shares of Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering for sale <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares of our common stock. Our common
stock is traded on the New York Stock Exchange under the symbol &#147;GAB.&#148; The last reported sale price
for our common stock on
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
was $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
per share. The net asset value of the Fund&#146;s common shares at the close of business on &#091; &#093;, 2011 was $&#091; &#093; per share.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should review the information set forth under &#147;Risk Factors and Special Considerations&#148; on
page &#95;&#95;&#95; of the accompanying Prospectus before investing in our common shares.
</DIV>

<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 9pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Per Share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Public offering price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&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>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Underwriting discounts and commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&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>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds, before expenses, to us</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&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>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The aggregate expenses of the offering are estimated to be
$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
which represents approximately $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The underwriters may also purchase up to an additional <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
common stock from us at the public offering price, less underwriting discounts and commissions, to
cover over-allotments, if any, within 30&nbsp;days after the date of this Prospectus Supplement. If the
over-allotment option is exercised in full, the total proceeds, before expenses, to the Fund would
be $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and the total underwriting discounts and commissions would be $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. The common shares will be
ready for delivery on or about &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, .
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should read this Prospectus Supplement and the accompanying Prospectus before deciding
whether to invest in our common shares and retain it for future reference. The Prospectus
Supplement and the accompanying Prospectus contain important information about us. Material that
has been incorporated by reference and other information about us can be obtained from us by
calling 1-800-GABELLI (422-3554) or from the Securities and Exchange Commission&#146;s (&#147;SEC&#148;) website
(http://www.sec.gov).
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS SUPPLEMENT IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95; , 2011
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->S-1<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should rely only on the information contained or incorporated by reference in this
Prospectus Supplement and the accompanying Prospectus. Neither the Fund nor the underwriters have
authorized anyone to provide you with different information. The Fund is not making an offer to
sell these securities in any jurisdiction where the offer or sale is not permitted. You should not
assume that the information contained in this Prospectus Supplement and the accompanying Prospectus
is accurate as of any date other than the date of this Prospectus Supplement and the accompanying
Prospectus, respectively. Our business, financial condition, results of operations and prospects
may have changed since those dates. In this Prospectus Supplement and in the accompanying
Prospectus, unless otherwise indicated, &#147;Fund,&#148; &#147;us,&#148; &#147;our&#148; and &#147;we&#148; refer to The Gabelli Equity
Trust Inc. This Prospectus Supplement also includes trademarks owned by other persons.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Prospectus Supplement</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#129"-->TABLE OF FEES AND EXPENSES<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#130"-->USE OF PROCEEDS<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#131"-->FINANCIAL HIGHLIGHTS<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#132"-->PRICE RANGE OF COMMON STOCK<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#133"-->PLAN OF DISTRIBUTION<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#134"-->LEGAL MATTERS<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-5</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 colspan="5" align="center"><DIV style="margin-left:15px; text-indent:-15px"><B>Prospectus</B></DIV></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><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PROSPECTUS SUMMARY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SUMMARY OF FUND EXPENSES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FINANCIAL HIGHLIGHTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">USE OF PROCEEDS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">THE FUND</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">INVESTMENT OBJECTIVES AND POLICIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RISK FACTORS AND SPECIAL CONSIDERATIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HOW THE FUND MANAGES RISK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MANAGEMENT OF THE FUND</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PORTFOLIO TRANSACTIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DIVIDENDS AND DISTRIBUTIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ISSUANCE OF COMMON STOCK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DESCRIPTION OF THE CAPITAL STOCK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ANTI-TAKEOVER PROVISIONS OF THE FUND&#146;S GOVERNING DOCUMENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CLOSED-END FUND STRUCTURE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">REPURCHASE OF COMMON STOCK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RIGHTS OFFERINGS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NET ASSET VALUE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LIMITATION ON DIRECTORS&#146; AND OFFICERS&#146; LIABILITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TAXATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CUSTODIAN, TRANSFER AGENT AND DIVIDEND DISBURSING AGENT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PLAN OF DISTRIBUTION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LEGAL MATTERS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ADDITIONAL INFORMATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PRIVACY PRINCIPLES OF THE FUND</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->S-2<!-- /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"><B>CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus Supplement, the accompanying Prospectus and the Statement of Additional
Information contain &#147;forward-looking statements.&#148; Forward-looking statements can be identified by
the words &#147;may,&#148; &#147;will,&#148; &#147;intend,&#148; &#147;expect,&#148; &#147;estimate,&#148; &#147;continue,&#148; &#147;plan,&#148; &#147;anticipate,&#148; and
similar terms and the negative of such terms. Such forward-looking statements may be contained in
this Prospectus Supplement as well as in the accompanying Prospectus. By their nature, all
forward-looking statements involve risks and uncertainties, and actual results could differ
materially from those contemplated by the forward-looking statements. Several factors that could
materially affect our actual results are the performance of the portfolio of securities we hold,
the price at which our shares will trade in the public markets and other factors discussed in our
periodic filings with the SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we believe that the expectations expressed in our forward-looking statements are
reasonable, actual results could differ materially from those projected or assumed in our
forward-looking statements. Our future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and are subject to inherent risks and
uncertainties, such as those disclosed in the &#147;Risk Factors and Special Considerations&#148; section of
the accompanying prospectus. All forward-looking statements contained or incorporated by reference
in this Prospectus Supplement or the accompanying Prospectus are made as of the date of this
Prospectus Supplement or the accompanying Prospectus, as the case may be. Except for our ongoing
obligations under the federal securities laws, we do not intend, and we undertake no obligation, to
update any forward-looking statement. The forward-looking statements contained in this Prospectus
Supplement, any accompanying Prospectus and the Statement of Additional Information are excluded
from the safe harbor protection provided by Section&nbsp;27A of the Securities Act of 1933, as amended
(the &#147;Securities Act&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently known risk factors that could cause actual results to differ materially from our
expectations include, but are not limited to, the factors described in the &#147;Risk Factors and
Special Considerations&#148; section of the accompanying Prospectus. We urge you to review carefully
those sections for a more detailed discussion of the risks of an investment in our common stock.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-3<!-- /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">
<A name="Y91816129"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF FEES AND EXPENSES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables are intended to assist you in understanding the various costs and
expenses directly or indirectly associated with investing in our common stock as a percentage of
net assets attributable to common stock. Amounts are for the current fiscal year after giving
effect to anticipated net proceeds of the offering, assuming that we incur the estimated offering
expenses, including preferred stock offering expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Shareholder Transaction Expenses</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="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></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales Load (as a percentage of offering price)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;&nbsp;</TD>
    <TD nowrap>&#093;%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering Expenses Borne by the Fund (as a percentage of offering price)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;&nbsp;</TD>
    <TD nowrap>&#093;%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend Reinvestment Plan Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right">None</TD>
    <TD>&nbsp;(1)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="2"><B>Percentage of Net Assets</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Attributable to Common Stock</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Annual Expenses</B></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">Management Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;&nbsp;</TD>
    <TD nowrap>&#093;%(2)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on Borrowed Funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&#093;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;&nbsp;</TD>
    <TD nowrap>&#093;%(2)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends on Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total annual fund operating expenses and dividends on preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;%(2)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Annual Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;&nbsp;</TD>
    <TD nowrap>&#093;%(2)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>You will be charged a $&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; service charge and pay brokerage
charges if you direct the plan agent to sell your common stock
held in a dividend reinvestment account.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The Investment Adviser&#146;s fee is 1.00% annually of the Fund&#146;s
average weekly net assets, with no deduction for the liquidation
preference of any outstanding preferred shares. Consequently, in
as much as the Fund has preferred shares outstanding, the
investment management fees and other expenses as a percentage of
net assets attributable to common shares are higher than if the
Fund did not utilize a leveraged capital structure. &#147;Other
Expenses&#148; are based on estimated amounts for the current year
assuming completion of the proposed issuances.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Example</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following example illustrates the expenses (including the maximum estimated sales load of
$&#091; &#093; and estimated offering expenses of $&#091;&nbsp;&nbsp;&#093; from the issuance of $&#091;&nbsp;&nbsp;&#093; million in common stock)
you would pay on a $1,000 investment in common stock, assuming a 5% annual portfolio total return.*
The actual amounts in connection with any offering will be set forth in the Prospectus Supplement
if applicable.
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>3 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>10 Years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Expenses Incurred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><U>&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="center" valign="bottom"><U>&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="center" valign="bottom"><U>&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="center" valign="bottom"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD><B>The example should not be considered a representation of future
expenses</B>. The example assumes that the amounts set forth in the
Annual Expenses table are accurate and that all distributions are
reinvested at net asset value. Actual expenses may be greater or
less than those assumed. Moreover, the Fund&#146;s actual rate of return
may be greater or less than the hypothetical 5% return shown in the
example.</TD>
</TR>

</TABLE>


<DIV align="left">
<A name="Y91816130"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We estimate the total net proceeds of the offering to be $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>($<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> if the over-allotment option is
exercised in full), based on the public offering price of $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share and after deducting
underwriting discounts and commissions and estimated offering expenses payable by us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser expects that it will initially invest the proceeds of the offering in
high-quality short-term debt securities and instruments. The Investment Adviser anticipates that
the investment of the proceeds will be made in accordance with the Fund&#146;s investment objectives and
policies as appropriate investment opportunities are identified, which is expected to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-4<!-- /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">be substantially completed within three months; however, changes in market conditions could result
in the Fund&#146;s anticipated investment period extending to as long as six months.
</DIV>

<DIV align="left">
<A name="Y91816131"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FINANCIAL HIGHLIGHTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816132"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRICE RANGE OF COMMON STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth for the quarters indicated, the high and low sale prices on the
New York Stock Exchange per share of our common stock and the net asset value and the premium or
discount from net asset value per share at which the shares of common stock were trading, expressed
as a percentage of net asset value, at each of the high and low sale prices provided.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The last reported price for our common
stock on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
was $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share.
</DIV>
<DIV align="left">
<A name="Y91816133"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816134"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain legal matters will be passed on by Willkie Farr &#038; Gallagher LLP, New York, New York,
counsel to the Fund in connection with the offering of the common stock. Certain legal matters in
connection with this offering will be passed upon for the underwriters by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
Willkie Farr &#038; Gallagher LLP and &#091;&nbsp;&nbsp;&#093; may rely as to certain
matters of Maryland law on the opinion of &#091;&nbsp;&nbsp;&#093;.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->S-5<!-- /Folio -->
</DIV>

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<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"><IMG src="y91816y9181600.gif" alt="(GABELLI LOGO)">
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>The Gabelli Equity Trust Inc.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Shares of Common Stock</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROSPECTUS SUPPLEMENT</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>, 2011</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Until <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2011 (25&nbsp;days after the date of this prospectus), all dealers that buy, sell or
trade the Common Stock, whether or not participating in this offering, may be required to deliver a
Prospectus. This is in addition to each dealer&#146;s obligation to deliver a prospectus when acting as
an underwriter and with respect to its unsold allotments or subscriptions.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->S-6<!-- /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="right" style="font-size: 10pt; margin-top: 12pt"><IMG src="y91816y9181600.gif" alt="(GABELLI LOGO)">
</DIV>


<P style="padding: 5px; border: 3px double #000000; font-size: 10pt; color: #FF0000">The information in this Prospectus Supplement is not complete and may be changed. The Fund 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 offers to buy these securities in any state where the offer or sale is not permitted.


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Filed Pursuant to Rule&nbsp;497(c)</div>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 0pt">Registration Statement No.&nbsp;333-173819
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt">PROSPECTUS SUPPLEMENT
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt"><FONT style="font-size:11pt">(To Prospectus dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2011)</FONT>
</DIV>


<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Shares</B>
</DIV>

<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><B>Series &#091;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#093; Preferred Stock</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering for sale <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our Series &#95;&#95;&#95; Preferred
Stock. Our common shares are traded on the New York Stock Exchange under the symbol &#147;GAB.&#148; The last
reported sale price for our common stock on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, &#95;&#95;&#95;was $ &#95;&#95;&#95; per share.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should review the information set forth under &#147;Risk Factors and Special Considerations&#148; on
page &#95;&#95;&#95; of the accompanying Prospectus before investing in our preferred stock.
</DIV>


<DIV align="left"><FONT size="1">

</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 9pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Per Share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total (1)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Public offering price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&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>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Underwriting discounts and commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&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>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds, before expenses, to us</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&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>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The aggregate expenses of the offering are estimated to be $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, which represents approximately $ &#95;&#95;&#95; per share.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Underwriters are expected to deliver the Series &#95;&#95;&#95; Preferred Stock in book-entry form
through the Depositary Trust Company on or about <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, &#95;&#95;.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should read this Prospectus Supplement and the accompanying Prospectus before deciding
whether to invest in our preferred shares and retain it for future reference. The Prospectus
Supplement and the accompanying Prospectus contain important information about us. Material that
has been incorporated by reference and other information about us can be obtained from us by
calling 800-GABELLI (422-3554) or from the Securities and Exchange Commission&#146;s (&#147;SEC&#148;) website
(http://www.sec.gov).
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS SUPPLEMENT IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, &#95;&#95;&#95;&#95;
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->P-1<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should rely only on the information contained or incorporated by reference in this
Prospectus Supplement and the accompanying Prospectus. Neither the Fund nor the underwriters have
authorized anyone to provide you with different information. The Fund is not making an offer to
sell these securities in any jurisdiction where the offer or sale is not permitted. You should not
assume that the information contained in this Prospectus Supplement and the accompanying Prospectus
is accurate as of any date other than the date of this Prospectus Supplement and the accompanying
Prospectus, respectively. Our business, financial condition, results of operations and prospects
may have changed since those dates. In this Prospectus Supplement and in the accompanying
Prospectus, unless otherwise indicated, &#147;Fund,&#148; &#147;us,&#148; &#147;our&#148; and &#147;we&#148; refer to The Gabelli Equity
Trust Inc. This Prospectus Supplement also includes trademarks owned by other persons.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">TABLE OF CONTENTS
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Prospectus Supplement
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#135"-->TERMS OF THE SERIES &#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; PREFERRED STOCK
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">P</TD>
    <TD align="right" valign="top">-4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#136"-->USE OF PROCEEDS
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">P</TD>
    <TD align="right" valign="top">-5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#137"-->CAPITALIZATION
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">P</TD>
    <TD align="right" valign="top">-5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#138"-->ASSET COVERAGE RATIO
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">P</TD>
    <TD align="right" valign="top">-5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#139"-->SPECIAL CHARACTERISTICS AND RISKS OF THE SERIES &#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; PREFERRED STOCK
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">P</TD>
    <TD align="right" valign="top">-5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#140"-->DESCRIPTION OF THE SERIES &#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; PREFERRED STOCK
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">P</TD>
    <TD align="right" valign="top">-5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#141"-->TAXATION
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">P</TD>
    <TD align="right" valign="top">-5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#142"-->UNDERWRITING
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">P</TD>
    <TD align="right" valign="top">-5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#143"-->LEGAL MATTERS
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">P</TD>
    <TD align="right" valign="top">-5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" colspan="5" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Prospectus</B></DIV></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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PROSPECTUS SUMMARY
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SUMMARY OF FUND EXPENSES
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">FINANCIAL HIGHLIGHTS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">USE OF PROCEEDS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">THE FUND
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">INVESTMENT OBJECTIVES AND POLICIES
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">RISK FACTORS AND SPECIAL CONSIDERATIONS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">HOW THE FUND MANAGES RISK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">MANAGEMENT OF THE FUND
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PORTFOLIO TRANSACTIONS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DIVIDENDS AND DISTRIBUTIONS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ISSUANCE OF COMMON STOCK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DESCRIPTION OF THE CAPITAL STOCK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ANTI-TAKEOVER PROVISIONS OF THE FUND&#146;S GOVERNING DOCUMENTS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CLOSED-END FUND STRUCTURE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">REPURCHASE OF COMMON STOCK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">RIGHTS OFFERINGS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">NET ASSET VALUE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">LIMITATION ON DIRECTORS&#146; AND OFFICERS&#146; LIABILITY
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">TAXATION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CUSTODIAN, TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PLAN OF DISTRIBUTION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">LEGAL MATTERS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ADDITIONAL INFORMATION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PRIVACY PRINCIPLES OF THE FUND
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->P-2<!-- /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"><B>CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus Supplement, the accompanying Prospectus and the Statement of Additional
Information contain &#147;forward-looking statements.&#148; Forward-looking statements can be identified by
the words &#147;may,&#148; &#147;will,&#148; &#147;intend,&#148; &#147;expect,&#148; &#147;estimate,&#148; &#147;continue,&#148; &#147;plan,&#148; &#147;anticipate,&#148; and
similar terms and the negative of such terms. Such forward-looking statements may be contained in
this Prospectus Supplement as well as in the accompanying Prospectus. By their nature, all
forward-looking statements involve risks and uncertainties, and actual results could differ
materially from those contemplated by the forward-looking statements. Several factors that could
materially affect our actual results are the performance of the portfolio of securities we hold,
the price at which our shares will trade in the public markets and other factors discussed in our
periodic filings with the SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we believe that the expectations expressed in our forward-looking statements are
reasonable, actual results could differ materially from those projected or assumed in our
forward-looking statements. Our future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and are subject to inherent risks and
uncertainties, such as those disclosed in the &#147;Risk Factors and Special Considerations&#148; section of
the accompanying prospectus. All forward-looking statements contained or incorporated by reference
in this Prospectus Supplement or the accompanying Prospectus are made as of the date of this
Prospectus Supplement or the accompanying Prospectus, as the case may be. Except for our ongoing
obligations under the federal securities laws, we do not intend, and we undertake no obligation, to
update any forward-looking statement. The forward-looking statements contained in this Prospectus
Supplement, any accompanying Prospectus and the Statement of Additional Information are excluded
from the safe harbor protection provided by Section&nbsp;27A of the Securities Act of 1933, as amended
(the &#147;Securities Act&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently known risk factors that could cause actual results to differ materially from our
expectations include, but are not limited to, the factors described in the &#147;Risk Factors and
Special Considerations&#148; section of the accompanying Prospectus. We urge you to review carefully
those sections for a more detailed discussion of the risks of an investment in our preferred stock.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->P-3<!-- /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">
<A name="Y91816135"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TERMS OF THE SERIES &#95;&#95;&#95; PREFERRED STOCK</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="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dividend Rate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The dividend rate &#091;for the initial dividend period&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">1 </SUP>will be &#95;&#95;&#95;%.</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dividend Payment Rate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Dividends will be paid when, as and if declared on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, and <U>&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, commencing
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">2 </SUP>The payment date for the initial dividend period will be <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">1</SUP></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;Regular Dividend Period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regular dividend periods will be &#95;&#95;&#95;days.&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">1</SUP></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Liquidation Preference
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$ &#95;&#95;&#95;&#95; per share</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;Non-Call Period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The shares may not be called for redemption at the option of the Fund prior to
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">2</SUP></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;Stock Exchange Listing&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">1</TD>
    <TD>&nbsp;</TD>
    <TD>Applicable only if the preferred shares being offered are auction rate shares.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">2</TD>
    <TD>&nbsp;</TD>
    <TD>Applicable only if the preferred shares being offered are fixed rate shares.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->P-4<!-- /Folio -->
</DIV>

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<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">
<A name="Y91816136"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We estimate the total net proceeds of the offering to be $ <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, based on the public offering
price of $ &#95;&#95;&#95;&#95; per share and after deduction of the underwriting discounts and commissions and
estimated offering expenses payable by us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser expects that it will initially invest the proceeds of the offering in
high-quality short-term debt securities and instruments. The Investment Adviser anticipates that
the investment of the proceeds will be made in accordance with the Fund&#146;s investment objectives and
policies as appropriate investment opportunities are identified, which is expected to be
substantially completed within three months; however, changes in market conditions could result in
the Fund&#146;s anticipated investment period extending to as long as six months.
</DIV>
<DIV align="left">
<A name="Y91816137"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CAPITALIZATION</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816138"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ASSET COVERAGE RATIO</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816139"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SPECIAL CHARACTERISTICS AND RISKS OF THE SERIES &#091; &#093; PREFERRED STOCK</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816140"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>DESCRIPTION OF THE SERIES &#091; &#093; PREFERRED STOCK</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816141"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>TAXATION</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816142"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>UNDERWRITING</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816143"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>LEGAL MATTERS</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain legal matters will be passed on by Willkie Farr &#038; Gallagher LLP, New York, New York,
counsel to the Fund in connection with the offering of the Series &#091;&nbsp;&nbsp;&#093; Preferred Stock. Certain
legal matters in connection with this offering will be passed upon for the underwriters by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
Willkie Farr &#038; Gallagher LLP and &#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; may rely as to
certain matters of Maryland law on the opinion of &#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->P-5<!-- /Folio -->
</DIV>

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<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"><IMG src="y91816y9181600.gif" alt="(GABELLI LOGO)">
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>The Gabelli Equity Trust Inc.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Shares</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>% Series &#091;</B>&nbsp;<B>&#093; &#091;</B>&nbsp;&nbsp;<B>&#093; Preferred Stock<BR>
(Liquidation Preference $&#95;&#95;&#95;&#95; per share)</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROSPECTUS SUPPLEMENT</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>, 2011</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Until <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2011 (25&nbsp;days after the date of this prospectus), all dealers that buy, sell or
trade the Preferred Stock, whether or not participating in this offering, may be required to
deliver a Prospectus. This is in addition to each dealer&#146;s obligation to deliver a prospectus when
acting as an underwriter and with respect to its unsold allotments or subscriptions.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->P-6<!-- /Folio -->
</DIV>

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<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="right" style="font-size: 10pt; margin-top: 12pt"><IMG src="y91816y9181600.gif" alt="(GABELLI LOGO)">
</DIV>


<P style="padding: 5px; border: 3px double #000000; font-size: 10pt; color: #FF0000">The information in this Prospectus Supplement is not complete and may be changed. The Fund 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 offers to buy these securities in any state where the offer or sale is not permitted.


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Filed Pursuant to Rule&nbsp;497(c)</div>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 0pt">Registration Statement No.&nbsp;333-173819
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-size:12pt">PROSPECTUS SUPPLEMENT</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-size:11pt">(To Prospectus dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2011)</FONT>
</DIV>


<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Rights for <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Shares</B>
</DIV>

<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><B>Subscription Rights for Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gabelli Equity Trust Inc. (the &#147;Fund&#148;, &#147;we&#148;, &#147;us&#148; or &#147;our&#148;) is issuing subscription rights
(the &#147;Rights&#148;) to our common stockholders to purchase additional shares of common stock.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund 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&#146;s investment adviser is Gabelli Funds, LLC (the &#147;Investment Adviser&#148;).
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of our common stock are traded on the New York Stock Exchange (&#147;NYSE&#148;) under the symbol
&#147;GAB.&#148; On &#95;&#95;&#95;&#95;&#95;, 2011 (the last trading date prior to the Common Stock trading ex-Rights), the last
reported net asset value per share of the Common Stock was $&#95;&#95;&#95;&#95; and the last reported sales price
per share of Common Stock on the NYSE was $&#95;&#95;&#95;&#95;.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An investment in the Fund is not appropriate for all investors. We cannot assure you that the
Fund&#146;s investment objective will be achieved. You should read this Prospectus Supplement and the
accompanying Prospectus before deciding whether to invest in common shares and retain it for future
reference. The Prospectus Supplement and the accompanying Prospectus contain important information
about us. Material that has been incorporated by reference and other information about us can be
obtained from us by calling 800-GABELLI (422-3554) or from the Securities and Exchange Commission&#146;s
(&#147;SEC&#148;) website (http://www.sec.gov). For additional information all holders of rights should
contact the Information Agent, &#091;&nbsp;&nbsp;&#093;, toll-free at &#091;&nbsp;&nbsp;&nbsp;&nbsp;&#093; or please send written request to: &#091;&nbsp;&nbsp;&#093;.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in common stock through Rights involves certain risks that are described in the
&#147;Special Characteristics and Risks of the Rights Offering&#148; section beginning on page S-&#091; &#093; of the
Prospectus Supplement.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>STOCKHOLDERS WHO DO NOT EXERCISE THEIR RIGHTS MAY, AT THE COMPLETION OF THE OFFERING, OWN A
SMALLER PROPORTIONAL INTEREST IN THE FUND THAN IF THEY EXERCISED THEIR RIGHTS. AS A RESULT OF THE
OFFERING YOU MAY EXPERIENCE DILUTION OR ACCRETION OF THE AGGREGATE NET ASSET VALUE OF YOUR SHARES
OF COMMON STOCK DEPENDING UPON WHETHER THE FUND&#146;S NET ASSET VALUE PER SHARE OF COMMON STOCK IS
ABOVE OR BELOW THE SUBSCRIPTION PRICE ON THE EXPIRATION DATE.</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->R-1<!-- /Folio -->
</DIV>

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<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: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS SUPPLEMENT IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
</DIV>
<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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: 9pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Per Share</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subscription price of Common Shares to shareholders exercising Rights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&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>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Underwriting discounts and commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;</TD>
    <TD>&#093;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;</TD>
    <TD>&#093;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds, before expenses, to the Fund (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right"><U>&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>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The aggregate expenses of the offering are estimated to be $&#091;&nbsp;&nbsp;&#093;.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common stock is expected to be ready for delivery in book-entry form through the
Depository Trust Company on or about &#95;&#95;&#95;&#95;&#95;&#95;, 2011. If the offer is extended, the common stock is
expected to be ready for delivery in book-entry form through the Depository Trust Company on or
about &#95;&#95;&#95;&#95;&#95;&#95;, 2011.
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">The date of this Prospectus Supplement is <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2011
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->R-2<!-- /Folio -->
</DIV>

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<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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should rely only on the information contained or incorporated by reference in this
Prospectus Supplement and the accompanying Prospectus. The Fund has not authorized anyone to
provide you with different information. The Fund is not making an offer to sell these securities in
any jurisdiction where the offer or sale is not permitted. You should not assume that the
information contained in this Prospectus Supplement and the accompanying Prospectus is accurate as
of any date other than the date of this Prospectus Supplement and the accompanying Prospectus,
respectively. Our business, financial condition, results of operations and prospects may have
changed since those dates. In this Prospectus Supplement and in the accompanying Prospectus, unless
otherwise indicated, &#147;Fund,&#148; &#147;us,&#148; &#147;our&#148; and &#147;we&#148; refer to The Gabelli Equity Trust Inc. This
Prospectus Supplement also includes trademarks owned by other persons.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">TABLE OF CONTENTS
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Prospectus Supplement
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#144"-->SUMMARY OF THE TERMS OF THE RIGHTS OFFERING
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">R-&#091;5&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#145"-->DESCRIPTION OF THE RIGHTS OFFERING
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">R-&#091;5&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#146"-->TABLE OF FEES AND EXPENSES
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">R-&#091;6&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#147"-->USE OF PROCEEDS
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">R-&#091;6&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#148"-->CAPITALIZATION
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">R-&#091;7&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#149"-->PRICE RANGE OF COMMON SHARES
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">R-&#091;7&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#150"-->SPECIAL CHARACTERISTICS AND RISKS OF THE RIGHTS OFFERING
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">R-&#091;7&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#151"-->TAXATION
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">R-&#091;7&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#152"-->LEGAL MATTERS
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">R-&#091;7&#093;
</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Prospectus</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD 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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PROSPECTUS SUMMARY
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SUMMARY OF FUND EXPENSES
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">FINANCIAL HIGHLIGHTS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">USE OF PROCEEDS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">THE FUND
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">INVESTMENT OBJECTIVES AND POLICIES
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">RISK FACTORS AND SPECIAL CONSIDERATIONS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">HOW THE FUND MANAGES RISK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">MANAGEMENT OF THE FUND
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PORTFOLIO TRANSACTIONS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DIVIDENDS AND DISTRIBUTIONS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ISSUANCE OF COMMON STOCK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DESCRIPTION OF THE CAPITAL STOCK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ANTI-TAKEOVER PROVISIONS OF THE FUND&#146;S GOVERNING DOCUMENTS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CLOSED-END FUND STRUCTURE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">REPURCHASE OF COMMON STOCK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">RIGHTS OFFERINGS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">NET ASSET VALUE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">LIMITATION ON DIRECTORS&#146; AND OFFICERS&#146; LIABILITY
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">TAXATION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CUSTODIAN, TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PLAN OF DISTRIBUTION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">LEGAL MATTERS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ADDITIONAL INFORMATION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PRIVACY PRINCIPLES OF THE FUND
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->R-3<!-- /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"><B>CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus Supplement, the accompanying Prospectus and the Statement of Additional
Information contain &#147;forward-looking statements.&#148; Forward-looking statements can be identified by
the words &#147;may,&#148; &#147;will,&#148; &#147;intend,&#148; &#147;expect,&#148; &#147;estimate,&#148; &#147;continue,&#148; &#147;plan,&#148; &#147;anticipate,&#148; and
similar terms and the negative of such terms. Such forward-looking statements may be contained in
this Prospectus Supplement as well as in the accompanying Prospectus. By their nature, all
forward-looking statements involve risks and uncertainties, and actual results could differ
materially from those contemplated by the forward-looking statements. Several factors that could
materially affect our actual results are the performance of the portfolio of securities we hold,
the price at which our shares will trade in the public markets and other factors discussed in our
periodic filings with the SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we believe that the expectations expressed in our forward-looking statements are
reasonable, actual results could differ materially from those projected or assumed in our
forward-looking statements. Our future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and are subject to inherent risks and
uncertainties, such as those disclosed in the &#147;Risk Factors and Special Considerations&#148; section of
the accompanying Prospectus and &#147;Special Characteristics and Risks of the Rights Offering&#148; in this
Prospectus Supplement. All forward-looking statements contained or incorporated by reference in
this Prospectus Supplement or the accompanying Prospectus are made as of the date of this
Prospectus Supplement or the accompanying Prospectus, as the case may be. Except for our ongoing
obligations under the federal securities laws, we do not intend, and we undertake no obligation, to
update any forward-looking statement. The forward-looking statements contained in this Prospectus
Supplement, any accompanying Prospectus and the Statement of Additional Information are excluded
from the safe harbor protection provided by Section&nbsp;27A of the Securities Act of 1933, as amended
(the &#147;Securities Act&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently known risk factors that could cause actual results to differ materially from our
expectations include, but are not limited to, the factors described in the &#147;Risk Factors and
Special Considerations&#148; section of the accompanying Prospectus as well as in the &#147;Special
Characteristics and Risks of the Rights Offering&#148; section of this Prospectus Supplement. We urge
you to review carefully those sections for a more detailed discussion of the risks of an investment
in the common stock.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->R-4<!-- /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">
<A name="Y91816144"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY OF THE TERMS OF THE RIGHTS OFFERING</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="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Terms of the Offer</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;To be provided.&#093;</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Amount Available for <BR>
Primary Subscription</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Title</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subscription Rights for Common Stock</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Subscription Price</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights may be exercised at a price of $&#95;&#95;&#95;&#95;&#95; per share of Common Stock (the &#147;Subscription
Price&#148;). <I>See &#147;Terms of the Offer.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Record Date</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights will be issued to holders of record of the Fund&#146;s Common Stock on &#95;&#95;&#95;&#95;&#95;&#95;, 2011 (the
&#147;Record Date&#148;). <I>See &#147;Terms of the Offer.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Number of Rights Issued</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#95;&#95;&#95;&#95; Right will be issued in respect of each share of Common Stock of the Fund outstanding
on the Record Date. <I>See &#147;Terms of the Offer.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Number of Rights
Required to Purchase
One Common Share</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A holder of Rights may purchase &#95;&#95;&#95;&#95;&#95; share of Common Stock of the Fund for every &#95;&#95;&#95;&#95;
Rights exercised. The number of Rights to be issued to a stockholder on the Record Date will
be rounded up to the nearest number of Rights evenly divisible by &#95;&#95;&#95;&#95;. <I>See &#147;Terms of the
Offer.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD nowrap valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Over-Subscription Privilege</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;To be provided.&#093;</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Transfer of Rights</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;To be provided.&#093;</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Subscription Period</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Rights may be exercised at any time after issuance and prior to expiration of the
Rights, which will be 5:00 PM Eastern Time on &#95;&#95;&#95;&#95;&#95;&#95;, 2011 (the &#147;Expiration Date&#148;) (the
&#147;Subscription Period&#148;). <I>See &#147;Terms of the Offer&#148; and &#147;Method of Exercise of Rights.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Offer Expenses</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The expenses of the Offer are expected to be approximately $&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;. <I>See &#147;Use of Proceeds.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Sale of Rights</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;To be provided.&#093;</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Use of Proceeds</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund estimates the net proceeds of the Offer to be approximately $&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;. This
figure is based on the Subscription Price per share of $&#95;&#95;&#95;&#95;&#95; and assumes all new shares of
Common Stock offered are sold and that the expenses related to the Offer estimated at
approximately $&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; are paid.</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>
</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">The Investment Adviser anticipates that investment of the proceeds will be made in
accordance with the Fund&#146;s investment objectives and policies as appropriate investment
opportunities are identified, which is expected to be substantially completed in
approximately three months; however, the identification of appropriate investment
opportunities pursuant to the Fund&#146;s investment style or changes in market conditions may
cause the investment period to extend as long as six months. Pending such investment, the
proceeds will be held in high quality short-term debt securities and instruments. <I>See &#147;Use
of Proceeds&#148;.</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Taxation/ERISA</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>See &#147;Employee Plan Considerations.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Rights Agent</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;To be provided.&#093;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="Y91816145"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF THE RIGHTS OFFERING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->R-5<!-- /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">
<A name="Y91816146"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF FEES AND EXPENSES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables are intended to assist you in understanding the various costs and
expenses directly or indirectly associated with investing in our common stock as a percentage of
net assets attributable to common stock. Amounts are for the current fiscal year after giving
effect to anticipated net proceeds of the offering, assuming that we incur the estimated offering
expenses, including preferred stock offering expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Shareholder Transaction Expenses</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="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></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales Load (as a percentage of offering price)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;</TD>
    <TD nowrap>&#093;%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering Expenses Borne by the Fund (as a percentage of offering price)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;</TD>
    <TD nowrap>&#093;%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend Reinvestment Plan Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right">None</TD>
    <TD align="right">(1)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="2"><B>Percentage of Net Assets</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Attributable to Common Stock</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Annual Expenses</B></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">Management Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;</TD>
    <TD nowrap>&#093;%(2)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest on Borrowed Funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;</TD>
    <TD>&#093;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;</TD>
    <TD nowrap>&#093;%(2)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends on Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;%</TD>

</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total annual fund operating expenses and dividends on preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;%(2)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Annual Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;</TD>
    <TD nowrap>&#093;%(2)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>You will be charged a $&#091; &#093; service charge and pay brokerage
charges if you direct the plan agent to sell your common stock
held in a dividend reinvestment account.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The Investment Adviser&#146;s fee is 1.00% annually of the Fund&#146;s
average weekly net assets, with no deduction for the liquidation
preference of any outstanding preferred shares. Consequently, in
as much as the Fund has preferred shares outstanding, the
investment management fees and other expenses as a percentage of
net assets attributable to common shares are higher than if the
Fund did not utilize a leveraged capital structure. &#147;Other
Expenses&#148; are based on estimated amounts for the current year
assuming completion of the proposed issuances.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Example</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following example illustrates the expenses (including the maximum estimated sales load of
$&#091;&nbsp;&nbsp;&#093; and estimated offering expenses of $&#091;&nbsp;&nbsp;&#093; from the issuance of $&#091;&nbsp;&nbsp;&#093; million in common stock)
you would pay on a $1,000 investment in common stock, assuming a 5% annual portfolio total return.*
The actual amounts in connection with any offering will be set forth in the Prospectus Supplement
if applicable.
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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="2" style="border-bottom: 1px solid #000000"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>3 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>10 Years</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Expenses Incurred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><U>&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><U>&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><U>&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><U>&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>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD><B>The example should not be considered a representation of future
expenses</B>. The example assumes that the amounts set forth in the
Annual Expenses table are accurate and that all distributions are
reinvested at net asset value. Actual expenses may be greater or
less than those assumed. Moreover, the Fund&#146;s actual rate of return
may be greater or less than the hypothetical 5% return shown in the
example.</TD>
</TR>

</TABLE>


<DIV align="left">
<A name="Y91816147"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund estimates the net proceeds of the Offer to be $&#091;&nbsp;&nbsp;&#093;, based on the Subscription
Price per share of $&#091;&nbsp;&nbsp;&#093;, assuming all new shares of Common Stock offered are sold and that the
expenses related to the Offer estimated at approximately $&#091;&nbsp;&nbsp;&#093; are paid and after deduction of the
underwriting discounts and commissions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser expects that it will initially invest the proceeds of the offering in
high-quality short-term debt securities and instruments. The Investment Adviser anticipates that
the investment of the proceeds will be made in accordance
with the Fund&#146;s investment objectives and policies as appropriate investment opportunities are
identified, which is expected to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->R-6<!-- /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">be substantially completed within three months; however, the
identification of appropriate investment opportunities pursuant to the Fund&#146;s investment style or
changes in market conditions may cause the investment period to extend as long as six months.
</DIV>

<DIV align="left">
<A name="Y91816148"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAPITALIZATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816149"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PRICE RANGE OF COMMON SHARES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth for the quarters indicated, the high and low sale prices on the
NYSE per share of our common shares and the net asset value and the premium or discount from net
asset value per share at which the common shares were trading, expressed as a percentage of net
asset value, at each of the high and low sale prices provided.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On &#95;&#95;&#95;&#95;&#95;&#95;, 2011, the last reported net asset value per share of the Common Stock was $&#95;&#95;&#95;&#95;&#95;
and the last reported sales price per share of Common Stock on the NYSE was $&#95;&#95;&#95;.
</DIV>
<DIV align="left">
<A name="Y91816150"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SPECIAL CHARACTERISTICS AND RISKS OF THE RIGHTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;To be provided.&#093;
</DIV>
<DIV align="left">
<A name="Y91816151"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>TAXATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;To be provided.&#093;
</DIV>
<DIV align="left">
<A name="Y91816152"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>LEGAL MATTERS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain legal matters will be passed on by Willkie Farr &#038; Gallagher LLP, counsel to the Fund,
in connection with this rights offering. Willkie Farr &#038; Gallagher LLP may rely as to certain
matters of Maryland law on the opinion of &#091;&nbsp;&nbsp;&#093;.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->R-7<!-- /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"><IMG src="y91816y9181600.gif" alt="(GABELLI LOGO)">
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>The Gabelli Equity Trust Inc.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Shares of Common Stock</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Issuable Upon Exercise of Rights to<BR>
Subscribe to Such Shares of Common Stock</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROSPECTUS SUPPLEMENT</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>, 2011</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Until <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2011 (25&nbsp;days after the date of this prospectus), all dealers that buy, sell or
trade these securities, whether or not participating in this offering, may be required to deliver a
Prospectus. This is in addition to each dealer&#146;s obligation to deliver a prospectus when acting as
an underwriter and with respect to its unsold allotments or subscriptions.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->R-8<!-- /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="right" style="font-size: 10pt; margin-top: 12pt"><IMG src="y91816y9181600.gif" alt="(GABELLI LOGO)">
</DIV>


<P style="padding: 5px; border: 3px double #000000; font-size: 10pt; color: #FF0000">The information in this Prospectus Supplement is not complete and may be changed. The Fund 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 offers to buy these securities in any state where the offer or sale is not permitted.


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Filed Pursuant to Rule&nbsp;497(c)</div>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 0pt">Registration Statement No.&nbsp;333-173819
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt">PROSPECTUS SUPPLEMENT
</DIV>

<DIV align="left" style="font-size: 11pt; margin-top: 6pt">(To Prospectus dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2011)
</DIV>


<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Rights for <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Shares</B>
</DIV>

<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><B>Subscription Rights for &#95;&#95;&#95;&#95;&#95;% Series &#091;</B>&nbsp;<B>&#093; &#091;</B>&nbsp;&nbsp;<B>&#093; Preferred Stock</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gabelli Equity Trust Inc. (the &#147;Fund&#148;, &#147;we&#148;, &#147;us&#148; or &#147;our&#148;) is issuing subscription rights
(the &#147;Rights&#148;) to our common stockholders to purchase shares of &#95;&#95;&#95;&#95;&#95;% Series &#091;&nbsp;&#093; &#091;&nbsp;&nbsp;&#093; Preferred
Stock (the &#147;Series &#091;&nbsp;&nbsp;&#093; Preferred Stock&#148;).
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund 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&#146;s investment adviser is Gabelli Funds, LLC (the &#147;Investment Adviser&#148;).
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of our common stock are traded on the New York Stock Exchange (&#147;NYSE&#148;) under the symbol
&#147;GAB.&#148; On &#95;&#95;&#95;&#95;&#95;, 2011 (the last trading date prior to the Common Stock trading ex-Rights), the last
reported net asset value per share of the Common Stock was $&#95;&#95;&#95;&#95; and the last reported sales price
per share of Common Stock on the NYSE was $&#95;&#95;&#95;&#95;.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An investment in the Fund is not appropriate for all investors. We cannot assure you that the
Fund&#146;s investment objective will be achieved. You should read this Prospectus Supplement and the
accompanying Prospectus before deciding whether to invest in common shares and retain it for future
reference. The Prospectus Supplement and the accompanying Prospectus contain important information
about us. Material that has been incorporated by reference and other information about us can be
obtained from us by calling 800-GABELLI (422-3554) or from the Securities and Exchange Commission&#146;s
(&#147;SEC&#148;) website (http://www.sec.gov). For additional information all holders of rights should
contact the Information Agent, &#091;&nbsp;&nbsp;&#093;, toll-free at &#091;&nbsp;&nbsp;&#093; or please send written request to: &#091;&nbsp;&nbsp;&#093;.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in preferred stock through Rights involves certain risks that are described in the
&#147;Special Characteristics and Risks of the Rights Offering&#148; section beginning on page S-&#091;</B>&nbsp;&nbsp;<B>&#093; of the
Prospectus Supplement.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS SUPPLEMENT IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->PR-1<!-- /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">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Per Share</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subscription price of Common Shares to shareholders exercising Rights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right"><U>&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>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Underwriting discounts and commissions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;</TD>
    <TD>&#093;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#091;&nbsp;&nbsp;</TD>
    <TD>&#093;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds, before expenses, to the Fund (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right"><U>&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>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The aggregate expenses of the offering are estimated to be $&#091;&nbsp;&nbsp;&#093;.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preferred stock is expected to be ready for delivery in book-entry form through the
Depository Trust Company on or about &#95;&#95;&#95;&#95;&#95;&#95;, 2011. If the offer is extended, the preferred stock
is expected to be ready for delivery in book-entry form through the Depository Trust Company on or
about &#95;&#95;&#95;&#95;&#95;&#95;, 2011.
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">The date of this Prospectus Supplement is <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2011
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->PR-2<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should rely only on the information contained or incorporated by reference in this
Prospectus Supplement and the accompanying Prospectus. The Fund has not authorized anyone to
provide you with different information. The Fund is not making an offer to sell these securities in
any jurisdiction where the offer or sale is not permitted. You should not assume that the
information contained in this Prospectus Supplement and the accompanying Prospectus is accurate as
of any date other than the date of this Prospectus Supplement and the accompanying Prospectus,
respectively. Our business, financial condition, results of operations and prospects may have
changed since those dates. In this Prospectus Supplement and in the accompanying Prospectus, unless
otherwise indicated, &#147;Fund,&#148; &#147;us,&#148; &#147;our&#148; and &#147;we&#148; refer to The Gabelli Equity Trust Inc. This
Prospectus Supplement also includes trademarks owned by other persons.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">TABLE OF CONTENTS
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Prospectus Supplement
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#153"-->SUMMARY OF THE TERMS OF THE RIGHTS OFFERING
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">PR-&#091;5&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#154"-->TERMS OF THE PREFERRED STOCK
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">PR-&#091;6&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#155"-->DESCRIPTION OF THE RIGHTS OFFERING
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">PR-&#091;6&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#156"-->USE OF PROCEEDS
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">PR-&#091;6&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#157"-->CAPITALIZATION
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">PR-&#091;6&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#158"-->ASSET COVERAGE RATIO
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">PR-&#091;6&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#159"-->SPECIAL CHARACTERISTICS AND RISKS OF THE RIGHTS OFFERING
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">PR-&#091;6&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#160"-->TAXATION
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">PR-&#091;7&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#161"-->UNDERWRITING
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">PR-&#091;7&#093;
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><!--A href="#162"-->LEGAL MATTERS
<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">PR-&#091;7&#093;
</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Prospectus</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD 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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PROSPECTUS SUMMARY
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SUMMARY OF FUND EXPENSES
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">FINANCIAL HIGHLIGHTS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">USE OF PROCEEDS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">THE FUND
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">INVESTMENT OBJECTIVES AND POLICIES
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">RISK FACTORS AND SPECIAL CONSIDERATIONS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">HOW THE FUND MANAGES RISK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">MANAGEMENT OF THE FUND
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PORTFOLIO TRANSACTIONS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DIVIDENDS AND DISTRIBUTIONS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ISSUANCE OF COMMON STOCK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DESCRIPTION OF THE CAPITAL STOCK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ANTI-TAKEOVER PROVISIONS OF THE FUND&#146;S GOVERNING DOCUMENTS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CLOSED-END FUND STRUCTURE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">REPURCHASE OF COMMON STOCK
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">RIGHTS OFFERINGS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">NET ASSET VALUE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">LIMITATION ON DIRECTORS&#146; AND OFFICERS&#146; LIABILITY
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">TAXATION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CUSTODIAN, TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PLAN OF DISTRIBUTION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">LEGAL MATTERS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ADDITIONAL INFORMATION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PRIVACY PRINCIPLES OF THE FUND
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->PR-3<!-- /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"><B>CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus Supplement, the accompanying Prospectus and the Statement of Additional
Information contain &#147;forward-looking statements.&#148; Forward-looking statements can be identified by
the words &#147;may,&#148; &#147;will,&#148; &#147;intend,&#148; &#147;expect,&#148; &#147;estimate,&#148; &#147;continue,&#148; &#147;plan,&#148; &#147;anticipate,&#148; and
similar terms and the negative of such terms. Such forward-looking statements may be contained in
this Prospectus Supplement as well as in the accompanying Prospectus. By their nature, all
forward-looking statements involve risks and uncertainties, and actual results could differ
materially from those contemplated by the forward-looking statements. Several factors that could
materially affect our actual results are the performance of the portfolio of securities we hold,
the price at which our shares will trade in the public markets and other factors discussed in our
periodic filings with the SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we believe that the expectations expressed in our forward-looking statements are
reasonable, actual results could differ materially from those projected or assumed in our
forward-looking statements. Our future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and are subject to inherent risks and
uncertainties, such as those disclosed in the &#147;Risk Factors and Special Considerations&#148; section of
the accompanying Prospectus and &#147;Special Characteristics and Risks of the Rights Offering&#148; in this
Prospectus Supplement. All forward-looking statements contained or incorporated by reference in
this Prospectus Supplement or the accompanying Prospectus are made as of the date of this
Prospectus Supplement or the accompanying Prospectus, as the case may be. Except for our ongoing
obligations under the federal securities laws, we do not intend, and we undertake no obligation, to
update any forward-looking statement. The forward-looking statements contained in this Prospectus
Supplement, any accompanying Prospectus and the Statement of Additional Information are excluded
from the safe harbor protection provided by Section&nbsp;27A of the Securities Act of 1933, as amended
(the &#147;Securities Act&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently known risk factors that could cause actual results to differ materially from our
expectations include, but are not limited to, the factors described in the &#147;Risk Factors and
Special Considerations&#148; section of the accompanying Prospectus as well as in the &#147;Special
Characteristics and Risks of the Rights Offering&#148; section of this Prospectus Supplement. We urge
you to review carefully those sections for a more detailed discussion of the risks of an investment
in the preferred stock.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->PR-4<!-- /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">
<A name="Y91816153"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY OF THE TERMS OF THE RIGHTS OFFERING</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="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Terms of the Offer</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;To be provided.&#093;</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Amount Available for <BR>
Primary Subscription</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Title</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subscription Rights for Series &#091; &#093; Preferred Stock</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Exercise Price</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights may be exercised at a price of $&#95;&#95;&#95;&#95;&#95; per share of Preferred Stock (the &#147;Subscription
Price&#148;). <I>See &#147;Terms of the Offer.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Record Date</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights will be issued to holders of record of the Fund&#146;s Common Stock on &#95;&#95;&#95;&#95;&#95;&#95;, 2011 (the
&#147;Record Date&#148;). <I>See &#147;Terms of the Offer.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>Number of Rights Issued</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#95;&#95;&#95;&#95; Right will be issued in respect of each share of Common Stock of the Fund outstanding
on the Record Date. <I>See &#147;Terms of the Offer.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Number of Rights
Required to Purchase
One Preferred Share</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">A holder of Rights may purchase &#95;&#95;&#95;&#95;&#95; share of Preferred Stock of the Fund for every &#95;&#95;&#95;&#95;
Rights exercised. The number of Rights to be issued to a stockholder on the Record Date will
be rounded up to the nearest number of Rights evenly divisible by &#95;&#95;&#95;&#95;. <I>See &#147;Terms of the
Offer.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>Over-Subscription Privilege</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;To be provided.&#093;</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Transfer of Rights</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;To be provided.&#093;</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Exercise Period</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Rights may be exercised at any time after issuance and prior to expiration of the
Rights, which will be 5:00 PM Eastern Time on &#95;&#95;&#95;&#95;&#95;&#95;, 2011 (the &#147;Expiration Date&#148;) (the
&#147;Subscription Period&#148;). <I>See &#147;Terms of the Offer&#148; and &#147;Method of Exercise of Rights.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Offer Expenses</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The expenses of the Offer are expected to be approximately $&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;. <I>See &#147;Use of Proceeds.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Sale of Rights</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;To be provided.&#093;</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Use of Proceeds</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund estimates the net proceeds of the Offer to be approximately $&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;. This
figure is based on the Exercise Price per share of $&#95;&#95;&#95;&#95;&#95; and assumes all new shares of
Series &#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;Preferred Stock offered are sold and that the expenses related to the Offer
estimated at approximately $&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; are paid.</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>
</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">The Investment Adviser anticipates that investment of the proceeds will be made in
accordance with the Fund&#146;s investment objectives and policies as appropriate investment
opportunities are identified, which is expected to be substantially completed in
approximately three months; however, the identification of appropriate investment
opportunities pursuant to the Fund&#146;s investment style or changes in market conditions may
cause the investment period to extend as long as six months. Pending such investment, the
proceeds will be held in high quality short-term debt securities and instruments. <I>See &#147;Use
of Proceeds&#148;.</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Taxation/ERISA</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>See &#147;Employee Plan Considerations.&#148;</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Rights Agent</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;To be provided.&#093;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->PR-5<!-- /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">
<A name="Y91816154"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TERMS OF THE SERIES &#95;&#95;&#95; PREFERRED STOCK</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="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dividend Rate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The dividend rate &#091;for the initial dividend period&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">1 </SUP>will be &#95;&#95;&#95;%.</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dividend Payment Rate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Dividends will be paid when, as and if declared on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
and <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, commencing
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">2</SUP>
The payment date for the initial dividend period will be <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">1</SUP></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>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">&#091;Regular Dividend Period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regular dividend periods will be &#95;&#95;&#95;days.&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">1</SUP></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Liquidation Preference
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$ &#95;&#95;&#95;&#95; per share</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;Non-Call Period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The shares may not be called for redemption at the option of the Fund prior to
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">2</SUP></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>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">&#091;Stock Exchange Listing&#093;<SUP style="FONT-size: 85%; vertical-align: text-top">2</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">1</TD>
    <TD>&nbsp;</TD>
    <TD>Applicable only if the preferred shares being offered are auction rate shares.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">2</TD>
    <TD>&nbsp;</TD>
    <TD>Applicable only if the preferred shares being offered are fixed rate shares.</TD>
</TR>

</TABLE>


<DIV align="left">
<A name="Y91816155"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>DESCRIPTION OF THE RIGHTS OFFERING</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816156"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>USE OF PROCEEDS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund estimates the net proceeds of the Offer to be $&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;, based on the Subscription
Price per share of $&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;, assuming all new shares of Series &#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; Preferred Stock offered are
sold and that the expenses related to the Offer estimated at approximately $&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; are paid and
after deduction of the underwriting discounts and commissions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser expects that it will initially invest the proceeds of the offering in
high-quality short-term debt securities and instruments. The Investment Adviser anticipates that
the investment of the proceeds will be made in accordance with the Fund&#146;s investment objectives and
policies as appropriate investment opportunities are identified, which is expected to be
substantially completed within three months; however, the identification of appropriate investment
opportunities pursuant to the Fund&#146;s investment style or changes in market conditions may cause the
investment period to extend as long as six months.
</DIV>
<DIV align="left">
<A name="Y91816157"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CAPITALIZATION</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816158"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ASSET COVERAGE RATIO</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816159"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SPECIAL CHARACTERISTICS AND RISKS OF THE RIGHTS</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->PR-6<!-- /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">
<A name="Y91816160"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TAXATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816161"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>UNDERWRITING</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;To be provided.&#093;
</DIV>

<DIV align="left">
<A name="Y91816162"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>LEGAL MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain legal matters will be passed on by Willkie Farr &#038; Gallagher LLP, counsel to the Fund,
in connection with this rights offering. Certain legal matters in connection with this offering
will be passed on for the underwriters by &#091;&nbsp;&nbsp;&#093;. Willkie Farr &#038; Gallagher LLP may rely as to
certain matters of Maryland law on the opinion of &#091;&nbsp;&nbsp;&#093;.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->PR-7<!-- /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"><IMG src="y91816y9181600.gif" alt="(GABELLI)">
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>The Gabelli Equity Trust Inc.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Shares of &#95;&#95;&#95;&#95;&#95;% Series &#091;</B>&nbsp;&nbsp;<B>&#093; &#091;</B>&nbsp;<B>&#093; Preferred Stock</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Issuable Upon Exercise of Rights to<BR>
Subscribe to Such Shares of Preferred Stock</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROSPECTUS SUPPLEMENT</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>, 2011</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Until <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2011 (25&nbsp;days after the date of this prospectus), all dealers that buy, sell or
trade these securities, whether or not participating in this offering, may be required to deliver a
Prospectus. This is in addition to each dealer&#146;s obligation to deliver a prospectus when acting as
an underwriter and with respect to its unsold allotments or subscriptions.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->PR-8<!-- /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"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Dated June&nbsp;22, 2011</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>THE GABELLI EQUITY TRUST INC.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>STATEMENT OF ADDITIONAL INFORMATION</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE INFORMATION IN THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT COMPLETE AND MAY BE
CHANGED. THE FUND 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 align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Statement of Additional Information (the &#147;SAI&#148;) does not constitute a prospectus, but
should be read in conjunction with the Fund&#146;s Prospectus relating thereto dated June&nbsp;22, 2011, and
as it may be supplemented. This SAI does not include all information that a prospective investor
should consider before investing in the Fund&#146;s shares, and investors should obtain and read the
Fund&#146;s Prospectus prior to purchasing such shares. A copy of the Fund&#146;s Registration Statement,
including the Prospectus and any Prospectus Supplement, may be obtained from the Securities and
Exchange Commission (the &#147;SEC&#148;) upon payment of the fee prescribed, or inspected at the SEC&#146;s
office or via its website (www.sec.gov) at no charge.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;21,
1986. Gabelli Funds, LLC (the &#147;Investment Adviser&#148;) serves as investment adviser to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 shareholder
approval. The Fund will provide shareholders with notice at least 60&nbsp;days prior to the
implementation of any change in the 80% Policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Investors Service, Inc. (&#147;Moody&#146;s&#148;) or D by Standard &#038; Poor&#146;s, a
Division of The McGraw-Hill Companies, Inc. (&#147;S&#038;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&#038;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No assurance can be given that the Fund&#146;s investment objectives will be achieved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Prospectus and this SAI omit certain information contained in the registration statement
filed with the SEC, Washington D.C. The registration statement may be obtained from the SEC upon
payment of the fee prescribed, or inspected at the SEC&#146;s office at no charge.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->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"><B>TABLE OF CONTENTS</B>
</DIV>


<DIV align="left"><FONT size="1">

</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#163"-->The Fund<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#164"-->Investment Objectives and Policies<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#165"-->Investment Restrictions<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#166"-->Management of The Fund<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#167"-->Dividends and Distributions<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#168"-->Auctions for Auction Rate Preferred Stock<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#169"-->Portfolio Transactions<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#170"-->Portfolio Turnover<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#171"-->Taxation<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#172"-->Beneficial Owners<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#173"-->General Information<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><!--A href="#174"-->Appendix&nbsp;A&#151;Proxy Voting Policy<!--/A--></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="Y91816163"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE FUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund was incorporated in Maryland on May&nbsp;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 5.875% Series&nbsp;D
Cumulative Preferred Stock (the &#147;Series&nbsp;D Preferred&#148;) is listed and traded on the NYSE under the
symbol &#147;GAB PrD.&#148; The Fund&#146;s 6.20% Series&nbsp;F Cumulative Preferred Stock (the &#147;Series&nbsp;F Preferred&#148;)
is listed and traded on the NYSE under the symbol &#147;GAB PrF.&#148;
</DIV>
<DIV align="left">
<A name="Y91816164"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INVESTMENT OBJECTIVES AND POLICIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Objectives</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Practices</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Special Situations. </I>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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Options. </I>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 over-the-counter (&#147;OTC&#148;) markets
as a means of achieving additional return or of hedging the value of the Fund&#146;s portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A call option is a contract that gives the holder of the option the right to buy from the
writer (seller)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An exchange-traded option may be closed out only on an exchange that 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /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">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)&nbsp;equal to or less than the exercise price of the call
written or (ii)&nbsp;greater than the exercise price of the call written if the difference is maintained
by the Fund in cash, U.S. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An option position may be closed out only on an exchange that 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. 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. Over-the-counter
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. Over-the-counter options are considered illiquid securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

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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;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 indices 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 indices require settlement in cash, the Fund may be forced to liquidate
portfolio securities to meet settlement obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Futures Contracts and Options on Futures. </I>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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest Rate Futures Contracts and Options Thereon. </I>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
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 fluctuations in the value of appropriately selected futures
contracts should approximate that 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 its portfolio against the risk of rising interest rates and consequent reduction in the value
of portfolio securities.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The writing of a call option on a futures contract constitutes a partial hedge against
declining prices of the securities that 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 its 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 it 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Currency Futures and Options Thereon. </I>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. 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. dollar, the Fund can
attempt to &#147;lock in&#148; the U.S. 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. 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. dollars of the securities it intends to acquire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Securities Index Futures Contracts and Options Thereon. </I>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
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 its 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 it 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 align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Limitations on the Purchase and Sale of Futures Contracts and Options on Futures Contracts.</I>
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 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)&nbsp;the aggregate initial margins and premiums do not exceed 5% of the fair market value of the
Fund&#146;s total assets and (ii)&nbsp;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 applicable to any of the Fund&#146;s preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Forward Currency Exchange Contracts. </I>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 &#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 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. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /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 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Special Risk Considerations Relating to Futures and Options Thereon. </I>The 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Additional Risks of Foreign Options, Futures Contracts, Options on Futures Contracts and
Forward Contracts. </I>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)&nbsp;other complex foreign political, legal and economic factors, (ii)&nbsp;lesser availability than
in the U.S. of data on which to make trading decisions, (iii)&nbsp;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)
the imposition of different exercise and settlement terms and procedures and margin requirements
than in the U.S. and (v)&nbsp;lesser trading volume.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Risks of Currency Transactions. </I>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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>When Issued, Delayed Delivery Securities and Forward Commitments. </I>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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

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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;<I>Restricted and Illiquid Securities. </I>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 over-the-counter
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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with pronouncements of the SEC, the Fund may invest in restricted securities
that can be traded among qualified institutional buyers under Rule&nbsp;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&nbsp;144A securities.
</DIV>
<DIV align="left">
<A name="Y91816165"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INVESTMENT RESTRICTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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&nbsp;2(a)(42) of the 1940 Act, the vote of (i)&nbsp;of 67%
or more of the shares of preferred stock present at the shareholders 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)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">1. 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 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. Government Obligations&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">2. 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
shareholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">3. 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)&nbsp;no more than 5%
of its total assets are invested in margins and premiums and (ii)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">4. 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 align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">5. 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
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /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; margin-left: 3%">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 align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">6. 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 align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">7. Issue senior securities, except to the extent permitted by applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">8. 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 shareholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">9. 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>
<DIV align="left">
<A name="Y91816166"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MANAGEMENT OF THE FUND</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Directors and Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overall responsibility for management and supervision of the Fund rests with its Board. The
Board approves all significant agreements between the Fund and the companies that furnish the Fund
with services, including agreements with the Investment Adviser, the Custodian and the Fund&#146;s
transfer agent. The day-to-day operations of the Fund are delegated to the Investment Adviser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth in the table below are the existing Directors, including those Directors who are not
considered to be &#147;interested persons,&#148; as defined in the 1940 Act (the &#147;Independent Directors&#148;),
and officers of the Fund, including information relating to their respective positions held with
the Fund, a brief statement of their principal occupations, and, in the case of the Directors,
their other directorships during the past five years, (excluding other funds managed by the
Investment Adviser), if any.
</DIV>


<DIV align="left"><FONT size="1">

</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="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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 nowrap align="center" colspan="3"><B>Number of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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 nowrap align="center" colspan="3"><B>Portfolios</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>in Fund</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name, Position(s),</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Term of Office</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Directorships</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Complex</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(3)</B></SUP></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Age and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>and Length of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Occupation(s) During</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Held by Director</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Overseen by</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Address</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Time Served</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>During Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Director</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Interested Director</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(4)</B></SUP></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>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD 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>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mario J. Gabelli<br>
Director and Chief Investment Officer<br>
Age: 69
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since<BR>
1986**
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman, Chief Executive
Officer, and Chief Investment
Officer &#151; Value Portfolios of
GAMCO Investors, Inc. and
Chief Investment Officer -
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/GAMCO Funds
complex; Chief Executive
Officer of GGCP, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of Morgan Group
Holdings, Inc. (holding
company); Chairman of the
Board and Chief Executive
Officer of LICT Corp.
(multimedia and
communication services
company); Director of CIBL,
Inc. (broadcasting and
wireless communications);
Director of RLJ Acquisition,
Inc. (blank check company)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /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"><FONT size="1">

</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="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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 nowrap align="center" colspan="3"><B>Number of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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 nowrap align="center" colspan="3"><B>Portfolios</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>in Fund</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name, Position(s),</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Term of Office</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Directorships</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Complex</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(3)</B></SUP></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Age and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>and Length of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Occupation(s) During</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Held by Director</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Overseen by</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Address</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Time Served</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>During Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Director</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Independent <BR>
Directors</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(5)</B></SUP></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>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD 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>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Thomas E. Bratter<br>
Director<br>
Age: 72
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1986**
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director, President, and Founder
of The John Dewey Academy
(residential college preparatory
therapeutic high school)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3</TD>
    <TD nowrap 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>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Anthony J. Colavita<SUP style="FONT-size: 85%; vertical-align: text-top">(6)</SUP><br>
Director <br>
Age: 75
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1999***
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President of the law firm of
Anthony J. Colavita, P.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD nowrap 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>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">James P. Conn<SUP style="FONT-size: 85%; vertical-align: text-top">(6)</SUP><br>
Director <br>
Age: 73
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since<BR>
1989*
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Former Managing Director and
Chief Investment Officer of
Financial Security Assurance
Holdings Ltd. (insurance
holding company) (1992-1998)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of First
Republic
Bank (banking)
through
January&nbsp;2008;
Director of
La Quinta Corp.
(hotels)
through January&nbsp;2006
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD nowrap 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>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Frank J. Fahrenkopf, Jr.<br>
Director<br>
Age: 71
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1998***
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive
Officer of the American Gaming
Association; Co-Chairman of the
Commission on Presidential
Debates; Former Chairman of
the Republican National
Committee (1983-1989)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of First
Republic
Bank (banking)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6</TD>
    <TD nowrap 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>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Arthur V. Ferrara<br>
Director<br>
Age: 80
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since<BR>
2001**
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Former Chairman of the Board
and Chief Executive Officer of
The Guardian Life Insurance
Company of America
(1993-1995)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8</TD>
    <TD nowrap 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>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Anthony R. Pustorino<br>
Director<br>
Age: 85
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since<BR>
1986*
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certified Public Accountant;
Professor Emeritus, Pace
University
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of The LGL
Group,
Inc. (diversified
manufacturing)
(2002-2010)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD nowrap 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>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Salvatore J. Zizza<br>
Director<br>
Age: 65
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 1986***
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of Zizza &#038; Co., Ltd.
(financial consulting) since
1978; Chairman of Metropolitan
Paper Recycling Inc. (recycling)
since 2006; Chairman of BAM
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Executive
Chairman
and Director of
Harbor
BioSciences, Inc. (biotechnology); Vice-Chairman and Director of
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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 nowrap align="center" colspan="3"><B>Number of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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 nowrap align="center" colspan="3"><B>Portfolios</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>in Fund</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name, Position(s),</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Term of Office</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Directorships</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Complex</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(3)</B></SUP></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Age and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>and Length of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Occupation(s) During</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Held by Director</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Overseen by</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Address</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Time Served</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>During Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Director</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&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">Inc., (manufacturing); Chairman
of E-Corp English (Global
English instruction for corporate
personnel) since 2009
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trans-Lux
Corporation
(business services);
Chairman, Chief
Executive Officer
and Director of
General
Employment
Enterprises,
Inc. (staffing);
Director of
Bion Environmental
Technologies
(technology)
(2005-2008); and
Director of
Earl Scheib Inc.
(automotive
painting) through
April&nbsp;2009</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name, Position(s),</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Age, and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Term of Office and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Address</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Length of Time Served</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s) During Past Five Years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Officers</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(7)</B></SUP></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"><!-- 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">Bruce N. Alpert<br>
President<br>
Age: 59
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 2003
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Operating Officer of
Gabelli Funds, LLC since 1988 and an officer of all of
the registered investment companies in the
Gabelli/GAMCO Funds Complex. Director of Teton
Advisors, Inc. since 1998; Chairman of Teton Advisors,
Inc. 2008 to 2010; President of Teton Advisors, Inc.
1998 to 2008; Senior Vice President of GAMCO Investors,
Inc. since 2008</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">Carter W. Austin<br>
Vice President<br>
Age: 44
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 2000
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President of other closed-end funds within the
Gabelli/GAMCO Funds
Complex; Vice President of Gabelli Funds, LLC since 1996</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">Peter D. Goldstein<br>
Chief Compliance Officer<br>
Age: 58
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 2004
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of Regulatory Affairs at GAMCO Investors, Inc.
since 2004; Chief Compliance Officer of all of the
registered investment companies in the Gabelli/GAMCO
Funds Complex</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">Agnes Mullady<br>
Treasurer and Secretary<br>
Age: 52
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 2006
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Operating Officer of the Open-End
Fund Division of Gabelli Funds, LLC since September
2010; Senior Vice President of GAMCO Investors, Inc.
since 2009; Vice President of Gabelli Funds, LLC since
2007; Officer of all of the registered investment
companies in the Gabelli/GAMCO Funds Complex</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">Molly A.F. Marion<br>
Vice President &#038;
Ombudsman<br>
Age: 57
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Since 2009
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President of The Gabelli Global Gold, Natural
Resources &#038; Income Trust since 2005; Assistant Vice
President of GAMCO Investors, Inc. since 2006</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The 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.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The &#147;Fund Complex&#148; or the &#147;Gabelli/GAMCO Funds Complex&#148; includes all the registered funds
that are considered part of the same fund complex as the Fund because they have common or
affiliated investment advisers.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>&#147;Interested person&#148; of the Fund is defined in the 1940 Act. Mr.&nbsp;Gabelli is considered an
&#147;interested person&#148; of the Fund because of his affiliation with the Investment Adviser and
Gabelli &#038; Company, which executes portfolio</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>transactions for the Fund, and as a controlling shareholder because of the level of his
ownership of common shares of the Fund.</TD>
</TR>
<TR><TD><FONT size="1">

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

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Directors who are not considered to be &#147;interested persons&#148; of the Fund as defined in the
1940 Act are considered to be &#147;Independent Directors.&#148;</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>As a Director, elected solely by holders of the Fund&#146;s preferred stock.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Each officer will hold office for an indefinite term until the date he or she resigns and
retires or until his or her successor is elected and qualified.</TD>
</TR>

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Term continues until the Fund&#146;s 2012 Annual Meeting of Shareholders or until their successors
are duly elected and qualified.</TD>
</TR>
<TR><TD><FONT size="1">

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Term continues until the Fund&#146;s 2013 Annual Meeting of Shareholders or until their successors
are duly elected and qualified.</TD>
</TR>
<TR><TD><FONT size="1">

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">***</TD>
    <TD>&nbsp;</TD>
    <TD>Term continues until the Fund&#146;s 2014 Annual Meeting of Shareholders or until their successors
are duly elected and qualified.</TD>
</TR>
<TR><TD><FONT size="1">

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board believes that each Director&#146;s experience, qualifications, attributes, or skills on
an individual basis and in combination with those of other Directors lead to the conclusion that
each Director should serve in such capacity. Among the attributes or skills common to all Directors
are their ability to review critically and to evaluate, question, and discuss information provided
to them, to interact effectively with the other Directors, the Adviser, the sub-administrator,
other service providers, counsel, and the Fund&#146;s independent registered public accounting firm, and
to exercise effective and independent business judgment in the performance of their duties as
Directors. Each Director&#146;s ability to perform his/her duties effectively has been attained in large
part through the Director&#146;s business, consulting, or public service positions and through
experience from service as a member of the Board and one or more of the other funds in the
Gabelli/GAMCO Fund Complex, public companies, or non-profit entities, or other organizations as set
forth above and below. Each Director&#146;s ability to perform his/her duties effectively also has been
enhanced by education, professional training, and experience.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Thomas E. Bratter. </I>Dr.&nbsp;Bratter is the Director, Founder, and President of The John Dewey
Academy, a residential college preparatory therapeutic high school in Massachusetts. He is also a
Director of the International Center for Study of Psychiatry and Psychology, Vice President of the
Small Boarding Schools Association, and a Trustee of the Majorie Polikoff Estate. In addition to
serving on the boards of other funds in the Fund Complex, Dr.&nbsp;Bratter has been an active investor
in publicly traded equities for over forty years. Dr.&nbsp;Bratter also serves on the Advisory Board of
the American Academy of Health Providers in the Addictive Disorders and sits on the editorial
boards of six professional journals. Prior to establishing and managing The John Dewey Academy, Dr.
Bratter was in private practice as a psychotherapist and taught psychology at Columbia University
as an adjunct faculty member for more than twenty years. Dr.&nbsp;Bratter also founded and sat on the
boards of six community based treatment programs for adolescents. He has authored one hundred and
fifty articles and four books concerning the treatment and education of gifted and self destructive
adolescents and their families. Dr.&nbsp;Bratter received his Bachelor of Arts, Masters, and Doctorate
in Education from Columbia College and University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Anthony J. Colavita, Esq. </I>Mr.&nbsp;Colavita is a practicing attorney with over forty-nine years of
experience, including the field of business law. He is the Chair of the Fund&#146;s Nominating Committee
and a member of the Fund&#146;s Audit Committee. Mr.&nbsp;Colavita also serves on comparable or other board
committees with respect to other funds in the Fund Complex on whose boards he sits. Mr.&nbsp;Colavita
also serves as a Trustee of a charitable remainder unitrust. He formerly served as a Commissioner
of the New York State Thruway Authority and as a Commissioner of the New York State Bridge
Authority. He served for ten years as the elected Supervisor of the Town of Eastchester, New York,
responsible for ten annual municipal budgets of approximately eight million dollars per year. Mr.
Colavita formerly served as Special Counsel to the New York State Assembly for five years and as a
Senior Attorney with the New York State Insurance Department. He is the former Chairman of the
Westchester County Republican Party and the New York State Republican Party. Mr.&nbsp;Colavita received
his Bachelor of Arts from Fairfield University and his Juris Doctor from Fordham University School
of Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>James P. Conn. </I>Mr.&nbsp;Conn is the lead independent Director of the Fund, a member of the Fund&#146;s
Proxy Voting Committee, and also serves on comparable or other board committees for other funds in
the Fund Complex on whose boards he sits. He was a senior business executive of an insurance
holding company for much of his career, including service as Chief Investment Officer. Mr.&nbsp;Conn has
been a director of several public companies in banking and other industries, and was lead
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /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">Director and/or Chair of various committees. He received his Bachelor of Science in Business
Administration from Santa Clara University.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Frank J. Fahrenkopf, Jr. </I>Mr.&nbsp;Fahrenkopf is the President and Chief Executive Officer of the
American Gaming Association (&#147;AGA&#148;), the trade group for the hotel-casino industry. Additionally,
he serves on certain board committees with respect to other funds in the Fund Complex on whose
board he sits. He presently is Co-Chairman of the Commission on Presidential Debates, which is
responsible for the widely viewed Presidential debates during the quadrennial election cycle.
Additionally, he serves as a board member of the International Republican Institute, which he
founded in 1984. He served for many years as Chairman of the Pacific Democrat Union and Vice
Chairman of the International Democrat Union, a worldwide association of political parties from the
United States, Great Britain, France, Germany, Canada, Japan, Australia, and twenty other nations.
Prior to becoming the AGA&#146;s first chief executive in 1995, Mr.&nbsp;Fahrenkopf was a partner in the law
firm of Hogan &#038; Hartson, where he chaired the International Trade Practice Group and specialized in
regulatory, legislative, and corporate matters for multinational, foreign, and domestic clients. He
also served as Chairman of the Republican National Committee for six years during Ronald Reagan&#146;s
presidency. Mr.&nbsp;Fahrenkopf is the former Chairman of the Finance Committee of the Culinary
Institute of America and remains a member of the board. Additionally, he has over twenty years&#146; of
experience as a member of the board of directors of a bank and still serves as a member of the
Advisory Board of the bank. Mr.&nbsp;Fahrenkopf received his Bachelor of Arts from the University of
Nevada, Reno and his Juris Doctor from Boalt Hall School of Law, U.C. Berkeley.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Arthur V. Ferrara. </I>Mr.&nbsp;Ferrara is the former Chairman of the Board and Chief Executive Officer
of The Guardian Life Insurance Company of America, and formerly served on the boards of The
Guardian Insurance and Annuity Company and funds managed by Guardian Investor Services Corporation.
He also is a former Chairman of the Life Insurance Council of New York Inc. Mr.&nbsp;Ferrara serves as
Chairman of the Fund&#146;s ad hoc Pricing Committee (described below under &#147;Directors &#151; Leadership
Structure and Oversight Responsibilities&#148;). He is a member of the Fund&#146;s Nominating and Proxy
Voting Committees and is also a member of a multi-fund ad hoc compensation committee. He also
serves on comparable or other board committees with respect to other funds in the Fund Complex on
whose boards he sits. Mr.&nbsp;Ferrara received his Bachelor of Science in Business Administration from
the College of the Holy Cross.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mario J. Gabelli. </I>Mr.&nbsp;Gabelli is Chairman of the Board of Directors and Chief Investment
Officer of the Fund. He also currently serves as Chairman of the boards of other funds in the Fund
Complex. Mr.&nbsp;Gabelli is Chairman, Chief Executive Officer, and Chief Investment Officer-Value
Portfolios of GAMCO Investors, Inc. (&#147;GAMCO&#148;), a NYSE listed investment advisory firm. He is also
the Chief Investment Officer of Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management,
Inc., each of which are asset management subsidiaries of GAMCO. In addition, Mr.&nbsp;Gabelli is Chief
Executive Officer and a director and the controlling shareholder of GGCP, Inc., an investment
holding company that holds a majority interest in GAMCO. Mr.&nbsp;Gabelli also sits on the boards of
other publicly traded companies and private firms and various charitable foundations and
educational institutions, including the Board of Trustees of Boston College and Roger Williams
University and the Board of Overseers of Columbia University Graduate School of Business. Mr.
Gabelli received his Bachelors degree from Fordham University and his Masters of Business
Administration from Columbia University Graduate School of Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Anthony R. Pustorino. </I>Mr.&nbsp;Pustorino is a Certified Public Accountant (&#147;CPA&#148;) and Professor
Emeritus of Pace University with fifty years of experience in public accounting. Mr.&nbsp;Pustorino is
Chair of the Fund&#146;s Audit and Proxy Voting Committees, has been designated the Fund&#146;s Audit
Committee Financial Expert, and is a member of both multi-fund ad hoc Compensation Committees. Mr.
Pustorino also serves on comparable committees of other boards in the Fund Complex. Mr.&nbsp;Pustorino
was Chair of the Audit Committee and was a Director of LGL Group, Inc., a diversified manufacturing
company. He was previously the President and shareholder of a CPA firm and a Professor of
accounting at both Fordham University and Pace University. He served as Chairman of the Board of
Directors of the New York State Board for Public Accountancy and of the CPA Examination Review
Board of the National Association of State Board of Accountancy. He was Vice President and member
of the Executive Committee of the New York State Society of CPAs, and was the Chair or member of
many of its technical committees. He was a member of Council of the American Institute of CPAs. Mr.
Pustorino is the recipient of numerous professional and teaching awards. He received a Bachelor of
Science in Business from Fordham University and a Masters in Business Administration from New York
University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Salvatore J. Zizza. </I>Mr.&nbsp;Zizza is the Chairman of a financial consulting firm. He also serves
as Chairman to other companies involved in manufacturing, recycling, and real estate. He is a
member of the Fund&#146;s Audit and Nominating Committees, is a member of the Fund&#146;s ad hoc Pricing
Committee, and is a member of both multi-fund ad hoc Compensation
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /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">Committees. In addition, he serves on comparable or other board committees, including as lead
independent director, with respect to other funds in the Fund Complex on whose boards he sits.
Besides serving on the boards of many funds within the Fund Complex, he is currently a director of
three other public companies and previously served on the boards of several other public companies.
He previously served as the Chief Executive of a large NYSE listed construction company. Mr.&nbsp;Zizza
received his Bachelor of Arts and his Master of Business Administration in Finance from St. John&#146;s
University, which awarded him an Honorary Doctorate in Commercial Sciences.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Directors &#151; Leadership Structure and Oversight Responsibilities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overall responsibility for general oversight of the Fund rests with the Board. The Board has
appointed Mr.&nbsp;Conn as the lead independent Director. The lead independent Director presides over
executive sessions of the Directors and also serves between meetings of the Board as a liaison with
service providers, officers, counsel, and other Directors on a wide variety of matters including
scheduling agenda items for Board meetings. Designation as such does not impose on the lead
independent Director any obligations or standards greater than or different from other Directors.
The Board has established a Nominating Committee and an Audit Committee to assist the Board in the
oversight of the management and affairs of the Fund. The Board also has an ad hoc Proxy Voting
Committee that exercises voting and investment responsibilities on behalf of the Fund in selected
situations. From time to time the Board establishes additional committees or informal working
groups, such as pricing committees related to securities offerings by the Fund to address specific
matters, or assigns one of its members to work with trustees or directors of other funds in the
Gabelli/GAMCO Fund Complex on special committees or working groups that address complex-wide
matters, such as the multi-fund ad hoc Compensation Committee relating to compensation of the Chief
Compliance Officer for all the funds in the Fund Complex, and a separate multi-fund ad hoc
Compensation Committee relating to compensation of certain officers of the closed-end funds in the
Fund Complex.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of the Fund&#146;s Directors other than Mr.&nbsp;Mario J. Gabelli are Independent Directors, and the
Board believes they are able to provide effective oversight of the Fund&#146;s service providers. In
addition to providing feedback and direction during Board meetings, the Directors meet regularly in
executive session and chair all committees of the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s operations entail a variety of risks, including investment, administration,
valuation, and a range of compliance matters. Although the Adviser, the sub-administrator and the
officers of the Fund are responsible for managing these risks on a day-to-day basis within the
framework of their established risk management functions, the Board also addresses risk management
of the Fund through its meetings and those of the committees and working groups. As part of its
general oversight, the Board reviews with the Adviser at Board meetings the levels and types of
risks being undertaken by the Fund, and the Fund&#146;s Audit Committee (&#147;Audit Committee&#148;) discusses
the Fund&#146;s risk management and controls with the independent registered public accounting firm
engaged by the Fund. The Board reviews valuation policies and procedures and the valuations of
specific illiquid securities. The Board also receives periodic reports from the Fund&#146;s Chief
Compliance Officer regarding compliance matters relating to the Fund and its major service
providers, including results of the implementation and testing of the Fund&#146;s and such providers&#146;
compliance programs. The Board&#146;s oversight function is facilitated by management reporting
processes designed to provide visibility to the Board regarding the identification, assessment, and
management of critical risks, and the controls and policies and procedures used to mitigate those
risks. The Board reviews its role in supervising the Fund&#146;s risk management from time to time and
may make changes at its discretion at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board has determined that its leadership structure is appropriate for the Fund because it
enables the Board to exercise informed and independent judgment over matters under its purview,
allocates responsibility among committees in a manner that fosters effective oversight and allows
the Board to devote appropriate resources to specific issues in a flexible manner as they arise.
The Board periodically reviews its leadership structure as well as its overall structure,
composition, and functioning, and may make changes at its discretion at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Board Committees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Nominating Committee is responsible for recommending qualified candidates to the Board in
the event that a position is vacated or created. The Nominating Committee would consider
recommendations by shareholders if a vacancy were to exist. Such recommendations should be
forwarded to the Secretary of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee is generally responsible for reviewing and evaluating issues related to
the accounting and financial reporting policies and internal controls of the Fund and, as
appropriate, the internal controls of certain service providers,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /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">overseeing the quality and objectivity of the Fund&#146;s financial statements and the audit thereof and
acting as a liaison between the Board and the Fund&#146;s independent registered public accounting firm.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has a Proxy Voting Committee, which, if so determined by the Board, is authorized to
exercise voting power and/or dispositive power over specific securities held in the Fund&#146;s
portfolio for such period as the Board may determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the fiscal year ended December&nbsp;31, 2010, the Board held one (1)&nbsp;Nominating Committee
meeting and three (3)&nbsp;Audit Committee meetings. The Proxy Voting Committee did not meet during the
fiscal year ended December&nbsp;31, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund does not have a standing compensation committee, but does have representatives on a
multi-fund ad hoc Compensation Committee relating to compensation of the Chief Compliance Officer
for the funds and certain officers of the closed-end funds in the Fund Complex.
</DIV>

<DIV align="left"><FONT size="1">

</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="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Dollar Range of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Equity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Aggregate Dollar Range of Equity</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Securities Held in the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Securities Held in Family of Investment</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name of Director</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Fund*(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Companies*(1)(2)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interested Director</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mario J. Gabelli</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Over $100,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Independent Directors</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas E. Bratter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Over $100,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony J. Colavita</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$10,001-$50,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Over $100,000</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James P. Conn</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Over $100,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Frank J. Fahrenkopf, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">None</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$1-$10,000</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Arthur V. Ferrara</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$1-$10,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony R. Pustorino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>$50,001-$100,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Over $100,000</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Salvatore J. Zizza</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$50,001-$100,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All shares were valued as of
December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>This information has been furnished by each Director and nominee
for election as Director as of December&nbsp;31, 2010. &#147;Beneficial
Ownership&#148; is determined in accordance with Rule&nbsp;16a-1(a)(2) of
the Securities Exchange Act of 1934, as amended (the &#147;1934 Act&#148;).</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The term &#147;Family of Investment Companies&#148; includes two or more
registered funds that share the same investment adviser or
principal underwriter and hold themselves out to investors as
related companies for purposes of investment and investor
services. Currently, the registered funds that comprise the &#147;Fund
Complex&#148; are identical to those that comprise the &#147;Family of
Investment Companies.&#148;</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Directors serving on the Fund&#146;s Nominating Committee are Anthony J. Colavita (Chair),
Arthur V. Ferrara and Salvatore J. Zizza. Anthony J. Colavita, Anthony R. Pustorino (Chair) and
Salvatore J. Zizza, who are not &#147;interested persons&#148; of the Fund as defined in the 1940 Act, serve
on the Fund&#146;s Audit Committee. Each member of the Audit Committee has been determined by the Board
of Directors to be financially literate. Mr.&nbsp;Pustorino has been designated as the Fund&#146;s Audit
Committee Financial Expert.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Remuneration of Directors and Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund pays each Director who is not affiliated with the Adviser or its affiliates a fee of
$12,000 per year plus $1,500 per Board meeting attended, $1,000 per standing Committee meeting
attended, and $500 per telephonic meeting, together with the Director&#146;s actual out-of-pocket
expenses relating to his attendance at such meetings. In addition, the lead independent Director
receives an annual fee of $1,000, 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. A Director may receive a single meeting fee, allocated
among the participating funds, for participation in certain meetings on behalf of multiple funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the compensation that the Directors earned in their capacity as
Directors during the year ended December&nbsp;31, 2010. The table also shows, for the year ended
December&nbsp;31, 2010, the compensation Directors earned in their capacity as directors/trustees for
other funds in the Fund Complex. Ms.&nbsp;Marion is employed by the Fund and is not employed
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /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">by the Adviser (although she may receive incentive-based variable compensation from affiliates of
the Adviser). Officers of the Fund who are employed by the Adviser receive no compensation or
expense reimbursement from the Fund.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMPENSATION TABLE FOR THE YEAR ENDED DECEMBER 31, 2010</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>from the Fund</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>and</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fund Complex</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Director</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>From the Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Paid to Directors*</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Interested Director</B></DIV></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><DIV style="margin-left:15px; text-indent:-15px">Mario J. Gabelli</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Independent Directors</B></DIV></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><DIV style="margin-left:15px; text-indent:-15px">Thomas E. Bratter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony J. Colavita</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,111</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">254,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James P. Conn</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">144,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Frank J. Fahrenkopf, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">73,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Arthur V. Ferrara</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony R. Pustorino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">164,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Salvatore J. Zizza</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,111</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">212,000</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Officer</B></DIV></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><DIV style="margin-left:15px; text-indent:-15px">Molly A.F. Marion, Vice President and Ombudsman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">90,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Represents the total compensation paid to such persons during the
year ended December&nbsp;31, 2010 by investment companies (including the
Fund) or portfolios thereof from which such person receives
compensation that are considered part of the same fund 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>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Indemnification of Officers and Directors; Limitations on Liability</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Governing Documents of the Fund provide that the Fund will indemnify its 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 positions with the Fund,
to the fullest extent permitted by law. However, nothing in the Governing Documents protects or
indemnifies a Director, officer, employee or agent of the Fund against any liability to which such
person would otherwise be subject in the event of such person&#146;s willful misfeasance, bad faith,
gross negligence or reckless disregard of the duties involved in the conduct of his or her
position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Management</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gabelli Funds, LLC serves as the Fund&#146;s Investment Adviser pursuant to the Investment Advisory
Agreement with the Fund. The Investment Adviser is a New York limited liability company with
principal offices located at One Corporate Center, Rye, New York 10580-1422 and is registered under
the Investment Advisers Act of 1940, as amended. The Investment Adviser was organized in 1999 and
is the successor to Gabelli Funds, Inc., which was organized in 1980. As of March&nbsp;31, 2011, the
Investment Adviser acts as a registered investment adviser to 26 management investment companies
with aggregate net assets of $20.1&nbsp;billion. The Investment Adviser, together with the other
affiliated investment advisers noted below, had assets under management totaling approximately
$35.4&nbsp;billion as of March&nbsp;31, 2011. GAMCO Asset Management Inc. (&#147;GAMCO&#148;), 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 $14.7&nbsp;billion under management as of March&nbsp;31, 2011. Gabelli Securities, Inc., an
affiliate of the Investment Adviser, acts as investment adviser for investment partnerships and
entities having aggregate assets of approximately $547&nbsp;million under management as of March&nbsp;31,
2011. Teton Advisors, Inc., an affiliate of the Investment Adviser, acts as investment manager to
The GAMCO Westwood Funds and separately managed accounts having aggregate assets of approximately
$983.1&nbsp;million under management as of March&nbsp;31, 2011.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser is a wholly-owned subsidiary of GAMCO Investors, Inc., a New York
corporation, whose Class&nbsp;A Common Stock is traded on the NYSE under the symbol &#147;GBL.&#148; Mr.&nbsp;Mario J.
Gabelli may be deemed a &#147;controlling
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /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">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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Adviser will provide a continuous investment program for the portfolios of the
Fund and oversee the administration of all aspects of the Fund&#146;s business and affairs. The
Investment Adviser has sole investment discretion for the assets of the Fund 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Investment Advisory Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 in the past several years 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 that 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 each the Fund in seeking to achieve its investment objectives.
Securities purchased or sold pursuant to contemporaneous orders entered on behalf of the investment
company accounts of the Investment Adviser or the advisory accounts managed by its affiliates for
their unaffiliated clients are allocated pursuant to principles believed to be fair and not
disadvantageous to any such accounts. In addition, all such orders are accorded priority of
execution over orders entered on behalf of accounts in which the Investment Adviser or its
affiliates have a substantial pecuniary interest. The Adviser may on occasion give advice or take
action with respect to other clients that differs from the actions taken with respect to the Fund.
The Fund may invest in the securities of companies that are investment management clients of GAMCO
Asset Management Inc. In addition, portfolio companies or their officers or directors may be
minority shareholders of the Investment Adviser or its affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Advisory Agreement, 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 its
other business and affairs, all subject to the supervision and direction of the Fund&#146;s 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 the Fund&#146;s shareholders and supervising the calculation of the
net asset value of its shares. All expenses of computing the net asset value of the Fund, including
any equipment or services obtained solely for the purpose of pricing shares or valuing its
investment portfolio, underwriting compensation and reimbursements in connection with sales of its
securities, the costs of utilizing a third party to monitor and collect class action settlements on
behalf of the Fund, compensation to an administrator for certain SEC filings on behalf of the Fund,
the fees and expenses of directors who are not officers or employees of the Investment Adviser of
its affiliates, compensation and other expenses of employees of the Fund as approved by the
directors, the pro rata costs of the Fund&#146;s chief compliance officer, charges of the custodian, any
sub-custodian and transfer agent and dividend paying agent, expenses in connection with the
Automatic Dividend Reinvestment Plan and Voluntary Cash Purchase Plan, accounting and pricing
costs, membership fees in trade associations, expenses for legal and independent accountants&#146;
services, costs of printing proxies, share certificates and shareholder reports, fidelity bond
coverage for Fund officer&#146;s and employees, directors and officers&#146; errors and omissions insurance
coverage, and stock exchange listing fees will be an expense of the Fund unless the Investment
Adviser voluntarily assumes responsibility for such expenses. During fiscal year 2010, the Fund
paid or accrued $45,000 to the Investment Adviser in connection with the cost of computing the
Fund&#146;s net asset value.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Advisory Agreement combines investment advisory and certain administrative
responsibilities in one agreement. For services rendered by the Investment Adviser on behalf of the
Fund&#146;s Advisory Agreement, the Fund pays the Investment Adviser a fee computed weekly and paid
monthly at the annual rate of 1.00% of the average weekly net assets of the Fund. For purposes of
calculating this fee, the Fund&#146;s average weekly net assets will be deemed to be the average weekly
value of the Fund&#146;s total assets minus the sum of the Fund&#146;s liabilities (such liabilities exclude
the aggregate liquidation preference of outstanding preferred shares and accumulated dividends, if
any, on those shares). The Investment Adviser has agreed to reduce the management fee on the
incremental assets attributable to the Series&nbsp;C Auction Rate Preferred, Series&nbsp;D Preferred, Series
E Auction Rate Preferred and Series&nbsp;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, does not exceed the stated dividend rate or
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /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">corresponding swap rate of each particular series of preferred stock for the period. 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 additional
management fee on those assets. For the year ended December&nbsp;31, 2010, the Fund&#146;s total return on
the net asset value of the common stock exceeded the stated dividend rate or corresponding swap
rate of the outstanding Preferred Stock. Thus management fees were accrued on these assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to its terms, the Advisory Agreement will remain in effect with respect to the Fund
if approved annually (i)&nbsp;by the Fund&#146;s Board or by the holders of a majority of the Fund&#146;s
outstanding voting securities and (ii)&nbsp;by a majority of the Directors who are not &#147;interested
persons&#148; (as defined in the 1940 Act) of any party to an Advisory Agreement, by vote cast in person
at a meeting called for the purpose of voting on such approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A discussion regarding the basis of the Board&#146;s approval of the Advisory Agreement for the
Fund is available in the semi-annual report to shareholders for the six months ended June&nbsp;30, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Portfolio Manager Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Other Accounts Managed</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information below lists the number of other accounts for which each portfolio manager was
primarily responsible for the day-to-day management as of the fiscal year ended December&nbsp;31, 2010.
</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="17%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total Assets with</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name of Portfolio</B></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>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Managed with</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Advisory fee</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Manager or Team</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Total Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center"  colspan="3"><B>Total</B> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Advisory Fee Based</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Based</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Member</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Type of Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Accounts Managed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>on Performance</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>on Performance</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">1. Mario J. Gabelli</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Registered
Investment
Companies:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">26</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15.9B</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.9B</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Pooled
Investment
Vehicles:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">16</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">478.4M</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">470.6M</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Accounts:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1,712&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14.6B</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.9B</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">2. Zahid Siddique</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Registered
Investment
Companies:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">0</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Pooled
Investment
Vehicles:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">0</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Accounts:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">564.6K</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Potential Conflicts of Interest</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual or apparent conflicts of interest may arise when a portfolio manager for a fund also
has day-to-day management responsibilities with respect to one or more other funds or accounts.
These potential conflicts include:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Allocation of Limited Time and Attention. </I>A portfolio manager who is responsible for managing
multiple funds or other accounts may devote unequal time and attention to the management of those
funds or accounts. As a result, the portfolio manager may not be able to formulate as complete a
strategy or identify equally attractive investment opportunities for each of those accounts as
might be the case if he or she were to devote substantially more attention to the management of a
single fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Allocation of Limited Investment Opportunities. </I>If a portfolio manager identifies an
investment opportunity that may be suitable for multiple funds or other accounts, a fund may not be
able to take full advantage of that opportunity because the opportunity may be allocated among
several of these funds or accounts.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Pursuit of Differing Strategies. </I>At times, a portfolio manager may determine that an
investment opportunity may be appropriate for only some of the funds or accounts for which he or
she exercises investment responsibility, or may decide that certain of the funds or 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 funds or accounts which may
affect the market price of the security or the execution of the transaction, or both, to the
detriment of one or more other funds or accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Selection of Broker/Dealers. </I>Portfolio managers may be able to select or influence the
selection of the brokers and dealers that are used to execute securities transactions for the funds
or accounts that they supervise. In addition to providing execution of trades, some brokers and
dealers provide portfolio managers with brokerage and research services which may result in the
payment of higher brokerage fees than might otherwise be available. These services may be more
beneficial to certain funds or accounts than to others. Although the payment of brokerage
commissions is subject to the requirement that the portfolio manager determine in good faith that
the commissions are reasonable in relation to the value of the brokerage and research services
provided to the fund, a portfolio manager&#146;s decision as to the selection of brokers and dealers
could yield disproportionate costs and benefits among the funds or other accounts that he or she
manages. In addition, with respect to certain types of accounts (such as pooled investment vehicles
and other accounts managed for organizations and individuals) the Investment Adviser may be limited
by the client concerning the selection of brokers or may be instructed to direct trades to
particular brokers. In these cases, the Investment Adviser or its affiliates may place separate,
non-simultaneous transactions in the same security for a fund and another account that may
temporarily affect the market price of the security or the execution of the transaction, or both,
to the detriment of the fund or the other accounts. Because of Mr.&nbsp;Gabelli&#146;s position with, and his
indirect majority ownership interest in, an affiliated broker dealer, Gabelli &#038; Company, he may
have an incentive to use Gabelli &#038; Company to execute portfolio transactions for the Fund even if
using Gabelli &#038; Company is not in the best interest of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Variation in Compensation. </I>A conflict of interest may arise where the financial or other
benefits available to the portfolio manager differ among the funds or accounts that he or she
manages. If the structure of the Investment Adviser&#146;s management fee or the portfolio manager&#146;s
compensation differs among funds or accounts (such as where certain funds or accounts pay higher
management fees or performance-based 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 or she has an investment interest, or in which the Investment Adviser or its
affiliates have investment interests. Similarly, the desire to maintain assets under management or
to enhance a portfolio manager&#146;s performance record or to derive other rewards, financial or
otherwise, could influence the portfolio manager in affording preferential treatment to those funds
or other accounts that could most significantly benefit the portfolio manager. In Mr.&nbsp;Gabelli&#146;s
case, the Investment Adviser&#146;s compensation (and expenses) for the Fund is marginally greater as a
percentage of assets than for certain other accounts and is less than for certain other accounts
managed by Mr.&nbsp;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-based
accounts. In addition, he has investment interests in several of the funds managed by the
Investment Adviser and its affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 prevent every situation in which an actual or potential conflict may arise.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Ownership of Shares in the Fund</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2010, the portfolio managers of the Fund own the following amounts of
equity securities of the Fund.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mario J. Gabelli</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>Over $</TD>
    <TD colspan="1" align="right">1,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Zahid Siddique</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Structure</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;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
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /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">fees the firm&#146;s expenses (other than Mr.&nbsp;Gabelli&#146;s compensation) allocable to the Fund.
Additionally, he receives similar incentive-based variable compensation for managing other accounts
within the Fund Complex. 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.&nbsp;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.&nbsp;Gabelli would only receive his percentage of such advisory
fee) if certain performance levels are met. Mr.&nbsp;Gabelli manages other accounts with performance
fees. Compensation for managing these accounts has two components. One component of the fee 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.&nbsp;Gabelli. As an executive officer of the
Investment Adviser&#146;s parent company, GAMCO Investors, Inc., Mr.&nbsp;Gabelli also receives ten percent
of the net operating profits of the parent company. Mr.&nbsp;Gabelli receives no base salary, no annual
bonus and no stock options.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation of Mr.&nbsp;Siddique is reviewed annually and structured to enable the Investment
Adviser to attract and retain highly qualified professionals in a competitive environment. Mr.
Siddique 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 the Fund to the
extent that it exceeds a minimum level of compensation. This method of compensation is based on the
premise that superior long-term performance in managing a portfolio will be rewarded through growth
of assets through appreciation and cash flow. Incentive based equity compensation is based on an
evaluation of quantitative and qualitative performance evaluation criteria.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation for managing other accounts is based on a percentage of net revenues received by
the Investment Adviser for managing the account. Compensation for managing the pooled investment
vehicles and other accounts that have a performance-based fee will have two components. One
component of the fee is based on a percentage of net revenues received by the Investment Adviser
for managing the account or pooled investment vehicle. The second component of the fee is based on
absolute performance from which a percentage of such fee is paid to the portfolio manager.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Portfolio Holdings Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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)&nbsp;made available to the general public by posting on the Fund&#146;s website or filed as
part of a required filing on Form N-Q or N-CSR or (b)&nbsp;provided to a third party for legitimate
business purposes or regulatory purposes, that has agreed to keep such data confidential under
terms approved by the Investment Adviser&#146;s legal department or outside counsel, as described below.
The Investment Adviser will examine each situation under (b)&nbsp;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 Investment Adviser&#146;s interests and the Fund&#146;s interests arises, to have such
conflict resolved by the Chief Compliance Officer or those Directors who are not considered to be
&#147;interested persons,&#148; as defined in the 1940 Act (the &#147;&#145;Independent Directors&#148;). 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;days in other cases (with the
exception of proxy voting services which require a regular download of data):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;To regulatory authorities in response to requests for such information and with the
approval of the Chief Compliance Officer of the Fund;
</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;(2)&nbsp;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 until at least it has been made public by the Investment Adviser;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;To service providers of the Fund, as necessary for the performance of their services to
the Fund and to the Board, where such entity has agreed to keep such data confidential until at
least it has been made public by the Investment Adviser. The Fund&#146;s current service providers that
may receive such information are its administrator, sub-administrator, custodian, independent
registered public accounting firm, legal counsel, and financial printers;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;To firms providing proxy voting and other proxy services provided such entity has agreed
to keep such data confidential until at least it has been made public by the Investment Adviser;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;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 until
it has been made public by the Investment Adviser 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; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;To consultants for purposes of performing analysis of the Fund, which analysis 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 until at least it has been made public by the
Investment Adviser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this SAI, the Fund makes information about portfolio securities available to
its administrator, sub-administrator, custodian, and proxy voting services on a daily basis, with
no time lag, to its typesetter on a quarterly basis with a ten day time lag, to its financial
printers on a quarterly basis with a forty-five day time lag, and its independent registered public
accounting firm and legal counsel on an as needed basis with no time lag. The names of the Fund&#146;s
administrator, custodian, independent registered public accounting firm, and legal counsel are set
forth is this SAI. The Fund&#146;s proxy voting service is Broadridge Investor Communication Services.
Bowne &#038; Co., Inc. provides typesetting services for the Fund and the Fund selects from a number of
financial printers who have agreed to keep such information confidential until at least it has been
made public by the Investment Adviser. Other than those arrangements with the Fund&#146;s service
providers and proxy voting service, the Fund has no ongoing arrangements to make available
information about the Fund&#146;s portfolio securities prior to such information being disclosed in a
publicly available filing with the SEC that is required to include the information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left">
<A name="Y91816167"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DIVIDENDS AND DISTRIBUTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund, along with other closed-end registered investment companies advised by the
Investment Adviser, has obtained an exemption from Section 19(b) of the 1940 Act and Rule&nbsp;19b-1
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. See &#147;Automatic Dividend Reinvestment and
Voluntary Cash Purchase Plan.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the total distributions required by a periodic pay-out policy exceed the Fund&#146;s net
investment income and net capital gain, the excess will be treated as a return of capital.
Shareholders who periodically receive the payment of a dividend or other distribution consisting of
a return of capital may be under the impression that they are receiving net profits when they
</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">are not. Shareholders should not assume that the source of a distribution from the Fund is net
profit. Distributions sourced from paid-in-capital should not be considered the current yield or
the total return from an investment in the Fund. If the Fund&#146;s net investment income (including net
short-term capital gains) and net long-term capital gains for any year exceed the amount required
to be distributed under a periodic pay-out policy, the Fund generally intends to pay such excess
once a year, but may, in its discretion, retain and not distribute net long-term capital gains to
the extent of such excess. The Fund reserves the right, but does not currently intend, to retain
for reinvestment and pay the resulting U.S. federal income taxes on the excess of its net realized
long-term capital gains over its net short-term capital losses, if any. See &#147;Automatic Dividend
Reinvestment and Voluntary Cash Purchase Plans.&#148;
</DIV>

<DIV align="left">
<A name="Y91816168"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AUCTIONS FOR AUCTION RATE PREFERRED STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Series&nbsp;C and E Auction Rate Preferred are each a type of preferred stock that pays
dividends that vary over time. Prior to February&nbsp;2008, the dividend rates were set through
auctions run by an independent auction agent. Since February&nbsp;2008, the auctions have failed and
have continued to fail. &#147;Failure&#148; means that more Auction Rate Preferred Shares are offered for
sale in the auction then there are bids to buy shares. During this period while auctions have
continued to fail, holders of the Fund&#146;s Auction Rate Preferred have received dividends at a
&#147;maximum&#148; rate determined by reference to short term rates, rather than at a price set by auction.
If auctions were to resume functioning, they would operate in accordance with the procedures
described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Summary of Auction Procedures</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a brief summary of the auction procedures for preferred shares that are
auction rate preferred stock. These auction procedures are complicated, and there are exceptions
to these procedures. Many of the terms in this section have a special meaning. Accordingly, this
description does not purport to be complete and is qualified, in its entirety, by reference to the
Fund&#146;s Charter, including the provisions of the Articles Supplementary establishing any series of
auction rate preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The auctions determine the dividend rate for auction rate preferred shares, but each dividend
rate will not be higher than the maximum rate. If you own auction rate preferred shares, you may
instruct your broker-dealer to enter one of three kinds of orders in the auction with respect to
your stock: sell, bid and hold.
</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="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If you enter a sell order, you indicate that you want to sell auction rate preferred shares
at their liquidation preference per share, no matter what the next dividend period&#146;s rate will
be.</TD>
</TR>

</TABLE>
</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="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If you enter a bid (or &#147;hold at a rate&#148;) order, which must specify a dividend rate, you
indicate that you want to sell auction rate preferred shares only if the next dividend
period&#146;s rate is less than the rate you specify.</TD>
</TR>

</TABLE>
</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="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If you enter a hold order you indicate that you want to continue to own auction rate
preferred shares, no matter what the next dividend period&#146;s rate will be.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may enter different types of orders for different portions of your auction rate preferred
shares. You may also enter an order to buy additional auction rate preferred shares. All orders
must be for whole shares of stock. All orders you submit are irrevocable. There is a fixed number
of auction rate preferred shares, and the dividend rate likely will vary from auction to auction
depending on the number of bidders, the number of shares the bidders seek to buy, the rating of the
auction rate preferred shares and general economic conditions including current interest rates. If
you own auction rate preferred shares and submit a bid for them higher than the then-maximum rate,
your bid will be treated as a sell order. If you do not enter an order, the broker-dealer will
assume that you want to continue to hold auction rate preferred shares, but if you fail to submit
an order and the dividend period is longer than 28&nbsp;days, the broker-dealer will treat your failure
to submit a bid as a sell order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you do not then own auction rate preferred shares, or want to buy more shares, you may
instruct a broker-dealer to enter a bid order to buy shares in an auction at the liquidation
preference per share at or above the dividend rate you specify. If your bid for shares you do not
own specifies a rate higher than the then-maximum rate, your bid will not be considered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker-dealers will submit orders from existing and potential holders of auction rate
preferred shares to the auction agent. Neither the Fund nor the auction agent will be responsible
for a broker-dealer&#146;s failure to submit orders from existing or potential holders of auction rate
preferred shares. A broker-dealer&#146;s failure to submit orders for auction rate preferred shares
held by it or its customers will be treated in the same manner as a holder&#146;s failure to submit an
order to the broker-dealer. A broker-dealer may submit orders to the auction agent for its own
account. The Fund may not submit an order in any auction.
</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;After each auction for the auction rate preferred shares the auction agent will pay to each
broker-dealer, from funds provided by the Fund, a service charge equal to, in the case shares of
any auction immediately preceding a dividend period of less than 365&nbsp;days, the product of (i)&nbsp;a
fraction, the numerator of which is the number of days in such dividend period and the denominator
of which is 365, times (ii) <SUP style="FONT-size: 85%; vertical-align: text-top">1</SUP>/4 of 1%, times (iii)&nbsp;the liquidation
preference per share, times (iv)&nbsp;the aggregate number of auction rate preferred shares placed by
such broker-dealer at such auction or, in the case of any auction immediately preceding a dividend
period of one year or longer, a percentage of the purchase price of the auction rate preferred
shares placed by the broker-dealer at the auction agreed to by the Fund and the broker-dealers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the number of auction rate preferred shares subject to bid orders by potential holders with
a dividend rate equal to or lower than the then-maximum rate is at least equal to the number of
auction rate preferred shares subject to sell orders, then the dividend rate for the next dividend
period will be the lowest rate submitted which, taking into account that rate and all lower rates
submitted in order from existing and potential holders, would result in existing and potential
holders owning all the auction rate preferred shares available for purchase in the auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the number of auction rate preferred shares subject to bid orders by potential holders with
a dividend rate equal to or lower than the then-maximum rate is less than the number of auction
rate preferred shares subject to sell orders, then the auction is considered to be a failed
auction, and the dividend rate will be the maximum rate. In that event, existing holders that have
submitted sell orders (or are treated as having submitted sell orders) may not be able to sell any
or all of the auction rate preferred shares offered for sale than there are buyers for those
shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If broker-dealers submit or are deemed to submit hold orders for all outstanding auction rate
preferred shares, the auction is considered an &#147;all hold&#148; auction and the dividend rate for the
next dividend period will be the &#147;all hold rate,&#148; which is 80% of the &#147;AA&#148; Financial Composite
Commercial Paper Rate, as determined in accordance with procedures set forth in the Articles
Supplementary establishing the auction rate preferred shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The auction procedures include a <I>pro rata </I>allocation of auction rate preferred shares for
purchase and sale. This allocation process may result in an existing holder continuing to hold or
selling, or a potential holder buying, fewer shares than the number of shares of auction rate
preferred shares in its order. If this happens, broker-dealers will be required to make
appropriate <I>pro rata </I>allocations among their respective customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement of purchases and sales will be made on the next business day (which also is a
dividend payment date) after the auction date through DTC. Purchasers will pay for their auction
rate preferred shares through broker-dealers in same-day funds to DTC against delivery to the
broker-dealers. DTC will make payment to the sellers&#146; broker-dealers in accordance with its normal
procedures, which require broker-dealers to make payment against delivery in same-day funds. As
used in this SAI, a business day is a day on which the NYSE is open for trading, and which is not a
Saturday, Sunday or any other day on which banks in New York City are authorized or obligated by
law to close.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The first auction for a series of auction rate preferred shares will be held on the date
specified in the Prospectus Supplement for such series, which will be the business day preceding
the dividend payment date for the initial dividend period. Thereafter, except during special
dividend periods, auctions for such series auction rate preferred shares normally will be held
within the frequency specified in the Prospectus Supplement for such series, and each subsequent
dividend period for such series auction rate preferred shares normally will begin on the following
day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 will be extended by seven days (or a multiple thereof if necessary
because of such unforeseen event or events), the applicable rate for such period will be the
applicable rate for the then-current dividend period so extended and the dividend payment date for
such dividend period will be the first business day immediately succeeding the end of such period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a simplified example of how a typical auction works. Assume that the Fund
has 1,000 outstanding shares of auction rate preferred stock and three current holders. The three
current holders and three potential holders submit orders through broker-dealers at the auction.
</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="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Current Holder A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Owns 500 shares, wants to
sell all 500 shares if
auction rate is less than
4.6%
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bid order at 4.6% rate for all 500
shares</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">Current Holder B
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Owns 300 shares, wants to hold
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Hold order will take the auction rate</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">Current Holder C
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Owns 200 shares, wants to
sell all 200 shares if
auction rate is less than
4.4%
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bid order at 4.4% rate for all 200
shares</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="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Potential Holder D
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wants to buy 200 shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Places order to buy at or above 4.5%</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">Potential Holder E
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wants to buy 300 shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Places order to buy at or above 4.4%</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">Potential Holder F
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wants to buy 200 shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Places order to buy at or above 4.6%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The lowest dividend rate that will result in all 1,000 shares of auction rate preferred stock
continuing to be held is 4.5% (the offer by D). Therefore, the dividend rate will be 4.5%. Current
holders B and C will continue to own their shares. Current holder A will sell its shares because
A&#146;s dividend rate bid was higher than the dividend rate: Potential holder D will buy 200 shares and
potential holder E will buy 300 shares because their bid rates were at or below the dividend rate.
Potential holder F will not buy any shares because its bid rate was above the dividend rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Secondary Market Trading and Transfer of Auction Rate Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The underwriters shall not be required to make a market in the auction rate preferred stock.
The broker-dealers (including the underwriters) may maintain a secondary trading market for outside
of auctions, but they are not required to do so. There can be no assurance that a secondary
trading market for the auction rate preferred stock will develop or, if it does develop, that it
will provide owners with liquidity of investment. The auction rate preferred stock will not be
registered on any stock exchange. Investors who purchase auction rate preferred shares in an
auction for a special dividend period should note that because the dividend rate on such shares
will be fixed for the length of that dividend period, the value of such shares may fluctuate in
response to the changes in interest rates and may be more or less than their original cost if sold
on the open market in advance of the next auction thereof, depending on market conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may sell, transfer, or otherwise dispose of the auction rate preferred stock in the
auction process only in whole shares and only pursuant to a bid or sell order placed with the
auction agent in accordance with the auction procedures, to the Fund or its affiliates or to or
through a broker-dealer that has been selected by the Fund or to such other persons as may be
permitted by the Fund. However, if you hold your auction rate preferred shares in the name of a
broker-dealer, a sale or transfer of your auction rate preferred shares to that broker dealer, or
to another customer of that broker-dealer, will not be considered a sale or transfer for purposes
of the foregoing if the shares remain in the name of the broker-dealer immediately after your
transaction. In addition, in the case of all transfers other than through an auction, the
broker-dealer (or other person, if the Fund permits) receiving the transfer must advise the auction
agent of the transfer. These procedures would not limit a holder&#146;s ability to sell its auction
rate preferred stock in a secondary market transaction.
</DIV>
<DIV align="left">
<A name="Y91816169"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PORTFOLIO TRANSACTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. stock exchanges and involve
the payment of negotiated brokerage commissions. There may be no stated commission in the case of
securities traded in over-the-counter 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 &#038; Company, Inc. may execute transactions in the over-the-counter 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 SEC thereunder,
as well as other regulatory requirements, the Board has determined that portfolio transactions may
be executed through Gabelli &#038; Company, Inc. and its broker-dealer affiliates if, in 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, the affiliated broker-dealers charge the Fund a rate consistent with that charged to
comparable unaffiliated customers in similar transactions and comparable to rates charged by other
broker-dealers for 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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,
</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">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 Investment 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although investment decisions for the Fund are made independently from those for the other
accounts managed by the Investment Adviser and its affiliates, investments of the kind made by the
Fund may also be made for those other accounts. When the same securities are purchased for or sold
by the Fund and any of 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 over time to
all of the accounts, including the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the fiscal years ended December&nbsp;31, 2008, December&nbsp;31, 2009 and December&nbsp;31, 2010, the
Fund paid a total of $489,901, $334,813 and $279,447 respectively, in brokerage commissions, of
which Gabelli &#038; Company and its affiliates received $331,716, $180,396 and $228,541, respectively.
The amount received by Gabelli &#038; Company and its affiliates from the Fund in respect of brokerage
commissions for the fiscal year ended December&nbsp;31, 2010 represented approximately 81.8% of the
aggregate dollar amount of brokerage commissions paid by the Fund for such period and approximately
64.2% of the aggregate dollar amount of transactions by the Fund for such period.
</DIV>
<DIV align="left">
<A name="Y91816170"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PORTFOLIO TURNOVER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 objective. Portfolio turnover rate is calculated by
dividing the lesser of an investment company&#146;s annual sales or purchases of portfolio securities by
the monthly average value of securities in its portfolio during the year, excluding portfolio
securities the maturities of which at the time of acquisition were one year or less. A high rate of
portfolio turnover involves correspondingly greater brokerage commission expense than a lower rate,
which expense must be borne by the Fund and indirectly by its shareholders. The portfolio turnover
rate may vary from year to year and will not be a factor when the Investment Adviser determines
that portfolio changes are appropriate. A higher rate of portfolio turnover may also result in
taxable gains being passed to shareholders sooner than would otherwise be the case. For the years
ending December&nbsp;31, 2009 and 2010, the portfolio turnover rates were 6.7% and 5.5%, respectively.
</DIV>
<DIV align="left">
<A name="Y91816171"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TAXATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is a brief summary of certain federal income tax considerations
affecting the Fund and the purchase, ownership and disposition of the Fund&#146;s shares. This
discussion assumes you are a U.S. person and that you hold your shares as capital assets. This
discussion is based upon current provisions of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;), the regulations promulgated thereunder and judicial and administrative authorities, all of
which are subject to change or differing interpretations by the courts or the Internal Revenue
Service (the &#147;IRS&#148;), possibly with retroactive effect. No ruling has been or will be sought from
the IRS regarding any matter discussed herein. Counsel to the Fund has not rendered and will not
render any legal opinion regarding any tax consequences relating to the Fund or an investment in
the Fund. No attempt is made to present a detailed explanation of all federal tax concerns
affecting the Fund and its shareholders (including shareholders owning large positions in the
Fund).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The discussions set forth herein and in the Prospectus do not constitute tax advice and
potential investors are urged to consult their own tax advisers to determine the tax consequences
to them of investing in the Fund.</B>
</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: 12pt"><B>Taxation of the Fund</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund 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;).
Accordingly, the Fund will, among other things, (i)&nbsp;derive in each taxable year at least 90% of its
gross income from (a)&nbsp;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)&nbsp;net income derived from interests in certain publicly traded partnerships that
are treated as partnerships for U.S. federal income tax purposes and that derive less than 90% of
their gross income from the items described in (a)&nbsp;above (each a &#147;Qualified Publicly Traded
Partnership&#148;); and (ii)&nbsp;diversify its holdings so that, at the end of each quarter of each taxable
year (a)&nbsp;at least 50% of the value of its total assets is represented by cash and cash items, U.S.
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 and (b)&nbsp;not more than 25% of the value of the Fund&#146;s total assets is invested in the
securities of (I)&nbsp;any one issuer (other than U.S. government securities and the securities of other
RICs), (II)&nbsp;any two or more issuers in which the Fund owns 20% or more of the voting stock and that
are determined to be engaged in the same business or similar or related trades or businesses or
(III)&nbsp;any one or more Qualified Publicly Traded Partnerships.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although in general the passive loss rules of the Code do not apply to regulated investment
companies, such rules do apply to a regulated investment company with respect to items attributable
to an interest in a Qualified Publicly Traded Partnership. The investments of the Fund in
partnerships, including Qualified Publicly Traded Partnerships, may result in the Fund being
subject to state, local, or foreign income, franchise or withholding tax liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a RIC, the Fund generally is not or will not be, as the case may be, subject to U.S.
federal income tax on income and gains that it distributes each taxable year to shareholders, if it
distributes at least 90% of the sum of the Fund&#146;s (i)&nbsp;investment company taxable income (which
includes, among other items, dividends, interest and the excess of any net short-term capital gain
over net long-term capital loss and other taxable income, other than any net long-term capital
gain, reduced by deductible expenses) determined without regard to the deduction for dividends paid
and (ii)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts not distributed on a timely basis in accordance with a calendar year distribution
requirement are subject to a nondeductible 4% excise tax at the Fund level. To avoid the tax, the
Fund must distribute during each calendar year an amount at least equal to the sum of (i)&nbsp;98% of
its ordinary income (not taking into account any capital gain or loss) for the calendar year, (ii)
98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for
a one-year period generally ending on October&nbsp;31 of the calendar year (unless an election is made
to use the fund&#146;s fiscal year), and (iii)&nbsp;certain undistributed amounts from previous years on
which a fund paid no federal income tax. While the Fund intends to distribute any income and
capital gain in the manner necessary to minimize imposition of the 4% excise tax, there can be no
assurance that sufficient amounts of the Fund&#146;s taxable income and capital gain will be distributed
to avoid entirely the imposition of the tax. In that event, the Fund will be liable for the tax
only on the amount by which it does not meet the foregoing distribution requirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
shareholders 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 no later than December&nbsp;31 of the year the distributions are declared, rather than when
the distributions are received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund were unable to satisfy the 90% distribution requirement 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 shareholders 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 shareholders its earnings and profits attributable to non-RIC years.
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>

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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;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency gain or loss on non-U.S. dollar-denominated securities and on any non-U.S.
dollar-denominated futures contracts, options and forward contracts that are not section 1256
contracts (as defined below) generally will be treated as ordinary income and loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments by the Fund in certain &#147;passive foreign investment companies&#148; (&#147;PFICs&#148;) could
subject such 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 shareholders. 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 Shareholders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. 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. federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 include income that it has not yet received in current income.
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 shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund does not meet the asset coverage requirements of the 1940 Act and the Articles
Supplementary, the Fund will be required to suspend distributions to the holders 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of the Fund&#146;s investment practices are subject to special and complex U.S. federal
income tax provisions that may, among other things, (i)&nbsp;disallow, suspend or otherwise limit the
allowance of certain losses or deductions, (ii)&nbsp;convert lower taxed long-term capital gains into
higher taxed short-term capital gains or ordinary income, (iii)&nbsp;convert ordinary loss or a
deduction into capital loss (the deductibility of which is more limited), (iv)&nbsp;cause a fund to
recognize income or gain without a corresponding receipt of cash, (v)&nbsp;adversely affect the time as
to when a purchase or sale of stock or securities is deemed to occur, (vi)&nbsp;adversely alter the
characterization of certain complex financial transactions and (vii)&nbsp;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 regulated investment company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Foreign Taxes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the Fund may invest in foreign securities, income from such securities may be subject to
non-U.S. taxes. The Fund expects to invest less than 35% of its total assets in foreign securities.
As long as the Fund continues to invest less than 35% of its assets in foreign securities it will
not be eligible to elect to &#147;pass-through&#148; to shareholders of a fund the ability to use the foreign
tax deduction or foreign tax credit for foreign taxes paid with respect to qualifying taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Taxation of Shareholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 shareholders, each of whom (i)&nbsp;will be required to include in income for
tax purposes as long-term capital gain its share of such undistributed amounts, (ii)&nbsp;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
</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">exceeds such liability and (iii)&nbsp;will increase its basis in its shares of the Fund by an amount
equal to 65% of the amount of undistributed capital gain included in such shareholder&#146;s gross
income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 reported by the Fund, may, however, qualify (provided
holding period and other requirements are met by the Fund and its shareholders) (i)&nbsp;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. corporations and (ii)&nbsp;for taxable years beginning on
or before December&nbsp;31, 2012, as qualified dividend income eligible for the reduced maximum federal
tax rate to individuals of generally 15% (currently 0% 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 shares with respect to which such dividend is paid is 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 engages in certain securities lending transactions,
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 shareholders at
rates applicable to long-term capital gain, whether paid in cash or in shares, and regardless of
how long the shareholder has held the Fund&#146;s shares. 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 currently 15% (0% for individuals in lower brackets). The maximum rate on long-term
capital gain is scheduled to rise to 20% for gains realized in taxable years after December&nbsp;31,
2012. Unrecaptured Section&nbsp;1250 gain distributions, if any, will be subject to a 25% tax.
Distributions in excess of the Fund&#146;s earnings and profits will first reduce the adjusted tax basis
of a holder&#146;s shares and, after such adjusted tax basis is reduced to zero, will constitute capital
gain to such holder (assuming the shares are held as a capital asset). Investment company taxable
income (other than qualified dividend income) will currently be taxed at a maximum rate of 35%. For
corporate taxpayers, both investment company taxable income and net capital gain are taxed at a
maximum rate of 35%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an individual receives a dividend that is eligible for qualified dividend income treatment,
and such dividend constitutes an &#147;extraordinary dividend,&#148; any loss on the sale or exchange of
shares 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; for this
purpose is generally a dividend (i)&nbsp;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 85-day period or (ii)&nbsp;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 365-day period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The IRS currently requires that a registered investment company 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, distributions in excess of such earnings and profits,
if any, will be made disproportionately to holders of common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders 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, shareholders with capital
loss are urged to consult their tax advisers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 will be
taxable to them even though it represents in part a return of invested capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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)&nbsp;constitute
</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">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)&nbsp;not be offset by otherwise allowable deductions
for tax purposes; (3)&nbsp;not be eligible for reduced U.S. withholding for non-U.S. shareholders even
from tax treaty countries; and (4)&nbsp;cause the Fund to be subject to tax if certain &#147;disqualified
organizations&#148; as defined by the Code are Fund shareholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon a sale, exchange, redemption or other disposition of stock, a shareholder 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 shareholder&#146;s adjusted tax basis in the stock. Such
gain or loss will be treated as long-term capital gain or loss if the shares have been held for
more than one year. Any loss realized on a sale or exchange will be disallowed to the extent the
shares disposed of are replaced by substantially identical shares within a 61-day period beginning
30&nbsp;days before and ending 30&nbsp;days after the date that the shares are disposed of. In such a case,
the basis of the shares acquired will be adjusted to reflect the disallowed loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any loss realized by a shareholder on the sale of Fund shares held by the shareholder 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 shareholder (or amounts credited to the shareholder as
an undistributed capital gain) with respect to such shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary income distributions and capital gain distributions also may be subject to state and
local taxes. Shareholders 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders will receive, if appropriate, various written notices after the close of each of
the Fund&#146;s taxable years regarding the U.S. federal income tax status of certain dividends,
distributions and deemed distributions that were paid (or that are treated as having been paid) by
the Fund to its shareholders during the preceding taxable year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a shareholder recognizes a loss with respect to the Fund&#146;s shares of $2&nbsp;million or more for
an individual shareholder or $10&nbsp;million or more for a corporate shareholder, the shareholder must
file with the IRS a disclosure statement on Form&nbsp;8886. Direct shareholders of portfolio securities
are in many cases exempted from this reporting requirement, but under current guidance,
shareholders of a regulated investment company are not exempted. The fact that a loss is reportable
under these regulations does not affect the legal determination of whether the taxpayer&#146;s treatment
of the loss is proper. Shareholders should consult their tax advisors to determine the
applicability of these regulations in light of their individual circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid or distributions made by the Fund to shareholders 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 to the extent derived from investment
income and short-term capital gains. In order to obtain a reduced rate of withholding, a foreign
investor will be required to provide an IRS Form W-8BEN certifying its entitlement to benefits
under a treaty. The withholding tax does not apply to regular dividends paid or distributions made
to a foreign investor who provides a Form W-8ECI, certifying that the dividends or distributions
are effectively connected with the foreign investor&#146;s conduct of a trade or business within the
United States. Instead, the effectively connected dividends or distributions will be subject to
regular U.S. income tax as if the foreign investor were a U.S. shareholder. A non-U.S. corporation
receiving effectively connected dividends or distributions 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 Form W-8BEN or other applicable form may be subject to backup withholding at the
appropriate rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A 30% withholding tax will be imposed on dividends and redemption proceeds paid after December
31, 2012, to (i)&nbsp;foreign financial institutions including non-U.S. investment funds unless they
agree to collect and disclose to the IRS information regarding their direct and indirect U.S.
account holders and (ii)&nbsp;certain other foreign entities unless they certify certain information
regarding their direct and indirect U.S. owners. To avoid withholding, a foreign financial
institution will need to enter into agreements with the IRS regarding providing the IRS information
including the name, address and taxpayer identification number of direct and indirect U.S. account
holders, to comply with due diligence procedures with respect to the identification of U.S.
accounts, to report to the IRS certain information with respect to U.S. accounts maintained, to
agree to withhold tax on certain payments made to non-compliant foreign financial institutions or
to account holders who fail to provide the required information, and to determine certain other
information as to their account holders. Other foreign entities will need to provide the name,
address, and taxpayer identification number of each substantial U.S. owner or certifications of no
substantial U.S. ownership unless certain exceptions apply.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, United States federal withholding tax will not apply to any gain or income
realized by a foreign investor in respect of any distributions of net long-term capital gains over
net short-term capital losses, exempt-interest dividends, or upon the sale or other disposition of
shares of the Fund.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->30<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Backup Withholding</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may be required to withhold U.S. federal income tax on all taxable distributions and
redemption proceeds payable to non-corporate shareholders 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 shareholder&#146;s U.S.
federal income tax liability, if any, provided that the required information is furnished to the
IRS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>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 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 of the Fund
should consult their own tax advisers regarding the purchase, ownership and disposition of shares
of the Fund.</I></B>
</DIV>
<DIV align="left">
<A name="Y91816172"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BENEFICIAL OWNERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2010, there were no persons known to the Fund to be beneficial owners of
more than 5% of the outstanding shares of the Fund&#146;s common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2010, the Directors and Officers of the Fund as a group beneficially owned
less than 1% of the outstanding shares of the Fund&#146;s common stock.
</DIV>
<DIV align="left">
<A name="Y91816173"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Book-Entry-Only Issuance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Depository Trust Company (&#147;DTC&#148;) will act as securities depository for the securities
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 &#038; 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;17A of the 1934 Act. DTC holds
securities that its participants deposit with DTC. DTC also facilities 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, as well as 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTC has no knowledge of the actual beneficial owners of the securities being offered pursuant
to the 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>

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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;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Proxy Voting Procedures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. They are also on file with the SEC
and can be reviewed and copied at the SEC&#146;s Public Reference Room in Washington, D.C., and
information on the operation of the Public Reference Room may be obtained by calling the SEC at
202-551-8090. The proxy voting procedures are also available on the EDGAR Database on the SEC&#146;s
internet site (http://www.sec.gov) and copies of the proxy voting procedures may be obtained, after
paying a duplicating fee, by electronic request at the following E-mail address:
publicinfo@sec.gov, or by writing the SEC&#146;s Public Reference Section, Washington, D.C. 20549-0102.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Code of Ethics</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund and the Investment Adviser have adopted a code of ethics under Rule&nbsp;17j-1 under the
1940 Act. The code of ethics permits personnel, subject to the code of ethics and its restrictive
provisions, to invest in securities, including securities that may be purchased or held by a fund
in the Fund Complex. This code of ethics sets forth restrictions on the trading activities of
trustees/directors, officers and employees of the Fund, the Investment Adviser and their
affiliates. For example, such persons may not purchase any security for which the Fund has a
purchase or sale order pending, or for which such trade is under consideration. In addition, those
trustees/directors, officers and employees that are principally involved in investment decisions
for client accounts are prohibited from purchasing or selling for their own account for a period of
seven days a security that has been traded for a client&#146;s account, unless such trade is executed on
more favorable terms for the client&#146;s account and it is determined that such trade will not
adversely affect the client&#146;s account. Short-term trading by such trustees/directors, officers and
employees for their own accounts in securities held by a Fund client&#146;s account is also restricted.
The above examples are subject to certain exceptions and they do not represent all of the trading
restrictions and policies set forth by the code of ethics. The code of ethics is on file with the
SEC and can be reviewed and copied at the SEC&#146;s Public Reference Room in Washington, D.C., and
information on the operation of the Public Reference Room may be obtained by calling the SEC at
(202)&nbsp;551-8090. The code of ethics is also available on the EDGAR Database on the SEC&#146;s Internet
site at http://www.sec.gov, and copies of the code of ethics may be obtained, after paying a
duplicating fee, by electronic request at the following E-mail address: publicinfo@sec.gov, or by
writing the SEC&#146;s Public Reference Room, Washington, D.C. 20549-0102.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Joint Code of Ethics for Chief Executive and Senior Financial Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund and the Investment Adviser have adopted a joint code of ethics that serves as a code
of conduct. The joint code of ethics sets forth policies to guide the chief executive and senior
financial officers in the performance of their duties. The code of ethics is on file with the SEC
and can be reviewed and copied at the SEC&#146;s Public Reference Room in Washington, D.C., and
information on the operation of the Public Reference Room may be obtained by calling the SEC at
202-551-8090. The code of ethics is also available on the EDGAR Database on the SEC&#146;s Internet site
(http://www.sec.gov), and copies of
</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">the code of ethics may be obtained, after paying a duplicating fee, by electronic request at the
following E-mail address: publicinfo@sec.gov, or by writing the SEC&#146;s Public Reference Room,
Washington, D.C. 20549-0102.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Statements</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The audited financial statements included in the annual report to the Fund&#146;s shareholders for
the year ended December&nbsp;31, 2010 and together with the report of PricewaterhouseCoopers LLP (&#147;PwC&#148;)
for the Fund&#146;s annual report, are incorporated herein by reference to the Fund&#146;s annual report to
shareholders. All other portions of the annual report to shareholders are not incorporated herein
by reference and are not part of the registration statement, the SAI, the Prospectus or any
Prospectus Supplement.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Independent Registered Public Accounting Firm</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">PwC serves as the Independent Registered Public Accounting Firm of the Fund and audits the
financial statements of the Fund. PwC is located at 300 Madison Avenue, New York, New York 10017.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="Y91816174"></A>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>APPENDIX A</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GAMCO INVESTORS, INC. AND AFFILIATES</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>THE VOTING OF PROXIES ON BEHALF OF CLIENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rules&nbsp;204(4)-2 and 204-2 under the Investment Advisers Act of 1940 and Rule&nbsp;30b1-4 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These procedures will be used by GAMCO Asset Management Inc., Gabelli Funds, LLC, Gabelli
Securities, Inc., and Teton Advisors, 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 to 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>I. Proxy Voting Committee</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Proxy Voting Committee was originally formed in April&nbsp;1989 for the purpose of formulating
guidelines and reviewing proxy statements within the parameters set by the substantive proxy voting
guidelines originally published in 1988 and updated periodically, a copy of which are appended as
Exhibit&nbsp;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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 &#038; 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)&nbsp;consistent with the recommendations of the issuer&#146;s Board of Directors and not contrary to the
Proxy Guidelines; (2)&nbsp;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)&nbsp;the vote is contrary to the
recommendations of the 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 &#038; 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)&nbsp;is controversial; (2)&nbsp;would benefit from
deliberation by the Proxy Voting Committee; or (3)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;Conflicts of Interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Advisers have implemented these proxy voting procedures in order to prevent conflicts of
interest from influencing their proxy voting decisions. By following the Proxy Guidelines, as well
as the recommendations of ISS, other third-party services and the analysts of Gabelli &#038; Company,
the Advisers are able to avoid, wherever possible, the influence of potential conflicts of
interest. Nevertheless, circumstances may arise in which one or more of the Advisers are faced with
a conflict of interest or the appearance of a conflict of interest in connection with its vote. In
general, a conflict of interest may arise when an Adviser knowingly does business with an issuer,
and may appear to have a material conflict between its own interests and
</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">the interests of the shareholders of an investment company managed by one of the Advisers regarding
how the proxy is to be voted. A conflict also may exist when an Adviser has actual knowledge of a
material business arrangement between an issuer and an affiliate of the Adviser.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In practical terms, a conflict of interest may arise, for example, when a proxy is voted for a
company that is a client of one of the Advisers, such as GAMCO Asset Management Inc. A conflict
also may arise when a client of one of the Advisers has made a shareholder proposal in a proxy to
be voted upon by one or more of the Advisers. The Director of Proxy Voting Services, together with
the Legal Department, will scrutinize all proxies for these or other situations that may give rise
to a conflict of interest with respect to the voting of proxies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;Operation of Proxy Voting Committee
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 &#038; Company, Inc.
analysts. The Chief Investment Officer or the Gabelli &#038; Company, Inc. analysts may be invited to
present their viewpoints. If the Director of Proxy Voting Services or the Legal Department believe
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 of 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 a
vote of 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;13D is appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>II. Social Issues and Other Client Guidelines</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>III. Client Retention of Voting Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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">
<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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operations</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Legal Department</TD>
</TR>




</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Proxy Department</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investment professional assigned to the account</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 statement together with any other relevant information including recommendations
of ISS or other third-party services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>IV. Voting Records</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Proxy Voting Department will retain a record of matters voted upon by the Advisers for
their clients. The Advisers will supply information on how an account voted its proxies upon
request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Adviser name&#093;
</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">Attn:</TD>
    <TD>&nbsp;</TD>
    <TD>Proxy Voting Department<BR>
One Corporate Center<BR>
Rye, New York 10580-1433</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sales assistant sends the letters to the custodians along with the trading/DTC
instructions. Proxy voting records will be retained in compliance with Rule&nbsp;204-2 under the
Investment Advisers Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>V. Voting Procedures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Custodian banks, outside brokerage firms and clearing firms are responsible for forwarding
proxies directly to the Advisers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proxies are received in one of two forms:
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Shareholder Vote Authorization Forms (&#147;VAFs&#148;)&#151;Issued by Broadridge Financial
Solutions, Inc. (&#147;Broadridge&#148;) VAFs must be voted through the issuing institution
causing a time lag. Broadridge is an outside service contracted by the various
institutions to issue proxy materials.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Proxy cards which may be voted directly.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Upon receipt of the proxy, the number of shares each form represents is logged into the
proxy system according to security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;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. Any 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 record date, the
custodian is requested to supply written verification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Upon receipt of instructions from the proxy committee (see Administrative), the votes are
cast and recorded for each account on an individual basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Records have been maintained on the Proxy Edge system. The system is backed up regularly.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-3<!-- /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">PROXY EDGE RECORDS INCLUDE:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Security Name and Cusip Number<BR>
Date and Type of Meeting (Annual, Special, Contest) Client Name<BR>
Adviser or Fund Account Number<BR>
Directors&#146; Recommendation<BR>
How GAMCO voted for the client on each issue

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Shareholder Vote Authorization Forms issued by Broadridge are always sent directly to a
specific individual at Broadridge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;If a proxy card or VAF is received too late to be voted in the conventional matter, every
attempt is made to vote on one of the following manners:
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>VAFs can be faxed to Broadridge up until the time of the meeting. This is
followed up by mailing the original form.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When a solicitor has been retained, the solicitor is called. At the solicitor&#146;s
direction, the proxy is faxed.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;In the case of a proxy contest, records are maintained for each opposing entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;Voting in Person
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;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">
<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Banks and brokerage firms using the services at Broadridge:</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The back of the VAF is stamped indicating that we wish to vote in person. The forms are then
sent overnight to Broadridge. Broadridge issues individual legal proxies and sends them back via
overnight (or the Adviser can pay messenger charges). A lead-time of at least two weeks prior to
the meeting is needed to do this. Alternatively, the procedures detailed below for banks not using
Broadridge may be implemented.
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Banks and brokerage firms issuing proxies directly:</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The bank is called and/or faxed and a legal proxy is requested.
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All legal proxies should appoint:</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;REPRESENTATIVE OF &#091;ADVISER NAME&#093; WITH FULL POWER OF SUBSTITUTION.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The legal proxies are given to the person attending the meeting along with the following
supplemental material:
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A limited Power of Attorney appointing the attendee an Adviser representative.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 and/or 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>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A sample ERISA and Individual contract.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A sample of the annual authorization to vote proxies form.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of our most recent Schedule&nbsp;13D filing (if applicable).</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-4<!-- /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"><B>Exhibit&nbsp;A</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Proxy Guidelines</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROXY VOTING GUIDELINES</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>GENERAL POLICY STATEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the policy of <B>GAMCO Investors, Inc. </B>to vote in the best economic interests of our
clients. As we state in our Magna Carta of Shareholders Rights, established in May&nbsp;1988, we are
neither <I>for </I>nor <I>against </I>management. We are for shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The advisers do not consider the election of the Board of Directors a routine issue. Each
slate of directors is evaluated on a case-by-case basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Factors taken into consideration include:
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Historical responsiveness to shareholders</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This may include such areas as:
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Paying greenmail</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Failure to adopt shareholder resolutions receiving a majority of shareholder votes</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Qualifications</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nominating committee in place</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Number of outside directors on the board</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Attendance at meetings</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Overall performance</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Selection of Auditors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, we support the Board of Directors&#146; recommendation for auditors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Blank Check Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We oppose the issuance of blank check preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Blank check preferred stock allows the company to issue stock and establish dividends, voting
rights, etc. without further shareholder approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Classified Board</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-5<!-- /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;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 case-by-case basis taking into consideration the board&#146;s historical responsiveness to
the rights of shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where a classified board is in place we will generally not support attempts to change to an
annually elected board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When an annually elected board is in place, we generally will not support attempts to classify
the board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Increase Authorized Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The request to increase the amount of outstanding shares is considered on a case-by-case
basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Factors taken into consideration include:
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Future use of additional shares</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock split</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock option or other executive compensation plan</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Finance growth of company/strengthen balance sheet</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aid in restructuring</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Improve credit rating</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Implement a poison pill or other takeover defense</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount of stock currently authorized but not yet issued or reserved for stock option plans</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount of additional stock to be authorized and its dilutive effect</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Confidential Ballot</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We support the idea that a shareholder&#146;s identity and vote should be treated with
confidentiality.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, we look at this issue on a case-by-case basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to promote confidentiality in the voting process, we endorse the use of independent
Inspectors of Election.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Cumulative Voting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, we support cumulative voting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where cumulative voting is in place, we will vote against any proposal to rescind this
shareholder right.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
case-by-case 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Director Liability and Indemnification</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-6<!-- /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: 12pt"><B>Equal Access to the Proxy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC&#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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Fair Price Provisions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We support fair price provisions because we feel all shareholders should be entitled to
receive the same benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reviewed on a case-by-case basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Golden Parachutes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Golden parachutes are severance payments to top executives who are terminated or demoted after
a takeover.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 them losing their job. We do not, however, support excessive golden parachutes.
Therefore, each proposal will be decided on a case-by-case basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Note: </I>Congress has imposed a tax on any parachute that is more than three times the
executive&#146;s average annual compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Anti-Greenmail Proposals</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We do not support greenmail. An offer extended to one shareholder should be extended to all
shareholders equally across the board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limit Shareholders&#146; Rights to Call Special Meetings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We support the right of shareholders to call a special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Consideration of Nonfinancial Effects of a Merger</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reviewed on a case-by-case basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Mergers, Buyouts, Spin-Offs, Restructurings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the above is considered on a case-by-case basis. According to the 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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Military Issues</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholder proposals regarding military production must be evaluated on a purely economic set
of criteria for our <B>ERISA </B>clients. As such, decisions will be made on a case-by-case basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In voting on this proposal for our non-<B>ERISA </B>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>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-7<!-- /Folio -->
</DIV>

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<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: 12pt"><B>Northern Ireland</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholder proposals requesting the signing of the MacBride principles for the purpose of
countering the discrimination of Catholics in hiring practices must be evaluated on a purely
economic set of criteria for our <B>ERISA </B>clients. As such, decisions will be made on a case-by-case
basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In voting on this proposal for our non-<B>ERISA </B>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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Opt Out of State Anti-Takeover Law</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consider this on a case-by-case basis. Our decision will be based on the following:
</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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>State of Incorporation</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Management history of responsiveness to shareholders</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other mitigating factors</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Poison Pill</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, we do not endorse poison pills.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reincorporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stock Option Plans</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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">
<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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dilution of voting power or earnings per share by more than 10%</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Kind of stock to be awarded, to whom, when and how much</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Method of payment</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount of stock already authorized but not yet issued under existing stock option plans</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Supermajority Vote Requirements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. Supermajority requirements often exceed the average level of
shareholder participation. We support proposals&#146; approvals by a simple majority of the shares
voting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limit Shareholders Right to Act By Written Consent</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
proposed action at a shareholder meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reviewed on a case-by-case basis.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-8<!-- /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"><B>PART C &#151; OTHER INFORMATION</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;25. Financial Statements and Exhibits</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Financial Statements
</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="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>None</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="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Part&nbsp;A</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>None</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Part&nbsp;B</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following statements of the Registrant are incorporated by reference in Part&nbsp;B of the Registration Statement:</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Schedule of Investments at December&nbsp;31, 2010</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Statement of Assets and Liabilities as of December&nbsp;31, 2010</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Statement of Operations for the Year Ended December&nbsp;31, 2010</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Statement of Changes in Net Assets for the Year Ended December&nbsp;31, 2010</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notes to Financial Statements for the Year Ended December&nbsp;31, 2010</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Report of Independent Registered Public Accounting Firm for the Year Ended December&nbsp;31, 2010</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Exhibits
</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="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">(a)(i)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles of Incorporation (2)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(ii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles Supplementary for the Series&nbsp;C Auction Rate Cumulative Preferred Stock (4)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(iii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles Supplementary for the 5.875% Series&nbsp;D Cumulative Preferred Stock (5)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(iv)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles Supplementary for the Series&nbsp;E Auction Rate Cumulative Preferred Stock (5)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(v)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles Supplementary for the 6.20% Series&nbsp;F Cumulative Preferred Stock (8)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(vi)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles Supplementary for election to be subject to Section&nbsp;3-804(c) of the Maryland General Corporation Law(10)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(vii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles of Amendment dated May&nbsp;12, 2004 to the Articles of Incorporation (6)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(viii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles of Amendment dated September&nbsp;12, 2005 to the Articles of Incorporation (7)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(ix)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles of Amendment dated May&nbsp;29, 2009 to the Articles Supplementary for the Series&nbsp;C Auction Rate Cumulative Preferred Stock (11)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(x)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles of Amendment dated May&nbsp;29, 2009 to the Articles Supplementary for the 5.875% Series&nbsp;D Cumulative Preferred Stock (11)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(xi)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles of Amendment dated May&nbsp;29, 2009 to the Articles Supplementary for the Series&nbsp;E Auction Rate Cumulative Preferred Stock (11)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(a)(xii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Articles of Amendment dated May&nbsp;29, 2009 to the Articles Supplementary for the 6.20% Series&nbsp;F Cumulative Preferred Stock (11)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(b)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Amended and Restated By-Laws of Registrant (9)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(c)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Not applicable</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(d)(i)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of certificate for Common Stock, par value $.001 per share (1)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(d)(ii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Series&nbsp;C Auction Rate Cumulative Preferred Stock (4)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(d)(iii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.875% Series&nbsp;D Cumulative Preferred Stock (5)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(d)(iv)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Series&nbsp;E Auction Rate Cumulative Preferred Stock (5)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(e)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Automatic Dividend Reinvestment and Voluntary Cash Purchase Plan of The Gabelli Equity Trust Inc. (the &#147;Registrant&#148;) (2)</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->C-1<!-- /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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(f)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Not applicable</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(g)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Investment Advisory Agreement between Registrant and Gabelli Funds, LLC (the &#147;Investment Adviser&#148;) (1)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(h)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Underwriting Agreement (12)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(i)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Not applicable</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(j)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Custodian Contract between Registrant and The Bank of New York Mellon (10)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(k)(i)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Transfer Agency and Service Agreement among Registrant,
Computershare Trust Company, N.A. and Computershare Inc. (10)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(k)(ii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fee and Service Schedule for Stock Transfer Services among Registrant, Computershare Trust
Company, N.A. and Computershare Inc. (10)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(k)(iii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Auction Agency Agreement for the Series&nbsp;C Auction Rate Cumulative Preferred Stock (4)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(k)(iv)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Auction Agency Agreement for the Series&nbsp;E Auction Rate Cumulative Preferred Stock (5)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(k)(v)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Broker-Dealer Agreement for the Series&nbsp;C Auction Rate Cumulative Preferred Stock (4)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(k)(vi)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Broker-Dealer Agreement for the Series&nbsp;E Auction Rate Cumulative Preferred Stock (5)</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(l)(i)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Opinion and Consent of Venable LLP (11)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(m)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Not applicable</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(n)(i)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of Independent Registered Public Accounting Firm (11)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(n)(ii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Power of Attorney (11)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(o)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Not applicable</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(p)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Not applicable</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">(q)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Not applicable</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(r)(i)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Code of Ethics of the Investment Adviser and of the Registrant (10)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" valign="top">(r)(ii)
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Joint Code of Ethics of the Investment Adviser and of the Registrant for Chief Executive and Senior Financial Officers of the Gabelli Funds (10)</DIV></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s Pre-Effective
Amendment No.&nbsp;1 to the Registrant&#146;s Registration Statement on
Form N-2 (File Nos. 033-62323 and 811-04700) as filed with the
Securities and Exchange Commission on October&nbsp;13, 1995.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s Pre-Effective
Amendment No.&nbsp;2 to the Registrant&#146;s Registration Statement on
Form N-2 (File Nos. 33 3-45951 and 811-04700) as filed with the
Securities and Exchange Commission on April&nbsp;7, 1998.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s Pre-Effective
Amendment No.&nbsp;2 to the Registrant&#146;s Registration Statement on
Form N-2 (File Nos. 333-47012 and 811-04700) as filed with the
Securities and Exchange Commission on December&nbsp;1, 2000.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s Pre-Effective
Amendment No.&nbsp;3 to the Registrant&#146;s Registration Statement on
Form N-2 (File Nos. 333-86554 and 811-04700) as filed with the
Securities and Exchange Commission on June&nbsp;25, 2002.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->C-2<!-- /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">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s
Pre-Effective Amendment No.&nbsp;2 to the
Registrant&#146;s Registration Statement on Form N-2
(File Nos. 333-106081 and 811-04700) as filed
with the Securities and Exchange Commission on
October&nbsp;1, 2003.</TD>
</TR>
<TR><TD><FONT size="1">

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s
Registration Statement on Form N-14 (File No.
333-126111) as filed with the Securities and
Exchange Commission on June&nbsp;24, 2005.</TD>
</TR>
<TR><TD><FONT size="1">

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s
Pre-Effective Amendment No.&nbsp;1 to the
Registrant&#146;s Registration Statement on Form N-2
(File Nos. 333-127724 and 811-04700) as filed
with the Securities and Exchange Commission on
September&nbsp;15, 2005.</TD>
</TR>
<TR><TD><FONT size="1">

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s
Pre-Effective Amendment No.&nbsp;2 to the
Registrant&#146;s Registration Statement on Form N-2
(File Nos. 333-137298 and 811-04700) as filed
with the Securities and Exchange Commission on
November&nbsp;6, 2006.</TD>
</TR>
 <TR><TD><FONT size="1">

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s
filing on Form 8-K (File No.&nbsp;811-04700) as
filed with the Securities and Exchange
Commission on December&nbsp;9, 2010.</TD>
</TR>
 <TR><TD><FONT size="1">

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to the Registrant&#146;s
Registration Statement on Form N-2 (File Nos.
333-173819 and 811-04700) as filed with the
Securities and Exchange Commission on April&nbsp;29,
2011.</TD>
</TR>
 <TR><TD><FONT size="1">

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

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD>Filed herewith.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(12)</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed by amendment.</TD>
</TR>

</TABLE>




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;26. Marketing Arrangements</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained under the heading &#147;Plan of Distribution&#148; on page 49 of the
Prospectus is incorporated by reference, and any information concerning any underwriters will be
contained in the accompanying Prospectus Supplement, if any.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;27. Other Expenses of Issuance and Distribution</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the estimated expenses to be incurred in connection with the
offering described in this Registration Statement:
</DIV>

<DIV align="left"><FONT size="1">

</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="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></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounting fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NYSE listing fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rating agency fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEC registration fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">107,300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">750,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;28. Persons Controlled by or Under Common Control with Registrant</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->C-3<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;29. Number of Holders of Securities as of March&nbsp;31, 2011:</B>
</DIV>
<DIV align="left"><FONT size="1">

</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Class of Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Record Holders</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,316</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;C Auction Rate Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;D Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;E Auction Rate Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Series&nbsp;F Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;30. Indemnification</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Article&nbsp;VI of the Registrant&#146;s Amended and Restated Bylaws provides as follows:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ARTICLE VI
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">INDEMNIFICATION, ADVANCE OF EXPENSES AND INSURANCE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SECTION 1. Indemnification of Directors and Officers. Any person who was or is a party or is
threatened to be made a party in any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of the fact that such person is
a current or former director or officer of the Corporation, or is or was serving while a director
or officer of the Corporation at the request of the Corporation as a director, officer, partner,
trustee, employee, agent or fiduciary of another corporation, partnership, joint venture, trust,
enterprise or employee benefit plan, shall be indemnified by the Corporation against judgments,
penalties, fines, excise taxes, settlements and reasonable expenses (including attorneys&#146; fees)
actually incurred by such person in connection with such action, suit or proceeding to the full
extent permissible under the MGCL, the Securities Act of 1933, as amended, and the Investment
Company Act, as those statutes are now or hereafter in force, except that such indemnity shall not
protect any such person against any liability to the Corporation or any stockholder thereof to
which such person would otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of his office (&#147;disabling
conduct&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SECTION 2. Advances. Any current or former director or officer of the Corporation claiming
indemnification within the scope of this Article&nbsp;VI shall be entitled to advances from the
Corporation for payment of the reasonable expenses incurred by him or her in connection with
proceedings to which he or she is a party in the manner and to the full extent permissible under
the MGCL, the Securities Act of 1933, as amended, and the Investment Company Act, as those statutes
are now or hereafter in force; provided, however, that the person seeking indemnification shall
provide to the Corporation a written affirmation of his good faith belief that the standard of
conduct necessary for indemnification by the Corporation has been met and a written undertaking to
repay any such advance, if it should ultimately be determined that the standard of conduct has not
been met, and provided further that at least one of the following additional conditions is met: (a)
the person seeking indemnification shall provide a security in form and amount acceptable to the
Corporation for his undertaking; (b)&nbsp;the Corporation is insured against losses arising by reason of
the advance; or (c)&nbsp;a majority of a quorum of directors of the Corporation who are neither
&#147;interested persons&#148; as defined in Section&nbsp;2(a)(19) of the Investment Company Act, nor parties to
the proceeding (&#147;disinterested non-party directors&#148;), or independent legal counsel, in a written
opinion, shall determine, based on a review of facts readily available to the Corporation at the
time the advance is proposed to be made, that there is reason to believe that the person seeking
indemnification will ultimately be found to be entitled to indemnification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SECTION 3. Procedure. At the request of any current or former director or officer, or any
employee or agent whom the Corporation proposes to indemnify, the Board of Directors shall
determine, or cause to be determined, in a manner consistent with the MGCL, the Securities Act of
1933, as amended, and the Investment Company Act, as those statutes are now or hereafter in force,
whether the standards required by this Article&nbsp;V have been met; provided, however, that
indemnification shall be made only following: (a)&nbsp;a final decision on the merits by a court or
other body before whom the proceeding was brought that the person to be indemnified was not liable
by reason of disabling conduct or (b)&nbsp;in the absence of such a decision, a reasonable
determination, based upon a review of the facts, that the person to be indemnified was not liable
by reason of disabling conduct, by (i)&nbsp;the vote of a majority of a quorum of disinterested
non-party directors or (ii)&nbsp;an independent legal counsel in a written opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SECTION 4. Indemnification of Employees and Agents. Employees and agents who are not officers or
directors of the Corporation may be indemnified, and reasonable expenses may be advanced to such
employees or agents, in accordance with the procedures set forth in this Article&nbsp;V to the extent
permissible under the MGCL, the Securities Act of 1933, as amended, and the Investment Company Act,
as those statutes are now or hereafter in force, and to such further extent, consistent with the
foregoing, as may be provided by action of the Board of Directors or by contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SECTION 5. General; Other Rights. The rights to indemnification and advance of expenses provided
by the Charter and these Bylaws shall vest immediately upon election of a director or officer.
Neither the amendment nor repeal of this Article,
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->C-4<!-- /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">nor the adoption or amendment of any other
provision of the Charter or these Bylaws inconsistent with this Article, shall apply to or affect
in any respect the applicability of the preceding paragraph with respect to any act or failure to
act which occurred prior to such amendment, repeal or adoption. The indemnification provided by
this Article&nbsp;VI shall not be deemed exclusive of any other right, with respect to indemnification
or otherwise, to which those seeking such indemnification may be entitled under any insurance or
other agreement, vote of stockholders or disinterested directors or otherwise, both as to action by
a director or officer of the Corporation in his official capacity and as to action by such person
in another capacity while holding such office or position, and shall continue as to a person who
has ceased to be a director or officer and shall inure to the benefit of the heirs, executors and
administrators of such a person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SECTION 6. Insurance. The Corporation shall have the power to purchase and maintain insurance on
behalf of any person who is or was a director, officer, employee or agent of the Corporation, or
who, while a director, officer, employee or agent of the Corporation, is or was serving at the
request of the Corporation as a director, officer, partner, trustee, employee, agent or fiduciary
of another corporation, partnership, joint venture, trust, enterprise or employee benefit plan,
against any liability asserted against and incurred by him or her in any such capacity, or arising
out of his or her status as such, and reasonable expenses incurred by him or her in connection with
proceedings to which he or she is made a party, provided that no insurance may be obtained by the
Corporation for liabilities against which the Corporation is specifically prohibited from
indemnifying him or her under this Article&nbsp;VI or applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Section&nbsp;5 of the Registrant&#146;s Investment Advisory Agreement provides as follows:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. Standard of Care
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Advisor shall exercise its best judgment in rendering the services described in paragraphs
2 and 3 above. The Advisor shall not be liable for any error of judgment or mistake of law or for
any loss suffered by the Fund in connection with the matters of which this Agreement relates,
provided that nothing in this paragraph shall be deemed to protect or purport to protect the
Advisor against any liability to the Fund or to its shareholders to which the Advisor would
otherwise be subject by reason of willful misfeasance, bad faith or gross negligence on its part in
the performance of its duties or by reason of the Advisor&#146;s reckless disregard of its obligations
and duties under this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;31. Business and Other Connections of Investment Adviser</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;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&nbsp;ADV of the
Investment Adviser filed with the SEC pursuant to the 1940 Act (Commission File No.&nbsp;801-37706).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;32. Location of Accounts and Records</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 10580-1422, in part at the offices of the
Registrant&#146;s custodian, The Bank of New York Mellon Corporation, 135 Santilli Highway, Everett,
Massachusetts 02149, in part at the offices of the Registrant&#146;s sub-administrator, BNY Mellon
Investment Servicing (US)&nbsp;Inc., 400 Bellevue Parkway, Wilmington, Delaware, 19809, and in part at
the offices of Computershare Trust Company, N.A., 250 Royall Street, Canton, Massachusetts 02021.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;33. Management Services</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;34. Undertakings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Not applicable.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->C-5<!-- /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">4. Registrant undertakes:
</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="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to file, during and period in which offers or sales are being made, a post-effective
amendment to this Registration Statement:</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act;</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="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to reflect in the prospectus any facts or events after the effective date of
the Registration Statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the Registration Statement; 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to include any material information with respect to the plan of distribution
not previously disclosed in the Registration Statement or any material
change to such information in the Registration Statement.</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that for the purpose of determining any liability under the Securities Act, each
post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof;</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="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering; 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="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that, for the purpose of determining liability under the Securities Act to any purchaser, if
the Registrant is subject to Rule&nbsp;430C: Each prospectus filed pursuant to Rule&nbsp;497(b), (c),
(d)&nbsp;or (e)&nbsp;under the Securities Act as part of a registration statement relating to an
offering, other than prospectuses filed in reliance on Rule&nbsp;430A under the Securities Act
shall be deemed to be part of and included in the registration statement as of the date it
is first used after effectiveness. <I>Provided, however, </I>that no statement made in a
registration statement or prospectus that is part of the registration or made in a document
incorporated or deemed incorporated by reference into the registration statement or
prospectus that is part of the registration statement will, as to a purchaser with a time of
contract of sale prior to such first use, supersede or modify any statement that was made in
the registration statement or prospectus that was part of the registration statement or made
in any such document immediately prior to such date of first use.</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="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that for the purpose of determining liability of the Registrant under the Securities Act to
any purchaser in the initial distribution of securities:</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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The undersigned Registrant undertakes that in a primary offering of securities of the
undersigned Registrant pursuant to this registration statement, regardless of the
underwriting method used to sell the securities to the purchaser, if the securities are
offered or sold to such purchaser by means of any of the following communications, the
undersigned Registrant will be a seller to the purchaser and will be considered to offer or
sell such securities to the purchaser:</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any preliminary prospectus or prospectus of the undersigned Registrant
relating to the offering required to be filed pursuant to Rule&nbsp;497 under
the Securities Act.</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="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the portion of any advertisement pursuant to Rule&nbsp;482 under the Securities
Act relating to the offering containing material information about the
undersigned Registrant or its securities provided by or on behalf of the
undersigned Registrant; 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other communication that is an offer in the offering made by the
undersigned Registrant to the purchaser.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. Registrant undertakes:
</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="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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&nbsp;430A and contained in the form of
prospectus filed by the Registrant pursuant to Rule 497(h)
will be deemed to be a part of the Registration Statement
as of the time it was declared effective.</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="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->C-6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;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&nbsp;B of this Registration Statement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->C-7<!-- /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"><B>SIGNATURES</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As required by the Securities Act of 1933, as amended, the Registrant has duly caused this
Registration Statement on Form N-2 to be signed on its behalf by the undersigned, in the City of
Rye, State of New York, on the 22<SUP style="FONT-size: 85%; vertical-align: text-top">nd</SUP> day of June, 2011.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">THE GABELLI EQUITY TRUST INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Bruce N. Alpert
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Bruce N. Alpert&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President and Principal Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As required by the Securities Act of 1933, as amended, this Form N-2 has been signed below by
the following persons in the capacities set forth below on the 22<SUP style="FONT-size: 85%; vertical-align: text-top">nd</SUP> day of June, 2011.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>



<DIV align="left"><FONT size="1">

</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="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>NAME</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>TITLE</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:15px; text-indent:-15px">/s/<FONT style="FONT-variant: SMALL-CAPS"> Thomas E. Bratter*</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Thomas E. Bratter</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/<FONT style="FONT-variant: SMALL-CAPS"> Anthony J. Colavita*</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Anthony J. Colavita</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/<FONT style="FONT-variant: SMALL-CAPS"> James P. Conn*</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">James P. Conn</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/<FONT style="FONT-variant: SMALL-CAPS"> Frank J. Fahrenkopf, Jr.*</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Frank J. Fahrenkopf, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/<FONT style="FONT-variant: SMALL-CAPS"> Arthur V. Ferrara*</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Arthur V. Ferrara</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/<FONT style="FONT-variant: SMALL-CAPS"> Anthony R. Pustorino*</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Anthony R. Pustorino</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/<FONT style="FONT-variant: SMALL-CAPS"> Salvatore J. Zizza*</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Salvatore J. Zizza</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/<FONT style="FONT-variant: SMALL-CAPS"> Agnes Mullady</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Treasurer and Principal Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Agnes Mullady</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">/s/<FONT style="FONT-variant: SMALL-CAPS"> Bruce N. Alpert</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Attorney-in-Fact</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Bruce N. Alpert</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Pursuant to a Power of Attorney</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->C-8<!-- /Folio -->
</DIV>

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<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"><B>EXHIBIT INDEX</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="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Exhibit Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 0px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-.99 (a)(ix)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Articles of Amendment dated May&nbsp;29, 2009 to the Articles
Supplementary for the Series&nbsp;C Auction Rate Cumulative
Preferred Stock</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></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>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-.99 (a)(x)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Articles of Amendment dated May&nbsp;29, 2009 to the Articles
Supplementary for the 5.875% Series&nbsp;D Cumulative Preferred
Stock</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></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>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-.99 (a)(xi)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Articles of Amendment dated May&nbsp;29, 2009 to the Articles
Supplementary for the Series&nbsp;E Auction Rate Cumulative
Preferred Stock</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></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>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-.99 (a)(xii)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Articles of Amendment dated May&nbsp;29, 2009 to the Articles
Supplementary for the 6.20% Series&nbsp;F Cumulative Preferred
Stock</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></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>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-.99 (l)(i)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion and Consent of Venable LLP</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></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>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-.99 (n)(i)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Independent Registered Public Accounting Firm</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></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>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-.99 (n)(ii)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->C-9<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A.IX
<SEQUENCE>2
<FILENAME>y91816exv99wawix.htm
<DESCRIPTION>EX-99.A.IX
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wawix</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99 (a)(ix)
</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">ARTICLES OF AMENDMENT TO THE<BR>
ARTICLES SUPPLEMENTARY<BR>
CREATING AND FIXING THE RIGHTS OF<BR>
SERIES C AUCTION RATE CUMULATIVE PREFERRED STOCK
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gabelli Equity Trust Inc., a Maryland corporation (hereinafter called the &#147;Corporation&#148;),
hereby certifies to the State Department of Assessments and Taxation of the State of Maryland that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST: Article&nbsp;I.3(b) of the Articles Supplementary Creating and Fixing the Rights of Series&nbsp;C
Auction Rate Cumulative Preferred Stock (&#147;Articles Supplementary&#148;) is hereby amended by deleting it
in its entirety and inserting in lieu thereof the following:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;In the event of a redemption of Series&nbsp;C Preferred Shares pursuant to paragraph 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 Rule&nbsp;23c-2
under the 1940 Act or any successor provision (such Rule&nbsp;23c-2 notice shall be provided to S&#038;P as
soon as practicable after the notice is filed with the Commission so long as S&#038;P is rating the
Series&nbsp;C Preferred Shares at the Corporation&#146;s request). In addition, the Corporation shall
deliver a notice of redemption to the Auction Agent (the &#147;Notice of Redemption&#148;) containing the
information set forth below (i)&nbsp;in the case of an optional redemption pursuant to paragraph 3(a)(i)
above, one Business Day prior to the giving of notice to the Holders and (ii)&nbsp;in the case of a
mandatory redemption pursuant to paragraph 3(a)(ii) above, on or prior to the 10th day preceding
the Mandatory Redemption Date. The Auction Agent will use its reasonable efforts to provide
telephonic, electronic or written notice to each Holder of any Series&nbsp;C Preferred Shares 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&nbsp;C Preferred Shares at their addresses appearing on the share records of the
Corporation. Such Notice of Redemption will set forth (t)&nbsp;the date fixed for redemption, (u)&nbsp;the
number and identity of Series&nbsp;C Preferred Shares to be redeemed, (v)&nbsp;the CUSIP number(s) of such
shares, (w)&nbsp;the Redemption Price (specifying the amount of accumulated dividends to be included
therein), (x)&nbsp;the place or places where such shares are to be redeemed, (y)&nbsp;that dividends on the
shares to be redeemed will cease to accumulate on such date fixed for redemption, and (z)&nbsp;the
provision under which redemption shall be made. 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. If fewer than all Series&nbsp;C Preferred Shares held by any Holder are to
be redeemed, the Notice of
</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>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Redemption mailed to such Holder shall also specify the number of Series&nbsp;C Preferred Shares to be
redeemed from such Holder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND: Article&nbsp;I.9(a) of the Articles Supplementary is hereby amended by deleting it in its
entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Determination of Compliance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For so long as any Series&nbsp;C Preferred Shares are Outstanding, the Corporation shall make the
following determinations:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;1940 Act Asset Coverage as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;As of each Valuation Date, the Corporation shall determine whether the 1940 Act Asset
Coverage is met as of that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;The Corporation shall deliver to the Auction Agent and each Rating Agency a 1940 Act Asset
Coverage Certificate which sets forth the determination of paragraph 9(a)(i)(A) above (1)&nbsp;as of the
Date of Original Issue and, thereafter, (2)&nbsp;as of (x)&nbsp;the last Business Day of each March, June,
September and December and (y)&nbsp;a Business Day on or before any 1940 Act Asset Coverage Cure Date
following a failure to meet 1940 Act Asset Coverage. Such 1940 Act Asset Coverage Certificate
shall be delivered in the case of clause (1)&nbsp;on the Date of Original Issue and in the case of
clause (2)&nbsp;on or before the seventh Business Day after the last Business Day of such March, June,
September and December, as the case may be, or the relevant Cure Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Series&nbsp;C Preferred Basic Maintenance Amount as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;For so long as Series&nbsp;C Preferred Shares are rated by Moody&#146;s and/or S&#038;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 Series&nbsp;C Preferred Basic Maintenance Amount, as of
such Valuation Date. Upon any failure to maintain Eligible Assets having an Adjusted Value at
least equal to the Series&nbsp;C Preferred 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 Series&nbsp;C Preferred Basic Maintenance Amount on or prior to the Series&nbsp;C Preferred
Basic Maintenance Amount Cure Date, by altering the composition of its portfolio or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;On or before 5:00 P.M., New York City time, on the third Business Day after a Valuation
Date on which the Corporation fails to satisfy the Series&nbsp;C Preferred Basic Maintenance Amount, and
on the third Business Day after the Series&nbsp;C Preferred Basic Maintenance Cure Date with respect to
such Valuation Date, the Corporation shall complete and deliver to each Rating Agency and the
Auction Agent (if either S&#038;P or Moody&#146;s is then rating the Series&nbsp;C Preferred Shares at the
Corporation&#146;s request) a Series&nbsp;C Preferred Basic Maintenance Report as of the date of such failure
or such Series&nbsp;C Preferred Basic Maintenance Cure Date, as the case may be, which will be deemed to
have been delivered to such Rating Agency or the Auction Agent, as the case may be, if such Rating
Agency or the Auction Agent
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /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">receives a copy or facsimile or other electronic transcription or transmission thereof (via
facsimile or electronic mail solely in the case of S&#038;P if S&#038;P is then rating the Series&nbsp;C Preferred
Shares at the Corporation&#146;s request) and on the same day the Corporation mails or sends to such
Rating Agency or the Auction Agent for delivery on the next Business Day the full Series&nbsp;C
Preferred Basic Maintenance Report. The Corporation shall also deliver a Series&nbsp;C Preferred Basic
Maintenance Report to (1)&nbsp;S&#038;P, during each of the first twelve months the Series&nbsp;C Preferred Shares
are Outstanding, and the Auction Agent (if either Moody&#146;s or S&#038;P is then rating the Series&nbsp;C
Preferred Shares at the Corporation&#146;s request) as of (a)&nbsp;the fifteenth day of each month (or, if
such day is not a Business Day, the next succeeding Business Day) and (b)&nbsp;the last Business Day of
each month and (2)&nbsp;Moody&#146;s and S&#038;P as of each Valuation Date, in each case on or before the fifth
Business Day after such day, (3)&nbsp;upon reasonable request by such Rating Agency and (4)&nbsp;any day the
Common Shares and Series&nbsp;C Preferred Shares are redeemed. A failure by the Corporation to deliver
a Series&nbsp;C Preferred Basic Maintenance Report pursuant to the preceding sentence shall be deemed to
be delivery of a Series&nbsp;C Preferred Basic Maintenance Report indicating the Discounted Value for
all assets of the Corporation is less than the Series&nbsp;C Preferred Basic Maintenance Amount, as of
the relevant Valuation Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;As soon as practicable after the last Valuation Date of each fiscal year of the
Corporation on which a Series&nbsp;C Preferred Basic Maintenance Report is required to be delivered, the
Corporation will deliver to Moody&#146;s, S&#038;P and the Auction Agent (if either S&#038;P or Moody&#146;s is then
rating the Series&nbsp;C Preferred Shares at the Corporation&#146;s request) an Accountant&#146;s Confirmation
regarding the accuracy of the calculations made by the Corporation in such Series&nbsp;C Preferred Basic
Maintenance Report. The Corporation also shall cause the Independent Accountant to provide an
Accountant&#146;s Confirmation to S&#038;P if and when requested by S&#038;P for any Valuation Date, as soon as
practicable after such request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;If any Accountant&#146;s Confirmation delivered pursuant to paragraph (C)&nbsp;of this Section&nbsp;9
(a)(ii) shows an error was made in the Series&nbsp;C Preferred Basic Maintenance Report with respect to
such Series&nbsp;C Preferred Basic Maintenance Amount Cure Date, or does not agree with the
Corporation&#146;s calculation of the Series&nbsp;C Preferred 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 Series&nbsp;C Preferred Basic Maintenance Report
to the relevant Rating Agency and the Auction Agent (if either S&#038;P or Moody&#146;s is then rating the
Series&nbsp;C Preferred Shares) promptly following receipt by the Corporation of such Accountant&#146;s
Confirmation. If any Accountant&#146;s Confirmation shows that an error was made in any such report,
the calculation or determination made by the Corporation&#146;s Independent Accountant will be
conclusive and binding on the Corporation; provided, however, any errors shown in the Accountant&#146;s
Confirmation filed on an annual basis shall not be deemed to be a failure to maintain the Series&nbsp;C
Preferred Basic Maintenance Amount on any prior Valuation Dates. The Accountant&#146;s Confirmations
referred to above will confirm, based on the Independent Accountant&#146;s review, (i)&nbsp;the mathematical
accuracy of the calculations reflected in the Series&nbsp;C Preferred Basic Maintenance Amount and (ii)
that the Corporation determined whether the Corporation had, at such Valuation Date,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Eligible Assets with an aggregate Discounted Value at least equal to the Series&nbsp;C Preferred
Basic Maintenance Amount in accordance with these Articles Supplementary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;The Corporation will provide S&#038;P annually a copy of its pricing procedures used in
determining the Market Value of the Corporation&#146;s assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;On or before 5:00 p.m., New York City time, on the fifth Business Day after the Date of
Original Issue of Series&nbsp;C Preferred Shares, the Corporation shall complete and deliver to each
Rating Agency a Series&nbsp;C Preferred Basic Maintenance Report as of the close of business on such
Date of Original Issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)&nbsp;On or before 5:00 p.m., New York City time, on the third Business Day after either (1)&nbsp;the
Corporation shall have redeemed Series&nbsp;C Preferred Shares or (2)&nbsp;the ratio of the Discounted Value
of Eligible Assets in respect of any Rating Agency to the Series&nbsp;C Preferred Basic Maintenance
Amount is less than or equal to 110%, the Corporation shall complete and deliver in electronic
format to, in the case of clause (1), each Rating Agency, or, in the case of clause (2), any
relevant Rating Agency, a Series&nbsp;C Preferred Basic Maintenance Report as of the date of either such
event.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD: Article&nbsp;I.11(b)(iv) of the Articles Supplementary is hereby amended by deleting it in
its entirety and inserting in lieu thereof the following:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(iv)&nbsp;utilize any pricing service other than FT Interactive Data, Reuters, Telekurs, Bloomberg
Financial Markets, J.J. Kenny Pricing Service, Merrill Lynch Securities Pricing Service or Bridge
Data Corp, Bear Stearns Pricing Direct and any pricing service then permitted by S&#038;P; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;&#145;AA&#146; Financial Composite Commercial Paper Rate&#148; </B>in its entirety and inserting in
lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;&#145;AA&#146; Financial Composite Commercial Paper Rate&#148; </B>on any date means:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(i)&nbsp;the interest equivalent of the 7-day rate, in the case of a Dividend Period of seven days or
shorter; for Dividend Periods greater than 7&nbsp;days but fewer than or equal to 31&nbsp;days, the 30-day
rate; for Dividend Periods greater than 31&nbsp;days but fewer than or equal to 61&nbsp;days, the 60-day
rate; for Dividend Periods greater than 61&nbsp;days but fewer than or equal to 91&nbsp;days, the 90&nbsp;day
rate; for Dividend Periods greater than 91&nbsp;days but fewer than or equal to 270&nbsp;days, the rate
described in (ii)&nbsp;below; for Dividend Periods greater than 270&nbsp;days, the Treasury Index Rate; on
commercial paper on behalf of issuers whose corporate bonds are rated &#147;AA&#148; by S&#038;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)&nbsp;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
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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) &#147;Commercial Paper Dealers&#148; shall mean (1)&nbsp;Salomon Smith Barney
Inc., Merrill Lynch, Pierce, Fenner &#038; Smith Incorporated and Goldman Sachs &#038; Co.; (2)&nbsp;in lieu of
any thereof, its respective Affiliate or successor, and (3)&nbsp;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) &#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)&nbsp;such rate
expressed as a decimal, divided by (2)&nbsp;the difference between (x)&nbsp;1.00 and (y)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the definition
of <B>&#147;Advance Rate&#148; </B>in its entirety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;ADRs&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;ADRs&#148; </B>means U.S. dollar-denominated American Depository Receipts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Agency Mortgage Collateral&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Agency Mortgage Collateral&#148; </B>means certificates guaranteed by U.S. Government Agencies (<I>e.g.,</I>
Federal National Mortgage Association (&#147;FNMA&#148;), Government National Mortgage Association (&#147;GNMA&#148;)
and Federal Home Loan Mortgage Corporation (&#147;FHLMC&#148;)) for timely payment of interest and full and
ultimate payment of principal. Agency Mortgage Collateral also evidences undivided interests in
pools of level-payment, fixed, variable, or adjustable rate, fully amortizing loans that are
secured by first liens on one- to four-family residences residential properties (or in the case of
Plan B FHLMC certificates, five or more units primarily designed for residential use).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EIGHTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Auction Agent&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Auction Agent&#148; </B>means The Bank of New York Mellon 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Bank Loans&#148;</B>:
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Bank Loans&#148; </B>means direct purchases of, assignments of, participations in and other interests
in (a)&nbsp;any bank loan or (b)&nbsp;any loan made by an investment bank, investment fund or other financial
institution, provided that such loan under this clause (b)&nbsp;is similar to those typically made,
syndicated, purchased or participated by a commercial bank or institutional loan investor in the
ordinary course of business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Business Development Company&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Business Development Company&#148; </B>(BDCs) means a type of closed-end fund regulated under the 1940
Act whose shares are typically listed for trading on a U.S. securities exchange. BDCs are
publicly-traded funds that typically invest in and lend to small and medium-sized private and
certain public companies that may not have access to public equity markets for capital raising.
BDCs invest in such diverse industries as healthcare, chemical and manufacturing, technology and
service companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ELEVENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Collateralized Mortgage Obligations&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Collateralized Mortgage Obligations&#148; </B>means publicly issued instruments rated &#145;AAA&#146; by S&#038;P.
No more than 25% of the total market value of collateral may be from one private sector issuer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWELFTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Conventional Mortgage&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Conventional Mortgage&#148; </B>means a mortgage in which the interest rate does not change during the
entire term of the loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Convertible Corporate Indebtedness&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Convertible Corporate Indebtedness&#148; </B>means evidences of indebtedness other than Deposit
Securities, U.S. Government Securities and Municipal Obligations that are convertible into or
exchangeable or exercisable for stock of a corporation and that satisfy the following conditions:
(i)&nbsp;such evidence of indebtedness is rated at least CCC by S&#038;P; and (ii)&nbsp;if such evidence of
indebtedness is rated BBB or lower by S&#038;P, the market capitalization of the issuer of such evidence
of indebtedness is at least $100&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Date of Original Issue&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Date of Original Issue&#148; </B>means with respect to any share of Series&nbsp;C Preferred Shares, the
date on which the Corporation originally issues such share.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Discount Factor&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Discount Factor&#148; </B>means (a)&nbsp;so long as each of Moody&#146;s and S&#038;P is rating the Series&nbsp;C
Preferred Shares at the Corporation&#146;s request, the Moody&#146;s Discount Factor or S&#038;P Discount Factor,
as applicable, or (b)&nbsp;any applicable discount factor established by any Other Rating Agency,
whichever is applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;FHA Mortgage&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;FHA Mortgage&#148; </B>means a mortgage issued by federally qualified lenders and insured by the
Federal Housing Administration (FHA).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVENTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Fitch&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Fitch&#148; </B>means Fitch Ratings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EIGHTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;High Yield Securities&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;High Yield Securities&#148; </B>means Municipal Obligations not rated by S&#038;P but rated equivalent to
BBB or lower by another NRSRO, rated BB&#043; or lower by S&#038;P or not rated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINETEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Foreign Currency Transactions&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Foreign Currency Transactions&#148; </B>means any technique used by the Corporation to hedge its
exposure to foreign currencies, including forward foreign currency exchange contracts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTIETH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Foreign Sovereign Debt&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Foreign Sovereign Debt&#148; </B>means debt issued by a national government other than the United
States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-FIRST: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Market Value&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Market Value&#148; </B>means the market value of an asset of the Corporation as computed as follows:
(i)&nbsp;Equity securities listed or traded on a nationally recognized securities exchange or traded in
the U.S. over-the-counter market where trades are reported contemporaneously and for which market
quotations are readily available, are valued at the last
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">quoted sale or a market&#146;s official closing price at the close of the exchange&#146;s or other market&#146;s
regular trading hours, as of or prior to the time and day as of which such value is being
determined. 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 Adviser.
If there has been no sale on the day the valuation is made, the securities are valued at the
closing bid price on the principal market for such security on such day. If no asked prices are
quoted on such day, then the security is valued at the closing bid price on the principal market
for such security on such day. If no bid or asked prices are quoted on such day, the security is
valued at the most recently available price. (ii)&nbsp;Debt instruments are valued based upon (a)&nbsp;the
basis of prices provided by a pricing service or (b)&nbsp;the lower of the value set forth in bids from
two independent dealers in securities, one of which bids will be in writing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-SECOND: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Master Limited Partnership Securities&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Master Limited Partnership Securities&#148; </B>means the following securities, restricted or
unrestricted, issued by a Master Limited Partnership (MLP)&nbsp;or an affiliate of an MLP: (1)&nbsp;common
units, (2)&nbsp;convertible subordinated units, (3)&nbsp;I-Shares, (4)&nbsp;I-units and (5)&nbsp;debt securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-THIRD: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Moody&#146;s Derivatives Transactions&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Moody&#146;s Derivatives Transactions&#148; </B>means, for so long as any Series&nbsp;C Preferred Shares is
rated by Moody&#146;s, the Corporation may, notwithstanding the limitations in paragraph 10 of this
Article&nbsp;I, 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, subject to the following limitations:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <I>Futures and call options</I>: For purposes of the Series&nbsp;C Preferred Basic Maintenance
Amount, futures held by the Corporation and call options sold by the Corporation 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 Corporation, the Market Value of the call option will be included
as Moody&#146;s Eligible Assets subject to a Moody&#146;s Discount Factor mutually agreed to between the
Corporation 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <I>Securities lending</I>: To increase income, the Corporation may lend its portfolio securities
to securities broker-dealers or financial institutions if (i)&nbsp;the loan is collateralized in
accordance with applicable regulatory requirements and (ii)&nbsp;no loan will cause the value of all
loaned securities to exceed 20% of the value of its total assets. For purposes of calculating the
Series&nbsp;C Preferred 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
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">obligation/liability for purposes of calculating the Series&nbsp;C Preferred Basic Maintenance
Amount. However, the Corporation may reinvest cash collateral for securities lent in conformity
with its investment objectives and policies and the provisions of these Articles Supplementary. In
such event, the Corporation may reinvest cash collateral to the extent that securities lending
collateral received is invested by the Corporation in assets that otherwise would be Moody&#146;s
Eligible Assets and the value of such assets exceeds the amount of the Corporation&#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 Corporation&#146;s obligation to
return the collateral on a Valuation Date, such difference shall be included as an
obligation/liability of the Corporation for purposes of calculating the Series&nbsp;C Preferred Basic
Maintenance Amount. Collateral received by the Corporation in a securities lending transaction and
maintained by the Corporation in the form received shall not be included as a Moody&#146;s Eligible
Asset for purposes of calculating the Series&nbsp;C Preferred Basic Maintenance Amount.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <I>Interest rate swaps</I>: Only the cumulative unsettled profit and loss from an interest rate
swap transaction will be calculated when determining the Series&nbsp;C Preferred Basic Maintenance
Amount. If the Corporation has an outstanding gain from an interest rate 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 interest rate swap transaction. If the Corporation has
an outstanding liability from an interest rate swap transaction on a Valuation Date, the
Corporation will subtract the outstanding liability from the total Moody&#146;s Eligible Assets in
calculating the Series&nbsp;C Preferred Basic Maintenance Amount.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If not otherwise provided for in (a)-(c) above, derivative instruments will be included as
Moody&#146;s Eligible Assets subject to a Moody&#146;s Discount Factor as mutually agreed to between the
Corporation and Moody&#146;s.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-FOURTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Moody&#146;s Discount Factor&#148; </B>in its entirety and inserting in lieu thereof the
following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Corporate debt securities</U>: The percentage determined by reference to the rating
on such asset with reference to the remaining term to maturity of such asset, in accordance with
the table set forth below (non convertibles).
</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="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Term to Maturity of Corporate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27" style="border-bottom: 1px solid #000000"><B>Moody&#146;s Rating Category</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Debt Security</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unrated</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">137</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1 &#150; 2&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2 &#150; 3&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3 &#150; 4&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4 &#150; 5&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5 &#150; 7&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7 &#150; 10&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 9 -<!-- /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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Term to Maturity of Corporate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27" style="border-bottom: 1px solid #000000"><B>Moody&#146;s Rating Category</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Debt Security</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unrated</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10 &#150; 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15 &#150; 20&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20 &#150; 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Greater than 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The Moody&#146;s Discount Factors above for corporate debt securities shall also be applied to any
interest rate swap or cap, in which case the rating of the counterparty shall determine the
appropriate rating category.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>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&#038;P nor Fitch, are limited to 10% of Moody&#146;s Eligible Assets. If a corporate debt
security is unrated by Moody&#146;s, S&#038;P or Fitch, the Corporation will use the percentage set
forth under &#147;Unrated&#148; in this table. Ratings assigned by S&#038;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&#038;P and/or Fitch rating does not seem to approximate a
Moody&#146;s rating equivalent. Split rated securities assigned by S&#038;P and Fitch will be accepted
at the lower of the two ratings.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For corporate debt securities that do not pay interest in U.S. dollars, the fund sponsor will
contact Moody&#146;s to obtain the applicable currency conversion rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Preferred stock</U>: The Moody&#146;s Discount Factor for taxable preferred stock shall
be:
</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="80%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aaa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">155</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">160</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Baa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">165</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ba</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">196</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">216</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#060;B or Not Rated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Middle Market Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">476</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-cumulative perpetual preferreds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&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">Investment Grade DRD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">165</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred Stock</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">Non-Investment Grade</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">216</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DRD Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For non-cumulative preferred stock, the Discount Factor should be amplified by 110%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Common stock</U>:
</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="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Common Stocks</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Large Cap</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Mid Cap</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Small Cap</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;week exposure period
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">200%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">205%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">220%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 10 -<!-- /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">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Market cap for large-cap stocks are $10&nbsp;billion and up, mid-cap stocks range between $2
billion and $10&nbsp;billion, and small-cap stocks are $2&nbsp;billion and below.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Convertible securities (including convertible preferreds)</U>:
</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="41%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Non-</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Delta</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Grade</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Grade</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Unrated</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">.00 &#150; .40</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">Use Corporate Debt Securities Table</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">250%</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">.41 &#150; .80
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">192%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">226%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">250%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">.81 &#150; 1.00
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">195%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">229%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">250%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With respect to &#147;structured synthetic convertible&#148; securities, the discount factors above should be
grossed up by an additional 20% of the base discount percentage.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Common stock, preferred stock and corporate debt securities of REITs</U>:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For common stock and preferred stock of real estate investment trusts
(&#147;REITs&#148;), the Moody&#146;s Discount Factor shall be the percentage specified in the
table set forth below:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Moody&#146;s Discount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">common stock of REITs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">preferred stock of REITs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">with a Moody&#146;s, S&#038;P or Fitch rating (including a Senior
Implied Rating):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">without a Moody&#146;s, S&#038;P or Fitch rating (including a
Senior Implied Rating):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">208</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Notwithstanding the above, a Moody&#146;s Discount Factor of 250% will be
applied: (a)&nbsp;to those assets in a single NAREIT industry category/sector which
exceed 30% of Moody&#146;s Eligible Assets but are not greater than 35% of Moody&#146;s
Eligible Assets; (b)&nbsp;if dividends on such securities have not been paid consistently
(either quarterly or annually) over the previous three years, or for such shorter
time period that such securities have been outstanding; or (c)&nbsp;if the market
capitalization (including common stock and preferred stock) of an issuer is below
$500&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For corporate debt securities of REITs, apply the Moody&#146;s Discount Factors
listed above under Corporate debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Short-Term Instruments</U>: The Moody&#146;s Discount Factor applied to short-term
portfolio securities, including without limitation corporate debt securities and Short-Term Money
Market Instruments will be (1)&nbsp;100%, so long as such portfolio securities mature or have a demand
feature at par exercisable within the Moody&#146;s Exposure Period and are rated Aaa or at least
Prime-1, V-Mig1, or equivalent, or be a rated money-market fund; and (2)&nbsp;115%, so long as such
portfolio securities do not mature within the Moody&#146;s Exposure Period or have a demand
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->- 11 -<!-- /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">feature at par not exercisable within the Moody&#146;s Exposure Period. A Moody&#146;s Discount Factor
of 100% will be applied to cash.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>U.S. Government Obligations and U.S. Treasury Strips</U>:
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>U.S.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Government</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>U.S. Treasury</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Strips Discount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Remaining Term to Maturity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Discount Factor</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1 &#150; 2&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2 &#150; 3&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3 &#150; 4&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4 &#150; 5&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5 &#150; 7&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7 &#150; 10&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10 &#150; 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15 &#150; 20&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">218</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20 &#150; 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">244</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Foreign Sovereign Debt</U>:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Debt denominated in US$:
</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="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 0px solid #000000"><B>Moody&#146;s Sovereign Debt Rating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Below B</B><BR>
<B>&#038;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Term to Maturity(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unrated</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">137</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2&nbsp;years or less (but longer than 1&nbsp;year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3&nbsp;years or less (but longer than 2&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4&nbsp;years or less (but longer than 3&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5&nbsp;years or less (but longer than 4&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;years or less (but longer than 5&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10&nbsp;years or less (but longer than 7&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">15&nbsp;years or less (but longer than 10
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20&nbsp;years or less (but longer than 15
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">30&nbsp;years or less (but longer than 20
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Greater than 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;For sovereign debt denominated in non-U.S. currency apply additional
Currency Discount Factor:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Foreign Currency</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Currency Discount Factor</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CAD Canadian Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EUR Euro</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 12 -<!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Foreign Currency</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Currency Discount Factor</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">GBP British Pound</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">JPY Japanese Yen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">116</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AUD Australian Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HKD Hong Kong Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NZD New Zealand Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">114</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOK Norway Kroner</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEK Sweden Kronor</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">THB Thailand Baht</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">295</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">KRW South Korea Won</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">295</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TWD Taiwan New Dollars</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SGD Singapore Dollars</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">IDR Indonesia Rupiahs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">315</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">INR India Rupees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MYR Malaysia Ringgits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CZK Czech Republic Koruny</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PHP Philippines Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HUF Hungary Forint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PLN Poland Zlotych</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SKK Slovakia Koruny</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TRY Turkey New Lira</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RUB Russia Rubles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ZAR South Africa Rand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CLP Chile Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MXN Mexico Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">COP Columbia Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BRL Brazil Reais</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If the Corporation invests in a security denominated in a currency other than that found
in the above table, contact Moody&#146;s to obtain the applicable Currency Discount Factor for such
security.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Foreign non-sovereign debt</U>: The Moody&#146;s Discount Factor applied to
non-sovereign debt obligations will be (A)&nbsp;in the case of a non-sovereign debt obligation
denominated in U.S. dollars, 250%, and (B)&nbsp;in the case of a non-U.S. sovereign debt obligation
denominated in a foreign currency, 250% multiplied by the Currency Discount Factor for such foreign
currency.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>Rule&nbsp;144A securities</U>: The Moody&#146;s Discount Factor applied to Rule&nbsp;144A Securities
for Rule&nbsp;144A Securities whose terms include rights to registration under the 1933 Act within one
year and Rule&nbsp;144A Securities which do not have registration rights within one year will be 120%
and 130%, respectively, of the Moody&#146;s Discount Factor which would apply were the securities
registered under the 1933 Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>Catastrophe bonds</U>: The Moody&#146;s Discount Factor applied to catastrophe bonds will
be 475%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <U>Bank loans</U>: The Moody&#146;s Discount Factor applied to senior bank loans (&#147;Senior
Loans&#148;) shall be the percentage specified in accordance with the table set forth below (or such
lower percentage as Moody&#146;s may approve in writing from time to time:
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->- 13 -<!-- /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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Caa and below</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(including</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Moody&#146;s Rating Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>distressed and</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Type of Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aaa-A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Baa and Ba</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>unrated)</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Senior Loans greater
than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">149</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">non-Senior Loans
greater than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">128</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">146</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">159</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">loans less than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">138</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">156</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">169</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">270</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Lien Bank Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">168</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">185</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">270</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third &#038; Fourth Lien
Bank Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">218</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">240</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">260</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">351</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If a Senior Loan is not rated by any of Moody&#146;s, S&#038;P or Fitch, the Corporation will use
the applicable percentage set forth under the column entitled &#147;Caa and below (including
distressed and unrated)&#148; in the table above. Ratings assigned the S&#038;P and/or Fitch are
generally accepted by Moody&#146;s at face value. However, adjustments to face value may be made
to particular categories of securities for which the ratings by S&#038;P and/or Fitch do not seem
to approximate a Moody&#146;s rating equivalent. Split rated securities assigned by S&#038;P and Fitch
(i.e., these rating agencies assign different rating categories to the security) will be
accepted at the lower of the two ratings.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Master Limited Partnerships (MLP) &#151; The Moody&#146;s Discount Factor applied to master
limited partnerships shall be applied in accordance with the table set forth below:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>MLP Sector (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>Discount Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Large-cap MLPs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mid and Small-cap MLPs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Natural Resources (Oil, Gas, Energy)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">292</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Coal and Minerals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">301</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Real Estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">291</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income Real Estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">302</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">342</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Restricted MLPs will be increased by 120%.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Moody&#146;s Discount Factor for any Moody&#146;s Eligible Asset other than the securities set forth
above will be the percentage provided in writing by Moody&#146;s.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-FIFTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Moody&#146;s Diversification Limitations&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Moody&#146;s Diversification Limitations&#148; </B>means, with respect to qualifying for inclusion in
Moody&#146;s Eligible Assets, the following diversification and issue size requirements:
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MAXIMUM SINGLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MAXIMUM SINGLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MINIMUM ISSUE SIZE</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>RATINGS(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>ISSUER(2), (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>INDUSTRY(3), (4)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>($ IN MILLIONS)(5)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aaa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 14 -<!-- /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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MAXIMUM SINGLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MAXIMUM SINGLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MINIMUM ISSUE SIZE</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>RATINGS(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>ISSUER(2), (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>INDUSTRY(3), (4)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>($ IN MILLIONS)(5)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CS(6), Baa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ba</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B1-B2(8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B3 or below(8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Refers to the securities of the portfolio holding.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Companies subject to common ownership of 25% or more are considered as one issuer.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Percentages represent a portion of the aggregate Market Value of portfolio.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Industries are determined according to Moody&#146;s Industry Classifications, as defined herein.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Except for preferred stock, which has a minimum issue size of $50&nbsp;million, and mortgage pass
throughs issued by Federal National Mortgage Association, Federal Home Loan Mortgage
Corporation or Government National Mortgage Association, which has no minimum issue size.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>CS refers to common stock, which is diversified independently from its ratings level.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Portfolio holdings from issues ranging from $50&nbsp;million to $100&nbsp;million are limited to 20% of
the Corporation&#146;s total assets.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Securities of the portfolio holdings rated B or below by Moody&#146;s or the equivalent by another
nationally recognized statistical rating organization (&#147;NRSRO&#148;) or not rated shall be
considered to be Moody&#146;s Eligible Assets only to the extent the Market Value of such
securities does not exceed 10% of the portfolio Market Value; provided, however, that if the
Market Value of such securities exceeds 10% of the portfolio Market Value, a portion of such
securities (selected by the Corporation) shall not be considered Moody&#146;s Eligible Assets, so
that the Market Value of such securities (excluding such portion) does not exceed 10% of the
portfolio Market Value.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-SIXTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting
the definition of <B>&#147;Moody&#146;s Eligible Assets&#148; </B>in its entirety and inserting in lieu thereof the
following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Moody&#146;s Eligible Assets&#148; </B>means:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Cash (including interest and dividends due on assets rated (A)&nbsp;Baa3 or higher by Moody&#146;s
or the equivalent by another NRSRO if the payment date is within five (5)&nbsp;Business Days of the
Valuation Date, (B)&nbsp;A2 or higher by Moody&#146;s or the equivalent by another NRSRO if the payment date
is within thirty days of the Valuation Date, and (C)&nbsp;A1 or higher by Moody&#146;s or the equivalent by
another NRSRO if the payment date is within the Moody&#146;s Exposure Period) and receivables for
Moody&#146;s Eligible Assets sold if the receivable is due within five (5)&nbsp;Business Days of the
Valuation Date, and if the trades which generated such receivables are (A)&nbsp;settled through
clearinghouse firms with respect to which the Corporation has received prior written authorization
from Moody&#146;s or (B) (1)&nbsp;with counterparties having a Moody&#146;s long-term debt rating of at least Baa3
or the equivalent by another NRSRO or (2)&nbsp;with counterparties having a Moody&#146;s Short Term Money
Market Instrument rating of at least P-1 or the equivalent by another NRSRO;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Short Term Money Market Instruments, so long as (A)&nbsp;such securities are rated at least P-1
or the equivalent by another NRSRO, (B)&nbsp;in the case of demand deposits, time deposits and overnight
funds, the supporting entity is rated at least A2 or the equivalent by another NRSRO, or (C)&nbsp;in all
other cases, the supporting entity (1)&nbsp;is rated A2 or the equivalent by another NRSRO and the
security matures within one month, (2)&nbsp;is rated A1 or the equivalent by another NRSRO and the
security matures within three months or (3)&nbsp;is rated at least Aa3 or the equivalent by another
NRSRO and the security matures within six months; provided, however,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 15 -<!-- /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">that for purposes of this definition, such instruments (other than commercial paper rated by
S&#038;P and not rated by Moody&#146;s) need not meet any otherwise applicable S&#038;P rating criteria;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;U.S. Government Obligations (including U.S. Treasury Strips);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Rule&nbsp;144A securities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Common stocks (A) (1)&nbsp;which are traded on a nationally recognized stock exchange or in the
over-the-counter market, (2)&nbsp;if cash dividend paying, pay cash dividends in U.S. dollars and (3)
which may be sold without restriction by the Corporation; provided, however, that (y)&nbsp;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&nbsp;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)&nbsp;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, (B)&nbsp;which are securities denominated in any currency other than the
U.S. 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 over-the-counter and are issued by banks formed
under the laws of the United States, its states or the District of Columbia or (C)&nbsp;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 Corporation&#146;s holdings of securities denominated in currencies other
than the U.S. dollar and ADRs in excess of (1)&nbsp;6% of the aggregate Market Value of the outstanding
shares of common stock of such issuer thereof or (2)&nbsp;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 non-U.S. jurisdiction 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Loans;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Corporate debt securities (including foreign non-sovereign debt and catastrophe bonds) if
(A)&nbsp;such securities are rated by Moody&#146;s or another NRSRO; (B)&nbsp;such securities provide for the
periodic payment of interest in cash in U.S. dollars, euros or other currencies in which the
Corporation is permitted to invest; (C)&nbsp;such securities have been registered under the 1933 Act or
are restricted as to resale under federal securities laws but are eligible for resale pursuant to
Rule&nbsp;144A under the 1933 Act as determined by the Corporation&#146;s investment manager or portfolio
manager acting pursuant to procedures approved by the Board of Directors, except that such
securities that are not subject to U.S. federal securities laws shall be considered Moody&#146;s
Eligible Assets if they are publicly traded; and (D)&nbsp;such securities are not subject to extended
settlement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing limitations, corporate debt securities and loans rated by
neither Moody&#146;s, S&#038;P nor Fitch shall be considered to be Moody&#146;s Eligible Assets to
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->- 16 -<!-- /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">the extent such securities are issued by entities which (i)&nbsp;have not filed for bankruptcy
within the past three years, (ii)&nbsp;are current on all principal and interest in their fixed income
obligations, (iii)&nbsp;are current on all preferred stock dividends, and (iv)&nbsp;possess a current,
unqualified auditor&#146;s report without qualified, explanatory language;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Foreign Sovereign Debt so long as the issuing country has a Currency Discount Factor as
set out in the definition of Moody&#146;s Discount Factor in these Articles Supplementary. Foreign
Sovereign Debt issued by a country without a Currency Discount Factor as set out in the definition
of Moody&#146;s Discount Factor in these Articles Supplementary can only be approved as a Moody&#146;s
Eligible Asset after review and confirmation by Moody&#146;s;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Asset-backed securities: If (A)&nbsp;such securities are rated at least Baa by Moody&#146;s or at
least BBB by S&#038;P or Fitch, (B)&nbsp;the securities are part of an issue that is $250&nbsp;million or greater,
or the issuer of such securities has a total of $500&nbsp;million or greater of asset-backed securities
outstanding at the time of purchase of the securities by the Corporation and (C)&nbsp;the expected
average life of the securities is not greater than 4&nbsp;years;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Collateralized debt obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Preferred stocks if (A)&nbsp;dividends on such preferred stock are cumulative, (B)&nbsp;such
securities provide for the periodic payment of dividends thereon in cash in U.S. dollars or euros
and do not provide for conversion or exchange into, or have warrants attached entitling the holder
to receive, equity capital at any time over the respective lives of such securities, (C)&nbsp;the issuer
of such a preferred stock has common stock listed on either the New York Stock Exchange or NYSE
Amex Equities, (D)&nbsp;the issuer of such a preferred stock has a senior debt rating from Moody&#146;s of
Baa1 or higher or a preferred stock rating from Moody&#146;s of Baa3 or higher and (E)&nbsp;such preferred
stock has paid consistent cash dividends in U.S. dollars or euros over the last three years or has
a minimum rating of A1 (if the issuer of such preferred stock has other preferred issues
outstanding that have been paying dividends consistently for the last three years, then a preferred
stock without such a dividend history would also be eligible). In addition, the preferred stocks
must have the following diversification requirements: (x)&nbsp;the preferred stock issue must be greater
than $50&nbsp;million and (y)&nbsp;the minimum holding by the Corporation of each issue of preferred stock is
$500,000 and the maximum holding of preferred stock of each issue is $5&nbsp;million. In addition,
preferred stocks issued by transportation companies will not be considered Moody&#146;s Eligible Assets;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;Convertible securities (including convertible preferred stock), provided that (A)&nbsp;the
issuer of common stock must have a Moody&#146;s senior unsecured debt of Caa or better, or a rating of
CCC or better by S&#038;P or Fitch, (B)&nbsp;the common stocks must be traded on the New York Stock Exchange,
NYSE Amex Equities, or the NASDAQ, (C)&nbsp;dividends must be paid in U.S. dollars, (D)&nbsp;the portfolio of
convertible bonds must be diversified as set forth in the table set forth below and (E)&nbsp;the company
shall not hold shares exceeding the average weekly trading volume during the preceding month;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Common stock, preferred stock or any debt security of REITs or real estate companies;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 17 -<!-- /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;(n)&nbsp;Pooled investment vehicles including Business Development Companies, Master Limited
Partnerships Securities, Private Investment Companies and Registered Investment Companies;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;Foreign Currency Transactions;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;Moody&#146;s Derivatives Transactions; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;Financial contracts, as such term is defined in Section&nbsp;3(c)(2)(B)(ii) of the 1940 Act
and other securities or assets not otherwise provided for in this definition, but only upon receipt
by the Corporation of a letter from Moody&#146;s specifying any conditions on including such financial
contract or other securities or assets in Moody&#146;s Eligible Assets and assuring the Corporation that
including such financial contract or other securities or assets in the manner so specified would
not affect the credit rating assigned by Moody&#146;s to the Series&nbsp;C Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-SEVENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Moody&#146;s Industry and Sub-Industry Categories&#148; </B>in its entirety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-EIGHTH : Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Moody&#146;s Exposure Period&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Moody&#146;s Exposure Period&#148; </B>means the period commencing on a given Valuation Date and ending 49
days thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-NINTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Moody&#146;s Industry Classifications&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&nbsp;C Preferred Shares):
</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="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aerospace and Defense: Major Contractor, Subsystems, Research, Aircraft
Manufacturing, Arms, and Ammunition</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="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Automobile: Automobile Equipment, Auto-Manufacturing, Auto Parts Manufacturing,
Personal Use Trailers, Motor Homes, 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Banking: Bank Holding, Savings and Loans, Consumer Credit, Small Loan, Agency,
Factoring, Receivables</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="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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,
Candy, Gum, Seafood, Frozen Food, Cigarettes, Cigars, Leaf/Snuff, Vegetable Oil</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 18 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<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="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Chemicals, Plastics and Rubber: Chemicals (non-agricultural), Industrial Gases,
Sulfur, Plastics, Plastic Products, Abrasives, Coatings, Paints, Varnish, Fabricating</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="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Containers, Packaging and Glass: Glass, Fiberglass, Containers made of: Glass,
Metal, Paper, Plastic, Wood or Fiberglass</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="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Personal and Non-Durable Consumer Products (Manufacturing Only): Soaps,
Perfumes, Cosmetics, Toiletries, Cleaning Supplies, School Supplies</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="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified/Conglomerate Manufacturing</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="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified/Conglomerate Service</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="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified Natural Resources, Precious Metals and Minerals: Fabricating,
Distribution</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="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ecological: Pollution Control, Waste Removal, Waste Treatment and Waste
Disposal</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="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electronics: Computer Hardware, Electric Equipment, Components, Controllers,
Motors, Household Appliances, Information Service Communicating Systems, Radios, TVs,
Tape Machines, Speakers, Printers, Drivers, Technology</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="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Finance: Investment Brokerage, Leasing, Syndication, Securities</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="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Farming and Agriculture: Livestock, Grains, Produce, Agriculture Chemicals,
Agricultural Equipment, Fertilizers</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="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Grocery: Grocery Stores, Convenience Food Stores</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="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Healthcare, Education and Childcare: Ethical Drugs, Proprietary Drugs,
Research, Health Care Centers, Nursing Homes, HMOs, Hospitals, Hospital Supplies,
Medical Equipment</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="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Home and Office Furnishings, House wares, and Durable Consumer Products:
Carpets, Floor Coverings, Furniture, Cooking, Ranges</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="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Hotels, Motels, Inns and Gaming</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="3%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance: Life, Property and Casualty, Broker, Agent, Surety</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="3%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Leisure, Amusement, Motion Pictures, Entertainment: Boating, Bowling,
Billiards, Musical Instruments, Fishing, Photo Equipment, Records, Tapes,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 19 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sports, Outdoor Equipment (Camping), Tourism, Resorts, Games, Toy Manufacturing,
Motion Picture Production Theaters, Motion Picture Distribution</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="3%" nowrap align="left">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Machinery (Non-Agricultural, Non-Construction, Non-Electronic): Industrial,
Machine Tools, and Steam Generators</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="3%" nowrap align="left">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oil and Gas: Crude Producer, Retailer, Well Supply, Service and Drilling</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="3%" nowrap align="left">25.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Printing, Publishing, and Broadcasting: Graphic Arts, Paper, Paper Products,
Business Forms, Magazines, Books, Periodicals, Newspapers, Textbooks, Radio, T.V.,
Cable Broadcasting Equipment</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="3%" nowrap align="left">26.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cargo Transport: Rail, Shipping, Railroads, Rail-car Builders, Ship Builders,
Containers, Container Builders, Parts, Overnight Mail, Trucking, Truck Manufacturing,
Trailer Manufacturing, Air Cargo, Transport</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="3%" nowrap align="left">27.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Retail Stores: Apparel, Toy, Variety, Drugs, Department, Mail Order Catalog,
Showroom</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="3%" nowrap align="left">28.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Telecommunications: Local, Long Distance, Independent, Telephone, Telegraph,
Satellite, Equipment, Research, Cellular</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="3%" nowrap align="left">29.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Textiles and Leather: Producer, Synthetic Fiber, Apparel Manufacturer, Leather
Shoes</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="3%" nowrap align="left">30.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Personal Transportation: Air, Bus, Rail, Car Rental</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="3%" nowrap align="left">31.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Utilities: Electric, Water, Hydro Power, Gas</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="3%" nowrap align="left">32.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified Sovereigns: Semi-sovereigns, Canadian Provinces, Supra-national
Agencies</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTIETH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Mortgage Pass-Through Certificates&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Mortgage Pass-Through Certificates&#148; </B>means publicly-issued instruments maintaining at least
AA- ratings by S&#038;P. Certificates evidence proportional, undivided interests in pools of whole
residential mortgage loans. Pass-through certificates backed by pools of convertible adjustable
rate mortgages (ARMs) are acceptable as eligible collateral at 5 points
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->- 20 -<!-- /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">above the levels established for pass-through certificates backed by fixed or non-convertible ARM
pools.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-FIRST: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Paying Agent&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Paying Agent&#148; </B>means The Bank of New York Mellon 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-SECOND: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Preferred Stocks&#148; </B>in its entirety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-THIRD: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Private Investment Companies&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Private Investment Companies&#148; </B>means investment companies that are structured to be exempt
under the 1940 Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-FOURTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Quarterly Valuation Date&#148; </B>in its entirety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-FIFTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Registered Investment Company&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Registered Investment Company&#148; </B>means an investment company, such as an open-end or closed-end
mutual fund, which files a registration statement with the Commission and meets all requirements of
the 1940 Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-SIXTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;S&#038;P Rating Factor&#148; </B>in its entirety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-SEVENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;S&#038;P Discount Factor&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Discount Factor&#148; </B>means:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Discount Factor for</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Type of S&#038;P Eligible Asset</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">AAA Rating</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Stocks (including ADRs)<SUP style="FONT-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Market cap for large-cap stocks are $10
billion and up, mid-cap stocks range between $2&nbsp;billion and $10&nbsp;billion, and
small-cap stocks are $2&nbsp;billion and below.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 21 -<!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Discount Factor for</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Type of S&#038;P Eligible Asset</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">AAA Rating</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Small cap stocks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">236.13</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mid cap stocks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">190.13</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Large cap stocks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">174.94</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DRD Eligible Preferred Stock with a senior or preferred
stock rating of at least BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">312.57</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-DRD Eligible Preferred Stock with a senior or
preferred stock rating of at least BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">201.36</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DRD Eligible Preferred Stock with a senior or preferred
stock rating below BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">317.57</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-DRD Eligible Preferred Stock with a senior or
preferred stock rating below BBB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">206.36</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated AAA to AAA-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">161.53</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated AA&#043; to AA-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">168.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated A&#043; to A-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">174.46</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated BBB&#043; to BBB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">180.93</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated BB&#043; to BB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">187.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated B&#043; to B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">193.86</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated CCC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.32</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-Term Money Market Instruments with maturities of 180
days or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">104.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-Term Money Market Instruments with maturities of
between 181 and 360&nbsp;days</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Government Securities (52&nbsp;week Treasury Bills)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">106.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Government Securities (Two-Year Treasury Notes)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Government Securities (Five-Year Treasury Notes)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Government Securities (Ten-Year Treasury Notes)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">122.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Government Securities (Thirty-Year Treasury Bonds)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">128.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (Fixed 15-Year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">130.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (Fixed 30-Year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">132.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (ARM 1/1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">122.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (ARM 3/1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">123.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (ARM 5/1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">123.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (ARM 10/1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">123.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loans (S&#038;P Loan Category A)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">117.79</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loans (S&#038;P Loan Category B)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">125.47</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loans (S&#038;P Loan Category C)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154.08</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loans (S&#038;P Loan Category D)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">178.25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least AAA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least AA&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least AA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least AA-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113.7</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 22 -<!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Discount Factor for</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Type of S&#038;P Eligible Asset</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">AAA Rating</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least A&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">116.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least A-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">117.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BBB&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">119.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">121.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BBB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">123.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BB&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least B&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">157.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">171.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least B-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">187.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least CCC&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">193.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least CCC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">230.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least CCC-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">299.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and Cash Equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated AAA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">143.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated AA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">146.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">149.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">152.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated BB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">175.11</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">195.11</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated CCC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">215.11</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrated Municipal Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">220.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Stock of REITs and other real estate companies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">152.82</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 15-yr</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">132.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 30-yr</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">134.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 1/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">126.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 3/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">126.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 5/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">127.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 10/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">127.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 15-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">134.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 30-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 1/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">130.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 3/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">131.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 5/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">131.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 10/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">131.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Collateralized Mortgage Obligations (WAL less than 5-years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Collateralized Mortgage Obligations (WAL more than 5-years
and more than 10-years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">145.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FHA-Insured Multifamily Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">190.0</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 23 -<!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Discount Factor for</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Type of S&#038;P Eligible Asset</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">AAA Rating</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset-Backed Securities (ABS) (Automobile loans and
fixed-rate credit card receivables with a weighted average
life (WAL)&nbsp;less than 5-years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">130.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ABS (Automobile loans and fixed-rate credit card
receivables with WAL more than 5-yr and less than 10
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ABS (Floating-rate credit cards)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113.3</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding the foregoing, the S&#038;P Discount Factor for short-term Municipal Obligations will be
115% so long as such Municipal Obligations are rated A-1 &#043; or SP-1 &#043; by S&#038;P and mature or have a
demand feature exercisable within 30&nbsp;days or less, or 123% so long as such Municipal Obligations
are rated A-1 or SP-1 by S&#038;P and mature or have a demand feature exercisable in 30&nbsp;days or less, or
125% if such Municipal Obligations are not rated by S&#038;P but are rated equivalent to A-1&#043; or SP-1&#043;
by another NRSRO, on a case by case basis; provided, however, that any such non-S&#038;P rated
short-term Municipal Obligations which have demand features exercisable within 30&nbsp;days or less must
be backed by a letter of credit, liquidity facility or guarantee from a bank or other financial
institution with a short-term rating of at least A-l&#043; from S&#038;P; and further provided that such
non-S&#038;P rated short-term Municipal Obligations may comprise no more than 50% of short-term
Municipal Obligations that qualify as S&#038;P Eligible Assets; provided, however, that Municipal
Obligations not rated by S&#038;P but rated equivalent to BBB or lower by another NRSRO, rated BB&#043; or
lower by S&#038;P or non-rated (such Municipal Obligations are hereinafter referred to as &#147;High Yield
Securities&#148;) may comprise no more than 20% of the short-term Municipal Obligations that qualify as
S&#038;P Eligible Assets; (i)&nbsp;the S&#038;P Discount Factor for Receivables for Municipal Obligations Sold (as
defined below) that are due in more than five Business Days from such Valuation Date will be the
S&#038;P Discount Factor applicable to the Municipal Obligations sold; (ii)&nbsp;no S&#038;P Discount Factor will
be applied to cash or to Receivables for Municipal Obligations Sold if such receivables are due
within five Business Days of such Valuation Date; and (iii)&nbsp;in the case of any Municipal Obligation
that is not rated by S&#038;P but qualifies as an S&#038;P Eligible Asset pursuant to clause (iii)&nbsp;of that
definition, such Municipal Obligation will be deemed to have an S&#038;P rating one full rating category
lower than the S&#038;P rating category that is the equivalent of the rating category in which such
Municipal Obligation is placed by a NRSRO. &#147;Receivables for Municipal Obligations Sold,&#148; for
purposes of calculating S&#038;P Eligible Assets as of any Valuation Date, means the book value of
receivables for Municipal Obligations sold as of or prior to such Valuation Date. The Corporation
may adopt S&#038;P Discount Factors for Municipal Obligations other than Municipal Obligations, provided
that S&#038;P advises the Corporation in writing that such action will not adversely affect its then
current rating on the Series&nbsp;C Preferred. For purposes of the foregoing, Anticipation Notes (i.e.,
notes that will be paid with the proceeds from subsequent bond issues, from tax revenue or other
revenue anticipated to be received by a government entity) rated SP-1&#043; or, if not rated by S&#038;P,
equivalent to A-l&#043; or SP-1&#043; by another NRSRO, on a case by case basis, which do not mature or have
a demand feature at par exercisable in 30&nbsp;days and which do not have a long-term rating, shall be
considered to be short-term Municipal Obligations.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->- 24 -<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The S&#038;P Discount Factor applied to cash, cash equivalents and demand deposits in an &#147;A-l&#043;&#148;
rated institution will be 100%. &#147;A-1&#043;&#148; rated commercial paper, with maturities no greater then 30
calendar days and held instead of cash until maturity is valued at 100%. Securities with next-day
maturities invested in &#147;A-1&#043;&#148; rated institutions are considered cash equivalents and are valued at
100%. Securities maturing in 181 to 360 calendar days are valued at 114.2%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The S&#038;P Discount Factor for shares of unrated affiliated money market funds (money market
mutual funds meeting the requirements of Rule&nbsp;2a-7 under the 1940 Act) used as &#147;sweep&#148; vehicles
will be 110%. Money market funds rated &#147;AAAm&#148; will be discounted at the appropriate level as
dictated by the S&#038;P Exposure Period. No S&#038;P Discount Factor will be applied to money market funds
rated AAAm by S&#038;P with effective next day maturities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables due within five business days of a Valuation Date will be treated as cash and are
valued at 100%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables that are due in more than five business days of a Valuation Date qualify as an S&#038;P
Eligible Asset at a value no greater than the settlement price discounted at the applicable credit
rating and/or exposure period discount factor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining the discount factors applicable to Municipal Obligation collateral
not rated by S&#038;P, the collateral will carry an S&#038;P rating one full rating category lower than the
equivalent S&#038;P rating.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-EIGHTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;S&#038;P Eligible Assets&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Eligible Assets&#148; </B>means:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(a)&nbsp;Deposit Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(b)&nbsp;U.S. Government Securities and U.S. Government Agencies;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(c)&nbsp;Corporate Bonds/Indebtedness. Evidences of indebtedness other than Deposit
Securities, U.S. Government Securities and Municipal Obligations that are not
convertible into or exchangeable or exercisable for stock of a corporation (except
to the extent of ten percent (10%) in the case of a share exchange or tender offer)
(&#147;Other Debt&#148;) and that satisfy all of the following conditions:
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no more than 10% of the Other Debt may be
unrated;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the remaining term to maturity of such Other
Debt shall not exceed thirty (30)&nbsp;years;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and such Other Debt must provide for periodic
interest payments in cash over the life of the security;</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 25 -<!-- /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 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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the issuer of such evidences of indebtedness
files periodic financial statements with the Commission; provided,
however, non-rated evidences of such indebtedness or issuers of Other
Debt may not constitute more than 10% of the Corporation&#146;s Other Debt;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(d)&nbsp;Convertible Corporate Indebtedness.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(e)&nbsp;Agency Mortgage Collateral. The following conditions apply for Agency Mortgage
Collateral:
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For GNMA certificates backed by pools of
graduated payment mortgages, levels are 20 points above established
levels;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Qualifying &#147;large pool&#148; FNMA mortgage-backed
securities and FHLMC participation certificates are acceptable as
eligible collateral. The eligible fixed-rate programs include FNMA
MegaPools, FNMA Majors, FHLMC Multilender Swaps, and FHLMC Giant
certificates. Eligible ARMs programs include nonconvertible FNMA ARM
MegaPools and FHLMC weighted average coupon ARM certificates. Eligible
FHLMC Giant programs exclude interest-only and principal only stripped
securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>FNMA certificates backed by multifamily ARMs
pegged to the 11th District Cost of Funds Index are acceptable as
eligible collateral at 5 points above established levels; 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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Multiclass REMICs issued by FNMA and FHLMC are
acceptable as eligible collateral at the collateral levels established
for CMOs.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(f)&nbsp;Mortgage Pass-Through Certificates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(g)&nbsp;Mortgage-Backed Securities (i.e., debt obligations that represent claims to cash
flows from pools of mortgage loans).
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mortgage Pass-Through Certificates are publicly
issued instruments rated at least &#145;AA-&#146; by S&#038;P. Pass-throughs backed
by pools of convertible adjustable-rate mortgages (ARMs) are discounted
at an additional five percentage points above the levels established
for pass-throughs backed by fixed or non-conventional ARM pools.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fixed-Rate and Adjustable-rate mortgage
collateral (Conventional/FHA/VA and Whole Loans) Pool must consist of
at least 100 loans each secured by single-family, one-unit, detached
primary residence. 25% of the total pool may have an LTV greater than
80% but less than or equal to 90%. 10% may have an original LTV of no
greater than 95%. Loans with LTV greater than 80%</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 26 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<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: #textcolor#; background: #bgcolor#">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>must have a &#145;AA&#146; rated primary mortgage insurance. 25% may have
balances between $400,000 and $600,000, provided the maximum size of
any loan is appropriate with respect to the market area of the
originator. 10% of the pool may represent condominiums that are four
stories or less. High LTVs, high loan balance, and condominiums, in
aggregate, should not exceed 35% of the pool.</TD>
</TR>

</TABLE>
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>FHAA-Insured Multifamily Loans must have a
minimum principal balance of $100,000 and have at least a one-year
remaining maturity. The aggregate market value of any one loan may not
exceed 5% of the aggregate market value of the portfolio. Such loans
should be initially included in minimum blocks of $5&nbsp;million. Project
loans must have at least a 90% occupancy rate at the time the loan is
pledged. After 90&nbsp;days defaulted mortgage loans must be valued at
zero. A loan in default should be liquidated or substituted within a
90-day period.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Collateralized Mortgage Obligations;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(h)&nbsp;Rule&nbsp;144A Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(i)&nbsp;Senior Loans, provided, however, that the initial issue amount (facility size)
is at least $100&nbsp;million. The minimum accepted holding size (notional amount) of
any given loan not rated by S&#038;P, Moody&#146;s or Other Rating Agency is at least $1
million, provided, that participation loans are limited to not more than 10% of the
aggregate value of the S&#038;P Eligible Asset. For loans rated by S&#038;P, Moody&#146;s or Other
Rating Agency, there is no minimum accepted holding size. Senior Loan
Participations and non-Senior Loans will qualify as S&#038;P Eligible Assets only up to
an aggregate maximum of 15% of the Corporation&#146;s total assets. These levels apply
to U.S. lenders only; any international loans are excluded.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(j)&nbsp;Preferred stocks that satisfy all of the following conditions:
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The preferred stock issue has a senior rating
from S&#038;P, or the preferred issue must be rated. In the case of Yankee
preferred stock, the issuer should have an S&#038;P senior rating of at
least BBB-, or the preferred issue must be rated at least BBB-.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer, or if the issuer is a special
purpose corporation, its parent, is listed on either the New York Stock
Exchange, the NYSE Amex Equities or NASDAQ if the traded par amount is
less than $1,000. If the traded par amount is $1,000 or more exchange
listing is not required.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The collateral pays cash dividends denominated
in U.S. dollars.</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 27 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Private placements under Rule&nbsp;144A with
registration rights are S&#038;P Eligible Assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The minimum market capitalization of eligible
issuers is $100&nbsp;million.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(k)&nbsp;Restrictions for floating-rate preferred stock:
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holdings must be limited to preferred stock
with a dividend period of less than or equal to 49&nbsp;days, except for a
new issue, where the first dividend period may be up to 64&nbsp;days.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The floating-rate preferred stock may not have
been subject to a failed auction.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(l)&nbsp;Restrictions for adjustable- or auction-rate preferred stock:
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The total fair market value of adjustable-rate
preferred stock held in the portfolio may not exceed 10% of eligible
assets.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(m)&nbsp;Concentration Limits:
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Total issuer exposure in preferred stock of any
one issuer is limited to 10% of the fair market value of S&#038;P Eligible
Assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preferred stock rated below B- (including
non-rated preferred stock) are limited to no more than 15% of the fair
market value of the S&#038;P Eligible Assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Add 5 points to over-collateralization level
for issuers with a senior rating or preferred stock rating of less than
BBB-.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Add 10 point to over-collateralization level of
issuers with no senior rating, preferred stock rating or dividend
history.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(n)&nbsp;Common Stocks (including ADRs). Common stocks that satisfy all of the following
conditions:
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each stock must have a minimum market
capitalization of at least $100&nbsp;million.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Restricted stocks (144A securities) or any pink
sheet stocks (generally, stocks that are not carried in daily
over-the-counter newspaper listings) are ineligible.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer may not hold any equity unless it
has been listed on an exchange or traded for more than one year and one
quarter, or 15&nbsp;months (eligible stock exchanges are the New York Stock</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 28 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<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: #textcolor#; background: #bgcolor#">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exchange, NYSE Amex Equities, Philadelphia Stock Exchange, Boston
Stock Exchange, Washington Stock Exchange, Midwest Stock Exchange,
NASDAQ, and National Market Quotations).</TD>
</TR>

</TABLE>
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The collateral is owned by the Corporation, or
the trustee or collateral agent has a first perfected priority security
interest in the collateral. (For S&#038;P&#146;s perfection of Security Interest
Criteria, see Legal Criteria For Structured Finance Transactions,
October&nbsp;2006.)</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Note: Add 20&nbsp;percentage points to the overcollateralization level for common stock
that do not meet the requirement of item (m)(iv) above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(o)&nbsp;Municipal Obligations. A Municipal Obligation owned by the Corporation that (i)
is interest bearing and pays interest at least semi-annually; (ii)&nbsp;is payable with
respect to principal and interest in U.S. Dollars; (iii)&nbsp;has an original issuance
size of $10&nbsp;million or greater and any securities with an issuance size of under $10
million must be rated &#145;AA&#146; or better by S&#038;P; or, if not rated by S&#038;P but rated AAA
by another NRSRO, on a case by case basis; (iv)&nbsp;except for Inverse Floaters (i.e., a
bond or other type of debt whose coupon rate has an inverse relationship to interest
rates), is not part of a private placement of Municipal Obligations; (v)&nbsp;is issued
by any of the 50 states of the United States, its territories, and their
subdivisions, counties, cities, towns, villages, and school districts; by agencies
such as authorities and special districts created by the states; and by certain
federally sponsored agencies such as local housing authorities. Payments made on
these bonds are exempt from federal income taxes and are generally exempt from state
and local taxes in the state of issuance; and (vi)&nbsp;fifty percent of the aggregate
fair market value of the pledged pool may be rated by a NRSRO other than S&#038;P.
Notwithstanding the foregoing limitations:
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Municipal Obligations (excluding Escrow Bonds)
of any one issuer or guarantor (excluding bond insurers) rated at least
&#147;BBB&#148; by S&#038;P or &#147;A&#148; by another NRSRO shall be considered S&#038;P Eligible
Assets only to the extent the Market Value of such Municipal
Obligations (including short-term Municipal Obligations) does not
exceed 10% of the aggregate Market Value of S&#038;P Eligible Assets,
provided that either (i)&nbsp;2% is added to the S&#038;P Discount Factor for
every 1% by which the Market Value for any issuer exceeds 5%, up to a
maximum of 10% or (ii)&nbsp;10% is added to the S&#038;P Discount Factor for any
issuer that exceeds 5% of the aggregate S&#038;P Eligible Assets. High
Yield Securities of any one issuer shall be considered to be S&#038;P
Eligible Assets only to the extent the Market Value of such Municipal
Obligations does not exceed 5% of the aggregate Market Value of S&#038;P
Eligible Assets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Municipal Obligations not rated by S&#038;P shall be
considered S&#038;P Eligible Assets only to the extent the Market Value of
such Municipal Obligations does not exceed 50% of the aggregate</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 29 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<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: #textcolor#; background: #bgcolor#">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Market Value of S&#038;P Eligible Assets; provided, however, that High
Yield Securities shall be considered S&#038;P Eligible Assets only to the
extent the Market Value of such Municipal Obligations does not exceed
20% of the aggregate Market Value of S&#038;P Eligible Assets; and</TD>
</TR>

</TABLE>
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Municipal Obligations issued by issuers in any
one state or territory will be considered S&#038;P Eligible Assets only to
the extent the Market Value of such Municipal Obligations does not
exceed 25% of the aggregate Market Value of S&#038;P Eligible Assets; or</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(p)&nbsp;Asset Backed Securities. Receivables-backed tranches are publicly issued with
a rating of &#147;AA&#148; or higher by S&#038;P, tranches are current interest-bearing, fixed- or
floating-rate, and are backed by automobile loans or credit card (fixed-rate only)
receivables with an original issuance size of at least $200&nbsp;million. No more than
25% of the total market value of the collateral can be from one private sector
issuer. With respect to floating-rate credit card receivables, not more than 25%
of the collateral may be from one investment-grade private sector issuer. No more
than 10% of the market value of the collateral may be from one noninvestment-grade
private sector issuer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(q)&nbsp;Escrow Bonds (i.e., a type of municipal obligation backed by escrow funds
designed to make payments as outlined in the security&#146;s original indenture) may
comprise 100% of the Corporation&#146;s S&#038;P Eligible Assets. Bonds that are legally
defeased and secured by direct U.S. Government Securities are not required to meet
any minimum issuance size requirement. Bonds that are economically defeased or
secured by other U.S. agency paper must meet the minimum issuance size requirement
for the Corporation described above. Bonds initially rated or re-rated as an
Escrow Bond by another NRSRO are limited to 50% of the Corporation&#146;s S&#038;P Eligible
Assets, and carry one full rating lower than the equivalent S&#038;P rating for purposes
of determining the applicable discount factors. Bonds economically defeased and
either initially rated or re-rated by S&#038;P or another NRSRO are assigned that same
rating level as its debt issuer, and will remain in its original industry category.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation&#146;s portfolio must consist of no less than 20 issues representing no less than 10
industries as determined by the S&#038;P Global Industry Classification System.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any asset of the Corporation that does not have an S&#038;P Discount Factor will be valued at $0.00.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-NINTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;S&#038;P Exposure Period&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Exposure Period&#148; </B>means the sum of (i)&nbsp;that number of days from the last Valuation Date on
which the Corporation&#146;s Discounted Value of S&#038;P Eligible Assets were greater than the Series&nbsp;C
Preferred Basic Maintenance Amount to the Valuation Date on which the Corporation&#146;s Discounted
Value of S&#038;P Eligible Assets failed to exceed the Series&nbsp;C
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->- 30 -<!-- /Folio -->
</DIV>

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<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">Preferred Basic Maintenance Amount, (ii)&nbsp;the maximum number of days following a Valuation Date that
the Corporation has under these Article&nbsp;Supplementary to cure any failure to maintain a Discounted
Value of S&#038;P Eligible Assets at least equal to the Series&nbsp;C Preferred Basic Maintenance Amount, and
(iii)&nbsp;the maximum number of days the Corporation has to effect a mandatory redemption under these
Articles Supplementary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTIETH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;S&#038;P Hedging Transactions&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Hedging Transactions&#148; </B>means for so long as any Series&nbsp;C Preferred are rated by S&#038;P, the
Corporation will not 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 portfolio securities unless it receives written confirmation from S&#038;P that engaging in
such transactions will not impair the ratings then assigned to Series&nbsp;C Preferred by S&#038;P, except
that the Corporation may, notwithstanding any limitations in paragraph 10 of this Article&nbsp;I,
purchase or sell futures contracts and engage in swaps, caps, floors, and collars, reverse
repurchase or repurchase agreements, short sales, write, purchase or sell put and call options on
such contracts (collectively, &#147;S&#038;P Hedging Transactions&#148;), subject to the following limitations:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Futures and Options</U>
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>S&#038;P Hedging Transactions may not exceed the
notional value of the Preferred Stock that is outstanding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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
the Corporation in the event (A)&nbsp;the Corporation does not have S&#038;P
Eligible Assets with an aggregate Discounted Value equal to or greater
than the Series&nbsp;C Preferred Basic Maintenance Amount on two consecutive
Valuation Dates and (B)&nbsp;the Corporation is required to pay variation
margin on the second such Valuation Date;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation will engage in a Closing
Transaction to close out any outstanding futures contract or option
thereon in the month prior to the delivery month under the terms of
such futures contract or option thereon unless the Corporation holds
the securities deliverable under such terms or the contract or option
is to be settled in cash; 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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>when the Corporation writes a futures contract
or option thereon, it will either maintain an amount of cash, cash
equivalents or liquid securities in a segregated account with the
Corporation&#146;s custodian, so that the amount so segregated plus the
amount of initial margin and variation margin held in the account of or
on behalf of the Corporation&#146;s broker with respect to such futures</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 31 -<!-- /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 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: #textcolor#; background: #bgcolor#">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>contract or option equals the Market Value of the futures contract or
option, or, in the event the Corporation writes a futures contract or
option thereon which requires delivery of an underlying security, it
shall hold such underlying security in its portfolio.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Credit Default Swaps entered into according to International Swap Dealers Association
(&#145;ISDA&#146;) standards if premiums not paid in advance will be counted as a liability for
purpose of the asset coverage test; the Corporation is not the seller of credit protection.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interest Rate Swaps</U>
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation may engage in interest rate
swaps if it is accordance to International Swap Dealers Association
(&#145;ISDA&#146;) standards,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the counterparty to the swap transaction has a
minimum short-term rating of &#096;A-1&#146; or equivalent by S&#038;P, or, if the
counterparty does not have a short-term rating, the counterparty&#146;s
minimum senior unsecured long-term debt rating is &#096;A-&#146;, or equivalent
by S&#038;P, or higher,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The original aggregate notional amount of the
interest rate swap transaction or transactions is not to be greater
than the liquidation preference of the Preferred Stock,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The interest rate swap transaction will be
marked-to-market weekly by the swap counterparty. If the Corporation
fails to maintain an aggregate discounted value at least equal to the
basic maintenance amount on two consecutive Valuation Dates then the
agreement shall terminate immediately,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purpose of calculating the asset
coverage test, 90% of any positive mark-to-market valuation of the
Corporation&#146;s rights will be S&#038;P Eligible Assets and 100% of any
negative mark-to-market valuation of the Corporation&#146;s rights will be
included in the calculation of the Series&nbsp;C Preferred Basic Maintenance
Amount,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Corporation must maintain liquid assets
with a value at least equal to the net amount of the excess, if any, of
the Corporation&#146;s obligations over its entitlement with respect to each
swap. If the swap agreement is not on a net basis, it must maintain
liquid and unencumbered assets with a value at least equal to the full
amount of the Corporation&#146;s accrued obligations under the agreement.
For caps and floors, the Corporation must maintain liquid assets with a
value at least equal to the Corporation&#146;s obligations with respect to
such caps or floors.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Short Sales</U>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 32 -<!-- /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; margin-left: 4%">The Corporation may engage in short sales of securities or short sales against the
box if:
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation segregates liquid and
unencumbered assets in an amount that when combined with the amount of
collateral deposited with the broker in connection with the short sale
equals the current market value of the security sold short or if the
Corporation enters into a short sale against the box, it is required to
segregate securities equivalent in kind and amount to the securities
sold short and is required to hold such securities while the short sale
is outstanding.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The transaction will be marked-to-market daily
by the counterparty.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Margin Purchase</U>
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation segregates liquid and
unencumbered assets in an amount that when combined with the amount of
collateral deposited with the broker in connection with the margin
purchase equals the current net obligation of the Corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The transaction will be marked-to-market daily
by the counterparty.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reverse Repurchase Agreement</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation may engage in reverse repurchase agreements if:
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the counterparty is rated at least A-/A-1 and
the agreement matures in 30&nbsp;days or less, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the counterparty must be rated AA-/A-1&#043; if the
transaction matures in more than 30&nbsp;days but less than 183&nbsp;days,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and the securities are marked-to-market daily
by the counterparty.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">For purposes of determining whether the Corporation has S&#038;P Eligible Assets with a
Discounted Value that equals or exceeds the Series&nbsp;C Preferred Basic Maintenance
Amount, the Discounted Value of cash or securities held for the payment of initial
margin or variation margin shall be zero and the aggregate settlement value of the
transaction shall be reduced by an amount equal to the S&#038;P Discount Factor for that
asset.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Corporation&#146;s obligations to any counterparty under an S&#038;P Hedging Transaction
shall be counted as a liability that is senior to the preferred in calculating the
Series&nbsp;C Preferred Basic Maintenance Amount.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 33 -<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-FIRST: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;S&#038;P Industry Classifications&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Industry Classifications&#148; </B>means for the purpose of determining S&#038;P Eligible Assets, each
of the following industry classifications (as defined by the S&#038;P Global Industry Classification
System):
</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="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Aerospace &#038; Defense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Industrial Conglomerates</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Air Freight and Logistics Airlines
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Automobiles
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Internet &#038; Catalog Retail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Automobile Components
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Internet Software &#038; Services</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Beverages
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">IT Services</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Biotechnology
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leisure Equipment &#038; Products</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Building Products
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Machinery</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cable
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marine</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Capital Markets
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Media</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Computers &#038; Peripherals
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Metals &#038; Mining</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commercial Banks
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Office Electronics</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commercial Services &#038; Supplies
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oil &#038; Gas</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Communications Equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Packaging and Containers</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Construction &#038; Engineering
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paper &#038; Forest Products</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consumer Finance
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Personal Products</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Containing &#038; Packaging
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pharmaceuticals</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Distributors
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Real Estate</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Diversified Financial Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Retail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Diversified Telecommunication Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Road &#038; Rail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Electric Utilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Software</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Electrical Equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specialty Retail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Electronic Equipment &#038; Instrument
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Semiconducters and Semi Conducter</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Energy Equipment &#038; Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Equipment</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Food &#038; Staples Retailing
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Textiles, Apparel and Luxury Goods</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Food Products
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Thrift &#038; Mortgage Finance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gas Utilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tobacco</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Healthcare Equipment &#038; Supplies
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trading Companies &#038; Distributors</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Healthcare Providers &#038; Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transportation and Infrastructure</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Hotels, Restaurants &#038; Leisure
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transportation Utilities</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Household Durables
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Water Utilities</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Household Products
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wireless Telecommunication Services</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation will use its discretion in determining which industry classification is applicable
to a particular investment in consultation with its Independent Accountant and S&#038;P, to the extent
the Corporation considers necessary.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 34 -<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-SECOND: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;S&#038;P Loan Category&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Loan Category&#148; </B>means the following four categories (and, for purposes of this
categorization, the Market Value of an S&#038;P Eligible Asset trading at par is equal to $1.00):
</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="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;S&#038;P Loan Category A&#148; means Performing Senior Loans which have
a Market Value greater than $0.90;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;S&#038;P Loan Category B&#148; means Performing Senior Loans which have
a Market Value greater than or equal to $0.85 but equal to or less than $0.90;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;S&#038;P Loan Category C&#148; means non-Performing Senior Loans which
have a Market Value greater than $0.85;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;S&#038;P Loan Category D&#148; means:</TD>
</TR>

</TABLE>
</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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Performing Senior Loans which have a Market
Value less than $.85; 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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Non-Performing Senior Loans which have a Market
Value less than or equal to $.85.</TD>
</TR>

</TABLE>
</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="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Performing&#148; means that no default as to the payment of
principal or interest has occurred and is continuing.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-THIRD: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Senior Loan&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Senior Loan&#148; </B>means any secured Bank Loan that is not subordinated by its terms to any other
indebtedness of the borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-FOURTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Senior Loan Participation&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Senior Loan Participation&#148; </B>means participations by the Corporation in a lender&#146;s portion of a
Bank Loan where the Corporation has a contractual relationship with such lender and not the
borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-FIFTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Series&nbsp;C Preferred Basic Maintenance Amount&#148; </B>in its entirety and inserting in lieu
thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Series&nbsp;C Preferred Basic Maintenance Amount&#148; </B>means as of any Valuation Date, the dollar
amount equal to (a)&nbsp;the sum of (i)&nbsp;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
</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">or class; (ii)&nbsp;to the extent not included in (i)&nbsp;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 Series&nbsp;C Preferred 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 70&nbsp;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)&nbsp;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&nbsp;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)&nbsp;any current
liabilities of the Corporation as of such Valuation Date to the extent not reflected in 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)&nbsp;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. Government Obligations or evidences of indebtedness which
have a rating assigned by Moody&#146;s of at least Aaa, P-1, VMIG-1 or MIG- 1 and by S&#038;P of at least
AAA, SP-1&#043; or A-1&#043;, 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)&nbsp;above. Series&nbsp;C Preferred 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-SIXTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Short-Term Money Market Instrument&#148; </B>in its entirety and inserting in lieu thereof
the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&nbsp;days (or 270&nbsp;days for instruments rated at least Aaa for purposes of
determining Moody&#146;s Eligible Assets); or 360&nbsp;days for purposes of determining S&#038;P&#146;s Eligible
Assets:
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>commercial paper rated either F-1 by Fitch or A-1
by S&#038;P if such commercial paper matures in 30&nbsp;days or P-1 by Moody&#146;s and
either F-1&#043; by Fitch or A-1&#043; by S&#038;P if such commercial paper matures in
over 30&nbsp;days;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>demand or time deposits in, and banker&#146;s
acceptances and certificates of deposit of, (A)&nbsp;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)&nbsp;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);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>overnight funds;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>U.S. Government Obligations and Government
Securities; 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="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Eurodollar demand or time deposits in, or
certificates of deposit of, the head office or the London branch office
of a depository institution or trust company if the certificates of
deposit, if any, and the long-term unsecured debt obligations (other than
such obligations the ratings of which are based on the credit of a person
or entity other than such depository institution or trust company) of
such depository institution or trust company that have (1)&nbsp;credit ratings
on each Valuation Date of at least P-1 from Moody&#146;s and either F-1&#043; from
Fitch or A-1&#043; from S&#038;P, in the case of commercial paper or certificates
of deposit, and (2)&nbsp;credit ratings on each Valuation Date of at least Aa3
from Moody&#146;s and either AA from Fitch or AA- from S&#038;P, in the case of
long-term unsecured debt obligations; provided, however, that in the case
of any such investment that matures in no more than one Business Day from
the date of purchase or other acquisition by the Corporation, all of the
foregoing requirements shall be applicable except that the required
long-term unsecured debt credit rating of such depository institution or
trust company from Moody&#146;s, Fitch and S&#038;P shall be at least A2, A-2 and
A, respectively; and provided further, however, that the foregoing credit
rating requirements shall be deemed to be met with respect to a
depository institution or trust company if (1)&nbsp;such depository
institution or trust company is the principal depository institution in a
holding company system, (2)&nbsp;the certificates of deposit, if any, of such
depository institution or trust company are not rated on any Valuation
Date below P-1 by Moody&#146;s, F-1&#043; by Fitch or A-1&#043; by S&#038;P and there is no
long-term rating, and (3)&nbsp;the holding company shall meet all of the
foregoing credit rating requirements (including the preceding proviso in
the case of investments that mature in no more than one Business Day from
the date of purchase or other acquisition by the Corporation); and
provided further, that the interest receivable by the Corporation shall
not be subject to any withholding or similar taxes.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 37 -<!-- /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;FORTY-SEVENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Transfer Agent&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Transfer Agent&#148; </B>means The Bank of New York Mellon, 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-EIGHTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;U.S. Government Securities&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;U.S. Government Securities&#148; </B>mean securities that are direct obligations of, and obligations
the timely payment of principal and interest on which is fully guaranteed by, the United States or
any agency or instrumentality of the United States, the obligations of which are backed by the full
faith and credit of the United States and in the form of conventional bills, bonds and notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-NINTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;VA Mortgage&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;VA Mortgage&#148; </B>means a mortgage qualifying under the mortgage loan program established by the
United States Department of Veterans Affairs to help veterans and their families obtain home
financing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTIETH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Valuation Date&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Valuation Date&#148; </B>means the last Business Day of each month, or for purposes of determining
whether the Corporation is maintaining the Series&nbsp;C Preferred Basic Maintenance Amount, each
business day commencing with the Date of Original Issue.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTY-FIRST: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Whole Loan&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Whole Loan&#148; </B>means an investment representing an original mortgage loan from a loan
representing a participation with one or more lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTY-SECOND: The amendments set forth in these Articles of Amendment were duly approved by
the Board of Directors of the Corporation in accordance with Article&nbsp;III of the Articles
Supplementary and the Maryland General Corporation Law. No stock entitled to be voted on the
matter was outstanding or subscribed for at the time of the approval of the amendments set forth in
these Articles of Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTY-THIRD: The amendments contemplated by these Articles of Amendment do not increase the
authorized stock of the Corporation or the aggregate par value thereof.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 38 -<!-- /Folio -->
</DIV>

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<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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned President of The Gabelli Equity Trust Inc., who executed these Articles of
Amendment on behalf of the Corporation, hereby acknowledges, in the name and on behalf of the
Corporation, that these Articles of Amendment are the corporate act of the Corporation and states
further, under the penalties of perjury, that to the best of his knowledge, information and belief,
the matters and facts set forth herein with respect to authorization and approval are true in all
material respects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, The Gabelli Equity Trust Inc. has caused these Articles of Amendment to be
signed in its name and on its behalf by its President and witnessed by its Secretary as of this
29th day of May, 2009.
</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="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">WITNESS:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">THE GABELLI EQUITY TRUST INC.</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>
    <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">/s/ Agnes Mullady
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</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>&nbsp;</TD>
    <TD align="left" valign="top">Name: Agnes Mullady
</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">Name: 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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Secretary
</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">Title: 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 -->- 39 -<!-- /Folio -->
</DIV>



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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A.X
<SEQUENCE>3
<FILENAME>y91816exv99wawx.htm
<DESCRIPTION>EX-99.A.X
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wawx</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99 (a)(x)
</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: 18pt">ARTICLES OF AMENDMENT TO THE<BR>
ARTICLES SUPPLEMENTARY<BR>
CREATING AND FIXING THE RIGHTS OF<BR>
5.875% SERIES D CUMULATIVE PREFERRED STOCK
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gabelli Equity Trust Inc., a Maryland corporation (hereinafter called the &#147;Corporation&#148;),
hereby certifies to the State Department of Assessments and Taxation of the State of Maryland that:</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST: Article&nbsp;I of the Articles Supplementary Creating and Fixing the Rights of 5.875% Series
D Cumulative Preferred Stock (&#147;Articles Supplementary&#148;) is hereby amended by inserting the
definition of &#147;<U>Bank Loans</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bank Loans</U>&#148; means direct purchases of, assignments of, participations in and other
interests in (a)&nbsp;any bank loan or (b)&nbsp;any loan made by an investment bank, investment fund or other
financial institution, provided that such loan under this clause (b)&nbsp;is similar to those typically
made, syndicated, purchased or participated by a commercial bank or institutional loan investor in
the ordinary course of business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Business Development Company</U>&#148;</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Development Company</U>&#148; (BDCs) means a type of closed-end fund regulated under
the 1940 Act whose shares are typically listed for trading on a U.S. securities exchange. BDCs are
publicly-traded funds that typically invest in and lend to small and medium-sized private and
certain public companies that may not have access to public equity markets for capital raising.
BDCs invest in such diverse industries as healthcare, chemical and manufacturing, technology and
service companies.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Discount Factor</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Discount Factor</U>&#148; means (a)&nbsp;so long as Moody&#146;s is rating the Series&nbsp;D Preferred Stock
at the Corporation&#146;s request, the Moody&#146;s Discount Factor, or (b)&nbsp;any applicable discount factor
established by any Other Rating Agency, whichever is applicable.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Fitch</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Fitch</U>&#148; means Fitch Ratings.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Foreign Currency Transactions</U>&#148;:</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Currency Transactions</U>&#148; means any technique used by the Corporation to hedge
its exposure to foreign currencies, including forward foreign currency exchange contracts.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Foreign Sovereign Debt</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Sovereign Debt</U>&#148; means debt issued by a national government other than the
United States.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the definition
of &#147;<U>Market Value</U>&#148; in its entirety and inserting in lieu thereof the following:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Market Value</U>&#148; means the market value of an asset of the Corporation as computed as
follows: (i)&nbsp;Equity securities listed or traded on a nationally recognized securities exchange or
traded in the U.S. over-the-counter market where trades are reported contemporaneously and for
which market quotations are readily available, are valued at the last quoted sale or a market&#146;s
official closing price at the close of the exchange&#146;s or other market&#146;s regular trading hours, as
of or prior to the time and day as of which such value is being determined. 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 Adviser. If there has been no sale on the day
the valuation is made, the securities are valued at the closing bid price on the principal market
for such security on such day. If no asked prices are quoted on such day, then the security is
valued at the closing bid price on the principal market for such security on such day. If no bid
or asked prices are quoted on such day, the security is valued at the most recently available
price. (ii)&nbsp;Debt instruments are valued based upon (a)&nbsp;the basis of prices provided by a pricing
service or (b)&nbsp;the lower of the value set forth in bids from two independent dealers in securities,
one of which bids will be in writing.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EIGHTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Master Limited Partnership Securities</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Master Limited Partnership Securities</U>&#148; means the following securities, restricted or
unrestricted, issued by a Master Limited Partnership (MLP)&nbsp;or an affiliate of an MLP: (1)&nbsp;common
units, (2)&nbsp;convertible subordinated units, (3)&nbsp;I-Shares, (4)&nbsp;I-units and (5)&nbsp;debt securities.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Moody&#146;s Derivatives Transactions</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Moody&#146;s Derivatives Transactions</U>&#148; means, for so long as any Series&nbsp;D Preferred Stock
is rated by Moody&#146;s, the Corporation may, notwithstanding the limitations in paragraph 7 of Article
II, 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, subject to the following limitations:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /Folio -->
</DIV>

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<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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Futures and call options</I>: For purposes of the Basic Maintenance Amount, futures held by
the Corporation and call options sold by the Corporation 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
Corporation, the Market Value of the call option will be included as Moody&#146;s Eligible Assets
subject to a Moody&#146;s Discount Factor mutually agreed to between the Corporation 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Securities lending</I>: To increase income, the Corporation may lend its portfolio securities
to securities broker-dealers or financial institutions if (i)&nbsp;the loan is collateralized in
accordance with applicable regulatory requirements and (ii)&nbsp;no loan will cause the value of all
loaned securities to exceed 20% of the value of its total assets. 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 Corporation may reinvest cash collateral for securities
lent in conformity with its investment objectives and policies and the provisions of these Articles
Supplementary. In such event, the Corporation may reinvest cash collateral to the extent that
securities lending collateral received is invested by the Corporation in assets that otherwise
would be Moody&#146;s Eligible Assets and the value of such assets exceeds the amount of the
Corporation&#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
Corporation&#146;s obligation to return the collateral on a Valuation Date, such difference shall be
included as an obligation/liability of the Corporation for purposes of calculating the Basic
Maintenance Amount. Collateral received by the Corporation in a securities lending transaction and
maintained by the Corporation 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<I>Interest rate swaps</I>: Only the cumulative unsettled profit and loss from an interest rate
swap transaction will be calculated when determining the Basic Maintenance Amount. If the
Corporation has an outstanding gain from an interest rate 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 interest rate swap transaction. If the Corporation has an outstanding
liability from an interest rate swap transaction on a Valuation Date, the Corporation will subtract
the outstanding liability from the total Moody&#146;s Eligible Assets in calculating the Basic
Maintenance Amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If not otherwise provided for in (a)-(c) above, derivative instruments will be included as
Moody&#146;s Eligible Assets subject to a Moody&#146;s Discount Factor as mutually agreed to between the
Corporation and Moody&#146;s.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the definition of
&#147;<U>Moody&#146;s Discount Factor</U>&#148; in its entirety and inserting in lieu thereof the following:</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 3 -<!-- /Folio -->
</DIV>

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<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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Corporate debt securities</U>: The percentage determined by reference to the rating
on such asset with reference to the remaining term to maturity of such asset, in accordance with
the table set forth below (non convertibles).
</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="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Term to Maturity of Corporate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27" style="border-bottom: 1px solid #000000"><B>Moody&#146;s Rating Category</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Debt Security</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unrated</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">137</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1 &#150; 2&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2 &#150; 3&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3 &#150; 4&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4 &#150; 5&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5 &#150; 7&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7 &#150; 10&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10 &#150; 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15 &#150; 20&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20 &#150; 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Greater than 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The Moody&#146;s Discount Factors above for corporate debt securities shall also be applied to any
interest rate swap or cap, in which case the rating of the counterparty shall determine the
appropriate rating category.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>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&#038;P nor Fitch, are limited to 10% of Moody&#146;s Eligible Assets. If a corporate debt
security is unrated by Moody&#146;s, S&#038;P or Fitch, the Corporation will use the percentage set
forth under &#147;Unrated&#148; in this table. Ratings assigned by S&#038;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&#038;P and/or Fitch rating does not seem to approximate a
Moody&#146;s rating equivalent. Split rated securities assigned by S&#038;P and Fitch will be accepted
at the lower of the two ratings.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For corporate debt securities that do not pay interest in U.S. dollars, the fund sponsor will
contact Moody&#146;s to obtain the applicable currency conversion rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Preferred stock</U>: The Moody&#146;s Discount Factor for taxable preferred stock shall
be:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aaa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">155</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">160</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Baa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">165</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ba</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">196</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">216</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#060;B or Not Rated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Middle Market Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">476</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-cumulative perpetual preferreds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 4 -<!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment Grade DRD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="center">165</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred Stock</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">Non-Investment Grade</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="center">216</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DRD Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For non-cumulative preferred stock, the Discount Factor should be amplified by 110%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Common stock</U>:
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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 nowrap align="center" style="border-bottom: 1px solid #000000"><B>Common Stocks</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Large Cap</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Mid Cap</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Small Cap</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;week exposure period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="center">200%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="center">205%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="center">220%</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Market cap for large-cap stocks are $10&nbsp;billion and up, mid-cap stocks range between $2
billion and $10&nbsp;billion, and small-cap stocks are $2&nbsp;billion and below.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Convertible securities (including convertible preferreds)</U>:
</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="49%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Non-</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Delta</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Grade</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Grade</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Unrated</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD>.00 &#150; .40</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left">Use Corporate Debt Securities Table</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">250%</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">.41 &#150; .80</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">192%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">226%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">250%</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">.81 &#150; 1.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">195%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">229%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">250%</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With respect to &#147;structured synthetic convertible&#148; securities, the discount factors above should be
grossed up by an additional 20% of the base discount percentage.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Common stock, preferred stock and corporate debt securities of REITs</U>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For common stock and preferred stock of real estate investment trusts
(&#147;REITs&#148;), the Moody&#146;s Discount Factor shall be the percentage specified in the
table set forth below:
</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="2"><B>Moody&#146;s Discount</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Factor</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">common stock of REITs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">154%</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">preferred stock of REITs
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">with a Moody&#146;s, S&#038;P or Fitch rating (including a Senior
Implied Rating):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">154%</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">without a Moody&#146;s, S&#038;P or Fitch rating (including a
Senior Implied Rating):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">208%</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Notwithstanding the above, a Moody&#146;s Discount Factor of 250% will be
applied: (a)&nbsp;to those assets in a single NAREIT industry category/sector which
exceed 30% of Moody&#146;s Eligible Assets but are not greater than 35% of Moody&#146;s
Eligible Assets; (b)&nbsp;if dividends on such securities have not been paid consistently
(either quarterly or annually) over the previous three years, or for
such shorter time period that such securities have been outstanding; or (c)&nbsp;if the</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 5 -<!-- /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; margin-left: 6%">market capitalization (including common stock and preferred stock) of an issuer
is below $500&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For corporate debt securities of REITs, apply the Moody&#146;s Discount Factors
listed above under Corporate debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Short-Term Instruments</U>: The Moody&#146;s Discount Factor applied to short-term
portfolio securities, including without limitation corporate debt securities and Short-Term Money
Market Instruments will be (1)&nbsp;100%, so long as such portfolio securities mature or have a demand
feature at par exercisable within the Moody&#146;s Exposure Period and are rated Aaa or at least
Prime-1, V-Mig1, or equivalent, or be a rated money-market fund; and (2)&nbsp;115%, so long as such
portfolio securities do not mature within the Moody&#146;s Exposure Period or have a demand feature at
par not exercisable within the Moody&#146;s Exposure Period. A Moody&#146;s Discount Factor of 100% will be
applied to cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>U.S. Government Obligations and U.S. Treasury Strips</U>:
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>U.S.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Government</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>U.S. Treasury</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Strips Discount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Remaining Term to Maturity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Discount Factor</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1 &#150; 2&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2 &#150; 3&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3 &#150; 4&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4 &#150; 5&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5 &#150; 7&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7 &#150; 10&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10 &#150; 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15 &#150; 20&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">218</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20 &#150; 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">244</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<U>Foreign Sovereign Debt</U>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Debt denominated in US$:
</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="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 0px solid #000000"><B>Moody&#146;s Sovereign Debt Rating</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>Below B</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>&#038;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Term to Maturity(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Unrated</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">137</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2&nbsp;years or less (but longer than 1&nbsp;year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3&nbsp;years or less (but longer than 2&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4&nbsp;years or less (but longer than 3&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5&nbsp;years or less (but longer than 4&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;years or less (but longer than 5&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 6 -<!-- /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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 0px solid #000000"><B>Moody&#146;s Sovereign Debt Rating</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>Below B</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>&#038;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Term to Maturity(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Unrated</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10&nbsp;years or less (but longer than 7
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15&nbsp;years or less (but longer than 10
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20&nbsp;years or less (but longer than 15
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30&nbsp;years or less (but longer than 20
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Greater than 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For sovereign debt denominated in non-U.S. currency apply additional
Currency Discount Factor:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">Foreign Currency</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000">Currency Discount Factor</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CAD Canadian Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EUR Euro</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">GBP British Pound</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">JPY Japanese Yen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">116</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AUD Australian Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HKD Hong Kong Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NZD New Zealand Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">114</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOK Norway Kroner</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEK Sweden Kronor</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">THB Thailand Baht</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">295</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">KRW South Korea Won</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">295</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TWD Taiwan New Dollars</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SGD Singapore Dollars</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">IDR Indonesia Rupiahs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">315</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">INR India Rupees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MYR Malaysia Ringgits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CZK Czech Republic Koruny</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PHP Philippines Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HUF Hungary Forint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PLN Poland Zlotych</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SKK Slovakia Koruny</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TRY Turkey New Lira</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RUB Russia Rubles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ZAR South Africa Rand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CLP Chile Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MXN Mexico Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">COP Columbia Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BRL Brazil Reais</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If the Corporation invests in a security denominated in a currency other than that found
in the above table, contact Moody&#146;s to obtain the applicable Currency Discount Factor for such
security.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Foreign non-sovereign debt</U>: The Moody&#146;s Discount Factor applied to
non-sovereign debt obligations will be (A)&nbsp;in the case of a non-sovereign debt obligation
denominated in U.S. dollars, 250%, and (B)&nbsp;in the case of a non-U.S. sovereign debt obligation
denominated in a foreign currency, 250% multiplied by the Currency Discount Factor for such foreign
currency.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 7 -<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;<U>Rule&nbsp;144A securities</U>: The Moody&#146;s Discount Factor applied to Rule&nbsp;144A Securities
for Rule&nbsp;144A Securities whose terms include rights to registration under the 1933 Act within one
year and Rule&nbsp;144A Securities which do not have registration rights within one year will be 120%
and 130%, respectively, of the Moody&#146;s Discount Factor which would apply were the securities
registered under the 1933 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;<U>Catastrophe bonds</U>: The Moody&#146;s Discount Factor applied to catastrophe bonds will
be 475%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;<U>Bank loans</U>: The Moody&#146;s Discount Factor applied to senior bank loans (&#147;Senior
Loans&#148;) shall be the percentage specified in accordance with the table set forth below (or such
lower percentage as Moody&#146;s may approve in writing from time to time):
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Caa and below</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(including</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Moody&#146;s Rating Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>distressed and</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Type of Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aaa-A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Baa and Ba</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>unrated)</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Senior Loans greater than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">149</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">non-Senior Loans greater than
$250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">128</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">146</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">159</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">loans less than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">138</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">156</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">169</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">270</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Lien Bank Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">168</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">185</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">270</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third &#038; Fourth Lien Bank Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">218</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">240</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">260</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">351</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If a Senior Loan is not rated by any of Moody&#146;s, S&#038;P or Fitch, the Corporation will use
the applicable percentage set forth under the column entitled &#147;Caa and below (including
distressed and unrated)&#148; in the table above. Ratings assigned the S&#038;P and/or Fitch are
generally accepted by Moody&#146;s at face value. However, adjustments to face value may be made
to particular categories of securities for which the ratings by S&#038;P and/or Fitch do not seem
to approximate a Moody&#146;s rating equivalent. Split rated securities assigned by S&#038;P and Fitch
(i.e., these rating agencies assign different rating categories to the security) will be
accepted at the lower of the two ratings.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Master Limited Partnerships (MLP) &#151; The Moody&#146;s Discount Factor applied to master
limited partnerships shall be applied in accordance with the table set forth below:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>MLP Sector (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Discount Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Large-cap MLPs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mid and Small-cap MLPs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Natural Resources (Oil, Gas, Energy)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">292</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Coal and Minerals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">301</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Real Estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">291</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income Real Estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">302</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">342</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Restricted MLPs will be increased by 120%.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 8 -<!-- /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">The Moody&#146;s Discount Factor for any Moody&#146;s Eligible Asset other than the securities set forth
above will be the percentage provided in writing by Moody&#146;s.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ELEVENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>Moody&#146;s Diversification Limitations</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Moody&#146;s Diversification Limitations</U>&#148; means, with respect to qualifying for inclusion
in Moody&#146;s Eligible Assets, the following diversification and issue size requirements:
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MAXIMUM SINGLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MAXIMUM SINGLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MINIMUM ISSUE SIZE</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>RATINGS(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 0px solid #000000"><B>ISSUER(2), (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 0px solid #000000"><B>INDUSTRY(3), (4)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 0px solid #000000"><B>($ IN MILLIONS)(5)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aaa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CS(6), Baa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ba</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B1-B2(8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B3 or below(8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Refers to the securities of the portfolio holding.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Companies subject to common ownership of 25% or more are considered as one issuer.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Percentages represent a portion of the aggregate Market Value of portfolio.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Industries are determined according to Moody&#146;s Industry Classifications, as defined herein.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Except for preferred stock, which has a minimum issue size of $50&nbsp;million, and mortgage pass
throughs issued by Federal National Mortgage Association, Federal Home Loan Mortgage
Corporation or Government National Mortgage Association, which has no minimum issue size.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>CS refers to common stock, which is diversified independently from its ratings level.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Portfolio holdings from issues ranging from $50&nbsp;million to $100&nbsp;million are limited to 20% of
the Corporation&#146;s total assets.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Securities of the portfolio holdings rated B or below by Moody&#146;s or the equivalent by another
nationally recognized statistical rating organization (&#147;NRSRO&#148;) or not rated shall be
considered to be Moody&#146;s Eligible Assets only to the extent the Market Value of such
securities does not exceed 10% of the portfolio Market Value; provided, however, that if the
Market Value of such securities exceeds 10% of the portfolio Market Value, a portion of such
securities (selected by the Corporation) shall not be considered Moody&#146;s Eligible Assets, so
that the Market Value of such securities (excluding such portion) does not exceed 10% of the
portfolio Market Value.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWELFTH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the
definition of &#147;<U>Moody&#146;s Eligible Assets</U>&#148; in its entirety and inserting in lieu thereof the
following:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Moody&#146;s Eligible Assets</U>&#148; means:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Cash (including interest and dividends due on assets rated (A)&nbsp;Baa3 or higher by Moody&#146;s
or the equivalent by another NRSRO if the payment date is within five (5)&nbsp;Business Days of the
Valuation Date, (B)&nbsp;A2 or higher by Moody&#146;s or the equivalent by another NRSRO if the payment date
is within thirty days of the Valuation Date, and (C)&nbsp;A1 or higher by Moody&#146;s or the equivalent by
another NRSRO if the payment date is within the Moody&#146;s Exposure Period) and receivables for
Moody&#146;s Eligible Assets sold if the receivable is due within five (5)&nbsp;Business Days of the
Valuation Date, and if the trades which generated such receivables are (A)&nbsp;settled through
clearinghouse firms with respect to which the Corporation has received prior written authorization
from Moody&#146;s or (B) (1)&nbsp;with counterparties having a Moody&#146;s long-term debt rating of at least Baa3
or the equivalent by another NRSRO or (2)&nbsp;with counterparties</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 9 -<!-- /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">having a Moody&#146;s Short Term Money
Market Instrument rating of at least P-1 or the equivalent by another NRSRO;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Short Term Money Market Instruments, so long as (A)&nbsp;such securities are rated at least P-1
or the equivalent by another NRSRO, (B)&nbsp;in the case of demand deposits, time deposits and overnight
funds, the supporting entity is rated at least A2 or the equivalent by another NRSRO, or (C)&nbsp;in all
other cases, the supporting entity (1)&nbsp;is rated A2 or the equivalent by another NRSRO and the
security matures within one month, (2)&nbsp;is rated A1 or the equivalent by another NRSRO and the
security matures within three months or (3)&nbsp;is rated at least Aa3 or the equivalent by another
NRSRO and the security matures within six months; provided, however, that for purposes of this
definition, such instruments (other than commercial paper rated by S&#038;P and not rated by Moody&#146;s)
need not meet any otherwise applicable S&#038;P rating criteria;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;U.S. Government Obligations (including U.S. Treasury Strips);</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Rule&nbsp;144A securities;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Common stocks (A) (1)&nbsp;which are traded on a nationally recognized stock exchange or in the
over-the-counter market, (2)&nbsp;if cash dividend paying, pay cash dividends in U.S. dollars and (3)
which may be sold without restriction by the Corporation; provided, however, that (y)&nbsp;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&nbsp;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)&nbsp;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, (B)&nbsp;which are securities denominated in any currency other than the
U.S. 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 over-the-counter and are issued by banks formed
under the laws of the United States, its states or the District of Columbia or (C)&nbsp;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 Corporation&#146;s holdings of securities denominated in currencies other
than the U.S. dollar and ADRs in excess of (1)&nbsp;6% of the aggregate Market Value of the outstanding
shares of common stock of such issuer thereof or (2)&nbsp;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 non-U.S. jurisdiction 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Loans;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Corporate debt securities (including foreign non-sovereign debt and catastrophe bonds) if
(A)&nbsp;such securities are rated by Moody&#146;s or another NRSRO; (B)&nbsp;such securities provide for the
periodic payment of interest in cash in U.S. dollars, euros or other currencies in</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 10 -<!-- /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">which the
Corporation is permitted to invest; (C)&nbsp;such securities have been registered under the 1933 Act or
are restricted as to resale under federal securities laws but are eligible for resale pursuant to
Rule&nbsp;144A under the 1933 Act as determined by the Corporation&#146;s investment
manager or portfolio manager acting pursuant to procedures approved by the Board of Directors,
except that such securities that are not subject to U.S. federal securities laws shall be
considered Moody&#146;s Eligible Assets if they are publicly traded; and (D)&nbsp;such securities are not
subject to extended settlement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing limitations, corporate debt securities and loans rated by
neither Moody&#146;s, S&#038;P nor Fitch shall be considered to be Moody&#146;s Eligible Assets to the extent such
securities are issued by entities which (i)&nbsp;have not filed for bankruptcy within the past three
years, (ii)&nbsp;are current on all principal and interest in their fixed income obligations, (iii)&nbsp;are
current on all preferred stock dividends, and (iv)&nbsp;possess a current, unqualified auditor&#146;s report
without qualified, explanatory language;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Foreign Sovereign Debt so long as the issuing country has a Currency Discount Factor as
set out in the definition of Moody&#146;s Discount Factor in these Articles Supplementary. Foreign
Sovereign Debt issued by a country without a Currency Discount Factor as set out in the definition
of Moody&#146;s Discount Factor in these Articles Supplementary can only be approved as a Moody&#146;s
Eligible Asset after review and confirmation by Moody&#146;s;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Asset-backed securities: If (A)&nbsp;such securities are rated at least Baa by Moody&#146;s or at
least BBB by S&#038;P or Fitch, (B)&nbsp;the securities are part of an issue that is $250&nbsp;million or greater,
or the issuer of such securities has a total of $500&nbsp;million or greater of asset-backed securities
outstanding at the time of purchase of the securities by the Corporation and (C)&nbsp;the expected
average life of the securities is not greater than 4&nbsp;years;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Collateralized debt obligations;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Preferred stocks if (A)&nbsp;dividends on such preferred stock are cumulative, (B)&nbsp;such
securities provide for the periodic payment of dividends thereon in cash in U.S. dollars or euros
and do not provide for conversion or exchange into, or have warrants attached entitling the holder
to receive, equity capital at any time over the respective lives of such securities, (C)&nbsp;the issuer
of such a preferred stock has common stock listed on either the New York Stock Exchange or NYSE
Amex Equities, (D)&nbsp;the issuer of such a preferred stock has a senior debt rating from Moody&#146;s of
Baa1 or higher or a preferred stock rating from Moody&#146;s of Baa3 or higher and (E)&nbsp;such preferred
stock has paid consistent cash dividends in U.S. dollars or euros over the last three years or has
a minimum rating of A1 (if the issuer of such preferred stock has other preferred issues
outstanding that have been paying dividends consistently for the last three years, then a preferred
stock without such a dividend history would also be eligible). In addition, the preferred stocks
must have the following diversification requirements: (X)&nbsp;the preferred stock issue must be greater
than $50&nbsp;million and (Y)&nbsp;the minimum holding by the Corporation of each issue of preferred stock is
$500,000 and the maximum holding of preferred stock of each issue is $5&nbsp;million. In addition,
preferred stocks issued by transportation companies will not be considered Moody&#146;s Eligible Assets;</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->- 11 -<!-- /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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;Convertible securities (including convertible preferred stock), provided that (A)&nbsp;the
issuer of common stock must have a Moody&#146;s senior unsecured debt of Caa or better, or a rating of
CCC or better by S&#038;P or Fitch, (B)&nbsp;the common stocks must be traded on the New York Stock Exchange,
NYSE Amex Equities, or the NASDAQ, (C)&nbsp;dividends must be paid in
U.S. dollars, (D)&nbsp;the portfolio of convertible bonds must be diversified as set forth in the
table set forth below and (E)&nbsp;the company shall not hold shares exceeding the average weekly
trading volume during the preceding month;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Common stock, preferred stock or any debt security of REITs or real estate companies;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Pooled investment vehicles including Business Development Companies, Master Limited
Partnerships Securities, Private Investment Companies and Registered Investment Companies;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;Foreign Currency Transactions;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;Moody&#146;s Derivatives Transactions; and</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;Financial contracts, as such term is defined in Section&nbsp;3(c)(2)(B)(ii) of the 1940 Act
and other securities or assets not otherwise provided for in this definition, but only upon receipt
by the Corporation of a letter from Moody&#146;s specifying any conditions on including such financial
contract or other securities or assets in Moody&#146;s Eligible Assets and assuring the Corporation that
including such financial contract or other securities or assets in the manner so specified would
not affect the credit rating assigned by Moody&#146;s to the Series&nbsp;D Preferred Stock.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>Moody&#146;s Exposure Period</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Moody&#146;s Exposure Period</U>&#148; means the period commencing on a given Valuation Date and
ending 49&nbsp;days thereafter.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the
definition of &#147;<U>Moody&#146;s Industry Classifications</U>&#148; in its entirety and inserting in lieu
thereof the following:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#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&nbsp;D Preferred Stock):
</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="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aerospace and Defense: Major Contractor, Subsystems, Research, Aircraft Manufacturing,
Arms, and Ammunition</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="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Automobile: Automobile Equipment, Auto-Manufacturing, Auto Parts Manufacturing,
Personal Use Trailers, Motor Homes, Dealers</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 12 -<!-- /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 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="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Banking: Bank Holding, Savings and Loans, Consumer Credit, Small Loan, Agency,
Factoring, Receivables</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="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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, Candy, Gum, Seafood,
Frozen Food, Cigarettes, Cigars, Leaf/Snuff, Vegetable Oil</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="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Chemicals, Plastics and Rubber: Chemicals (non-agricultural), Industrial Gases, Sulfur,
Plastics, Plastic Products, Abrasives, Coatings, Paints, Varnish, Fabricating</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="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Containers, Packaging and Glass: Glass, Fiberglass, Containers made of: Glass, Metal,
Paper, Plastic, Wood or Fiberglass</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="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Personal and Non-Durable Consumer Products (Manufacturing Only): Soaps, Perfumes,
Cosmetics, Toiletries, Cleaning Supplies, School Supplies</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="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified/Conglomerate Manufacturing</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="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified/Conglomerate Service</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="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified Natural Resources, Precious Metals and Minerals: Fabricating, Distribution</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="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ecological: Pollution Control, Waste Removal, Waste Treatment and Waste Disposal</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="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electronics: Computer Hardware, Electric Equipment, Components, Controllers, Motors,
Household Appliances, Information Service Communicating Systems, Radios, TVs, Tape
Machines, Speakers, Printers, Drivers, Technology</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="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Finance: Investment Brokerage, Leasing, Syndication, Securities</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="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Farming and Agriculture: Livestock, Grains, Produce, Agriculture Chemicals,
Agricultural Equipment, Fertilizers</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="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Grocery: Grocery Stores, Convenience Food Stores</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="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Healthcare, Education and Childcare: Ethical Drugs, Proprietary Drugs, Research, Health
Care Centers, Nursing Homes, HMOs, Hospitals, Hospital Supplies, Medical Equipment</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="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Home and Office Furnishings, House wares, and Durable Consumer Products: Carpets, Floor
Coverings, Furniture, Cooking, Ranges</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 13 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<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="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Hotels, Motels, Inns and Gaming</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="3%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance: Life, Property and Casualty, Broker, Agent, Surety</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="3%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Machinery (Non-Agricultural, Non-Construction, Non-Electronic): Industrial, Machine
Tools, and Steam Generators</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="3%" nowrap align="left">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oil and Gas: Crude Producer, Retailer, Well Supply, Service and Drilling</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="3%" nowrap align="left">25.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Printing, Publishing, and Broadcasting: Graphic Arts, Paper, Paper Products, Business
Forms, Magazines, Books, Periodicals, Newspapers, Textbooks, Radio, T.V., Cable
Broadcasting Equipment</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="3%" nowrap align="left">26.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cargo Transport: Rail, Shipping, Railroads, Rail-car Builders, Ship Builders,
Containers, Container Builders, Parts, Overnight Mail, Trucking, Truck Manufacturing,
Trailer Manufacturing, Air Cargo, Transport</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="3%" nowrap align="left">27.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Retail Stores: Apparel, Toy, Variety, Drugs, Department, Mail Order Catalog, Showroom</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="3%" nowrap align="left">28.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Telecommunications: Local, Long Distance, Independent, Telephone, Telegraph, Satellite,
Equipment, Research, Cellular</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="3%" nowrap align="left">29.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Textiles and Leather: Producer, Synthetic Fiber, Apparel Manufacturer, Leather Shoes</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="3%" nowrap align="left">30.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Personal Transportation: Air, Bus, Rail, Car Rental</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="3%" nowrap align="left">31.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Utilities: Electric, Water, Hydro Power, Gas</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="3%" nowrap align="left">32.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified Sovereigns: Semi-sovereigns, Canadian Provinces, Supra-national Agencies</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>Private Investment Companies</U>&#148;:</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 14 -<!-- /Folio -->
</DIV>

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<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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Private Investment Companies</U>&#148; means investment companies that are structured to be
exempt under the 1940 Act.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>Rating Agency</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rating Agency</U>&#148; means Moody&#146;s as long as such rating agency is then rating the Series
D Preferred Stock at the Corporation&#146;s request or any other rating agency then rating the Series&nbsp;D
Preferred Stock at the Corporation&#146;s request.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVENTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>Registered Investment Company</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registered Investment Company</U>&#148; means an investment company, such as an open-end or
closed-end mutual fund, which files a registration statement with the Commission and meets all
requirements of the 1940 Act.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EIGHTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the
definition of &#147;<U>Short-Term Money Market Instruments</U>&#148; in its entirety and inserting in lieu
thereof the following:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#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&nbsp;days (or 270&nbsp;days for instruments rated at least Aaa for
purposes of determining Moody&#146;s Eligible Assets):
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>commercial paper rated either F-1 by Fitch or A-1
by S&#038;P if such commercial paper matures in 30&nbsp;days or P-1 by Moody&#146;s and
either F-1&#043; by Fitch or A-1&#043; by S&#038;P if such commercial paper matures in
over 30&nbsp;days;</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="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>demand or time deposits in, and banker&#146;s
acceptances and certificates of deposit of, (A)&nbsp;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)&nbsp;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);</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="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>overnight funds;</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="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>U.S. Government Obligations and Government
Securities; 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Eurodollar demand or time deposits in, or
certificates of deposit of, the head office or the London branch office
of a depository institution or trust company if the certificates of
deposit, if any, and the long-term unsecured debt obligations (other than
such obligations the ratings of which are</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 15 -<!-- /Folio -->
</DIV>

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<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 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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>based on the credit of a person
or entity other than such depository institution or trust company) of
such depository institution or trust company that have (1)&nbsp;credit ratings
on each Valuation Date of at least P-1
from Moody&#146;s and either F-1&#043; from Fitch or A-1&#043; from S&#038;P, in the case of
commercial paper or certificates of deposit, and (2)&nbsp;credit ratings on each
Valuation Date of at least Aa3 from Moody&#146;s and either AA from Fitch or AA-
from S&#038;P, in the case of long-term unsecured debt obligations; provided,
however, that in the case of any such investment that matures in no more
than one Business Day from the date of purchase or other acquisition by the
Corporation, all of the foregoing requirements shall be applicable except
that the required long-term unsecured debt credit rating of such depository
institution or trust company from Moody&#146;s, Fitch and S&#038;P shall be at least
A2, A-2 and A, respectively; and provided further, however, that the
foregoing credit rating requirements shall be deemed to be met with respect
to a depository institution or trust company if (1)&nbsp;such depository
institution or trust company is the principal depository institution in a
holding company system, (2)&nbsp;the certificates of deposit, if any, of such
depository institution or trust company are not rated on any Valuation Date
below P-1 by Moody&#146;s, F-1&#043; by Fitch or A-1&#043; by S&#038;P and there is no long-term
rating, and (3)&nbsp;the holding company shall meet all of the foregoing credit
rating requirements (including the preceding proviso in the case of
investments that mature in no more than one Business Day from the date of
purchase or other acquisition by the Corporation); and provided further,
that the interest receivable by the Corporation shall not be subject to any
withholding or similar taxes.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINETEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>U.S. Government Securities</U>&#148;:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>U.S. Government Securities</U>&#148; mean securities that are direct obligations of, and
obligations the timely payment of principal and interest on which is fully guaranteed by, the
United States or any agency or instrumentality of the United States, the obligations of which are
backed by the full faith and credit of the United States and in the form of conventional bills,
bonds and notes.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTIETH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the
definition of &#147;<U>Valuation Date</U>&#148; in its entirety and inserting in lieu thereof the following:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Valuation Date</U>&#148; means the last Business Day of each month, or for purposes of
determining whether the Corporation is maintaining the Basic Maintenance Amount, each business day
commencing with the Date of Original Issue.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-FIRST: Article&nbsp;II.6(a)(ii)(C) of the Articles Supplementary is hereby amended by
deleting it in its entirety and inserting in lieu thereof the following:</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;As soon as practicable after the last Valuation Date of each fiscal year of the
Corporation on which a Basic Maintenance Report is required to be delivered, the Corporation will
deliver to Moody&#146;s an Accountant&#146;s Confirmation regarding the accuracy of
the calculations made by the Corporation in such Basic Maintenance Report.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-SECOND: The amendments set forth in these Articles of Amendment were duly approved by
the Board of Directors of the Corporation in accordance with Article&nbsp;III of the Articles
Supplementary and the Maryland General Corporation Law. No stock entitled to be voted on the
matter was outstanding or subscribed for at the time of the approval of the amendments set forth in
these Articles of Amendment.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-THIRD: The amendments contemplated by these Articles of Amendment do not increase the
authorized stock of the Corporation or the aggregate par value thereof.</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned President of The Gabelli Equity Trust Inc., who executed these Articles of
Amendment on behalf of the Corporation, hereby acknowledges, in the name and on behalf of the
Corporation, that these Articles of Amendment are the corporate act of the Corporation and states
further, under the penalties of perjury, that to the best of his knowledge, information and belief,
the matters and facts set forth herein with respect to authorization and approval are true in all
material respects.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, The Gabelli Equity Trust Inc. has caused these Articles of Amendment to be
signed in its name and on its behalf by its President and witnessed by its Secretary as of this
29th day of May, 2009.</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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    <TD colspan="3" valign="top" align="left">WITNESS:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">THE GABELLI EQUITY TRUST INC.</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>
    <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">/s/ Agnes Mullady
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Agnes Mullady
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Bruce N. Alpert
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: 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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Secretary
</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">Title: President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TYPE>EX-99.A.XI
<SEQUENCE>4
<FILENAME>y91816exv99wawxi.htm
<DESCRIPTION>EX-99.A.XI
<TEXT>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99 (a)(xi)
</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">ARTICLES OF AMENDMENT TO THE<BR>
ARTICLES SUPPLEMENTARY<BR>
CREATING AND FIXING THE RIGHTS OF<BR>
SERIES E AUCTION RATE PREFERRED STOCK
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gabelli Equity Trust Inc., a Maryland corporation (hereinafter called the &#147;Corporation&#148;),
hereby certifies to the State Department of Assessments and Taxation of the State of Maryland that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST: Article&nbsp;I.3(b) of the Articles Supplementary Creating and Fixing the Rights of Series&nbsp;E
Auction Rate Preferred Stock (&#147;Articles Supplementary&#148;) is hereby amended by deleting it in its
entirety and inserting in lieu thereof the following:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;In the event of a redemption of Series&nbsp;E Preferred Stock pursuant to paragraph 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 Rule&nbsp;23c-2 under the
1940 Act or any successor provision (such Rule&nbsp;23c-2 notice shall be provided to S&#038;P as soon as
practicable after the notice is filed with the Commission so long as S&#038;P is rating the Series&nbsp;E
Preferred Stock at the Corporation&#146;s request). 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)&nbsp;in the case of an optional redemption pursuant to paragraph 3(a)(i)
above, one Business Day prior to the giving of notice to the Holders and (ii)&nbsp;in the case of a
mandatory redemption pursuant to paragraph 3(a)(ii) above, on or prior to the 7th day preceding the
Mandatory Redemption Date. The Auction Agent will use its reasonable efforts to provide telephonic,
electronic or written notice to each Holder of any shares of Series&nbsp;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&nbsp;E Preferred Stock at their addresses appearing on the share records of the Corporation.
Such Notice of Redemption will set forth (s)&nbsp;the date fixed for redemption, (t)&nbsp;the number or
percentage of shares of Series&nbsp;E Preferred Stock to be redeemed, (u)&nbsp;the CUSIP number(s) of such
shares, (v)&nbsp;the Redemption Price (specifying the amount of accumulated dividends to be included
therein) and any applicable redemption premium, (w)&nbsp;the place or places where such shares are to be
redeemed, (x)&nbsp;that dividends on the shares to be redeemed will cease to accumulate on such date
fixed for redemption, (y)&nbsp;the provision of these Articles Supplementary under which redemption
shall be made, and (z)&nbsp;in the case of a redemption pursuant to paragraph 3(a)(i), any conditions
precedent to such redemption. If fewer than all the Outstanding shares of Series&nbsp;E Preferred Stock
held by
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND: Article&nbsp;I.9(a) of the Articles Supplementary is hereby amended by deleting it in its
entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Determination of Compliance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For so long as shares of the Series&nbsp;E Preferred Stock are Outstanding, the Corporation shall
make the following determinations:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Asset Coverage as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;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 P.M., New York City time, on the fifth Business Day following the date of such
determination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;The Corporation shall deliver to each Rating Agency an &#147;<U>Asset Coverage
Certificate</U>&#148; which sets forth the determination of paragraph 9(a)(i)(A) above (1)&nbsp;as of the
Date of Original Issue and, thereafter, (2)&nbsp;as of (x)&nbsp;each Quarterly Valuation Date and (y)&nbsp;a
Business Day on or before any Series&nbsp;E Asset Coverage Cure Date following a failure to meet Asset
Coverage. Such Asset Coverage Certificate shall be delivered in the case of clause (1)&nbsp;on the Date
of Original Issue and in the case of clause (2)&nbsp;on or before the seventh Business Day following
such Quarterly Valuation Date or the relevant Cure Date, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Basic Maintenance Amount as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;For so long as the Series&nbsp;E Preferred Stock is rated by Moody&#146;s and/or S&#038;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;On or before 5:00 P.M., New York City time, on the third Business Day after a Valuation
Date on which the Corporation fails to satisfy the Basic Maintenance Amount, and on the third
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 (if either S&#038;P or Moody&#146;s is then
rating the Series&nbsp;C Preferred Stock at the Corporation&#146;s request) a Basic Maintenance Report as of
the date of such failure or such Basic
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 (via facsimile or electronic mail solely in the case of S&#038;P
if S&#038;P is then rating the Series&nbsp;E Preferred Stock at the Corporation&#146;s request) 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 (1)
Moody&#146;s and S&#038;P as of each Valuation Date, in each case on or before the fifth Business Day after
such day, (2)&nbsp;upon reasonable request by such Rating Agency and (3)&nbsp;any day the Common Stock and
Series&nbsp;E Preferred Stock are redeemed. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;As soon as practicable after the last Valuation Date of each fiscal year of the
Corporation on which a Basic Maintenance Report is required to be delivered, the Corporation will
deliver to the relevant Rating Agency (if either S&#038;P or Moody&#146;s is then rating the Series&nbsp;E
Preferred Stock at the Corporation&#146;s request) an Accountant&#146;s Confirmation regarding the accuracy
of the calculations made by the Corporation in such Basic Maintenance Report. The Corporation also
shall cause the Independent Accountant to provide an Accountant&#146;s Confirmation to S&#038;P if and when
requested by S&#038;P for any Valuation Date as soon as practicable after such request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;If any Accountant&#146;s Confirmation delivered pursuant to paragraph (C)&nbsp;of this paragraph
9(a)(ii) shows an error was made in the Basic Maintenance Report with respect to such Basic
Maintenance Amount Cure Date, or 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 (if either S&#038;P or Moody&#146;s is then rating the
Series&nbsp;E Preferred Stock) promptly following receipt by the Corporation of such Accountant&#146;s
Confirmation. If any Accountant&#146;s Confirmation shows that an error was made in any such report, the
calculation or determination made by the Corporation&#146;s Independent Accountant will be conclusive
and binding on the Corporation; provided, however, any errors shown in the Accountant&#146;s
Confirmation filed on an annual basis shall not be deemed to be a failure to maintain the Basic
Maintenance Amount on any prior Valuation Dates. The Accountant&#146;s Confirmations referred to above
will confirm, based on the Independent Accountant&#146;s review, (i)&nbsp;the mathematical accuracy of the
calculations reflected in the Basic Maintenance Amount and (ii)&nbsp;that the Corporation determined
whether the Corporation had, at such Valuation Date, Eligible Assets with an aggregate Discounted
Value at least equal to the Basic Maintenance Amount in accordance with these Articles
Supplementary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;The Corporation will provide S&#038;P annually a copy of its pricing procedures used in
determining the Market Value of the Corporation&#146;s assets.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;On or before 5:00 p.m., New York City time, on the fifth Business Day after the Date of
Original Issue of Series&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)&nbsp;On or before 5:00 p.m., New York City time, on the third Business Day after either (1)&nbsp;the
Corporation shall have redeemed Series&nbsp;E Preferred Stock or (2)&nbsp;the 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 Corporation shall complete and deliver in electronic format to, in the case of
clause (1), each Rating Agency, or, in the case of clause (2), any relevant Rating Agency, a Basic
Maintenance Report as of the date of either such event.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H)&nbsp;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 Corporation shall deliver, by fax or email before 5:00 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD: Article&nbsp;I.11(b)(iv) of the Articles Supplementary is hereby amended by deleting it in
its entirety and inserting in lieu thereof the following:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(iv)&nbsp;utilize any pricing service other than FT Interactive Data, Reuters, Telekurs, Bloomberg
Financial Markets, J.J. Kenny Pricing Service, Merrill Lynch Securities Pricing Service or Bridge
Data Corp, Bear Stearns Pricing Direct and any pricing service then permitted by S&#038;P; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;&#145;AA&#146; Financial Composite Commercial Paper Rate&#148; </B>in its entirety and inserting in
lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;&#145;AA&#146; Financial Composite Commercial Paper Rate&#148; </B>on any date means:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(i)&nbsp;the interest equivalent of the 7-day rate, in the case of a Dividend Period of seven days or
shorter; for Dividend Periods greater than 7&nbsp;days but fewer than or equal to 31&nbsp;days, the 30-day
rate; for Dividend Periods greater than 31&nbsp;days but fewer than or equal to 61&nbsp;days, the 60-day
rate; for Dividend Periods greater than 61&nbsp;days but fewer than or equal to 91&nbsp;days, the 90&nbsp;day
rate; for Dividend Periods greater than 91&nbsp;days but fewer than or equal to 270&nbsp;days, the rate
described in (ii)&nbsp;below; for Dividend Periods greater than 270&nbsp;days, the Treasury Index Rate; on
commercial paper on behalf of issuers whose corporate bonds are rated &#147;AA&#148; by S&#038;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)&nbsp;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
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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) &#147;Commercial Paper Dealers&#148; shall mean (1)
Salomon Smith Barney Inc., Merrill Lynch, Pierce, Fenner &#038; Smith Incorporated and Goldman Sachs &#038;
Co.; (2)&nbsp;in lieu of any thereof, its respective Affiliate or successor, and (3)&nbsp;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) &#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)
such rate expressed as a decimal, divided by (2)&nbsp;the difference between (x)&nbsp;1.00 and (y)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the definition
of <B>&#147;Advance Rate&#148; </B>in its entirety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Agency Mortgage Collateral&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Agency Mortgage Collateral&#148; </B>means certificates guaranteed by U.S. Government Agencies (<I>e.g.,</I>
Federal National Mortgage Association (&#147;FNMA&#148;), Government National Mortgage Association (&#147;GNMA&#148;)
and Federal Home Loan Mortgage Corporation (&#147;FHLMC&#148;)) for timely payment of interest and full and
ultimate payment of principal. Agency Mortgage Collateral also evidences undivided interests in
pools of level-payment, fixed, variable, or adjustable rate, fully amortizing loans that are
secured by first liens on one- to four-family residences residential properties (or in the case of
Plan B FHLMC certificates, five or more units primarily designed for residential use).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Annual Valuation Date&#148; </B>in its entirety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EIGHTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Auction Agent&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Auction Agent&#148; </B>means The Bank of New York Mellon 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Bank Loans&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Bank Loans&#148; </B>means direct purchases of, assignments of, participations in and other interests
in (a)&nbsp;any bank loan or (b)&nbsp;any loan made by an investment bank, investment fund
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio --> - 5 - <!-- /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">or other financial institution, provided that such loan under this clause (b)&nbsp;is similar to those
typically made, syndicated, purchased or participated by a commercial bank or institutional loan
investor in the ordinary course of business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Business Development Company&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Business Development Company&#148; </B>(BDCs) means a type of closed-end fund regulated under the 1940
Act whose shares are typically listed for trading on a U.S. securities exchange. BDCs are
publicly-traded funds that typically invest in and lend to small and medium-sized private and
certain public companies that may not have access to public equity markets for capital raising.
BDCs invest in such diverse industries as healthcare, chemical and manufacturing, technology and
service companies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ELEVENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Collateralized Mortgage Obligations&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Collateralized Mortgage Obligations&#148; </B>means publicly issued instruments rated &#145;AAA&#146; by S&#038;P.
No more than 25% of the total market value of collateral may be from one private sector issuer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWELFTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Conventional Mortgage&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Conventional Mortgage&#148; </B>means a mortgage in which the interest rate does not change during the
entire term of the loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Convertible Corporate Indebtedness&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Convertible Corporate Indebtedness&#148; </B>means evidences of indebtedness other than Deposit
Securities, U.S. Government Securities and Municipal Obligations that are convertible into or
exchangeable or exercisable for stock of a corporation and that satisfy the following conditions:
(i)&nbsp;such evidence of indebtedness is rated at least CCC by S&#038;P; and (ii)&nbsp;if such evidence of
indebtedness is rated BBB or lower by S&#038;P, the market capitalization of the issuer of such evidence
of indebtedness is at least $100&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Date of Original Issue&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Date of Original Issue&#148; </B>means with respect to any share of Series&nbsp;E Preferred Stock, the
date on which the Corporation originally issues such share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Discount Factor&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 6 - <!-- /Folio -->
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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Discount Factor&#148; </B>means (a)&nbsp;so long as each of Moody&#146;s and S&#038;P is rating the Series&nbsp;E
Preferred Stock at the Corporation&#146;s request, the Moody&#146;s Discount Factor or S&#038;P Discount Factor,
as applicable, or (b)&nbsp;any applicable discount factor established by any Other Rating Agency,
whichever is applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;FHA Mortgage&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;FHA Mortgage&#148; </B>means a mortgage issued by federally qualified lenders and insured by the
Federal Housing Administration (FHA).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVENTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Fitch&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Fitch&#148; </B>means Fitch Ratings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EIGHTEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Foreign Currency Transactions&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Foreign Currency Transactions&#148; </B>means any technique used by the Corporation to hedge its
exposure to foreign currencies, including forward foreign currency exchange contracts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINETEENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Foreign Sovereign Debt&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Foreign Sovereign Debt&#148; </B>means debt issued by a national government other than the United
States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTIETH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;High Yield Securities&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;High Yield Securities&#148; </B>means Municipal Obligations not rated by S&#038;P but rated equivalent to
BBB or lower by another NRSRO, rated BB&#043; or lower by S&#038;P or not rated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-FIRST: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Market Value&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Market Value&#148; </B>means the market value of an asset of the Corporation as computed as follows:
(i)&nbsp;Equity securities listed or traded on a nationally recognized securities exchange or traded in
the U.S. over-the-counter market where trades are reported contemporaneously and for which market
quotations are readily available, are valued at the last quoted sale or a market&#146;s official closing
price at the close of the exchange&#146;s or other market&#146;s regular trading hours, as of or prior to the
time and day as of which such value is being determined. Portfolio securities traded on more than
one national securities exchange or market
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio --> - 7 - <!-- /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">are valued according to the broadest and most representative market as determined by the Adviser.
If there has been no sale on the day the valuation is made, the securities are valued at the
closing bid price on the principal market for such security on such day. If no asked prices are
quoted on such day, then the security is valued at the closing bid price on the principal market
for such security on such day. If no bid or asked prices are quoted on such day, the security is
valued at the most recently available price. (ii)&nbsp;Debt instruments are valued based upon (a)&nbsp;the
basis of prices provided by a pricing service or (b)&nbsp;the lower of the value set forth in bids from
two independent dealers in securities, one of which bids will be in writing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-SECOND: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Master Limited Partnership Securities&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Master Limited Partnership Securities&#148; </B>means the following securities, restricted or
unrestricted, issued by a Master Limited Partnership (MLP)&nbsp;or an affiliate of an MLP: (1)&nbsp;common
units, (2)&nbsp;convertible subordinated units, (3)&nbsp;I-Shares, (4)&nbsp;I-units and (5)&nbsp;debt securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-THIRD: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Moody&#146;s Derivatives Transactions&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Moody&#146;s Derivatives Transactions&#148; </B>means, for so long as any Series&nbsp;E Preferred Stock is rated
by Moody&#146;s, the Corporation may, notwithstanding the limitations in paragraph 10 of this Article&nbsp;I,
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, subject to the following limitations:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <I>Futures and call options</I>: For purposes of the Basic Maintenance Amount, futures held by
the Corporation and call options sold by the Corporation 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
Corporation, the Market Value of the call option will be included as Moody&#146;s Eligible Assets
subject to a Moody&#146;s Discount Factor mutually agreed to between the Corporation 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <I>Securities lending</I>: To increase income, the Corporation may lend its portfolio securities
to securities broker-dealers or financial institutions if (i)&nbsp;the loan is collateralized in
accordance with applicable regulatory requirements and (ii)&nbsp;no loan will cause the value of all
loaned securities to exceed 20% of the value of its total assets. 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 Corporation may reinvest cash collateral for securities
lent in conformity with its investment objectives and policies and the provisions of these Articles
Supplementary. In such event, the Corporation may reinvest cash
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio --> - 8 - <!-- /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">collateral to the extent that securities lending collateral received is invested by the
Corporation in assets that otherwise would be Moody&#146;s Eligible Assets and the value of such assets
exceeds the amount of the Corporation&#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 Corporation&#146;s obligation to return the collateral on a Valuation Date, such
difference shall be included as an obligation/liability of the Corporation for purposes of
calculating the Basic Maintenance Amount. Collateral received by the Corporation in a securities
lending transaction and maintained by the Corporation 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <I>Interest rate swaps</I>: Only the cumulative unsettled profit and loss from an interest rate
swap transaction will be calculated when determining the Basic Maintenance Amount. If the
Corporation has an outstanding gain from an interest rate 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 interest rate swap transaction. If the Corporation has an outstanding
liability from an interest rate swap transaction on a Valuation Date, the Corporation will subtract
the outstanding liability from the total Moody&#146;s Eligible Assets in calculating the Basic
Maintenance Amount.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If not otherwise provided for in (a)-(c) above, derivative instruments will be included as
Moody&#146;s Eligible Assets subject to a Moody&#146;s Discount Factor as mutually agreed to between the
Corporation and Moody&#146;s.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-FOURTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Moody&#146;s Discount Factor&#148; </B>in its entirety and inserting in lieu thereof the
following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Corporate debt securities</U>: The percentage determined by reference to the rating
on such asset with reference to the remaining term to maturity of such asset, in accordance with
the table set forth below (non convertibles).
</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="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Term to Maturity of Corporate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27" style="border-bottom: 1px solid #000000"><B>Moody&#146;s Rating Category</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Debt Security</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unrated</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">137</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1 &#150; 2&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2 &#150; 3&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> - 9 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Term to Maturity of Corporate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27" style="border-bottom: 1px solid #000000"><B>Moody&#146;s Rating Category</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Debt Security</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unrated</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3 &#150; 4&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4 &#150; 5&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5 &#150; 7&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7 &#150; 10&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10 &#150; 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15 &#150; 20&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20 &#150; 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Greater than 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The Moody&#146;s Discount Factors above for corporate debt securities shall also be applied to any
interest rate swap or cap, in which case the rating of the counterparty shall determine
the appropriate rating category.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>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&#038;P
nor Fitch, are limited to 10% of Moody&#146;s Eligible Assets. If a corporate debt security is unrated
by Moody&#146;s, S&#038;P or Fitch, the Corporation will use the percentage set forth under &#147;Unrated&#148; in this
table. Ratings assigned by S&#038;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&#038;P and/or
Fitch rating does not seem to approximate a Moody&#146;s rating equivalent. Split rated securities
assigned by S&#038;P and Fitch will be accepted at the lower of the two ratings.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For corporate debt securities that do not pay interest in U.S. dollars, the fund sponsor will
contact Moody&#146;s to obtain the applicable currency conversion rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Preferred stock</U>: The Moody&#146;s Discount Factor for taxable preferred stock shall
be:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aaa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">155</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">160</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Baa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">165</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ba</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">196</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">216</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#060;B or Not Rated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Middle Market Bank </DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">476</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-cumulative perpetual preferreds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> - 10 - <!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment Grade DRD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">165</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred Stock</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">Non-Investment Grade</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">216</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DRD Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For non-cumulative preferred stock, the Discount Factor should be amplified by 110%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Common stock</U>:
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Common Stocks</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Large Cap</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Mid Cap</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Small Cap</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;week exposure period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">205</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">220</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Market cap for large-cap stocks are $10&nbsp;billion and up, mid-cap stocks range between $2
billion and $10&nbsp;billion, and small-cap stocks are $2&nbsp;billion and below.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Convertible securities (including convertible preferreds)</U>:
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&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 nowrap align="center" style="border-bottom: 1px solid #000000"><B>Delta</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Investment <BR>
Grade</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Non-<BR>
Investment <BR>
Grade</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Unrated</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD>.00 &#150; .40</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="8" align="left">Use Corporate Debt Securities Table</TD>

    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">.41 &#150; .80</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">192</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">226</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">.81 &#150; 1.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">195</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">229</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With respect to &#147;structured synthetic convertible&#148; securities, the discount factors above should be
grossed up by an additional 20% of the base discount percentage.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Common stock, preferred stock and corporate debt securities of REITs</U>:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For common stock and preferred stock of real estate investment trusts
(&#147;REITs&#148;), the Moody&#146;s Discount Factor shall be the percentage specified in the
table set forth below:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 11 - <!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Moody&#146;s Discount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">common stock of REITs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">preferred stock of REITs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">with a Moody&#146;s, S&#038;P or Fitch rating (including a Senior Implied Rating):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">without a Moody&#146;s, S&#038;P or Fitch rating (including a
Senior Implied Rating):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">208</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;Notwithstanding the above, a Moody&#146;s Discount Factor of 250% will be
applied: (a)&nbsp;to those assets in a single NAREIT industry category/sector which
exceed 30% of Moody&#146;s Eligible Assets but are not greater than 35% of Moody&#146;s
Eligible Assets; (b)&nbsp;if dividends on such securities have not been paid consistently
(either quarterly or annually) over the previous three years, or for such shorter
time period that such securities have been outstanding; or (c)&nbsp;if the market
capitalization (including common stock and preferred stock) of an issuer is below
$500&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;For corporate debt securities of REITs, apply the Moody&#146;s Discount Factors
listed above under Corporate debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Short-Term Instruments</U>: The Moody&#146;s Discount Factor applied to short-term
portfolio securities, including without limitation corporate debt securities and Short-Term Money
Market Instruments will be (1)&nbsp;100%, so long as such portfolio securities mature or have a demand
feature at par exercisable within the Moody&#146;s Exposure Period and are rated Aaa or at least
Prime-1, V-Mig1, or equivalent, or be a rated money-market fund; and (2)&nbsp;115%, so long as such
portfolio securities do not mature within the Moody&#146;s Exposure Period or have a demand feature at
par not exercisable within the Moody&#146;s Exposure Period. A Moody&#146;s Discount Factor of 100% will be
applied to cash.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>U.S. Government Obligations and U.S. Treasury Strips</U>:
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>U.S.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Government</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>U.S. Treasury</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Strips Discount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Remaining Term to Maturity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Discount Factor</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1 &#150; 2&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> - 12 - <!-- /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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>U.S.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Government</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>U.S. Treasury</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Strips Discount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Remaining Term to Maturity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Discount Factor</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2 &#150; 3&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3 &#150; 4&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4 &#150; 5&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5 &#150; 7&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7 &#150; 10&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10 &#150; 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15 &#150; 20&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">218</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20 &#150; 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">244</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Foreign Sovereign Debt:</U>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Debt denominated in US$:
</DIV>

<DIV align="center" style="font-size: 8pt; margin-top: 18pt"><B>Moody&#146;s Sovereign Debt<BR>
Rating</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="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>Below B</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>&#038;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Term to Maturity(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unrated</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">137</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2&nbsp;years or less (but
longer than 1&nbsp;year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3&nbsp;years or less (but
longer than 2&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4&nbsp;years or less (but
longer than 3&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5&nbsp;years or less (but
longer than 4&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;years or less (but longer than 5&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10&nbsp;years or less
(but longer than 7
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> - 13 - <!-- /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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>Below B</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>&#038;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Term to Maturity(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unrated</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15&nbsp;years or less (but longer than 10
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20&nbsp;years or less (but longer than 15
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30&nbsp;years or less (but longer than 20
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Greater than 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">&nbsp;&nbsp;b. For sovereign debt denominated in non-U.S. currency apply additional
Currency Discount Factor:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3">Currency Discount</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Foreign Currency</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3">Factor</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CAD Canadian Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EUR Euro</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">GBP British Pound</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">JPY Japanese Yen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">116</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AUD Australian Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HKD Hong Kong Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NZD New Zealand Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">114</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOK Norway Kroner</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEK Sweden Kronor</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">THB Thailand Baht</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">295</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">KRW South Korea Won</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">295</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TWD Taiwan New Dollars</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SGD Singapore Dollars</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">IDR Indonesia Rupiahs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">315</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> - 14 - <!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3">Currency Discount</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Foreign Currency</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3">Factor</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">INR India Rupees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MYR Malaysia Ringgits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CZK Czech Republic Koruny</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PHP Philippines Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HUF Hungary Forint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PLN Poland Zlotych</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SKK Slovakia Koruny</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TRY Turkey New Lira</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RUB Russia Rubles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ZAR South Africa Rand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CLP Chile Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MXN Mexico Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">COP Columbia Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BRL Brazil Reais</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If the Corporation invests in a security denominated in a currency other than that found
in the above table, contact Moody&#146;s to obtain the applicable Currency Discount Factor for such
security.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Foreign non-sovereign debt</U>: The Moody&#146;s Discount Factor applied to non-sovereign
debt obligations will be (A)&nbsp;in the case of a non-sovereign debt obligation denominated in U.S.
dollars, 250%, and (B)&nbsp;in the case of a non-U.S. sovereign debt obligation denominated in a foreign
currency, 250% multiplied by the Currency Discount Factor for such foreign currency.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>Rule&nbsp;144A securities</U>: The Moody&#146;s Discount Factor applied to Rule&nbsp;144A Securities
for Rule&nbsp;144A Securities whose terms include rights to registration under the 1933 Act within one
year and Rule&nbsp;144A Securities which do not have registration rights within one year will be 120%
and 130%, respectively, of the Moody&#146;s Discount Factor which would apply were the securities
registered under the 1933 Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>Catastrophe bonds</U>: The Moody&#146;s Discount Factor applied to catastrophe bonds will
be 475%.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> - 15 - <!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <U>Bank loans</U>: The Moody&#146;s Discount Factor applied to senior bank loans (&#147;Senior
Loans&#148;) shall be the percentage specified in accordance with the table set forth below (or such
lower percentage as Moody&#146;s may approve in writing from time to time:
</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Caa and below</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(including</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="13" style="border-bottom: 0px solid #000000"><B>Moody&#146;s Rating Category</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>distressed and</B></TD>
</TR>
<TR style="font-size: 1pt" valign="bottom">
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>

<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Type of Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aaa-A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Baa and Ba</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>unrated)</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Senior Loans greater than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">149</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">non-Senior Loans greater than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">128</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">146</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">159</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">loans less than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">138</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">156</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">169</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">270</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Lien Bank Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">168</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">185</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">270</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third &#038; Fourth Lien Bank Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">218</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">240</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">260</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">351</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If a Senior Loan is not rated by any of Moody&#146;s, S&#038;P or Fitch, the Corporation will use
the applicable percentage set forth under the column entitled &#147;Caa and below (including distressed
and unrated)&#148; in the table above. Ratings assigned the S&#038;P and/or Fitch are generally accepted by
Moody&#146;s at face value. However, adjustments to face value may be made to particular categories of
securities for which the ratings by S&#038;P and/or Fitch do not seem to approximate a Moody&#146;s rating
equivalent. Split rated securities assigned by S&#038;P and Fitch (i.e., these rating agencies assign
different rating categories to the security) will be accepted at the lower of the two ratings.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Master Limited Partnerships (MLP)&#151;The Moody&#146;s Discount Factor applied to master
limited partnerships shall be applied in accordance with the table set forth below:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>MLP Sector (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Discount Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Large-cap MLPs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mid and Small-cap MLPs
Natural Resources (Oil, Gas, Energy)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">292</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Coal and Minerals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">301</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Real Estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">291</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income Real Estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">302</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">342</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Restricted MLPs will be increased by 120%.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio --> - 16 - <!-- /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">The Moody&#146;s Discount Factor for any Moody&#146;s Eligible Asset other than the securities set forth
above will be the percentage provided in writing by Moody&#146;s.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-FIFTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Moody&#146;s Diversification Limitations&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Moody&#146;s Diversification Limitations&#148; </B>means, with respect to qualifying for inclusion in
Moody&#146;s Eligible Assets, the following diversification and issue size requirements:
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MAXIMUM SINGLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MAXIMUM SINGLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MINIMUM ISSUE SIZE ($ IN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>RATINGS(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>ISSUER(2), (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>INDUSTRY(3), (4)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MILLIONS)(5)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aaa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CS(6), Baa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ba</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B1-B2(8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B3 or below(8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Refers to the securities of the portfolio holding.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Companies subject to common ownership of 25% or more are considered as one issuer.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Percentages represent a portion of the aggregate Market Value of portfolio.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Industries are determined according to Moody&#146;s Industry Classifications, as defined herein.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Except for preferred stock, which has a minimum issue size of $50&nbsp;million, and mortgage pass
throughs issued by Federal National Mortgage Association, Federal Home Loan Mortgage Corporation or
Government National Mortgage Association, which has no minimum issue size.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>CS refers to common stock, which is diversified independently from its ratings level.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Portfolio holdings from issues ranging from $50&nbsp;million to $100&nbsp;million are limited to 20% of
the Corporation&#146;s total assets.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Securities of the portfolio holdings rated B or below by Moody&#146;s or the equivalent by another
nationally recognized statistical rating organization (&#147;NRSRO&#148;) or not rated shall be considered to
be Moody&#146;s Eligible Assets only to the extent the Market Value of such securities does not exceed
10% of the portfolio Market Value; provided, however, that if the Market Value of such securities
exceeds 10% of the portfolio Market Value, a portion of such securities (selected by the
Corporation) shall not be considered Moody&#146;s Eligible Assets, so that the Market Value of such
securities (excluding such portion) does not exceed 10% of the portfolio Market Value.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-SIXTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting
the definition of <B>&#147;Moody&#146;s Eligible Assets&#148; </B>in its entirety and inserting in lieu thereof the
following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Moody&#146;s Eligible Assets&#148; </B>means:
</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="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cash (including interest and dividends due on assets rated (A)&nbsp;Baa3 or higher
by Moody&#146;s or the equivalent by another NRSRO if the payment date is within five (5)
Business Days of the Valuation Date, (B)&nbsp;A2 or higher by Moody&#146;s or the equivalent by
another NRSRO if the payment date is within thirty days of the Valuation Date,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 17 - <!-- /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 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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and (C)&nbsp;A1 or higher by Moody&#146;s or the equivalent by another NRSRO if the payment date
is within the Moody&#146;s Exposure Period) and receivables for Moody&#146;s Eligible Assets sold
if the receivable is due within five (5)&nbsp;Business Days of the Valuation Date, and if the
trades which generated such receivables are (A)&nbsp;settled through clearinghouse firms with
respect to which the Corporation has received prior written authorization from Moody&#146;s
or (B) (1)&nbsp;with counterparties having a Moody&#146;s long-term debt rating of at least Baa3
or the equivalent by another NRSRO or (2)&nbsp;with counterparties having a Moody&#146;s
Short-Term Money Market Instrument rating of at least P-1 or the equivalent by another
NRSRO;</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="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Short-Term Money Market Instruments, so long as (A)&nbsp;such securities are rated
at least P-1 or the equivalent by another NRSRO, (B)&nbsp;in the case of demand deposits,
time deposits and overnight funds, the supporting entity is rated at least A2 or the
equivalent by another NRSRO, or (C)&nbsp;in all other cases, the supporting entity (1)&nbsp;is
rated A2 or the equivalent by another NRSRO and the security matures within one month,
(2)&nbsp;is rated A1 or the equivalent by another NRSRO and the security matures within
three months or (3)&nbsp;is rated at least Aa3 or the equivalent by another NRSRO and the
security matures within six months; provided, however, that for purposes of this
definition, such instruments (other than commercial paper rated by S&#038;P and not rated by
Moody&#146;s) need not meet any otherwise applicable S&#038;P rating criteria;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>U.S. Government Obligations (including U.S. Treasury Strips);</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="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Rule&nbsp;144A securities;</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="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Common stocks (A) (1)&nbsp;which are traded on a nationally recognized stock
exchange or in the over-the-counter market, (2)&nbsp;if cash dividend paying, pay cash
dividends in U.S. dollars and (3)&nbsp;which may be sold without restriction by the
Corporation; provided, however, that (y)&nbsp;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&nbsp;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)&nbsp;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, (B)&nbsp;which are
securities denominated in any currency other than the U.S. 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 over-the-counter and are issued by banks
formed under the laws of the United States, its states or the District of Columbia or
(C)&nbsp;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 Corporation&#146;s
holdings of securities denominated in currencies other than the U.S. dollar and ADRs in
excess of (1)&nbsp;6% of the aggregate Market Value of the outstanding shares of common
stock of such issuer thereof or (2)&nbsp;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 non-U.S. jurisdiction other than Australia,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 18 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</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="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Loans;</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="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Corporate debt securities (including foreign non-sovereign debt and catastrophe
bonds) if (A)&nbsp;such securities are rated by Moody&#146;s or another NRSRO; (B)&nbsp;such
securities provide for the periodic payment of interest in cash in U.S. dollars, euros
or other currencies in which the Corporation is permitted to invest; (C)&nbsp;such
securities have been registered under the 1933 Act or are restricted as to resale under
federal securities laws but are eligible for resale pursuant to Rule&nbsp;144A under the
1933 Act as determined by the Corporation&#146;s investment manager or portfolio manager
acting pursuant to procedures approved by the Board of Directors, except that such
securities that are not subject to U.S. federal securities laws shall be considered
Moody&#146;s Eligible Assets if they are publicly traded; and (D)&nbsp;such securities are not
subject to extended settlement;</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing limitations, corporate debt securities and loans rated by
neither Moody&#146;s, S&#038;P nor Fitch shall be considered to be Moody&#146;s Eligible Assets to the extent such
securities are issued by entities which (i)&nbsp;have not filed for bankruptcy within the past three
years, (ii)&nbsp;are current on all principal and interest in their fixed income obligations, (iii)&nbsp;are
current on all preferred stock dividends, and (iv)&nbsp;possess a current, unqualified auditor&#146;s report
without qualified, explanatory language;
</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="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Foreign Sovereign Debt so long as the issuing country has a Currency Discount
Factor as set out in the definition of Moody&#146;s Discount Factor in these Articles
Supplementary. Foreign Sovereign Debt issued by a country without a Currency Discount
Factor as set out in the definition of Moody&#146;s Discount Factor in these Articles
Supplementary can only be approved as a Moody&#146;s Eligible Asset after review and
confirmation by Moody&#146;s;</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="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Asset-backed securities: If (1)&nbsp;such securities are rated at least Baa by
Moody&#146;s or at least BBB by S&#038;P or Fitch, (2)&nbsp;the securities are part of an issue that
is $250&nbsp;million or greater, or the issuer of such securities has a total of $500
million or greater of asset-backed securities outstanding at the time of purchase of
the securities by the Corporation and (3)&nbsp;the expected average life of the securities
is not greater than 4&nbsp;years;</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="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Collateralized debt obligations;</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="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preferred stocks if (A)&nbsp;dividends on such preferred stock are cumulative, (B)
such securities provide for the periodic payment of dividends thereon in cash in U.S.
dollars or euros and do not provide for conversion or exchange into, or have warrants
attached entitling the holder to receive, equity capital at any time over the
respective lives of such securities, (C)&nbsp;the issuer of such a preferred stock has
common stock listed on either the New York Stock Exchange or NYSE Amex Equities, (D)
the issuer of such a preferred stock has a senior debt rating from Moody&#146;s of Baa1 or
higher or a preferred stock rating from Moody&#146;s of Baa3 or higher and (E)&nbsp;such
preferred stock has paid consistent cash dividends in U.S. dollars or euros over the</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 19 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<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="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>last three years or has a minimum rating of A1 (if the issuer of such preferred stock
has other preferred issues outstanding that have been paying dividends consistently for
the last three years, then a preferred stock without such a dividend history would also
be eligible). In addition, the preferred stocks must have the following diversification
requirements: (X)&nbsp;the preferred stock issue must be greater than $50&nbsp;million and (Y)&nbsp;the
minimum holding by the Corporation of each issue of preferred stock is $500,000 and the
maximum holding of preferred stock of each issue is $5&nbsp;million. In addition, preferred
stocks issued by transportation companies will not be considered Moody&#146;s Eligible
Assets;</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="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Convertible securities (including convertible preferred stock), provided that
(A)&nbsp;the issuer of common stock must have a Moody&#146;s senior unsecured debt of Caa or
better, or a rating of CCC or better by S&#038;P or Fitch, (B)&nbsp;the common stocks must be
traded on the New York Stock Exchange, NYSE Amex Equities, or the NASDAQ, (C)&nbsp;dividends
must be paid in U.S. dollars, (D)&nbsp;the portfolio of convertible bonds must be
diversified as set forth in the table set forth below and (E)&nbsp;the company shall not
hold shares exceeding the average weekly trading volume during the preceding month;</TD>
</TR>

</TABLE>
</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="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Common stock, preferred stock or any debt security of REITs or real estate
companies;</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="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pooled investment vehicles including Business Development Companies, Master
Limited Partnerships Securities, Private Investment Companies and Registered Investment
Companies;</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="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Foreign Currency Transactions;</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="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Moody&#146;s Derivatives Transactions; 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="3%" nowrap align="left">(q)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial contracts, as such term is defined in Section&nbsp;3(c)(2)(B)(ii) of the
1940 Act and other securities or assets not otherwise provided for in this definition,
but only upon receipt by the Corporation of a letter from Moody&#146;s specifying any
conditions on including such financial contract or other securities or assets in
Moody&#146;s Eligible Assets and assuring the Corporation that including such financial
contract or other securities or assets in the manner so specified would not affect the
credit rating assigned by Moody&#146;s to the Series&nbsp;E Preferred Stock.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-SEVENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Moody&#146;s Exposure Period&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Moody&#146;s Exposure Period&#148; </B>means the period commencing on a given Valuation Date and ending 49
days thereafter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-EIGHTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Moody&#146;s Industry Classifications&#148; </B>in its entirety and inserting in lieu thereof the
following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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
</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">classifications as Moody&#146;s may from time to time approve for application to the Series&nbsp;E
Preferred Stock):
</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="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aerospace and Defense: Major Contractor, Subsystems, Research, Aircraft Manufacturing,
Arms, and Ammunition</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="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Automobile: Automobile Equipment, Auto-Manufacturing, Auto Parts Manufacturing,
Personal Use Trailers, Motor Homes, 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Banking: Bank Holding, Savings and Loans, Consumer Credit, Small Loan, Agency,
Factoring, Receivables</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="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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, Candy, Gum, Seafood,
Frozen Food, Cigarettes, Cigars, Leaf/Snuff, Vegetable Oil</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="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Chemicals, Plastics and Rubber: Chemicals (non-agricultural), Industrial Gases, Sulfur,
Plastics, Plastic Products, Abrasives, Coatings, Paints, Varnish, Fabricating</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="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Containers, Packaging and Glass: Glass, Fiberglass, Containers made of: Glass, Metal,
Paper, Plastic, Wood or Fiberglass</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="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Personal and Non-Durable Consumer Products (Manufacturing Only): Soaps, Perfumes,
Cosmetics, Toiletries, Cleaning Supplies, School Supplies</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="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified/Conglomerate Manufacturing</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="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified/Conglomerate Service</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="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified Natural Resources, Precious Metals and Minerals: Fabricating, Distribution</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="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ecological: Pollution Control, Waste Removal, Waste Treatment and Waste Disposal</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="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electronics: Computer Hardware, Electric Equipment, Components, Controllers, Motors,
Household Appliances, Information Service Communicating Systems, Radios, TVs, Tape
Machines, Speakers, Printers, Drivers, Technology</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="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Finance: Investment Brokerage, Leasing, Syndication, Securities</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="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Farming and Agriculture: Livestock, Grains, Produce, Agriculture Chemicals,
Agricultural Equipment, Fertilizers</TD>
</TR>



</TABLE>
</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 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="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Grocery: Grocery Stores, Convenience Food Stores</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="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Healthcare, Education and Childcare: Ethical Drugs, Proprietary Drugs, Research, Health
Care Centers, Nursing Homes, HMOs, Hospitals, Hospital Supplies, Medical Equipment</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="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Home and Office Furnishings, House wares, and Durable Consumer Products: Carpets, Floor
Coverings, Furniture, Cooking, Ranges</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="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Hotels, Motels, Inns and Gaming</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="3%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance: Life, Property and Casualty, Broker, Agent, Surety</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="3%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Machinery (Non-Agricultural, Non-Construction, Non-Electronic): Industrial, Machine
Tools, and Steam Generators</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="3%" nowrap align="left">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oil and Gas: Crude Producer, Retailer, Well Supply, Service and Drilling</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="3%" nowrap align="left">25.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Printing, Publishing, and Broadcasting: Graphic Arts, Paper, Paper Products, Business
Forms, Magazines, Books, Periodicals, Newspapers, Textbooks, Radio, T.V., Cable
Broadcasting Equipment</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="3%" nowrap align="left">26.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cargo Transport: Rail, Shipping, Railroads, Rail-car Builders, Ship Builders,
Containers, Container Builders, Parts, Overnight Mail, Trucking, Truck Manufacturing,
Trailer Manufacturing, Air Cargo, Transport</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="3%" nowrap align="left">27.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Retail Stores: Apparel, Toy, Variety, Drugs, Department, Mail Order Catalog, Showroom</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="3%" nowrap align="left">28.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Telecommunications: Local, Long Distance, Independent, Telephone, Telegraph, Satellite,
Equipment, Research, Cellular</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="3%" nowrap align="left">29.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Textiles and Leather: Producer, Synthetic Fiber, Apparel Manufacturer, Leather Shoes</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="3%" nowrap align="left">30.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Personal Transportation: Air, Bus, Rail, Car Rental</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="3%" nowrap align="left">31.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Utilities: Electric, Water, Hydro Power, Gas</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 22 - <!-- /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 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="3%" nowrap align="left">32.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified Sovereigns: Semi-sovereigns, Canadian Provinces, Supra-national Agencies</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-NINTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Mortgage Pass-Through Certificates&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Mortgage Pass-Through Certificates&#148; </B>means publicly-issued instruments maintaining at least
AA- ratings by S&#038;P. Certificates evidence proportional, undivided interests in pools of whole
residential mortgage loans. Pass-through certificates backed by pools of convertible adjustable
rate mortgages (ARMs) are acceptable as eligible collateral at 5 points above the levels
established for pass-through certificates backed by fixed or non-convertible ARM pools.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTIETH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Paying Agent&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Paying Agent&#148; </B>means The Bank of New York Mellon 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-FIRST: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Preferred Stocks&#148; </B>in its entirety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-SECOND: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Private Investment Companies&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Private Investment Companies&#148; </B>means investment companies that are structured to be exempt
under the 1940 Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-THIRD: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Registered Investment Company&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Registered Investment Company&#148; </B>means an investment company, such as an open-end or closed-end
mutual fund, which files a registration statement with the Commission and meets all requirements of
the 1940 Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-FOURTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Registrar&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 23 - <!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Registrar&#148; </B>means The Bank of New York Mellon, 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-FIFTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;S&#038;P&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P&#148; </B>means Standard and Poor&#146;s Rating Services and its successors at law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-SIXTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;S&#038;P Rating Factor&#148; </B>in its entirety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-SEVENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;S&#038;P Discount Factor&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Discount Factor&#148; </B>means:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Discount Factor for</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Type of S&#038;P Eligible Asset</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">AAA Rating</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Stocks (including ADRs)<SUP style="FONT-size: 85%; vertical-align: text-top">1</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Small cap stocks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">236.13</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mid cap stocks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">190.13</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Large cap stocks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">174.94</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DRD Eligible Preferred Stock with a senior or preferred
stock rating of at least BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">312.57</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-DRD Eligible Preferred Stock with a senior or
preferred stock rating of at least BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">201.36</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DRD Eligible Preferred Stock with a senior or preferred
stock rating below BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">317.57</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-DRD Eligible Preferred Stock with a senior or
preferred stock rating below BBB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">206.36</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated AAA to AAA-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">161.53</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated AA&#043; to AA-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">168.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated A&#043; to A-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">174.46</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated BBB&#043; to BBB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">180.93</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated BB&#043; to BB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">187.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated B&#043; to B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">193.86</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible bonds rated CCC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.32</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-Term Money Market Instruments with maturities of 180
days or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">104.2</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Market cap for large-cap stocks are $10
billion and up, mid-cap stocks range between $2&nbsp;billion and $10&nbsp;billion, and
small-cap stocks are $2&nbsp;billion and below.</TD>
</TR>
</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio --> - 24 - <!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Discount Factor for</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Type of S&#038;P Eligible Asset</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">AAA Rating</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-Term Money Market Instruments with maturities of
between 181 and 360&nbsp;days</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113.3</TD>
    <TD nowrap>%%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Government Securities (52&nbsp;week Treasury Bills)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">106.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Government Securities (Two-Year Treasury Notes)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Government Securities (Five-Year Treasury Notes)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Government Securities (Ten-Year Treasury Notes)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">122.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Government Securities (Thirty-Year Treasury Bonds)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">128.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (Fixed 15-Year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">130.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (Fixed 30-Year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">132.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (ARM 1/1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">122.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (ARM 3/1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">123.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (ARM 5/1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">123.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agency Mortgage Collateral (ARM 10/1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">123.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loans (S&#038;P Loan Category A)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">117.79</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loans (S&#038;P Loan Category B)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">125.47</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loans (S&#038;P Loan Category C)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154.08</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loans (S&#038;P Loan Category D)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">178.25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least AAA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least AA&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least AA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least AA-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least A&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">116.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least A-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">117.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BBB&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">119.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">121.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BBB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">123.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BB&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136.4</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least BB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least B&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">157.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">171.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least B-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">187.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least CCC&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">193.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least CCC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">230.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds rated at least CCC-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">299.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and Cash Equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated AAA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">143.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated AA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">146.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">152.39</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --> - 25 - <!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Discount Factor for</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Type of S&#038;P Eligible Asset</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">AAA Rating</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">155.11</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated BB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">175.11</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">195.11</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Municipal Obligations rated CCC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">215.10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrated Municipal Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">220.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Stock of REITs and other real estate companies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">152.82</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 15-yr</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">132.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 30-yr</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">134.6</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 1/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">126.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 3/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">126.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 5/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">127.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Pass-Through Certificates 10/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">127.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 15-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">134.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 30-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 1/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">130.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 3/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">131.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 5/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">131.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conventional/FHA/VA Mortgages and Whole Loans 10/1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">131.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Collateralized Mortgage Obligations (WAL less than 5-years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Collateralized Mortgage Obligations (WAL more than 5-years
and more than 10-years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">145.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FHA-Insured Multifamily Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">190.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset-Backed Securities (ABS) (Automobile loans and
fixed-rate credit card receivables with a weighted average
life (WAL)&nbsp;less than 5-years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">130.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ABS (Automobile loans and fixed-rate credit card
receivables with WAL more than 5-yr and less than 10
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ABS (Floating-rate credit cards)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113.3</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding the foregoing, the S&#038;P Discount Factor for short-term Municipal Obligations will be
115% so long as such Municipal Obligations are rated A-1 &#043; or SP-1 &#043; by S&#038;P and mature or have a
demand feature exercisable within 30&nbsp;days or less, or 123% so long as such Municipal Obligations
are rated A-1 or SP-1 by S&#038;P and mature or have a demand feature exercisable in 30&nbsp;days or less, or
125% if such Municipal Obligations are not rated by S&#038;P but are rated equivalent to A-1&#043; or SP-1&#043;
by another NRSRO, on a case by case basis; provided, however, that any such non-S&#038;P rated
short-term Municipal Obligations which have demand features exercisable within 30&nbsp;days or less must
be backed by a letter of credit, liquidity facility or guarantee from a bank or other financial
institution with a short-term rating of at least A-l&#043; from S&#038;P; and further provided that such
non-S&#038;P rated short-term Municipal Obligations may comprise no more than 50% of short-term
Municipal Obligations that qualify as S&#038;P Eligible Assets; provided, however, that Municipal
Obligations not rated by S&#038;P but rated equivalent to BBB or lower by another NRSRO, rated BB&#043; or
lower by S&#038;P or non-rated (such Municipal
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> - 26 - <!-- /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">Obligations are hereinafter referred to as &#147;High Yield
Securities&#148;) may comprise no more than 20% of the short-term Municipal Obligations that qualify as
S&#038;P Eligible Assets; (i)&nbsp;the S&#038;P Discount Factor for Receivables for Municipal Obligations Sold (as
defined below) that are due in more than five Business Days from such Valuation Date will be the
S&#038;P Discount Factor applicable to the Municipal Obligations sold; (ii)&nbsp;no S&#038;P Discount Factor will be applied to cash
or to Receivables for Municipal Obligations Sold if such receivables are due within five Business
Days of such Valuation Date; and (iii)&nbsp;in the case of any Municipal Obligation that is not rated by
S&#038;P but qualifies as an S&#038;P Eligible Asset pursuant to clause (iii)&nbsp;of that definition, such
Municipal Obligation will be deemed to have an S&#038;P rating one full rating category lower than the
S&#038;P rating category that is the equivalent of the rating category in which such Municipal
Obligation is placed by a NRSRO. &#147;Receivables for Municipal Obligations Sold,&#148; for purposes of
calculating S&#038;P Eligible Assets as of any Valuation Date, means the book value of receivables for
Municipal Obligations sold as of or prior to such Valuation Date. The Corporation may adopt S&#038;P
Discount Factors for Municipal Obligations other than Municipal Obligations, provided that S&#038;P
advises the Corporation in writing that such action will not adversely affect its then current
rating on the Series&nbsp;E Preferred. For purposes of the foregoing, Anticipation Notes (i.e., notes
that will be paid with the proceeds from subsequent bond issues, from tax revenue or other revenue
anticipated to be received by a government entity) rated SP-1&#043; or, if not rated by S&#038;P, equivalent
to A-l&#043; or SP-1&#043; by another NRSRO, on a case by case basis, which do not mature or have a demand
feature at par exercisable in 30&nbsp;days and which do not have a long-term rating, shall be considered
to be short-term Municipal Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The S&#038;P Discount Factor applied to cash, cash equivalents and demand deposits in an &#147;A-l&#043;&#148;
rated institution will be 100%. &#147;A-1&#043;&#148; rated commercial paper, with maturities no greater then 30
calendar days and held instead of cash until maturity is valued at 100%. Securities with next-day
maturities invested in &#147;A-1&#043;&#148; rated institutions are considered cash equivalents and are valued at
100%. Securities maturing in 181 to 360 calendar days are valued at 114.2%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The S&#038;P Discount Factor for shares of unrated affiliated money market funds (money market
mutual funds meeting the requirements of Rule&nbsp;2a-7 under the 1940 Act) used as &#147;sweep&#148; vehicles
will be 110%. Money market funds rated &#147;AAAm&#148; will be discounted at the appropriate level as
dictated by the S&#038;P Exposure Period. No S&#038;P Discount Factor will be applied to money market funds
rated AAAm by S&#038;P with effective next day maturities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables due within five business days of a Valuation Date will be treated as cash and are
valued at 100%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables that are due in more than five business days of a Valuation Date qualify as an S&#038;P
Eligible Asset at a value no greater than the settlement price discounted at the applicable credit
rating and/or exposure period discount factor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining the discount factors applicable to Municipal Obligation collateral
not rated by S&#038;P, the collateral will carry an S&#038;P rating one full rating category lower than the
equivalent S&#038;P rating.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 27 - <!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-EIGHTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;S&#038;P Eligible Assets&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%"><B>&#147;S&#038;P Eligible Assets&#148; </B>means:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(a)&nbsp;Deposit Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(b)&nbsp;U.S. Government Securities and U.S. Government Agencies;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(c)&nbsp;Corporate Bonds/Indebtedness. Evidences of indebtedness other than Deposit
Securities, U.S. Government Securities and Municipal Obligations that are not
convertible into or exchangeable or exercisable for stock of a corporation (except
to the extent of ten percent (10%) in the case of a share exchange or tender offer)
(&#147;Other Debt&#148;) and that satisfy all of the following conditions:
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no more than 10% of the Other Debt may be
unrated;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the remaining term to maturity of such Other
Debt shall not exceed thirty (30)&nbsp;years;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and such Other Debt must provide for periodic
interest payments in cash over the life of the security;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the issuer of such evidences of indebtedness
files periodic financial statements with the Commission; provided,
however, non-rated evidences of such indebtedness or issuers of Other
Debt may not constitute more than 10% of the Corporation&#146;s Other Debt;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(d)&nbsp;Convertible Corporate Indebtedness.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(e)&nbsp;Agency Mortgage Collateral. The following conditions apply for Agency Mortgage
Collateral:
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For GNMA certificates backed by pools of
graduated payment mortgages, levels are 20 points above established
levels;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Qualifying &#147;large pool&#148; FNMA mortgage-backed
securities and FHLMC participation certificates are acceptable as
eligible collateral. The eligible fixed-rate programs include FNMA
MegaPools, FNMA Majors, FHLMC Multilender Swaps, and FHLMC Giant
certificates. Eligible ARMs programs include nonconvertible FNMA ARM
MegaPools and FHLMC weighted average coupon ARM certificates. Eligible
FHLMC Giant programs exclude interest-only and principal only stripped
securities;</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 28 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>FNMA certificates backed by multifamily ARMs
pegged to the 11th District Cost of Funds Index are acceptable as
eligible collateral at 5 points above established levels; 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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Multiclass REMICs issued by FNMA and FHLMC are
acceptable as eligible collateral at the collateral levels established
for CMOs.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(f)&nbsp;Mortgage Pass-Through Certificates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(g)&nbsp;Mortgage-Backed Securities (i.e., debt obligations that represent claims to cash
flows from pools of mortgage loans).
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mortgage Pass-Through Certificates are publicly
issued instruments rated at least &#145;AA-&#146; by S&#038;P. Pass-throughs backed
by pools of convertible adjustable-rate mortgages (ARMs) are discounted
at an additional five percentage points above the levels established
for pass-throughs backed by fixed or non-conventional ARM pools.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fixed-Rate and Adjustable-rate mortgage
collateral (Conventional/FHA/VA and Whole Loans) Pool must consist of
at least 100 loans each secured by single-family, one-unit, detached
primary residence. 25% of the total pool may have an LTV greater than
80% but less than or equal to 90%. 10% may have an original LTV of no
greater than 95%. Loans with LTV greater than 80% must have a &#145;AA&#146;
rated primary mortgage insurance. 25% may have balances between
$400,000 and $600,000, provided the maximum size of any loan is
appropriate with respect to the market area of the originator. 10% of
the pool may represent condominiums that are four stories or less.
High LTVs, high loan balance, and condominiums, in aggregate, should
not exceed 35% of the pool.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>FHAA-Insured Multifamily Loans must have a
minimum principal balance of $100,000 and have at least a one-year
remaining maturity. The aggregate market value of any one loan may not
exceed 5% of the aggregate market value of the portfolio. Such loans
should be initially included in minimum blocks of $5&nbsp;million. Project
loans must have at least a 90% occupancy rate at the time the loan is
pledged. After 90&nbsp;days defaulted mortgage loans must be valued at
zero. A loan in default should be liquidated or substituted within a
90-day period.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Collateralized Mortgage Obligations;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(h)&nbsp;Rule&nbsp;144A Securities;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 29 - <!-- /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; margin-left: 5%">(i)&nbsp;Senior Loans, provided, however, that the initial issue amount (facility size)
is at least $100&nbsp;million. The minimum accepted holding size (notional amount) of
any given loan not rated by S&#038;P, Moody&#146;s or Other Rating Agency is at least $1
million, provided, that participation loans are limited to not more than 10% of the
aggregate value of the S&#038;P Eligible Asset. For loans rated by S&#038;P,
Moody&#146;s or Other Rating Agency, there is no minimum accepted holding size. Senior
Loan Participations and non-Senior Loans will qualify as S&#038;P Eligible Assets only up
to an aggregate maximum of 15% of the Corporation&#146;s total assets. These levels
apply to U.S. lenders only; any international loans are excluded.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(j)&nbsp;Preferred stocks that satisfy all of the following conditions:
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The preferred stock issue has a senior rating
from S&#038;P, or the preferred issue must be rated. In the case of Yankee
preferred stock, the issuer should have an S&#038;P senior rating of at
least BBB-, or the preferred issue must be rated at least BBB-.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer, or if the issuer is a special
purpose corporation, its parent, is listed on either the New York Stock
Exchange, the NYSE Amex Equities or NASDAQ if the traded par amount is
less than $1,000. If the traded par amount is $1,000 or more exchange
listing is not required.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The collateral pays cash dividends denominated
in U.S. dollars.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Private placements under Rule&nbsp;144A with
registration rights are S&#038;P Eligible Assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The minimum market capitalization of eligible
issuers is $100&nbsp;million.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(k)&nbsp;Restrictions for floating-rate preferred stock:
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holdings must be limited to preferred stock
with a dividend period of less than or equal to 49&nbsp;days, except for a
new issue, where the first dividend period may be up to 64&nbsp;days.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The floating-rate preferred stock may not have
been subject to a failed auction.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(l) Restrictions for adjustable- or auction-rate preferred stock:
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The total fair market value of adjustable-rate
preferred stock held in the portfolio may not exceed 10% of eligible
assets.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(m)&nbsp;Concentration Limits:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 30 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Total issuer exposure in preferred stock of any
one issuer is limited to 10% of the fair market value of S&#038;P Eligible
Assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preferred stock rated below B- (including
non-rated preferred stock) are limited to no more than 15% of the fair
market value of the S&#038;P Eligible Assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Add 5 points to over-collateralization level
for issuers with a senior rating or preferred stock rating of less than
BBB-.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Add 10 point to over-collateralization level of
issuers with no senior rating, preferred stock rating or dividend
history.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(n)&nbsp;Common Stocks (including ADRs). Common stocks that satisfy all of the following
conditions:
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each stock must have a minimum market
capitalization of at least $100&nbsp;million.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Restricted stocks (144A securities) or any pink
sheet stocks (generally, stocks that are not carried in daily
over-the-counter newspaper listings) are ineligible.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuer may not hold any equity unless it
has been listed on an exchange or traded for more than one year and one
quarter, or 15&nbsp;months (eligible stock exchanges are the New York Stock
Exchange, NYSE Amex Equities, Philadelphia Stock Exchange, Boston Stock
Exchange, Washington Stock Exchange, Midwest Stock Exchange, NASDAQ,
and National Market Quotations).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The collateral is owned by the Corporation, or
the trustee or collateral agent has a first perfected priority security
interest in the collateral. (For S&#038;P&#146;s perfection of Security Interest
Criteria, see Legal Criteria For Structured Finance Transactions,
October&nbsp;2006.)</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">Note: Add 20&nbsp;percentage points to the overcollateralization level for common stock
that do not meet the requirement of item (m)(iv) above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(o)&nbsp;Municipal Obligations. A Municipal Obligation owned by the Corporation that (i)
is interest bearing and pays interest at least semi-annually; (ii)&nbsp;is payable with
respect to principal and interest in U.S. Dollars; (iii)&nbsp;has an original issuance
size of $10&nbsp;million or greater and any securities with an issuance size of under $10
million must be rated &#145;AA&#146; or better by S&#038;P; or, if not rated by S&#038;P but rated AAA
by another NRSRO, on a case by case basis; (iv)&nbsp;except for Inverse Floaters (i.e., a
bond or other type of debt whose coupon rate has an inverse relationship to interest
rates), is not part of a private placement of Municipal Obligations; (v)&nbsp;is issued
by any of the 50 states of the United States, its territories, and their
subdivisions, counties, cities, towns, villages, and school
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 31 - <!-- /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; margin-left: 5%">districts; by agencies
such as authorities and special districts created by the states; and by certain
federally sponsored agencies such as local housing authorities. Payments made on
these bonds are exempt from federal income taxes and are generally exempt from state
and local taxes in the state of issuance; and (vi)&nbsp;fifty percent of the aggregate
fair market value of the pledged pool may be rated by a NRSRO other than S&#038;P.
Notwithstanding the foregoing limitations:
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Municipal Obligations (excluding Escrow Bonds)
of any one issuer or guarantor (excluding bond insurers) rated at least
&#147;BBB&#148; by S&#038;P or &#147;A&#148; by another NRSRO shall be considered S&#038;P Eligible
Assets only to the extent the Market Value of such Municipal
Obligations (including short-term Municipal Obligations) does not
exceed 10% of the aggregate Market Value of S&#038;P Eligible Assets,
provided that either (i)&nbsp;2% is added to the S&#038;P Discount Factor for
every 1% by which the Market Value for any issuer exceeds 5%, up to a
maximum of 10% or (ii)&nbsp;10% is added to the S&#038;P Discount Factor for any
issuer that exceeds 5% of the aggregate S&#038;P Eligible Assets. High
Yield Securities of any one issuer shall be considered to be S&#038;P
Eligible Assets only to the extent the Market Value of such Municipal
Obligations does not exceed 5% of the aggregate Market Value of S&#038;P
Eligible Assets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Municipal Obligations not rated by S&#038;P shall be
considered S&#038;P Eligible Assets only to the extent the Market Value of
such Municipal Obligations does not exceed 50% of the aggregate Market
Value of S&#038;P Eligible Assets; provided, however, that High Yield
Securities shall be considered S&#038;P Eligible Assets only to the extent
the Market Value of such Municipal Obligations does not exceed 20% of
the aggregate Market Value of S&#038;P Eligible Assets; 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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Municipal Obligations issued by issuers in any
one state or territory will be considered S&#038;P Eligible Assets only to
the extent the Market Value of such Municipal Obligations does not
exceed 25% of the aggregate Market Value of S&#038;P Eligible Assets; or</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(p)&nbsp;Asset Backed Securities. Receivables-backed tranches are publicly issued with
a rating of &#147;AA&#148; or higher by S&#038;P, tranches are current interest-bearing, fixed- or
floating-rate, and are backed by automobile loans or credit card (fixed-rate only)
receivables with an original issuance size of at least $200&nbsp;million. No more than
25% of the total market value of the collateral can be from one private sector
issuer. With respect to floating-rate credit card receivables, not more than 25%
of the collateral may be from one investment-grade private sector issuer. No more
than 10% of the market value of the collateral may be from one noninvestment-grade
private sector issuer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">(q)&nbsp;Escrow Bonds (i.e., a type of municipal obligation backed by escrow
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 32 - <!-- /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; margin-left: 5%">funds
designed to make payments as outlined in the security&#146;s original indenture) may
comprise 100% of the Corporation&#146;s S&#038;P Eligible Assets. Bonds that are legally
defeased and secured by direct U.S. Government Securities are not required to meet
any minimum issuance size requirement. Bonds that are economically defeased or
secured by other U.S. agency paper must meet the minimum issuance size requirement
for the Corporation described above. Bonds initially rated or re-rated as an
Escrow Bond by another NRSRO are limited to
50% of the Corporation&#146;s S&#038;P Eligible Assets, and carry one full rating lower than
the equivalent S&#038;P rating for purposes of determining the applicable discount
factors. Bonds economically defeased and either initially rated or re-rated by S&#038;P
or another NRSRO are assigned that same rating level as its debt issuer, and will
remain in its original industry category.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation&#146;s portfolio must consist of no less than 20 issues representing no less than 10
industries as determined by the S&#038;P Global Industry Classification System.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any asset of the Corporation that does not have an S&#038;P Discount Factor will be valued at $0.00.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTY-NINTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;S&#038;P Exposure Period&#148;:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Exposure Period&#148; </B>means the sum of (i)&nbsp;that number of days from the last Valuation Date on
which the Corporation&#146;s Discounted Value of S&#038;P Eligible Assets were greater than the Basic
Maintenance Amount to the Valuation Date on which the Corporation&#146;s Discounted Value of S&#038;P
Eligible Assets failed to exceed the Basic Maintenance Amount, (ii)&nbsp;the maximum number of days
following a Valuation Date that the Corporation has under these Article&nbsp;Supplementary to cure any
failure to maintain a Discounted Value of S&#038;P Eligible Assets at least equal to the Basic
Maintenance Amount, and (iii)&nbsp;the maximum number of days the Corporation has to effect a mandatory
redemption under these Articles Supplementary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTIETH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;S&#038;P Hedging Transactions&#148;:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Hedging Transactions&#148; </B>means for so long as any Series&nbsp;E Preferred are rated by S&#038;P, the
Corporation will not 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 portfolio securities unless it receives written confirmation from S&#038;P that engaging in
such transactions will not impair the ratings then assigned to Series&nbsp;E Preferred by S&#038;P, except
that the Corporation may, notwithstanding any limitations in paragraph 10 of this Article&nbsp;I,
purchase or sell futures contracts and engage in swaps, caps, floors, and collars, reverse
repurchase or repurchase agreements, short sales, write, purchase or sell put and call options on
such contracts (collectively, &#147;S&#038;P Hedging Transactions&#148;), subject to the following limitations:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures and Options
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --> - 33 - <!-- /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 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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>S&#038;P Hedging Transactions may not exceed the
notional value of the Preferred Stock that is outstanding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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
the Corporation in the event (A)&nbsp;the Corporation does not have S&#038;P
Eligible Assets with an aggregate Discounted Value equal to or greater
than the Basic Maintenance Amount on two consecutive Valuation Dates and
(B)&nbsp;the Corporation is required to pay variation margin on the second
such Valuation Date;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation will engage in a Closing
Transaction to close out any outstanding futures contract or option
thereon in the month prior to the delivery month under the terms of
such futures contract or option thereon unless the Corporation holds
the securities deliverable under such terms or the contract or option
is to be settled in cash; 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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>when the Corporation writes a futures contract
or option thereon, it will either maintain an amount of cash, cash
equivalents or liquid securities in a segregated account with the
Corporation&#146;s custodian, so that the amount so segregated plus the
amount of initial margin and variation margin held in the account of or
on behalf of the Corporation&#146;s broker with respect to such futures
contract or option equals the Market Value of the futures contract or
option, or, in the event the Corporation writes a futures contract or
option thereon which requires delivery of an underlying security, it
shall hold such underlying security in its portfolio.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">Credit Default Swaps entered into according to International Swap Dealers Association
(&#145;ISDA&#146;) standards if premiums not paid in advance will be counted as a liability for
purpose of the asset coverage test; the Corporation is not the seller of credit protection.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">Interest Rate Swaps
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation may engage in interest rate
swaps if it is accordance to International Swap Dealers Association
(&#145;ISDA&#146;) standards,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the counterparty to the swap transaction has a
minimum short-term rating of &#096;A-1&#146; or equivalent by S&#038;P, or, if the
counterparty does not have a short-term rating, the counterparty&#146;s
minimum senior unsecured long-term debt rating is &#096;A-&#146;, or equivalent
by S&#038;P, or higher,</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 34 - <!-- /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 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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The original aggregate notional amount of the
interest rate swap transaction or transactions is not to be greater
than the liquidation preference of the Preferred Stock,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The interest rate swap transaction will be
marked-to-market weekly by the swap counterparty. If the Corporation
fails to maintain an aggregate discounted value at least equal to the
basic maintenance amount on two consecutive Valuation Dates then the
agreement shall terminate immediately,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purpose of calculating the asset
coverage test, 90% of any positive mark-to-market valuation of the
Corporation&#146;s rights will be S&#038;P Eligible Assets and 100% of any
negative mark-to-market valuation of the Corporation&#146;s rights will be
included in the calculation of the Basic Maintenance Amount,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Corporation must maintain liquid assets
with a value at least equal to the net amount of the excess, if any, of
the Corporation&#146;s obligations over its entitlement with respect to each
swap. If the swap agreement is not on a net basis, it must maintain
liquid and unencumbered assets with a value at least equal to the full
amount of the Corporation&#146;s accrued obligations under the agreement.
For caps and floors, the Corporation must maintain liquid assets with a
value at least equal to the Corporation&#146;s obligations with respect to
such caps or floors.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">Short Sales
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">The Corporation may engage in short sales of securities or short sales against the
box if:
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation segregates liquid and
unencumbered assets in an amount that when combined with the amount of
collateral deposited with the broker in connection with the short sale
equals the current market value of the security sold short or if the
Corporation enters into a short sale against the box, it is required to
segregate securities equivalent in kind and amount to the securities
sold short and is required to hold such securities while the short sale
is outstanding.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The transaction will be marked-to-market daily
by the counterparty.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">Margin Purchase
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation segregates liquid and
unencumbered assets in an amount that when combined with the amount of
collateral</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 35 - <!-- /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 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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>deposited with the broker in connection with the margin
purchase equals the current net obligation of the Corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The transaction will be marked-to-market daily
by the counterparty.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">Reverse Repurchase Agreement
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">The Corporation may engage in reverse repurchase agreements if:
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the counterparty is rated at least A-/A-1 and
the agreement matures in 30&nbsp;days or less, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the counterparty must be rated AA-/A-1&#043; if the
transaction matures in more than 30&nbsp;days but less than 183&nbsp;days,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and the securities are marked-to-market daily
by the counterparty.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">For purposes of determining whether the Corporation has S&#038;P Eligible Assets with a
Discounted Value that equals or exceeds the Basic Maintenance Amount, the Discounted
Value of cash or securities held for the payment of initial margin or variation
margin shall be zero and the aggregate settlement value of the transaction shall be
reduced by an amount equal to the S&#038;P Discount Factor for that asset.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">The Corporation&#146;s obligations to any counterparty under an S&#038;P Hedging Transaction
shall be counted as a liability that is senior to the preferred in calculating the
Basic Maintenance Amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-FIRST: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;S&#038;P Industry Classifications&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Industry Classifications&#148; </B>means for the purpose of determining S&#038;P Eligible Assets, each
of the following industry classifications (as defined by the S&#038;P Global Industry Classification
System):
</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="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Aerospace &#038; Defense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Industrial Conglomerates</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Air Freight and Logistics Airlines
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Automobiles
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Internet &#038; Catalog Retail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Automobile Components
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Internet Software &#038; Services</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Beverages
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">IT Services</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Biotechnology
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leisure Equipment &#038; Products</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Building Products
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Machinery</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cable
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marine</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Capital Markets
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Media</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Computers &#038; Peripherals
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Metals &#038; Mining</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> - 36 - <!-- /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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commercial Banks
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Office Electronics</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commercial Services &#038; Supplies
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oil &#038; Gas</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Communications Equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Packaging and Containers</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Construction &#038; Engineering
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paper &#038; Forest Products</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consumer Finance
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Personal Products</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Containing &#038; Packaging
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pharmaceuticals</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Distributors
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Real Estate</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Diversified Financial Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Retail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Diversified Telecommunication Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Road &#038; Rail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Electric Utilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Software</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Electrical Equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specialty Retail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Electronic Equipment &#038; Instrument
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Semiconducters and Semi Conducter</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Energy Equipment &#038; Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Equipment</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Food &#038; Staples Retailing
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Textiles, Apparel and Luxury Goods</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Food Products
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Thrift &#038; Mortgage Finance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gas Utilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tobacco</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Healthcare Equipment &#038; Supplies
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trading Companies &#038; Distributors</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Healthcare Providers &#038; Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transportation and Infrastructure</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Hotels, Restaurants &#038; Leisure
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transportation Utilities</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Household Durables
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Water Utilities</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Household Products
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wireless Telecommunication Services</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Corporation will use its discretion in determining which industry classification is
applicable to a particular investment in consultation with its Independent Accountant and
S&#038;P, to the extent the Corporation considers necessary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-SECOND: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;S&#038;P Loan Category&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;S&#038;P Loan Category&#148; </B>means the following four categories (and, for purposes of this
categorization, the Market Value of an S&#038;P Eligible Asset trading at par is equal to $1.00):
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;S&#038;P Loan Category A&#148; means Performing Senior Loans which have
a Market Value greater than $0.90;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;S&#038;P Loan Category B&#148; means Performing Senior Loans which have
a Market Value greater than or equal to $0.85 but equal to or less than $0.90;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;S&#038;P Loan Category C&#148; means non-Performing Senior Loans which
have a Market Value greater than $0.85;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;S&#038;P Loan Category D&#148; means:</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 37 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Performing Senior Loans which have a Market
Value less than $.85; 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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Non-Performing Senior Loans which have a Market
Value less than or equal to $.85.</TD>
</TR>

</TABLE>
</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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Performing&#148; means that no default as to the payment of
principal or interest has occurred and is continuing.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-THIRD: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Senior Loan&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Senior Loan&#148; </B>means any secured Bank Loan that is not subordinated by its terms to any other
indebtedness of the borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-FOURTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Senior Loan Participation&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Senior Loan Participation&#148; </B>means participations by the Corporation in a lender&#146;s portion of a
Bank Loan where the Corporation has a contractual relationship with such lender and not the
borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-FIFTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Short-Term Money Market Instrument&#148; </B>in its entirety and inserting in lieu thereof
the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&nbsp;days (or 270&nbsp;days for instruments rated at least Aaa for purposes of
determining Moody&#146;s Eligible Assets); or 360&nbsp;days for purposes of determining S&#038;P&#146;s Eligible
Assets:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) commercial paper rated either F-1 by Fitch or A-1 by S&#038;P if such commercial paper
matures in 30&nbsp;days or P-1 by Moody&#146;s and either F-1&#043; by Fitch or A-1&#043; by S&#038;P if such
commercial paper matures in over 30&nbsp;days;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) demand or time deposits in, and banker&#146;s acceptances and certificates of deposit
of, (A)&nbsp;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)&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) overnight funds;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) U.S. Government Obligations and Government Securities; and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 38 - <!-- /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; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Eurodollar demand or time deposits in, or certificates of deposit of, the head
office or the London branch office of a depository institution or trust company if the
certificates of deposit, if any, and the long-term unsecured debt obligations (other than
such obligations the ratings of which are based on the credit of a person or entity other
than such depository institution or trust company) of such depository institution or trust
company that have (1)&nbsp;credit ratings on each Valuation Date of at least P-1 from Moody&#146;s and
either F-1&#043; from Fitch or A-1&#043; from S&#038;P, in the case of commercial paper or certificates of
deposit, and (2)&nbsp;credit ratings on each Valuation Date of at least Aa3 from Moody&#146;s and
either AA from Fitch or AA- from S&#038;P, in the case of long-term unsecured debt obligations;
provided, however, that in the case of any such investment that matures in no more than one
Business Day from the date of purchase or other acquisition by the Corporation, all of the
foregoing requirements shall be applicable except that the required long-term unsecured debt
credit rating of such depository institution or trust company from Moody&#146;s, Fitch and S&#038;P
shall be at least A2,
A-2 and A, respectively; and provided further, however, that the foregoing credit
rating requirements shall be deemed to be met with respect to a depository institution or
trust company if (1)&nbsp;such depository institution or trust company is the principal
depository institution in a holding company system, (2)&nbsp;the certificates of deposit, if any,
of such depository institution or trust company are not rated on any Valuation Date below
P-1 by Moody&#146;s, F-1&#043; by Fitch or A-1&#043; by S&#038;P and there is no long-term rating, and (3)&nbsp;the
holding company shall meet all of the foregoing credit rating requirements (including the
preceding proviso in the case of investments that mature in no more than one Business Day
from the date of purchase or other acquisition by the Corporation); and provided further,
that the interest receivable by the Corporation shall not be subject to any withholding or
similar taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-SIXTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Transfer Agent&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Transfer Agent&#148; </B>means The Bank of New York Mellon, 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-SEVENTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;U.S. Government Securities&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;U.S. Government Securities&#148; </B>mean securities that are direct obligations of, and obligations
the timely payment of principal and interest on which is fully guaranteed by, the United States or
any agency or instrumentality of the United States, the obligations of which are backed by the full
faith and credit of the United States and in the form of conventional bills, bonds and notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-EIGHTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;VA Mortgage&#148;</B>:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 39 - <!-- /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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;VA Mortgage&#148; </B>means a mortgage qualifying under the mortgage loan program established by the
United States Department of Veterans Affairs to help veterans and their families obtain home
financing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORTY-NINTH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by deleting the
definition of <B>&#147;Valuation Date&#148; </B>in its entirety and inserting in lieu thereof the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Valuation Date&#148; </B>means the last Business Day of each month, or for purposes of determining
whether the Corporation is maintaining the Basic Maintenance Amount, each business day commencing
with the Date of Original Issue.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTIETH: Article&nbsp;I.13 of the Articles Supplementary is hereby amended by inserting the
definition of <B>&#147;Whole Loan&#148;</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Whole Loan&#148; </B>means an investment representing an original mortgage loan from a loan
representing a participation with one or more lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTY-FIRST: The amendments set forth in these Articles of Amendment were duly approved by the
Board of Directors of the Corporation in accordance with Article&nbsp;III of the Articles Supplementary
and the Maryland General Corporation Law. No stock entitled to be voted on the matter was
outstanding or subscribed for at the time of the approval of the amendments set forth in these
Articles of Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTY-SECOND: The amendments contemplated by these Articles of Amendment do not increase the
authorized stock of the Corporation or the aggregate par value thereof.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Remainder of page intentionally left blank&#093;
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio --> - 40 - <!-- /Folio -->
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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 undersigned President of The Gabelli Equity Trust Inc., who executed these Articles of
Amendment on behalf of the Corporation, hereby acknowledges, in the name and on behalf of the
Corporation, that these Articles of Amendment are the corporate act of the Corporation and states
further, under the penalties of perjury, that to the best of his knowledge, information and belief,
the matters and facts set forth herein with respect to authorization and approval are true in all
material respects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, The Gabelli Equity Trust Inc. has caused these Articles of Amendment to be
signed in its name and on its behalf by its President and witnessed by its Secretary as of this
29th day of May, 2009.
</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="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">WITNESS:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">THE GABELLI EQUITY TRUST INC.</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>
    <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">/s/ Agnes Mullady
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Agnes Mullady
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Bruce N. Alpert
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: 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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Secretary
</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">Title: 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 --> - 41 - <!-- /Folio -->
</DIV>



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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A.XII
<SEQUENCE>5
<FILENAME>y91816exv99wawxii.htm
<DESCRIPTION>EX-99.A.XII
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wawxii</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99 (a)(xii)
</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">ARTICLES OF AMENDMENT TO THE<BR>
ARTICLES SUPPLEMENTARY<BR>
CREATING AND FIXING THE RIGHTS OF<BR>
6.20% SERIES F CUMULATIVE PREFERRED STOCK
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Gabelli Equity Trust Inc., a Maryland corporation (hereinafter called the &#147;Corporation&#148;),
hereby certifies to the State Department of Assessments and Taxation of the State of Maryland that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST: Article&nbsp;I of the Articles Supplementary Creating and Fixing the Rights of 6.20% Series
F Cumulative Preferred Stock (&#147;Articles Supplementary&#148;) is hereby amended by inserting the
definition of &#147;<U>Bank Loans</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bank Loans</U>&#148; means direct purchases of, assignments of, participations in and other
interests in (a)&nbsp;any bank loan or (b)&nbsp;any loan made by an investment bank, investment fund or other
financial institution, provided that such loan under this clause (b)&nbsp;is similar to those typically
made, syndicated, purchased or participated by a commercial bank or institutional loan investor in
the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Business Development Company</U>&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Development Company</U>&#148; (BDCs) means a type of closed-end fund regulated under
the 1940 Act whose shares are typically listed for trading on a U.S. securities exchange. BDCs are
publicly-traded funds that typically invest in and lend to small and medium-sized private and
certain public companies that may not have access to public equity markets for capital raising.
BDCs invest in such diverse industries as healthcare, chemical and manufacturing, technology and
service companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Discount Factor</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Discount Factor</U>&#148; means (a)&nbsp;so long as Moody&#146;s is rating the Series&nbsp;F Preferred Stock
at the Corporation&#146;s request, the Moody&#146;s Discount Factor, or (b)&nbsp;any applicable discount factor
established by any Other Rating Agency, whichever is applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Fitch</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Fitch</U>&#148; means Fitch Ratings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Foreign Currency Transactions</U>&#148;:
</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="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Currency Transactions</U>&#148; means any technique used by the Corporation to hedge
its exposure to foreign currencies, including forward foreign currency exchange contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Foreign Sovereign Debt</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Sovereign Debt</U>&#148; means debt issued by a national government other than the
United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the definition
of &#147;<U>Market Value</U>&#148; in its entirety and inserting in lieu thereof the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Market Value</U>&#148; means the market value of an asset of the Corporation as computed as
follows: (i)&nbsp;Equity securities listed or traded on a nationally recognized securities exchange or
traded in the U.S. over-the-counter market where trades are reported contemporaneously and for
which market quotations are readily available, are valued at the last quoted sale or a market&#146;s
official closing price at the close of the exchange&#146;s or other market&#146;s regular trading hours, as
of or prior to the time and day as of which such value is being determined. 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 Adviser. If there has been no sale on the day
the valuation is made, the securities are valued at the closing bid price on the principal market
for such security on such day. If no asked prices are quoted on such day, then the security is
valued at the closing bid price on the principal market for such security on such day. If no bid
or asked prices are quoted on such day, the security is valued at the most recently available
price. (ii)&nbsp;Debt instruments are valued based upon (a)&nbsp;the basis of prices provided by a pricing
service or (b)&nbsp;the lower of the value set forth in bids from two independent dealers in securities,
one of which bids will be in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EIGHTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Master Limited Partnership Securities</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Master Limited Partnership Securities</U>&#148; means the following securities, restricted or
unrestricted, issued by a Master Limited Partnership (MLP)&nbsp;or an affiliate of an MLP: (1)&nbsp;common
units, (2)&nbsp;convertible subordinated units, (3)&nbsp;I-Shares, (4)&nbsp;I-units and (5)&nbsp;debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the definition
of &#147;<U>Moody&#146;s Derivatives Transactions</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Moody&#146;s Derivatives Transactions</U>&#148; means, for so long as any Series&nbsp;F Preferred Stock
is rated by Moody&#146;s, the Corporation may, notwithstanding the limitations in paragraph 7 of Article
II, 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, subject to the following limitations:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Futures and call options</I>: For purposes of the Basic Maintenance Amount, futures held by
the Corporation and call options sold by the Corporation 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
Corporation, the Market Value of the call option will be included as Moody&#146;s Eligible Assets
subject to a Moody&#146;s Discount Factor mutually agreed to between the Corporation 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Securities lending</I>: To increase income, the Corporation may lend its portfolio securities
to securities broker-dealers or financial institutions if (i)&nbsp;the loan is collateralized in
accordance with applicable regulatory requirements and (ii)&nbsp;no loan will cause the value of all
loaned securities to exceed 20% of the value of its total assets. 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 Corporation may reinvest cash collateral for securities
lent in conformity with its investment objectives and policies and the provisions of these Articles
Supplementary. In such event, the Corporation may reinvest cash collateral to the extent that
securities lending collateral received is invested by the Corporation in assets that otherwise
would be Moody&#146;s Eligible Assets and the value of such assets exceeds the amount of the
Corporation&#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
Corporation&#146;s obligation to return the collateral on a Valuation Date, such difference shall be
included as an obligation/liability of the Corporation for purposes of calculating the Basic
Maintenance Amount. Collateral received by the Corporation in a securities lending transaction and
maintained by the Corporation 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<I>Interest rate swaps</I>: Only the cumulative unsettled profit and loss from an interest rate
swap transaction will be calculated when determining the Basic Maintenance Amount. If the
Corporation has an outstanding gain from an interest rate 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 interest rate swap transaction. If the Corporation has an outstanding
liability from an interest rate swap transaction on a Valuation Date, the Corporation will subtract
the outstanding liability from the total Moody&#146;s Eligible Assets in calculating the Basic
Maintenance Amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If not otherwise provided for in (a)-(c) above, derivative instruments will be included as
Moody&#146;s Eligible Assets subject to a Moody&#146;s Discount Factor as mutually agreed to between the
Corporation and Moody&#146;s.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the definition of
&#147;<U>Moody&#146;s Discount Factor</U>&#148; in its entirety and inserting in lieu thereof the following:
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->- 3 -<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Corporate debt securities</U>: The percentage determined by reference to the rating
on such asset with reference to the remaining term to maturity of such asset, in accordance with
the table set forth below (non convertibles).
</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="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Term to Maturity of Corporate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27" style="border-bottom: 1px solid #000000"><B>Moody&#146;s Rating Category</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Debt Security</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unrated</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>2</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">137</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1 &#150; 2&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2 &#150; 3&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3 &#150; 4&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4 &#150; 5&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5 &#150; 7&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7 &#150; 10&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10 &#150; 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15 &#150; 20&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20 &#150; 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Greater than 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The Moody&#146;s Discount Factors above for corporate debt securities shall also be applied to any
interest rate swap or cap, in which case the rating of the counterparty shall determine the
appropriate rating category.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>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&#038;P nor Fitch, are limited to 10% of Moody&#146;s Eligible Assets. If a corporate debt
security is unrated by Moody&#146;s, S&#038;P or Fitch, the Corporation will use the percentage set
forth under &#147;Unrated&#148; in this table. Ratings assigned by S&#038;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&#038;P and/or Fitch rating does not seem to approximate a
Moody&#146;s rating equivalent. Split rated securities assigned by S&#038;P and Fitch will be accepted
at the lower of the two ratings.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For corporate debt securities that do not pay interest in U.S. dollars, the fund sponsor will
contact Moody&#146;s to obtain the applicable currency conversion rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Preferred stock</U>: The Moody&#146;s Discount Factor for taxable preferred stock shall
be:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aaa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">155</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">160</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Baa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">165</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ba</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">196</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">216</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#060;B or Not Rated</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Middle Market Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">476</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-cumulative perpetual preferreds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 4 -<!-- /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">
<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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment Grade DRD</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">165</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred Stock</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">Non-Investment Grade</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">216</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DRD Preferred Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For non-cumulative preferred stock, the Discount Factor should be amplified by 110%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Common stock</U>:
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Common Stocks</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Large Cap</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Mid Cap</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Small Cap</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;week exposure period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">205</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">220</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Market cap for large-cap stocks are $10&nbsp;billion and up, mid-cap stocks range between
$2&nbsp;billion and $10&nbsp;billion, and small-cap stocks are $2&nbsp;billion and below.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Convertible securities (including convertible preferreds)</U>:
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Non-</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Delta</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Grade</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Grade</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unrated</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD>.00 &#150; .40</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" nowrap align="left">Use Corporate Debt Securities Table</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">.41 &#150; .80</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">192</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">226</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">.81 &#150; 1.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">195</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">229</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With respect to &#147;structured synthetic convertible&#148; securities, the discount factors above should be
grossed up by an additional 20% of the base discount percentage.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Common stock, preferred stock and corporate debt securities of REITs</U>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For common stock and preferred stock of real estate investment trusts
(&#147;REITs&#148;), the Moody&#146;s Discount Factor shall be the percentage specified in the
table set forth below:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Moody&#146;s Discount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">common stock of REITs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">preferred stock of REITs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">with a Moody&#146;s, S&#038;P or Fitch rating (including a Senior
Implied Rating):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">without a Moody&#146;s, S&#038;P or Fitch rating (including a
Senior Implied Rating):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">208</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Notwithstanding the above, a Moody&#146;s Discount Factor of 250% will be
applied: (a)&nbsp;to those assets in a single NAREIT industry category/sector which
exceed 30% of Moody&#146;s Eligible Assets but are not greater than 35% of Moody&#146;s
Eligible Assets; (b)&nbsp;if dividends on such securities have not been paid consistently
(either quarterly or annually) over the previous three years, or for such shorter
time period that such securities have been outstanding; or (c)&nbsp;if the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 5 -<!-- /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; margin-left: 6%">market capitalization (including common stock and preferred stock) of an issuer
is below $500&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For corporate debt securities of REITs, apply the Moody&#146;s Discount Factors
listed above under Corporate debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Short-Term Instruments</U>: The Moody&#146;s Discount Factor applied to short-term
portfolio securities, including without limitation corporate debt securities and Short-Term Money
Market Instruments will be (1)&nbsp;100%, so long as such portfolio securities mature or have a demand
feature at par exercisable within the Moody&#146;s Exposure Period and are rated Aaa or at least
Prime-1, V-Mig1, or equivalent, or be a rated money-market fund; and (2)&nbsp;115%, so long as such
portfolio securities do not mature within the Moody&#146;s Exposure Period or have a demand feature at
par not exercisable within the Moody&#146;s Exposure Period. A Moody&#146;s Discount Factor of 100% will be
applied to cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>U.S. Government Obligations and U.S. Treasury Strips</U>:
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>U.S.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Government</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>U.S. Treasury</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Strips Discount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Remaining Term to Maturity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Discount Factor</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1 &#150; 2&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2 &#150; 3&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3 &#150; 4&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4 &#150; 5&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5 &#150; 7&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7 &#150; 10&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10 &#150; 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15 &#150; 20&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">218</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20 &#150; 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">244</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<U>Foreign Sovereign Debt</U>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;Debt denominated in US$:
</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="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27" style="border-bottom: 1px solid #ffffff"><B>Moody&#146;s Sovereign Debt Rating</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>Below B</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>&#038;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #ffffff"><B>Term to Maturity(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>Unrated</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">137</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2&nbsp;years or less (but longer than 1&nbsp;year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3&nbsp;years or less (but longer than 2&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4&nbsp;years or less (but longer than 3&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5&nbsp;years or less (but longer than 4&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;years or less (but longer than 5&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 6 -<!-- /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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27" style="border-bottom: 1px solid #ffffff"><B>Moody&#146;s Sovereign Debt Rating</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>Below B</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <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>
    <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 nowrap align="center" colspan="3"><B>&#038;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #ffffff"><B>Term to Maturity(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>Aaa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>Aa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>Baa</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>Ba</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #ffffff"><B>Unrated</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10&nbsp;years or less (but longer than 7&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15&nbsp;years or less (but longer than 10
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20&nbsp;years or less (but longer than 15
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30&nbsp;years or less (but longer than 20
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Greater than 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">181</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For sovereign debt denominated in non-U.S. currency apply additional
Currency Discount Factor:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Foreign Currency</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Currency Discount Factor</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CAD Canadian Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EUR Euro</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">GBP British Pound</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">JPY Japanese Yen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">116</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AUD Australian Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HKD Hong Kong Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NZD New Zealand Dollar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">114</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NOK Norway Kroner</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEK Sweden Kronor</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">THB Thailand Baht</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">295</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">KRW South Korea Won</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">295</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TWD Taiwan New Dollars</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SGD Singapore Dollars</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">IDR Indonesia Rupiahs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">315</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">INR India Rupees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MYR Malaysia Ringgits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CZK Czech Republic Koruny</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PHP Philippines Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HUF Hungary Forint</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PLN Poland Zlotych</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SKK Slovakia Koruny</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TRY Turkey New Lira</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RUB Russia Rubles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ZAR South Africa Rand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CLP Chile Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MXN Mexico Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">COP Columbia Pesos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BRL Brazil Reais</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If the Corporation invests in a security denominated in a currency other than that found
in the above table, contact Moody&#146;s to obtain the applicable Currency Discount Factor for such
security.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Foreign non-sovereign debt</U>: The Moody&#146;s Discount Factor applied to
non-sovereign debt obligations will be (A)&nbsp;in the case of a non-sovereign debt obligation
denominated in U.S. dollars, 250%, and (B)&nbsp;in the case of a non-U.S. sovereign debt obligation
denominated in a foreign currency, 250% multiplied by the Currency Discount Factor for such foreign
currency.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 7 -<!-- /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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;<U>Rule&nbsp;144A securities</U>: The Moody&#146;s Discount Factor applied to Rule&nbsp;144A Securities
for Rule&nbsp;144A Securities whose terms include rights to registration under the 1933 Act within one
year and Rule&nbsp;144A Securities which do not have registration rights within one year will be 120%
and 130%, respectively, of the Moody&#146;s Discount Factor which would apply were the securities
registered under the 1933 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;<U>Catastrophe bonds</U>: The Moody&#146;s Discount Factor applied to catastrophe bonds will
be 475%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;<U>Bank loans</U>: The Moody&#146;s Discount Factor applied to senior bank loans (&#147;Senior
Loans&#148;) shall be the percentage specified in accordance with the table set forth below (or such
lower percentage as Moody&#146;s may approve in writing from time to time):
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Caa and below</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(including</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Moody&#146;s Rating Category</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>distressed and</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Type of Loan</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aaa-A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Baa and Ba</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>unrated)</B><SUP style="FONT-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Senior Loans greater
than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">118</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">149</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">non-Senior Loans
greater than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">128</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">146</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">159</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">loans less than $250 MM</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">138</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">156</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">169</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">270</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Lien Bank Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">168</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">185</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">270</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third &#038; Fourth Lien
Bank Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">218</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">240</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">260</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">351</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If a Senior Loan is not rated by any of Moody&#146;s, S&#038;P or Fitch, the Corporation will use
the applicable percentage set forth under the column entitled &#147;Caa and below (including
distressed and unrated)&#148; in the table above. Ratings assigned the S&#038;P and/or Fitch are
generally accepted by Moody&#146;s at face value. However, adjustments to face value may be made
to particular categories of securities for which the ratings by S&#038;P and/or Fitch do not seem
to approximate a Moody&#146;s rating equivalent. Split rated securities assigned by S&#038;P and Fitch
(i.e., these rating agencies assign different rating categories to the security) will be
accepted at the lower of the two ratings.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Master Limited Partnerships (MLP) &#151; The Moody&#146;s Discount Factor applied to master
limited partnerships shall be applied in accordance with the table set forth below:
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>MLP Sector (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>Discount Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Large-cap MLPs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mid and Small-cap MLPs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Natural Resources (Oil, Gas, Energy)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">292</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Coal and Minerals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">301</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Real Estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">291</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income Real Estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">302</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">342</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Restricted MLPs will be increased by 120%.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 8 -<!-- /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">The Moody&#146;s Discount Factor for any Moody&#146;s Eligible Asset other than the securities set forth
above will be the percentage provided in writing by Moody&#146;s.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ELEVENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>Moody&#146;s Diversification Limitations</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Moody&#146;s Diversification Limitations</U>&#148; means, with respect to qualifying for inclusion
in Moody&#146;s Eligible Assets, the following diversification and issue size requirements:
</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MAXIMUM SINGLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MAXIMUM SINGLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>MINIMUM ISSUE SIZE</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>RATINGS(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 0px solid #000000"><B>ISSUER(2), (3)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 0px solid #000000"><B>INDUSTRY(3), (4)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 0px solid #000000"><B>($ IN MILLIONS)(5)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aaa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CS(6), Baa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ba</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B1-B2(8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B3 or below(8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>(7)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Refers to the securities of the portfolio holding.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Companies subject to common ownership of 25% or more are considered as one issuer.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Percentages represent a portion of the aggregate Market Value of portfolio.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Industries are determined according to Moody&#146;s Industry Classifications, as defined herein.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Except for preferred stock, which has a minimum issue size of $50&nbsp;million, and mortgage pass
throughs issued by Federal National Mortgage Association, Federal Home Loan Mortgage
Corporation or Government National Mortgage Association, which has no minimum issue size.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>CS refers to common stock, which is diversified independently from its ratings level.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Portfolio holdings from issues ranging from $50&nbsp;million to $100&nbsp;million are limited to 20% of
the Corporation&#146;s total assets.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>Securities of the portfolio holdings rated B or below by Moody&#146;s or the equivalent by another
nationally recognized statistical rating organization (&#147;NRSRO&#148;) or not rated shall be
considered to be Moody&#146;s Eligible Assets only to the extent the Market Value of such
securities does not exceed 10% of the portfolio Market Value; provided, however, that if the
Market Value of such securities exceeds 10% of the portfolio Market Value, a portion of such
securities (selected by the Corporation) shall not be considered Moody&#146;s Eligible Assets, so
that the Market Value of such securities (excluding such portion) does not exceed 10% of the
portfolio Market Value.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWELFTH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the
definition of &#147;<U>Moody&#146;s Eligible Assets</U>&#148; in its entirety and inserting in lieu thereof the
following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Moody&#146;s Eligible Assets</U>&#148; means:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Cash (including interest and dividends due on assets rated (A)&nbsp;Baa3 or higher by Moody&#146;s
or the equivalent by another NRSRO if the payment date is within five (5)&nbsp;Business Days of the
Valuation Date, (B)&nbsp;A2 or higher by Moody&#146;s or the equivalent by another NRSRO if the payment date
is within thirty days of the Valuation Date, and (C)&nbsp;A1 or higher by Moody&#146;s or the equivalent by
another NRSRO if the payment date is within the Moody&#146;s Exposure Period) and receivables for
Moody&#146;s Eligible Assets sold if the receivable is due within five (5)&nbsp;Business Days of the
Valuation Date, and if the trades which generated such receivables are (A)&nbsp;settled through
clearinghouse firms with respect to which the Corporation has received prior written authorization
from Moody&#146;s or (B) (1)&nbsp;with counterparties having a Moody&#146;s long-term debt rating of at least Baa3
or the equivalent by another NRSRO or (2)&nbsp;with counterparties
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->- 9 -<!-- /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">having a Moody&#146;s Short Term Money Market Instrument rating of at least P-1 or the equivalent
by another NRSRO;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Short Term Money Market Instruments, so long as (A)&nbsp;such securities are rated at least P-1
or the equivalent by another NRSRO, (B)&nbsp;in the case of demand deposits, time deposits and overnight
funds, the supporting entity is rated at least A2 or the equivalent by another NRSRO, or (C)&nbsp;in all
other cases, the supporting entity (1)&nbsp;is rated A2 or the equivalent by another NRSRO and the
security matures within one month, (2)&nbsp;is rated A1 or the equivalent by another NRSRO and the
security matures within three months or (3)&nbsp;is rated at least Aa3 or the equivalent by another
NRSRO and the security matures within six months; provided, however, that for purposes of this
definition, such instruments (other than commercial paper rated by S&#038;P and not rated by Moody&#146;s)
need not meet any otherwise applicable S&#038;P rating criteria;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;U.S. Government Obligations (including U.S. Treasury Strips);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Rule&nbsp;144A securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Common stocks (A) (1)&nbsp;which are traded on a nationally recognized stock exchange or in the
over-the-counter market, (2)&nbsp;if cash dividend paying, pay cash dividends in U.S. dollars and (3)
which may be sold without restriction by the Corporation; provided, however, that (y)&nbsp;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&nbsp;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)&nbsp;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, (B)&nbsp;which are securities denominated in any currency other than the
U.S. 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 over-the-counter and are issued by banks formed
under the laws of the United States, its states or the District of Columbia or (C)&nbsp;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 Corporation&#146;s holdings of securities denominated in currencies other
than the U.S. dollar and ADRs in excess of (1)&nbsp;6% of the aggregate Market Value of the outstanding
shares of common stock of such issuer thereof or (2)&nbsp;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 non-U.S. jurisdiction 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Loans;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Corporate debt securities (including foreign non-sovereign debt and catastrophe bonds) if
(A)&nbsp;such securities are rated by Moody&#146;s or another NRSRO; (B)&nbsp;such securities provide for the
periodic payment of interest in cash in U.S. dollars, euros or other currencies in
</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">which the Corporation is permitted to invest; (C)&nbsp;such securities have been registered under
the 1933 Act or are restricted as to resale under federal securities laws but are eligible for
resale pursuant to Rule&nbsp;144A under the 1933 Act as determined by the Corporation&#146;s investment
manager or portfolio manager acting pursuant to procedures approved by the Board of Directors,
except that such securities that are not subject to U.S. federal securities laws shall be
considered Moody&#146;s Eligible Assets if they are publicly traded; and (D)&nbsp;such securities are not
subject to extended settlement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing limitations, corporate debt securities and loans rated by
neither Moody&#146;s, S&#038;P nor Fitch shall be considered to be Moody&#146;s Eligible Assets to the extent such
securities are issued by entities which (i)&nbsp;have not filed for bankruptcy within the past three
years, (ii)&nbsp;are current on all principal and interest in their fixed income obligations, (iii)&nbsp;are
current on all preferred stock dividends, and (iv)&nbsp;possess a current, unqualified auditor&#146;s report
without qualified, explanatory language;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Foreign Sovereign Debt so long as the issuing country has a Currency Discount Factor as
set out in the definition of Moody&#146;s Discount Factor in these Articles Supplementary. Foreign
Sovereign Debt issued by a country without a Currency Discount Factor as set out in the definition
of Moody&#146;s Discount Factor in these Articles Supplementary can only be approved as a Moody&#146;s
Eligible Asset after review and confirmation by Moody&#146;s;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Asset-backed securities: If (A)&nbsp;such securities are rated at least Baa by Moody&#146;s or at
least BBB by S&#038;P or Fitch, (B)&nbsp;the securities are part of an issue that is $250&nbsp;million or greater,
or the issuer of such securities has a total of $500&nbsp;million or greater of asset-backed securities
outstanding at the time of purchase of the securities by the Corporation and (C)&nbsp;the expected
average life of the securities is not greater than 4&nbsp;years;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Collateralized debt obligations;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Preferred stocks if (A)&nbsp;dividends on such preferred stock are cumulative, (B)&nbsp;such
securities provide for the periodic payment of dividends thereon in cash in U.S. dollars or euros
and do not provide for conversion or exchange into, or have warrants attached entitling the holder
to receive, equity capital at any time over the respective lives of such securities, (C)&nbsp;the issuer
of such a preferred stock has common stock listed on either the New York Stock Exchange or NYSE
Amex Equities, (D)&nbsp;the issuer of such a preferred stock has a senior debt rating from Moody&#146;s of
Baa1 or higher or a preferred stock rating from Moody&#146;s of Baa3 or higher and (E)&nbsp;such preferred
stock has paid consistent cash dividends in U.S. dollars or euros over the last three years or has
a minimum rating of A1 (if the issuer of such preferred stock has other preferred issues
outstanding that have been paying dividends consistently for the last three years, then a preferred
stock without such a dividend history would also be eligible). In addition, the preferred stocks
must have the following diversification requirements: (X)&nbsp;the preferred stock issue must be greater
than $50&nbsp;million and (Y)&nbsp;the minimum holding by the Corporation of each issue of preferred stock is
$500,000 and the maximum holding of preferred stock of each issue is $5&nbsp;million. In addition,
preferred stocks issued by transportation companies will not be considered Moody&#146;s Eligible Assets;
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->- 11 -<!-- /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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;Convertible securities (including convertible preferred stock), provided that (A)&nbsp;the
issuer of common stock must have a Moody&#146;s senior unsecured debt of Caa or better, or a rating of
CCC or better by S&#038;P or Fitch, (B)&nbsp;the common stocks must be traded on the New York Stock Exchange,
NYSE Amex Equities, or the NASDAQ, (C)&nbsp;dividends must be paid in U.S. dollars, (D)&nbsp;the portfolio of
convertible bonds must be diversified as set forth in the table set forth below and (E)&nbsp;the company
shall not hold shares exceeding the average weekly trading volume during the preceding month;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Common stock, preferred stock or any debt security of REITs or real estate companies;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Pooled investment vehicles including Business Development Companies, Master Limited
Partnerships Securities, Private Investment Companies and Registered Investment Companies;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;Foreign Currency Transactions;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;Moody&#146;s Derivatives Transactions; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;Financial contracts, as such term is defined in Section&nbsp;3(c)(2)(B)(ii) of the 1940 Act
and other securities or assets not otherwise provided for in this definition, but only upon receipt
by the Corporation of a letter from Moody&#146;s specifying any conditions on including such financial
contract or other securities or assets in Moody&#146;s Eligible Assets and assuring the Corporation that
including such financial contract or other securities or assets in the manner so specified would
not affect the credit rating assigned by Moody&#146;s to the Series&nbsp;F Preferred Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>Moody&#146;s Exposure Period</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Moody&#146;s Exposure Period</U>&#148; means the period commencing on a given Valuation Date and
ending 49&nbsp;days thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the
definition of &#147;<U>Moody&#146;s Industry Classifications</U>&#148; in its entirety and inserting in lieu
thereof the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#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&nbsp;F Preferred Stock):
</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="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aerospace and Defense: Major Contractor, Subsystems, Research, Aircraft Manufacturing,
Arms, and Ammunition</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="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Automobile: Automobile Equipment, Auto-Manufacturing, Auto Parts Manufacturing,
Personal Use Trailers, Motor Homes, Dealers</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 12 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<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="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Banking: Bank Holding, Savings and Loans, Consumer Credit, Small Loan, Agency,
Factoring, Receivables</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="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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, Candy, Gum, Seafood,
Frozen Food, Cigarettes, Cigars, Leaf/Snuff, Vegetable Oil</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="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Chemicals, Plastics and Rubber: Chemicals (non-agricultural), Industrial Gases, Sulfur,
Plastics, Plastic Products, Abrasives, Coatings, Paints, Varnish, Fabricating</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="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Containers, Packaging and Glass: Glass, Fiberglass, Containers made of: Glass, Metal,
Paper, Plastic, Wood or Fiberglass</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="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Personal and Non-Durable Consumer Products (Manufacturing Only): Soaps, Perfumes,
Cosmetics, Toiletries, Cleaning Supplies, School Supplies</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="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified/Conglomerate Manufacturing</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="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified/Conglomerate Service</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="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified Natural Resources, Precious Metals and Minerals: Fabricating, Distribution</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="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ecological: Pollution Control, Waste Removal, Waste Treatment and Waste Disposal</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="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electronics: Computer Hardware, Electric Equipment, Components, Controllers, Motors,
Household Appliances, Information Service Communicating Systems, Radios, TVs, Tape
Machines, Speakers, Printers, Drivers, Technology</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="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Finance: Investment Brokerage, Leasing, Syndication, Securities</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="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Farming and Agriculture: Livestock, Grains, Produce, Agriculture Chemicals,
Agricultural Equipment, Fertilizers</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="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Grocery: Grocery Stores, Convenience Food Stores</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="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Healthcare, Education and Childcare: Ethical Drugs, Proprietary Drugs, Research, Health
Care Centers, Nursing Homes, HMOs, Hospitals, Hospital Supplies, Medical Equipment</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="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Home and Office Furnishings, House wares, and Durable Consumer Products: Carpets, Floor
Coverings, Furniture, Cooking, Ranges</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 13 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<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="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Hotels, Motels, Inns and Gaming</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="3%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance: Life, Property and Casualty, Broker, Agent, Surety</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="3%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Machinery (Non-Agricultural, Non-Construction, Non-Electronic): Industrial, Machine
Tools, and Steam Generators</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="3%" nowrap align="left">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</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="3%" nowrap align="left">24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Oil and Gas: Crude Producer, Retailer, Well Supply, Service and Drilling</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="3%" nowrap align="left">25.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Printing, Publishing, and Broadcasting: Graphic Arts, Paper, Paper Products, Business
Forms, Magazines, Books, Periodicals, Newspapers, Textbooks, Radio, T.V., Cable
Broadcasting Equipment</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="3%" nowrap align="left">26.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cargo Transport: Rail, Shipping, Railroads, Rail-car Builders, Ship Builders,
Containers, Container Builders, Parts, Overnight Mail, Trucking, Truck Manufacturing,
Trailer Manufacturing, Air Cargo, Transport</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="3%" nowrap align="left">27.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Retail Stores: Apparel, Toy, Variety, Drugs, Department, Mail Order Catalog, Showroom</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="3%" nowrap align="left">28.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Telecommunications: Local, Long Distance, Independent, Telephone, Telegraph, Satellite,
Equipment, Research, Cellular</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="3%" nowrap align="left">29.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Textiles and Leather: Producer, Synthetic Fiber, Apparel Manufacturer, Leather Shoes</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="3%" nowrap align="left">30.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Personal Transportation: Air, Bus, Rail, Car Rental</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="3%" nowrap align="left">31.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Utilities: Electric, Water, Hydro Power, Gas</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="3%" nowrap align="left">32.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Diversified Sovereigns: Semi-sovereigns, Canadian Provinces, Supra-national Agencies</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>Private Investment Companies</U>&#148;:
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->- 14 -<!-- /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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Private Investment Companies</U>&#148; means investment companies that are structured to be
exempt under the 1940 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>Rating Agency</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rating Agency</U>&#148; means Moody&#146;s as long as such rating agency is then rating the Series
F Preferred Stock at the Corporation&#146;s request or any other rating agency then rating the Series&nbsp;F
Preferred Stock at the Corporation&#146;s request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVENTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>Registered Investment Company</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registered Investment Company</U>&#148; means an investment company, such as an open-end or
closed-end mutual fund, which files a registration statement with the Commission and meets all
requirements of the 1940 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EIGHTEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the
definition of &#147;<U>Short-Term Money Market Instruments</U>&#148; in its entirety and inserting in lieu
thereof the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#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&nbsp;days (or 270&nbsp;days for instruments rated at least Aaa for
purposes of determining Moody&#146;s Eligible Assets):
</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>commercial paper rated either F-1 by Fitch or A-1
by S&#038;P if such commercial paper matures in 30&nbsp;days or P-1 by Moody&#146;s and
either F-1&#043; by Fitch or A-1&#043; by S&#038;P if such commercial paper matures in
over 30&nbsp;days;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>demand or time deposits in, and banker&#146;s
acceptances and certificates of deposit of, (A)&nbsp;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)&nbsp;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);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>overnight funds;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>U.S. Government Obligations and Government
Securities; 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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Eurodollar demand or time deposits in, or
certificates of deposit of, the head office or the London branch office
of a depository institution or trust company if the certificates of
deposit, if any, and the long-term unsecured debt obligations (other than
such obligations the ratings of which are</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 15 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>based on the credit of a person or entity other than such depository
institution or trust company) of such depository institution or trust
company that have (1)&nbsp;credit ratings on each Valuation Date of at least P-1
from Moody&#146;s and either F-1&#043; from Fitch or A-1&#043; from S&#038;P, in the case of
commercial paper or certificates of deposit, and (2)&nbsp;credit ratings on each
Valuation Date of at least Aa3 from Moody&#146;s and either AA from Fitch or AA-
from S&#038;P, in the case of long-term unsecured debt obligations; provided,
however, that in the case of any such investment that matures in no more
than one Business Day from the date of purchase or other acquisition by the
Corporation, all of the foregoing requirements shall be applicable except
that the required long-term unsecured debt credit rating of such depository
institution or trust company from Moody&#146;s, Fitch and S&#038;P shall be at least
A2, A-2 and A, respectively; and provided further, however, that the
foregoing credit rating requirements shall be deemed to be met with respect
to a depository institution or trust company if (1)&nbsp;such depository
institution or trust company is the principal depository institution in a
holding company system, (2)&nbsp;the certificates of deposit, if any, of such
depository institution or trust company are not rated on any Valuation Date
below P-1 by Moody&#146;s, F-1&#043; by Fitch or A-1&#043; by S&#038;P and there is no long-term
rating, and (3)&nbsp;the holding company shall meet all of the foregoing credit
rating requirements (including the preceding proviso in the case of
investments that mature in no more than one Business Day from the date of
purchase or other acquisition by the Corporation); and provided further,
that the interest receivable by the Corporation shall not be subject to any
withholding or similar taxes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINETEENTH: Article&nbsp;I of the Articles Supplementary is hereby amended by inserting the
definition of &#147;<U>U.S. Government Securities</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>U.S. Government Securities</U>&#148; mean securities that are direct obligations of, and
obligations the timely payment of principal and interest on which is fully guaranteed by, the
United States or any agency or instrumentality of the United States, the obligations of which are
backed by the full faith and credit of the United States and in the form of conventional bills,
bonds and notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTIETH: Article&nbsp;I of the Articles Supplementary is hereby amended by deleting the
definition of &#147;<U>Valuation Date</U>&#148; in its entirety and inserting in lieu thereof the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Valuation Date</U>&#148; means the last Business Day of each month, or for purposes of
determining whether the Corporation is maintaining the Basic Maintenance Amount, each business day
commencing with the Date of Original Issue.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-FIRST: Article&nbsp;II.6(a)(ii)(C) of the Articles Supplementary is hereby amended by
deleting it in its entirety and inserting in lieu thereof the following:
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->- 16 -<!-- /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; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) As soon as practicable after the last Valuation Date of each fiscal year of the
Corporation on which a Basic Maintenance Report is required to be delivered, the Corporation
will deliver to Moody&#146;s an Accountant&#146;s Confirmation regarding the accuracy of the
calculations made by the Corporation in such Basic Maintenance Report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-SECOND: The amendments set forth in these Articles of Amendment were duly approved by
the Board of Directors of the Corporation in accordance with Article&nbsp;III of the Articles
Supplementary and the Maryland General Corporation Law. No stock entitled to be voted on the
matter was outstanding or subscribed for at the time of the approval of the amendments set forth in
these Articles of Amendment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TWENTY-THIRD: The amendments contemplated by these Articles of Amendment do not increase the
authorized stock of the Corporation or the aggregate par value thereof.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Remainder of page intentionally left blank&#093;
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->- 17 -<!-- /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;The undersigned President of The Gabelli Equity Trust Inc., who executed these Articles of
Amendment on behalf of the Corporation, hereby acknowledges, in the name and on behalf of the
Corporation, that these Articles of Amendment are the corporate act of the Corporation and states
further, under the penalties of perjury, that to the best of his knowledge, information and belief,
the matters and facts set forth herein with respect to authorization and approval are true in all
material respects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, The Gabelli Equity Trust Inc. has caused these Articles of Amendment to be
signed in its name and on its behalf by its President and witnessed by its Secretary as of this
29th day of May, 2009.
</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="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">WITNESS:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">THE GABELLI EQUITY TRUST INC.</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>
    <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">/s/ Agnes Mullady
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Bruce N. Alpert</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>
    <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">Name: Agnes Mullady
</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">Name: 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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Secretary
</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">Title: 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 -->- 18 -<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.L.I
<SEQUENCE>6
<FILENAME>y91816exv99wlwi.htm
<DESCRIPTION>EX-99.L.I
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wlwi</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99 (l)(i)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;VENABLE LLP LETTERHEAD&#093;
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">June&nbsp;22, 2011
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Gabelli Equity Trust Inc.<BR>
One Corporate Center<BR>
Rye, NY 10580-1422

</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re:</TD>
    <TD>&nbsp;</TD>
    <TD>Registration Statement on Form&nbsp;N-2:<br>
1933 Act File No.: 333-173819<br>
<U>1940 Act File No.: 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 the following securities having an aggregate initial offering
price of up to $500&nbsp;million (collectively, the &#147;Securities&#148;): (a)&nbsp;shares of common stock, $.001
par value per share, of the Company (&#147;Common Shares&#148;) and (b)&nbsp;shares of preferred stock, $.001 par
value per share, of the Company (the &#147;Preferred Shares&#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 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Registration Statement and the related form of prospectus included therein,
substantially in the form transmitted to the Commission under the 1933 Act and the 1940 Act;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Charter of the Company (the &#147;Charter&#148;), filed with the State Department of Assessments
and Taxation of Maryland (the &#147;SDAT&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Bylaws of the Company (the &#147;Bylaws&#148;), certified as of the date hereof by an officer of
the Company;
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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">The Gabelli Equity Trust Inc.<BR>
June&nbsp;22, 2011<BR>
Page 2

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Resolutions adopted by the Board of Directors (the &#147;Board of Directors&#148;) of the Company
(the &#147;Resolutions&#148;) relating to the registration and authorization of the sale and issuance of the
Securities, certified as of the date hereof by an officer of the Company;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. A certificate executed by an officer of the Company, dated as of the date hereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. A certificate as of a recent date of the SDAT as to the good standing of the Company; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In expressing the opinions set forth below, we have assumed the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Each individual executing any of the Documents on behalf of a party (other than the
Company) is duly authorized to do so.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. 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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. 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>





<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /Folio -->
</DIV>

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<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">The Gabelli Equity Trust Inc.<BR>
June&nbsp;22, 2011<BR>
Page 3

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The issuance of, and certain terms of, the Securities to be issued by the Company from time
to time will be authorized and approved by the Board of Directors, or a duly authorized committee
thereof, in accordance with the Maryland General Corporation Law, the Charter, the Bylaws and the
Resolutions (such approval referred to herein as the &#147;Corporate Proceedings&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Articles Supplementary creating and designating the number of shares and the terms of any
class or series of Preferred Shares to be issued by the Company will be filed with and accepted for
record by the SDAT prior to the issuance of such Preferred Shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Upon the issuance of any Securities that are Common Shares (&#147;Common Securities&#148;), the total
number of Common Shares issued and outstanding will not exceed the total number of Common Shares
that the Company is then authorized to issue under the Charter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Upon the issuance of any Securities that are Preferred Shares (&#147;Preferred Securities&#148;),
including Preferred Shares which may be issued upon conversion or exercise of any other securities
convertible into or exercisable for Preferred Shares, the total number of Preferred Shares issued
and outstanding, and the total number of issued and outstanding shares of the applicable class or
series of Preferred Shares designated pursuant to the Charter, will not exceed the total number of
Preferred Shares or the number of shares of such class or series of Preferred Shares that the
Company is then authorized to issue under the Charter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. None of the Securities will be issued to a Principal Shareholder (as defined in the
Charter).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon the foregoing, and subject to the assumptions, limitations and qualifications
stated herein, it is our opinion that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company is a corporation duly incorporated and existing under and by virtues of the
laws of the State of Maryland and is in good standing with the SDAT.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Upon the completion of all Corporate Proceedings relating to the Common Securities, the
issuance of the Common Securities will be duly authorized and, when and if issued and delivered
against payment therefor in accordance with the Registration Statement, the Resolutions and the
Corporate Proceedings, the Preferred Securities will be validly issued, fully paid and
nonassessable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Upon the completion of all Corporate Proceedings relating to the Preferred Securities, the
issuance of the Preferred Securities will be duly authorized and, when and if
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->- 3 -<!-- /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">The Gabelli Equity Trust Inc.<BR>
June&nbsp;22, 2011<BR>
Page 4

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">delivered against payment therefor in accordance with the Registration Statement, the
Resolutions and the Corporate Proceedings, the Preferred Securities will be validly issued, fully
paid and nonassessable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing opinion is limited to the 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, or the
applicability of, federal or state securities laws, including the securities laws of the State of
Maryland. The opinion expressed herein is subject to the effect of judicial decisions which may
permit the introduction of parol evidence to modify the terms or the interpretation of agreements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This opinion is being furnished to you for submission to the Commission as an exhibit to the
Registration Statement. We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the use of the name of our firm therein. In giving this consent, we
do not admit that we are within the category of persons whose consent is required by Section&nbsp;7 of
the 1933 Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Very truly yours,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">/s/ Venable LLP

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 4 -<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.N.I
<SEQUENCE>7
<FILENAME>y91816exv99wnwi.htm
<DESCRIPTION>EX-99.N.I
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wnwi</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99 (n)(i)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><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, 2011, relating to the financial statements and financial highlights
which appears in the December&nbsp;31, 2010 Annual Report to Shareholders of The Gabelli Equity Trust,
Inc., which are also incorporated by reference into the Registration Statement. We also consent to
the references to us under the headings &#147;Financial Highlights&#148;, &#147;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">/s/ PricewaterhouseCoopers LLP<BR>
New York, New York<BR>
June&nbsp;22, 2011

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.N.II
<SEQUENCE>8
<FILENAME>y91816exv99wnwii.htm
<DESCRIPTION>EX-99.N.II
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wnwii</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Ex-.99(n)(ii)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>POWERS OF ATTORNEY</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL MEN BY THESE PRESENTS, that each person whose name appears below nominates,
constitutes and appoints Bruce N. Alpert and Agnes Mullady as his true and lawful attorney-in-fact
to execute and sign the Registration Statement on Form N-2 under the Securities Act of 1933 and the
Investment Company Act of 1940 of The Gabelli Equity Trust Inc. (the &#147;Fund&#148;), and all amendments
and supplements thereto, and to file with the Securities and Exchange Commission, and any other
regulatory authority having jurisdiction over the offer and sale of shares of the Fund, par value
$0.001 per share, any and all exhibits and other documents requisite in connection therewith,
granting unto said attorney full power and authority to do and perform each and every act and thing
requisite and necessary to be done and about the premises as fully to all intents and purposes as
the Directors themselves might or could do.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">May&nbsp;25, 2011
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<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">IN WITNESS WHEREOF, each of the undersigned Directors have hereunto set their hand on the date
first written above.
</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="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Thomas E. Bratter
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Arthur V. Ferrara
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><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">Thomas E. Bratter
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Arthur V. Ferrara</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">Director
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</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">/s/ Anthony J. Colavita
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Anthony R. Pustorino</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><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">Anthony J. Colavita
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Anthony R. Pustorino</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">Director
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</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">/s/ James P. Conn
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Salvatore J. Zizza</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><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">James P. Conn
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Salvatore J. Zizza</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">Director
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</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">/s/ Frank J. Fahrenkopf, Jr.
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Frank J. Fahrenkopf, Jr.
</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">Director</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>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /Folio -->
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`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>14
<FILENAME>filename14.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>corresp</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="65%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="y91816y9181601.gif" alt="(LOGO)">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">787 Seventh Avenue<br>
New York, NY 10019-6099<br><br>
Tel: 212 728 8000<br>
Fax: 212 728 8111</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">June&nbsp;22, 2011
</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, 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>
Securities Act File No.&nbsp;333-173819<br>
<u>Investment Company Act File No.&nbsp;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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On behalf of The Gabelli Equity Trust Inc. (the &#147;Fund&#148;), pursuant to the Securities Act of
1933, as amended, and the Investment Company Act of 1940, as amended, we hereby file via EDGAR
transmission pre-effective amendment No.&nbsp;1 to the Fund&#146;s Registration Statement on Form N-2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any questions or comments on the Registration Statement should be directed to the undersigned
at (212)&nbsp;728-8865.
</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="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Very truly yours,
</DIV></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Ryan P. Brizek
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Ryan P. Brizek
</DIV></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">Enclosures
</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">cc:</TD>
    <TD>&nbsp;</TD>
    <TD>Bruce N. Alpert, The Gabelli Equity Trust Inc.<br>
Agnes Mullady, The Gabelli Equity Trust Inc.<br>
Carter W. Austin, The Gabelli Equity Trust Inc.<br>
Rose F. DiMartino, Esq., Willkie Farr &#038; Gallagher LLP</TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="FONT-variant: SMALL-CAPS">New York&nbsp;&nbsp;&nbsp;Washington&nbsp;&nbsp;&nbsp;Paris&nbsp;&nbsp;&nbsp;London&nbsp;&nbsp;&nbsp;Milan&nbsp;&nbsp;&nbsp;Rome&nbsp;&nbsp;&nbsp;Frankfurt&nbsp;&nbsp;&nbsp;Brussels</FONT><BR>
in alliance with Dickson Minto W.S., London and Edinburgh
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>15
<FILENAME>filename15.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>corresp1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="65%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="y91816y9181601.gif" alt="(LOGO)">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">787 Seventh Avenue<br>
New York, NY 10019-6099<br><br>
Tel: 212 728 8000<br>
Fax: 212 728 8111</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">June&nbsp;22, 2011
</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.<br>
(Securities Act File No.&nbsp;333-173819, Investment Company Act File No.&nbsp;811-04700)<br>
<u>Response to Staff Comments</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">On behalf of The Gabelli Equity Trust Inc. (the &#147;Fund&#148;), please find responses to comments provided
by Laura E. Hatch of the Staff of the Securities and Exchange Commission (&#147;SEC&#148;) via
correspondence, dated May&nbsp;25, 2011, to the undersigned of our firm regarding the filing of a
registration statement on Form N-2 (&#147;Registration Statement&#148;) for the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the convenience of the Staff, comments provided in the correspondence are set out below. We
have discussed the Staff&#146;s comments with representatives of the Fund and the Fund&#146;s investment
adviser. The Fund&#146;s responses to the Staff&#146;s comments are set out immediately under the comment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Prospectus</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Prospectus Summary</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(1) </B><U><B>Comment</B></U><B>: </B>Under the heading &#147;Investment Objectives and Policies,&#148; please discuss the
market capitalization range of the equity securities in which the Fund will invest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The Fund invests in equity securities across all market capitalization
ranges. Disclosure to this effect has been included.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(2) </B><U><B>Comment</B></U><B>: </B>Under the heading &#147;Investment Objectives and Policies,&#148; please discuss the
Fund&#146;s investment policy of investing in companies located in foreign countries and/or in emerging
markets, if applicable. Please also include the related risk of investing in emerging markets, if
applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The section &#147;Investment Objectives and Policies &#151; Certain Investment
Practices,&#148; discloses that: &#147;The Fund may invest up to 35% of its total assets in foreign
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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">Securities and Exchange Commission<BR>
June&nbsp;22, 2011

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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.&#148; Disclosure to this effect has been included under the heading
&#147;Investment Objectives and Policies&#148; in the Prospectus Summary section. Disclosure regarding
&#147;Emerging Markets Risk&#148; has also been included.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(3) </B><U><B>Comment</B></U><B>: </B>Under the heading &#147;Dividends and Distributions,&#148; the disclosure for Preferred
Stock Distributions states, &#147;The amount treated as a tax-free return of capital will reduce a
shareholder&#146;s adjusted tax basis in the preferred stock, thereby increasing the shareholder&#146;s
potential gain or reducing the potential loss on the sale of the shares.&#148; This disclosure could be
confusing to investors as it appears to state that a return of capital distribution is beneficial
to the shareholder. Please revise this disclosure. In addition, please disclose that the Fund made
return of capital distributions for preferred shareholders during the year ended December&nbsp;31, 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>This disclosure has been updated to clarify that, on the sale of shares, a
shareholder&#146;s taxable potential gain will increase and a shareholder&#146;s taxable potential loss will
be reduced. Disclosure that the Fund made return of capital distributions for preferred
shareholders during the year ended December&nbsp;31, 2010 also has been included. The following
disclosure, which is disclosed in the Fund&#146;s annual report, has been included in the Fund&#146;s
prospectus: &#147;Under the Fund&#146;s distribution policy, the Fund declares and pays quarterly
distributions from net investment income, capital gains, and paid-in capital. The actual source of
the distribution is determined after the end of the year. Pursuant to this policy, distributions
during the year may be made in excess of required distributions. To the extent such distributions
are made from current earnings and profits, they are considered ordinary income or long-term
capital gains. The Fund&#146;s current distribution policy may restrict the Fund&#146;s ability to pass
through to shareholders all of its net realized long-term capital gains as a capital gain dividend,
subject to the maximum federal income tax rate of 15%, and may cause such gains to be treated as
ordinary income subject to a maximum federal income tax rate of 35%.&#148;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(4) </B><U><B>Comment</B></U><B>: </B>Under the heading &#147;Dividends and Distributions,&#148; the disclosure for Common
Stock Distributions states, &#147;A portion of the distributions to common shareholders during thirteen
of the twenty-four fiscal years since the Fund&#146;s inception has constituted a return of capital.&#148;
Please also state that all distributions to common shareholders for the past three years have
constituted return of capital.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The requested disclosure has been included.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(5) </B><U><B>Comment</B></U><B>: </B>Many investors may not fully understand a return of capital. Please clarify in
the prospectus that shareholders who periodically receive the payment of a dividend or other
distribution consisting of a return of capital may be under the impression that they are receiving
net profits when they are not. Shareholders should not assume that the source of a distribution
from the Fund is net profit. In addition, please inform us whether the Fund intends to report a
distribution yield. If the Fund intends to report a distribution yield at any point prior to
finalizing its tax figures, the Fund should disclose the estimated portion of the distribution
yield that results from return of capital. In addition, reports containing distribution yields
should be accompanied by the total return and/or SEC yield.
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /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">Securities and Exchange Commission<BR>
June&nbsp;22, 2011

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The requested disclosure has been included. The Fund does not intend
to report a distribution yield. The following sentence from the Fund&#146;s annual report will be
included in the Fund&#146;s prospectus: &#147;Distributions sourced from paid-in capital should not be
considered as dividend yield or the total return from an investment in the Fund.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Use of Proceeds</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(6) </B><U><B>Comment</B></U><B>: </B>For the past three years the Fund has distributed ten percent per year, all of
which has been a return of capital. Will any of the proceeds from this offering be used to continue
the Fund&#146;s managed distribution policy?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The Fund intends to use the proceeds from the offering to purchase portfolio
securities in accordance with its investment objectives and policies as appropriate investment
opportunities are identified. The total return of the Fund has historically exceeded 10%. Cash is
fungible, however, and depending on market conditions and operations a portion of the cash held by
the Fund, including any cash raised from this offering, may be used to pay distributions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Summary of Fund Expenses</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(7) </B><U><B>Comment</B></U><B>: </B>Please remove the line item &#147;Total annual fund operating expenses and
dividends on preferred stock&#148; from the fee table.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The requested change has been made.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(8) </B><U><B>Comment</B></U><B>: </B>The numbers in the fee table do not agree with the Financial Highlights.
Please explain the difference.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The numbers in the fee table are based on the current assets of the Fund and
the numbers in the financial highlights table are based on the Fund&#146;s average net assets for 2010.
As a result, the numbers in the fee table and in the financial highlights table will differ.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(9) </B><U><B>Comment</B></U><B>: </B>Please review the calculation for the expense example. Using the numbers
provided in the fee table, the expenses for the one-, three-, five-, and ten-year periods should
be: $56, $127, $201, and $393, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>As discussed with the Staff, the example numbers and the fee table numbers
have been updated so that these numbers are not inconsistent in the current version of the
Registration Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Preferred Stock</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(10) </B><U><B>Comment</B></U><B>: </B>In the table showing the amounts authorized and outstanding of preferred
stock, each heading includes an asterisk. However, there is no explanation for the asterisk. Please
remove the asterisk or include a footnote.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The asterisk has been removed.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 3 -<!-- /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">Securities and Exchange Commission<BR>
June&nbsp;22, 2011

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Prospectus Supplements</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(11) </B><U><B>Comment</B></U><B>: </B>The prospectus and prospectus supplement indicate that the Fund may issue
auction rate preferred shares. The prospectus states that since February&nbsp;2008, the auctions for the
auction rate preferred shares have failed and holders of the Fund&#146;s auction rate preferred shares
who wanted to sell their shares at par through the auction process have been unable to do so. If
the Fund issues auction rate shares, a brief description of the significant liquidity risks for
holders of auction rate preferred shares should also be prominently and clearly disclosed in the
prospectus supplement<B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>If the Fund issues auction rate preferred shares, the requested description
will be provided.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(12) </B><U><B>Comment</B></U><B>: </B>Please remove the prospectus supplement for the Subscription Rights for
Common Stock and the prospectus supplement for the Subscription Rights for Preferred Stock. This
offering is only for Common Stock and Preferred Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>We respectfully decline to delete the form of prospectus supplement for
subscription rights for common stock and the form of prospectus supplement for subscription rights
for preferred stock. As disclosed in the &#147;Rights Offerings&#148; section of the prospectus, this
offering is also for subscription rights for common stock and subscription rights for preferred
stock. Additional disclosure has been included in the prospectus summary to clarify that the
offering may be for common stock, preferred stock, subscription rights for common stock and
subscription rights for preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Statement of Additional Information</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Portfolio Manager Information</I></B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(13) </B><U><B>Comment</B></U><B>: </B>Please move the information for the portfolio managers&#146; ownership of shares
in the Fund to immediately after the discussion of potential conflicts of interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The requested change has been made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>GENERAL</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(14) </B><U><B>Comment</B></U><B>: </B>We note that portions of the filing are incomplete. We may have additional
comments on such portions when you complete them in a pre-effective amendment, on disclosures made
in response to this letter, on information supplied supplementally, or on exhibits added in any
pre-effective amendments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The Fund acknowledges that the Staff may have additional comments to a
pre-effective amendment to the Registration Statement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(15) </B><U><B>Comment</B></U><B>: </B>Please advise us if you have submitted or expect to submit an exemptive
application or no-action request in connection with your registration statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Response</B></U><B>: </B>The Fund has not submitted and does not expect to submit an exemptive
application or no-action letter in connection with the Registration Statement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 4 -<!-- /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">Securities and Exchange Commission<BR>
June&nbsp;22, 2011

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">* * * *
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund hereby represents that, with respect to the filing of the Registration Statement made by
the Fund with the SEC and reviewed by the Staff, it acknowledges that:
</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="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>should the SEC or the Staff, acting pursuant to delegated authority, declare
the filing effective, it does not foreclose the SEC from taking any action with respect
to the filing;</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="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the action of the SEC or the Staff, acting pursuant to delegated authority, in
declaring the Fund effective, does not relieve the Fund from its full responsibility
for the adequacy and accuracy of the disclosure in the filing; 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="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Fund may not assert Staff comments as a defense in any proceeding initiated
by the SEC 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: 6pt">Any questions or comments regarding this letter should be directed to the undersigned at (212)
728-8865.
</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="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Very truly yours,</DIV></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Ryan P. Brizek
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Ryan P. Brizek
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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">cc:</TD>
    <TD>&nbsp;</TD>
    <TD>Bruce N. Alpert, The Gabelli Equity Trust Inc.<br>
Agnes Mullady, The Gabelli Equity Trust Inc.<br>
Peter D. Goldstein, The Gabelli Equity Trust Inc.<br>
Carter W. Austin, The Gabelli Equity Trust Inc.<br>
Rose F. DiMartino, Esq., Willkie Farr &#038; Gallagher LLP</TD>
</TR>
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 5 -<!-- /Folio -->
</DIV>




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</DOCUMENT>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>16
<FILENAME>filename16.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>corresp2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>One Corporate Center</B> <br>
<B>Rye, NY 10580-1422<br>
Tel. (914)&nbsp;921-5070<br>
Fax (914)&nbsp;921-5118</B><br>
<I>www.gabelli.com<br>
info@gabelli.com</I>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">The Gabelli Equity Trust Inc</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">June&nbsp;22, 2011
</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, 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>
<u>Registration Statement on Form&nbsp;N-2 (File No.&nbsp;333-173819)</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">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 June&nbsp;22, 2011 or as soon as practicable thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">/s/ Bruce N. Alpert</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" 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">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">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>




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