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<SEC-DOCUMENT>0001010521-07-000897.txt : 20071228
<SEC-HEADER>0001010521-07-000897.hdr.sgml : 20071228
<ACCEPTANCE-DATETIME>20071228095603
ACCESSION NUMBER:		0001010521-07-000897
CONFORMED SUBMISSION TYPE:	NSAR-B
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20071031
FILED AS OF DATE:		20071228
DATE AS OF CHANGE:		20071228
EFFECTIVENESS DATE:		20071228

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HANCOCK JOHN PATRIOT PREMIUM DIVIDEND FUND II
		CENTRAL INDEX KEY:			0000855886
		IRS NUMBER:				043097281
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		NSAR-B
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-05908
		FILM NUMBER:		071330391

	BUSINESS ADDRESS:	
		STREET 1:		C/O JOHN HANCOCK FUNDS
		STREET 2:		601 CONGRESS STREET
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02210
		BUSINESS PHONE:		617-663-3000

	MAIL ADDRESS:	
		STREET 1:		C/O JOHN HANCOCK FUNDS
		STREET 2:		601 CONGRESS STREET
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02210

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PATRIOT PREMIUM DIVIDEND FUND II
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>NSAR-B
<SEQUENCE>1
<FILENAME>answer.fil
<DESCRIPTION>JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II
<TEXT>
<PAGE>      PAGE  1
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001 A000000 JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II
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012 B000002 84-0000
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<PAGE>      PAGE  2
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<PAGE>      PAGE  3
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022 A000007 WACHOVIA BANK OF NC
022 C000007      1376
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022 A000008 McDonald & Co., Inc.
022 C000008       789
022 D000008         0
022 A000009 SALOMON SMITH BARNEY
022 B000009 13-3802694
022 C000009       718
022 D000009         0
022 A000010 Morgan Stanley
022 C000010       508
022 D000010         0
023 C000000    1478219
023 D000000          0
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025 A000001 GOLDMAN SACHS & CO.
025 B000001 13-5108880
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025 C000002 E
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<PAGE>      PAGE  7
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SIGNATURE   ALFRED P. OUELLETTE
TITLE       SR ATTORNEY & AS

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.77B ACCT LTTR
<SEQUENCE>2
<FILENAME>nsar.htm
<DESCRIPTION>ACCOUNTANT'S LETTER
<TEXT>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Report of Independent Registered Public Accounting Firm</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>To the Board of Trustees and Shareholders of</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>John Hancock Patriot Premium Dividend Fund II</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>In planning and performing our audit of the financial statements of John Hancock Patriot Premium Dividend Fund II ("the Fund") as of and for the year ended October 31, 2007, in accordance with the standards of the Public Company Accounting Oversight Board (United States), we considered the Fund's internal control over financial reporting, including control activities for safeguarding securities, as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-SAR, but not for the purpose of expressing an opinion on the effectiveness of the Fund&#146;s internal control over financial reporting.  Accordingly, we do not express an opinion on the effectiveness of the Fund's internal control over financial reporting.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The management of the Fund is responsible for establishing and maintaining effective internal control over financial reporting.  In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls.  A fund&#146;s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  Such internal control over financial reporting includes policies and procedures that provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a fund&#146;s assets that could have a material effect on the financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis.  A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the fund&#146;s ability to initiate, authorize, record, process or report external financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the fund&#146;s annual or interim financial statements that is more than inconsequential will not be prevented or detected.  A material weakness is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be
prevented or detected.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Our consideration of the Fund&#146;s internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily disclose all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses under standards established by the Public Company Accounting Oversight Board (United States).  However, we noted no deficiencies in the Fund's internal control over financial reporting and its operation, including controls for safeguarding securities, that we consider to be material weaknesses as defined above as of October 31, 2007.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>This report is intended solely for the information and use of management and the Board of Trustees of John Hancock Patriot Premium Dividend Fund II and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>PricewaterhouseCoopers LLP</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Boston, Massachusetts</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>December 21, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.77C VOTES
<SEQUENCE>3
<FILENAME>meeting.htm
<DESCRIPTION>SHAREHOLDER MEETING
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-FAMILY: 'Times New Roman'" bgcolor="#ffffff">
        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">
        <u><font size="2">Shareholder meeting</font></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">On April
        23, 2007, the Annual Meeting of the Fund was held to elect three Trustees and approve the
        issuance of additional shares in connection with the reorganization of four Patriot
        closed-end funds into the Fund.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Proxies
        covering shares of beneficial interest were voted at the meeting. The common and preferred
        shareholders elected their respective Trustees to serve until successors are duly elected
        and qualified.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">The votes
        were tabulated as follows:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 3.5in; TEXT-INDENT: 0.5in; TEXT-ALIGN: left">
        <font size="2">WITHHELD</font></p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="496" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="240">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><font size="2">FOR</font></u></p>
                    </td>

                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="112">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><font size="2">AUTHORITY</font></u></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2in; TEXT-INDENT: 0.5in; TEXT-ALIGN: left">
        &nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="571" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="240">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">James R. Boyle</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">14,408,589</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="187">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">174,013 (common shares)</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="571" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="240">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Patti McGill Peterson</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">522</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="187">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">123 (preferred shares)</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="571" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="240">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Steven R. Pruchansky</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">14,402,185</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" valign="top" nowrap width="187">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">180,417 (common shares)</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">The common
        shareholders then approved the issuance of additional common shares, with the votes
        tabulated as follows: 9,841,181 FOR, 222,593 AGAINST and 123,980 ABSTAINING.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">The Meeting
        was then adjourned to May 2, 2007 at which time the preferred shareholders approved the
        issuance of additional preferred shares, with the votes tabulated as follows:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">631 FOR, 0
        AGAINST and 5 ABSTAINING.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
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<DOCUMENT>
<TYPE>EX-99.77M MERGERS
<SEQUENCE>4
<FILENAME>merger.htm
<DESCRIPTION>AGREEMENT AND PLAN OF REORG
<TEXT>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><b><small>AGREEMENT</small> <small>AND</small> <small>PLAN</small> <small>OF</small> <small>REORGANIZATION</small></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>In order to consummate the Reorganization (as defined in Section 1(b) below) and in consideration of the promises and the covenants and agreements hereinafter set forth, and intending to be legally bound, John Hancock Patriot Select Dividend Trust, a Massachusetts business trust and a registered closed-end investment company, File No. 811-06107 (the &#147;Target Fund&#148;) and John Hancock Patriot Premium Dividend Fund II (the &#147;Acquiring Fund&#148; and together with the Target Fund, the &#147;Funds&#148;), a Massachusetts business trust and a registered closed-end investment company, File No. 811-05908, each hereby agree as follows:</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Representations and Warranties of the Acquiring Fund</font></b></p> </td> </tr></table>
</div>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The Acquiring Fund represents and warrants to, and agrees with, the Target Fund that:</font></p>


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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund is a Massachusetts business trust, with transferable shares, duly organized, validly existing under, and in good standing in conformity with, the laws of The Commonwealth of Massachusetts, and has the power to own all of its assets and to carry out its obligations under this Agreement.  The Acquiring Fund has all necessary federal, state and local authorizations to carry on its business as it is now being conducted and to carry out this Agreement.</font></p> </td> </tr></table>
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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund is duly registered under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;) as a diversified, closed-end management investment company and such registration has not been revoked or rescinded and is in full force and effect. The Acquiring Fund has elected and qualified for the special tax treatment afforded regulated investment companies (&#147;RICs&#148;) under Section 851 of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) at all times since its inception and intends to continue to so qualify until consummation of the reorganization contemplated hereby (the &#147;Reorganization&#148;) and thereafter.  </font></p> </td> </tr></table>
</div>



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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund has furnished the Target Fund with the Acquiring Fund&#146;s Annual Report to Shareholders for the fiscal year ended October 31, 2006, and the audited financial statements appearing therein, having been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, fairly present the financial position of the Acquiring Fund as of the respective dates indicated, in conformity with accounting principles generally accepted in the United States applied on a consistent basis.</font></p> </td> </tr></table>
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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>An unaudited statement of assets, liabilities and capital of the Acquiring Fund and an unaudited schedule of investments of the Acquiring Fund, each as of the Valuation Time (as defined in Section 3(e) of this Agreement), will be furnished to the Target Fund, at or prior to the Closing Date (as defined in Section 7(a) herein), for the purpose of determining the number of Acquiring Fund Common Shares and Acquiring Fund DARTS (each as defined in Section 1(l) herein) to be issued pursuant to Section 3(a) of this Agreement; each will fairly present the financial position of the Acquiring Fund as of the Valuation Time in conformity with generally accepted accounting principles applied on a consistent basis.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><small>BOS-1126164</small><font size=1>&nbsp;</font><small>V2</small></p>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund has full power and authority to enter into and perform its obligations under this Agreement. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action of its Board of Trustees, and this Agreement constitutes a valid and binding contract enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, moratorium, fraudulent conveyance and similar laws relating to or affecting creditors&#146; rights generally and court decisions with respect thereto.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>There are no material legal, administrative or other proceedings pending or, to the knowledge of the Acquiring Fund, threatened against it which assert liability on the part of the Acquiring Fund or which materially affect its financial condition or its ability to consummate the Reorganization.  The Acquiring Fund is not charged with or, to the best of its knowledge, threatened with any violation or investigation of any possible violation of any provisions of any federal, state or local law or regulation or administrative ruling relating to any aspect of its business.</font></p> </td> </tr></table>
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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund is not obligated under any provision of its Declaration of Trust dated September 26, 1989, as amended, or its by-laws, as amended, and is not a party to any contract or other commitment or obligation, and is not subject to any order or decree, which would be violated by its execution of or performance under this Agreement, except insofar as the Funds have mutually agreed to amend such contract or other commitment or obligation to cure any potential violation as a condition precedent to the Reorganization.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>There are no material contracts outstanding to which the Acquiring Fund is a party that have not been disclosed in the N-14 Registration Statement (as defined in subsection (k) below) or that will not otherwise be disclosed to the Target Fund prior to the Valuation Time.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund has no known liabilities of a material amount, contingent or otherwise, other than those shown on its statements of assets, liabilities and capital referred to in subsection (c) above, those incurred in the ordinary course of its business as an investment company, and those incurred in connection with the Reorganization. As of the Valuation Time, the Acquiring Fund will advise the Target Fund in writing of all known liabilities, contingent or otherwise, whether or not incurred in the ordinary course of business, existing or accrued as of such time, except to the extent disclosed in the financial statements referred to in subsection (c) above.</font></p> </td> </tr></table>
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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(j)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>No consent, approval, authorization or order of any court or government authority or self-regulatory organization is required for the consummation by the Acquiring Fund of the Reorganization, except such as may be required under the rules of the New York Stock Exchange (&#147;NYSE&#148;), Securities Act of 1933, as amended (the &#147;1933 Act&#148;), the Securities Exchange Act of 1934, as amended (the &#147;1934 Act&#148;) and the 1940 Act or state securities laws (which term as used herein shall include the laws of the District of Columbia and Puerto Rico).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 2 -</font></p>
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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(k)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The registration statement filed by the Acquiring Fund on Form N-14, which includes the proxy statement of the Target Fund and the Acquiring Fund with respect to the transactions contemplated herein (the &#147;Joint Proxy Statement/Prospectus&#148;), and any supplement or amendment thereto or to the documents therein (as amended or supplemented, the &#147;N-14 Registration Statement&#148;), on its effective date, at the time of the shareholders&#146; meetings referred to in Section 8(a) and Section 9(a) of this Agreement and at the Closing Date, insofar as it relates to the Acquiring Fund, (i) complied or will comply in all material respects with the provisions of the 1933 Act, the 1934 Act and the 1940 Act and the rules and regulations thereunder, and (ii) did not or will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; and the Joint Proxy Statement/Prospectus included therein did not or will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the representations and warranties in this subsection only shall apply to statements in or omissions from the N-14 Registration Statement made in reliance upon and in conformity with information furnished by the Acquiring Fund for use in the N-14 Registration Statement.</font></p> </td> </tr></table>
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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(l)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund is authorized to issue an unlimited number of common shares of beneficial interest, no par value (the &#147;Acquiring Fund Common Shares&#148;), and an unlimited number of preferred shares of beneficial interest, no par value.  The Board of Trustees of the Acquiring Fund has designated 598 preferred shares as Dutch Auction Rate Transferable Securities, Series A; 598 preferred shares as Dutch Auction Rate Transferable Securities, Series B; 685 preferred shares as Dutch Auction Rate Transferable Securities, Series C; 700 preferred shares as Dutch Auction Rate Transferable Securities, Series D; 525 preferred shares as Dutch Auction Rate Transferable Securities, Series E; and 600 preferred shares as Dutch Auction Rate Transferable Securities, Series F (collectively, &#147;Acquiring Fund DARTS&#148;).  Each
outstanding Acquiring Fund Common Share and each Acquiring Fund DARTS share is fully paid and, nonassessable, and has full voting rights and no shareholder of the Acquiring Fund shall be entitled to any preemptive or other similar rights.  In regard to the statement that the Acquiring Fund Common Shares and Acquiring Fund DARTS are non-assessable, it is noted that the Acquiring Fund is an entity of the type commonly known as a &#147;Massachusetts business trust.&#148;  Under Massachusetts law, shareholders could, under certain circumstances, be held personally liable for the obligations of the Acquiring Fund. </font></p> </td> </tr></table>
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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(m)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund Common Shares and the Acquiring Fund DARTS to be issued to the Target Fund pursuant to this Agreement will have been duly authorized and, when issued and delivered pursuant to this Agreement, will be legally and validly issued and will be fully paid and, nonassessable and will have full voting rights, and no shareholder of the Acquiring Fund will have any preemptive right of subscription or purchase in respect thereof. </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 3 -</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(n)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>At or prior to the Closing Date, the Acquiring Fund Common Shares to be transferred to the Target Fund for distribution to the shareholders of the Target Fund on the Closing Date will be duly qualified for offering to the public in all states of the United States in which the sale of shares of the Funds presently are qualified, and there will be a sufficient number of such shares registered under the 1933 Act and, as may be necessary, with each pertinent state securities commission to permit the transfers contemplated by this Agreement to be consummated.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(o)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>At or prior to the Closing Date, the Acquiring Fund DARTS to be transferred to the Target Fund on the Closing Date will be duly qualified for offering to the public in all states of the United States in which the sale of Auction Market Preferred Shares (&#147;AMPS&#148;) of the Target Fund presently are qualified, and there are a sufficient number of Acquiring Fund DARTS registered under the 1933 Act and with each pertinent state securities commission to permit the transfers contemplated by this Agreement to be consummated.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(p)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>At or prior to the Closing Date, the Acquiring Fund will have obtained any and all regulatory, trustee and shareholder approvals necessary to issue the Acquiring Fund Common Shares and the Acquiring Fund DARTS to the Target Fund.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(q)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund has filed, or intends to file, or has obtained extensions to file, all federal, state and local tax returns which are required to be filed by it, and has paid or has obtained extensions to pay, all federal, state and local taxes shown on said returns to be due and owing and all assessments received by it, up to and including the taxable year in which the Closing Date occurs.  All tax liabilities of the Acquiring Fund have been adequately provided for on its books, and no tax deficiency or liability of the Acquiring Fund has been asserted and no question with respect thereto has been raised by the Internal Revenue Service or by any state or local tax authority for taxes in excess of those already paid, up to and including the taxable year in which the Closing Date occurs.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(r)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund has elected to qualify and has qualified as a RIC as of and since its inception; has been a RIC under the Code at all times since the end of its first taxable year when it so qualified; qualifies and will continue to qualify as a RIC under the Code; and has satisfied the distribution requirements imposed by the Code for each of its taxable years.  The Acquiring Fund has not at any time since its inception been liable for, and is not now liable for, and will not be liable for on the Closing Date, any material income or excise tax pursuant to Section 852 or Section 4982 of the Code. </font></p> </td> </tr></table>
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        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Representations and Warranties of the Target Fund.</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>The Target Fund represents and warrants to, and agrees with, the Acquiring Fund that:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund is a Massachusetts business trust, with transferable shares, duly organized, validly existing in conformity with the laws of The Commonwealth of </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 4 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>Massachusetts, and has the power to own all of its assets and to carry out this Agreement.  The Target Fund has all necessary federal, state and local authorizations to carry on its business as it is now being conducted and to carry out this Agreement. </font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund is duly registered under the 1940 Act as a diversified, closed-end management investment company, and such registration has not been revoked or rescinded and is in full force and effect.  The Target Fund has elected and qualified for the special tax treatment afforded RICs under Section 851 of the Code at all times since its inception, and intends to continue to so qualify through its taxable year ending upon liquidation.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>As used in this Agreement, the term &#147;Target Fund Investments&#148; shall mean: (i)&nbsp;the investments of the Target Fund shown on the schedule of its investments as of the Valuation Time furnished to the Acquiring Fund; and (ii)&nbsp;all other assets owned by the Target Fund or liabilities incurred as of the Valuation Time.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund has full power and authority to enter into and perform its obligations under this Agreement.  The execution, delivery and performance of this Agreement has been duly authorized by all necessary action of its Board of Trustees and this Agreement constitutes a valid and binding contract enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, moratorium, fraudulent conveyance and similar laws relating to or affecting creditors&#146; rights generally and court decisions with respect thereto.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund has furnished the Acquiring Fund with the Target Fund&#146;s Annual Report to Shareholders for the fiscal year ended September 30, 2006, and the audited financial statements appearing therein, having been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, and the Target Fund&#146;s unaudited Semi-Annual Report to Shareholders dated March 31, 2007 fairly presents the financial position of the Target Fund as of the respective dates indicated, in conformity with accounting principles generally accepted in the United States applied on a consistent basis.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>An unaudited statement of assets, liabilities and capital of the Target Fund and an unaudited schedule of investments of the Target Fund, each as of the Valuation Time, will be furnished to the Acquiring Fund at or prior to the Closing Date for the purpose of determining the number of shares of Acquiring Fund Common Shares and Acquiring Fund DARTS to be issued to the Target Fund pursuant to Section 3 of this Agreement; each will fairly present the financial position of the Target Fund as of the Valuation Time in conformity with generally accepted accounting principles applied on a consistent basis.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>There are no material legal, administrative or other proceedings pending or, to the knowledge of the Target Fund, threatened against it which assert liability on the part of the Target Fund or which materially affect its financial condition or its ability to consummate the Reorganization.  The Target Fund is not charged with </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 5 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>or, to the best of its knowledge, threatened with any violation or investigation of any possible violation of any provisions of any federal, state or local law or regulation or administrative ruling relating to any aspect of its business.</font></p>


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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>There are no material contracts outstanding to which the Target Fund is a party that have not been disclosed in the N-14 Registration Statement or will not otherwise be disclosed to the Acquiring Fund prior to the Valuation Time.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund is not obligated under any provision of its Declaration of Trust dated July 23, 1990, or its by-laws, as amended, or a party to any contract or other commitment or obligation, and is not subject to any order or decree which would be violated by its execution of or performance under this Agreement, except insofar as the Funds have mutually agreed to amend such contract or other commitment or obligation to cure any potential violation as a condition precedent to the Reorganization.</font></p> </td> </tr></table>
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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(j)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund has no known liabilities of a material amount, contingent or otherwise, other than those shown on its statements of assets, liabilities and capital referred to above, those incurred in the ordinary course of its business as an investment company and those incurred in connection with the Reorganization.  As of the Valuation Time, the Target Fund will advise the Acquiring Fund in writing of all known liabilities, contingent or otherwise, whether or not incurred in the ordinary course of business, existing or accrued as of such time.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(k)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund has filed, or intends to file, or has obtained extensions to file, all federal, state and local tax returns which are required to be filed by it, and has paid or has obtained extensions to pay, all federal, state and local taxes shown on said returns to be due and owing and all assessments received by it, up to and including the taxable year in which the Closing Date occurs.  All tax liabilities of the Target Fund have been adequately provided for on its books, and no tax deficiency or liability of the Target Fund has been asserted and no question with respect thereto has been raised by the Internal Revenue Service or by any state or local tax authority for taxes in excess of those already paid, up to and including the taxable year in which the Closing Date occurs.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(l)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>At both the Valuation Time and the Closing Date, the Target Fund will have full right, power and authority to sell, assign, transfer and deliver the Target Fund Investments.  At the Closing Date, subject only to the obligation to deliver the Target Fund Investments as contemplated by this Agreement, the Target Fund will have good and marketable title to all of the Target Fund Investments, and the Acquiring Fund will acquire all of the Target Fund Investments free and clear of any encumbrances, liens or security interests and without any restrictions upon the transfer thereof (except those imposed by the federal or state securities laws and those imperfections of title or encumbrances as do not materially detract from the value or use of the Target Fund Investments or materially affect title thereto).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 6 -</font></p>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(m)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>No consent, approval, authorization or order of any court or governmental authority or self-regulatory organization is required for the consummation by the Target Fund of the Reorganization, except such as may be required under the 1933 Act, the 1934 Act, the 1940 Act, state securities laws or the rules of the NYSE.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(n)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The N-14 Registration Statement, on its effective date, at the time of the shareholders&#146; meetings called to vote on this Agreement and on the Closing Date, insofar as it relates to the Target Fund: (i)&nbsp;complied or will comply in all material respects with the provisions of the 1933 Act, the 1934 Act and the 1940 Act and the rules and regulations thereunder, and (ii)&nbsp;did not or will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; and the Joint Proxy Statement/Prospectus included therein did not or will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided, however, that the representations and warranties in this subsection shall apply only to statements in or omissions from the N-14 Registration Statement made in reliance upon and in conformity with information furnished by the Target Fund for use in the N-14 Registration Statement. </font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(o)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund is authorized to issue full and fractional common shares of beneficial interest, no par value (the &#147;Target Fund Common Shares&#148;), and preferred shares of beneficial interest, no par value (&#147;Target Fund Preferred Shares&#148;). Each outstanding Target Fund Common Share and each outstanding Target Fund Preferred Share is fully paid and nonassessable, and has full voting rights and no person is entitled to any preemptive or other similar rights with respect to Target Fund Common Shares and Target Fund Preferred Shares.  In regard to the statement that Target Fund Common Shares and Target Fund Preferred Shares are non-assessable, it is noted that the Target Fund is an entity of the type commonly known as a &#147;Massachusetts business trust.&#148;  Under Massachusetts law, shareholders could, under
certain circumstances, be held personally liable for the obligations of the Target Fund. </font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(p)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>All of the issued and outstanding Target Fund Common Shares and Target Fund Preferred Shares were offered for sale and sold in conformity with all applicable federal and state securities laws.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(q)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The books and records of the Target Fund made available to the Acquiring Fund and/or its counsel are substantially true and correct and contain no material misstatements or omissions with respect to the operations of the Target Fund.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(r)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund will not sell or otherwise dispose of any of the Acquiring Fund Common Shares or Acquiring Fund DARTS to be received in the Reorganization, except in distribution to the shareholders of the Target Fund, as provided in Section 3 of this Agreement.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 7 -</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(s)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund has elected to qualify and has qualified as a &#147;RIC&#148; under the Code as of and since its inception; has been a RIC under the Code at all times since the end of its first taxable year when it so qualified; qualifies and will continue to qualify as a RIC under the Code for its taxable year ending upon its liquidation; and has satisfied the distribution requirements imposed by the Code for each of its taxable years.  The Target Fund has not at any time since its inception been liable for, is not now liable for, and will not be liable for on the Closing Date, any material income excise tax under Section 852 or Section 4982 of the Code. </font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>The Reorganization.</font></b></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Subject to receiving the requisite approvals of the shareholders of the Acquiring Fund and the Target Fund, and to the other terms and conditions contained herein, the Target Fund agrees to convey, transfer and deliver to the Acquiring Fund and the Acquiring Fund agrees to acquire from the Target Fund, on the Closing Date, all of the Target Fund Investments (including interest accrued as of the Valuation Time on debt instruments), including the assumption of  substantially all of the liabilities of the Target Fund, in exchange for that number of Acquiring Fund Common Shares and Acquiring Fund DARTS provided in Section 4 of this Agreement. Pursuant to this Agreement, as soon as practicable after the Closing Date, the Target Fund will distribute all Acquiring Fund Common Shares and Acquiring Fund DARTS received by it to its
shareholders constructively in exchange for their Target Fund Common Shares and Target Fund Preferred Shares.  Such distributions shall be accomplished by the opening of shareholder accounts on the share ledger records of the Acquiring Fund in the amounts due the shareholders of the Target Fund based on their respective holdings in the Target Fund as of the Valuation Time.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>If it is determined that the portfolios of the Target Fund and the Acquiring Fund, when aggregated, would contain investments exceeding certain percentage limitations imposed upon the Acquiring Fund with respect to such investments, the Target Fund, if requested by the Acquiring Fund, will dispose of a sufficient amount of such investments as may be necessary to avoid violating such limitations as of the Closing Date.  Notwithstanding the foregoing: (a)&nbsp;nothing herein will require the Target Fund to dispose of any portfolios, securities or other investments, if, in the reasonable judgment of the Target Fund&#146;s trustees or investment adviser, such disposition would adversely affect the tax-free nature of the Reorganization for federal income tax purposes or would otherwise not be in the best interests of the Target Fund;
and (b)&nbsp;nothing will permit the Target Fund to dispose of any portfolio securities or other investments if, in the reasonable judgment of the Acquiring Fund&#146;s trustees or investment adviser, such disposition would adversely affect the tax-free nature of the Reorganization for federal income tax purposes or would otherwise not be in the best interests of the Acquiring Fund.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 8 -</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Prior to the Closing Date, the Target Fund shall declare a dividend or dividends which, together with all such previous dividends, shall have the effect of distributing to their respective shareholders all of their respective net investment company taxable income to and including the Closing Date, if any (computed without regard to any deduction for dividends paid), and all of its net capital gain, if any, realized to and including the Closing Date. </font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund will pay or cause to be paid to the Acquiring Fund any interest the Target Fund receives on or after the Closing Date with respect to any of the Target Fund Investments transferred to the Acquiring Fund hereunder. </font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Valuation Time shall be 4:00 p.m., Eastern time, on October 10, 2007, or such earlier or later day and time as may be mutually agreed upon in writing (the &#147;Valuation Time&#148;).</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Recourse for liabilities assumed from the Target Fund by the Acquiring Fund in the Reorganization will be limited to the assets acquired by the Acquiring Fund. The known liabilities of the Target Fund, as of the Valuation Time, shall be confirmed to the Acquiring Fund pursuant to Section 2(j) of this Agreement.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund will be terminated following the Closing Date by terminating its registration under the 1940 Act and its organization under Massachusetts law and will withdraw its authority to do business in any state where it is required to do so.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund will file with the Secretary of State of The Commonwealth of Massachusetts, as required, any amendment to its Declaration of Trust and by-laws establishing the powers, rights and preferences of the Acquiring Fund DARTS prior to the closing of the Reorganization.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund and the Target Fund each understand and acknowledge that the Acquiring Fund has or intends to enter into similar Agreements and Plans of Reorganization (&#147;Other Reorganizations&#148;) with the John Hancock Patriot Preferred Dividend Fund, John Hancock Patriot Premium Dividend Fund I and the John Hancock Patriot Global Dividend Fund (&#147;Other Target Funds&#148;) pursuant to which the Acquiring Fund: (1) would acquire all substantially all of the assets and assume substantially all of the liabilities of each of the Other Target Funds; and (2)&nbsp;common and preferred shareholders of the Other Target Funds will become Common and DARTS shareholders, respectively, of the Acquiring Fund.  The effective dates of such Other Reorganizations are expected to be in proximity to the Closing Date, however, they are
not expected to occur simultaneously with the Reorganization or with one another and may occur at any such time as the Acquiring Fund and each Other Target Fund may agree.  The consummation of the Reorganization is not conditioned upon the consummation of any such Other Reorganization.  The Acquiring Fund and the Target Fund understand, acknowledge and agree that any or all of such Other Reorganizations may not </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 9 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>occur and the status of any such Other Reorganization will not have a bearing on the consummation of the Reorganization.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Issuance and Valuation of Acquiring Fund Common Shares and Acquiring Fund DARTS in the Reorganization.</font></b></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Acquiring Fund Common Shares and Acquiring Fund DARTS of an aggregate net asset value or aggregate liquidation preference, as the case may be, equal to the value of the Target Fund Investments acquired in the Reorganization determined as hereinafter provided, shall be issued by the Acquiring Fund to the Target Fund in exchange for such Target Fund Investments.  The Acquiring Fund will issue to the Target Fund: (i)&nbsp;a number of Acquiring Fund Common Shares, the aggregate net asset value of which will equal the aggregate net asset value of the Target Fund Common Shares, determined as set forth below; and (ii)&nbsp;a number of Acquiring Fund DARTS, the aggregate liquidation preference and value of which will equal the aggregate liquidation preference and value of the Target Fund Preferred Shares, determined as set forth
below.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The net asset value of the Funds&#146; Common Shares and the liquidation preference and value of the Target Fund Preferred Shares and the Acquiring Fund DARTS shall be determined as of the Valuation Time in accordance with the regular procedures of the investment adviser, and no formula will be used to adjust the net asset value so determined of any Fund to take into account differences in realized and unrealized gains and losses.  Values in all cases shall be determined as of the Valuation Time.  The value of the Target Fund Investments to be transferred to the Acquiring Fund shall be determined pursuant to the regular procedures of the investment adviser.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The net asset value per share of the Acquiring Fund Common Shares and the liquidation preference and value per share of the Acquiring Fund DARTS shall be determined in accordance with such procedures and the Acquiring Fund shall certify the computations involved.  For purposes of determining the net asset value of each Target Fund Common Share and Acquiring Fund Common Share, the value of the securities held by the applicable Fund, plus any cash or other assets (including interest accrued but not yet received), minus all liabilities (including accrued expenses) and the aggregate liquidation value of the outstanding shares of Target Fund Preferred Shares or Acquiring Fund DARTS, as the case may be, shall be divided by the total number of Target Fund Common Shares or Acquiring Fund Common Shares, as the case may be, outstanding at
such time.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund shall issue to the Target Fund Acquiring Fund Common Shares and the Acquiring Fund DARTS, each registered in the name of the Target Fund.  The Target Fund shall then distribute the Acquiring Fund Common Shares and the Acquiring Fund DARTS to the holders of Target Fund Common Shares and Target Fund Preferred Shares by establishing open accounts for each Target Fund shareholder on the share ledger records of the Acquiring Fund.  Certificates </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 10 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>representing Acquiring Fund Common Shares and Acquiring Fund DARTS will not be issued to Target Fund shareholders.  With respect to any Target Fund shareholder holding certificates evidencing ownership of Target Fund Common Shares as of the Closing Date, and subject to the Acquiring Fund being informed thereof in writing by the Target Fund, the Acquiring Fund will not permit such shareholder to receive Acquiring Fund Common Shares or Acquiring Fund DARTS, exchange Acquiring Fund Common Shares or Acquiring Fund DARTS credited to such shareholder&#146;s account for shares of other investment companies managed by the Adviser or any of its affiliates, or pledge or redeem such Acquiring Fund Common Shares or Acquiring Fund DARTS, in any case, until notified by the Target Fund or its agent that such shareholder has surrendered his or her outstanding certificates evidencing ownership of Target Fund
Common Shares or Target Fund Preferred Shares or, in the event of lost certificates, posted adequate bond.  The Target Fund, at its own expense, will request its shareholders to surrender their outstanding certificates evidencing ownership of Target Fund Common Shares or Target Fund Preferred Shares, as the case may be, or post adequate bond therefor.</font></p>


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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>No fractional shares of Acquiring Fund Common Shares will be issued to holders of Target Fund Common Shares unless such shares are held in a Dividend Reinvestment Plan account.  In lieu thereof, the Acquiring Fund&#146;s transfer agent, Mellon Investor Services, will aggregate all fractional Acquiring Fund Common Shares to be issued in connection with the Reorganization (other than those issued to a Dividend Reinvestment Plan account) and sell the resulting full shares on the New York Stock Exchange at the current market price for Acquiring Fund Common Shares for the account of all holders of such fractional interests, and each such holder will receive such holder&#146;s pro rata share of the proceeds of such sale upon surrender of such holder&#146;s certificates representing Acquiring Fund Common Shares.</font></p> </td> </tr></table>
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    <tr >
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Payment of Expenses.</font></b></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Except as otherwise provided in this Section 5, the costs associated with the Reorganization will be borne by Common Shareholders of the Target Fund and the Acquiring Fund in proportion to their projected annual expense savings as a result of the Reorganization.  John Hancock Advisers, LLC, the adviser to the Acquiring Fund and the Target Fund (the &#147;Adviser&#148;), will bear the balance of the costs of the Reorganization; provided, however, that the Acquiring Fund and the Target Fund will each pay any brokerage commissions, deal mark-ups and similar expenses (&#147;Portfolio Expenses&#148;).</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>In the event the transactions contemplated by this Agreement are not consummated, then the costs associated with the Reorganization (other than Portfolio Expenses that the Acquiring Fund and Target Fund may incur in connection with the purchase or sale of portfolio securities) will be borne by the Acquiring Fund and the Other Target Funds whose shareholders have approved the Other Reorganizations in proportion to their projected annual expense savings </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 11 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>as a result of the Other Reorganizations.  The Adviser will bear the balance of such costs.</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notwithstanding any other provisions of this Agreement, if for any reason the transactions contemplated by this Agreement are not consummated, neither the Acquiring Fund nor the Target Fund shall be liable to the other for any damages resulting therefrom, including, without limitation, consequential damages, except as specifically set forth above.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notwithstanding any of the foregoing, costs and expenses will in any event be paid by the party directly incurring them if and to the extent that the payment by another party of such costs and expenses would result in the disqualification of such party as a &#147;regulated investment company&#148; within the meaning of Subchapter M of the Code.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Covenants of the Funds.</font></b></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Each Fund covenants to operate its business as presently conducted in the ordinary course of business between the date hereof and the Closing Date, it being understood that such ordinary course of business will include regular and customary dividends and distributions.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund agrees that following the consummation of the Reorganization, it will terminate in accordance with the laws of The Commonwealth of Massachusetts and any other applicable law, it will not make any distributions of any Acquiring Fund Common Shares or Acquiring Fund DARTS other than to its respective shareholders and without first paying or adequately providing for the payment of all of its respective liabilities not assumed by the Acquiring Fund, if any, and on and after the Closing Date it shall not conduct any business except in connection with its termination.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund undertakes that if the Reorganization is consummated, it will file an application pursuant to Section 8(f) of the 1940 Act for an order declaring that the Target Fund has ceased to be a registered investment company.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund will file the N-14 Registration Statement with the Securities and Exchange Commission (the &#147;Commission&#148;) and will use its best efforts to provide that the N-14 Registration Statement becomes effective as promptly as practicable. Each Fund agrees to cooperate fully with the other, and each will furnish to the other the information relating to itself to be set forth in the N-14 Registration Statement as required by the 1933 Act, the 1934 Act the 1940 Act, and the rules and regulations thereunder and the state securities laws.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund has no plan or intention to sell or otherwise dispose of the Target Fund Investments, except for dispositions made in the ordinary course of business.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 12 -</font></p>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Each of the Funds agrees that by the Closing Date all of its federal and other tax returns and reports required to be filed on or before such date shall have been filed and all taxes shown as due on said returns either have been paid or adequate liability reserves have been provided for the payment of such taxes.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The intention of the parties is that the transaction contemplated by this Agreement will qualify as a reorganization within the meaning of Section 368(a) of the Code.  Neither the Acquiring Fund nor the Target Fund shall take any action or cause any action to be taken (including, without limitation, the filing of any tax return) that is inconsistent with such treatment or results in the failure of the transaction to qualify as a reorganization within the meaning of Section 368(a) of the Code.  At or prior to the Closing Date, the Acquiring Fund and the Target Fund will take such action, or cause such action to be taken, as is reasonably necessary to enable Kirkpatrick &amp; Lockhart Preston Gates Ellis LLP (&#147;K&amp;L Gates&#148;), special counsel to the Funds, to render the tax opinion required herein (including, without
limitation, each party&#146;s execution of representations reasonably requested by and addressed to K&amp;L Gates).</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>In connection with the covenant in subsection (f) above, the Funds agree to cooperate with each other in filing any tax return, amended return or claim for refund, determining a liability for taxes or a right to a refund of taxes or participating in or conducting any audit or other proceeding in respect of taxes.  The Acquiring Fund agrees to retain for a period of ten (10) years following the Closing Date all returns, schedules and work papers and all material records or other documents relating to tax matters of the Target Fund for each of such Fund&#146;s taxable period first ending after the Closing Date and for all prior taxable periods.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>After the Closing Date, the Target Fund shall prepare, or cause its agents to prepare, any federal, state or local tax returns required to be filed by such fund with respect to its final taxable year ending with its complete liquidation and for any prior periods or taxable years and further shall cause such tax returns to be duly filed with the appropriate taxing authorities.  Notwithstanding the aforementioned provisions of this subsection, any expenses incurred by the Target Fund (other than for payment of taxes) in connection with the preparation and filing of said tax returns after the Closing Date shall be borne by such Fund to the extent such expenses have been accrued by such Fund in the ordinary course without regard to the Reorganization; any excess expenses shall be borne pursuant to Section 5 herein.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(j)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund and the Acquiring Fund each agrees to mail to its respective shareholders of record entitled to vote at the annual meeting of shareholders at which action is to be considered regarding this Agreement, in sufficient time to comply with requirements as to notice thereof, a combined proxy statement and prospectus which complies in all material respects with the applicable provisions of Section 14(a) of the 1934 Act and Section 20(a) of the 1940 Act, and the rules and regulations, respectively, thereunder.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 13 -</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(k)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Following the consummation of the Reorganization, the Acquiring Fund will continue its business as a diversified, closed-end management investment company registered under the 1940 Act.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Closing Date.</font></b></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Delivery of the Target Fund Investments, and of the Acquiring Fund Common Shares and Acquiring Fund DARTS to be issued as provided in this Agreement, shall be made at such place and time as the Funds shall mutually agree on the next full business day following the Valuation Time, or at such other time and date agreed to by the Funds, the date and time upon which such delivery is to take place being referred to herein as the &#147;Closing Date.&#148;  To the extent that any Target Fund Investments, for any reason, are not transferable on the Closing Date, the Target Fund shall cause such Target Fund Investments to be transferred to the Acquiring Fund&#146;s account with its custodian at the earliest practicable date thereafter.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund will deliver to the Acquiring Fund on the Closing Date confirmation or other adequate evidence as to the tax basis of the Target Fund Investments delivered to the Acquiring Fund hereunder.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>As soon as practicable after the close of business on the Closing Date, the Target Fund shall deliver to the Acquiring Fund a list of the names and addresses of all of the shareholders of record of the Target Fund on the Closing Date and the number of Target Fund Common Shares and Target Fund Preferred Shares owned by each such shareholder, certified to the best of its knowledge and belief by the transfer agent for the Target Fund or by its President.</font></p> </td> </tr></table>
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        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Conditions of the Target Fund.</font></b></p> </td> </tr></table>
</div>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The obligations of the Target Fund hereunder shall be subject to the following conditions:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That this Agreement shall have been adopted, and the Reorganization shall have been approved, by the Board of Trustees of the Target Fund and by the affirmative vote of the holders of a majority of the outstanding Target Fund Common Shares and of the outstanding Target Fund Preferred Shares, each voting separately as a class; and that the Acquiring Fund shall have delivered to the Target Fund a copy of the resolution approving this Agreement adopted by the Board of Trustees of the Acquiring Fund, a certificate setting forth the vote of holders of Acquiring Fund Common Shares approving the issuance of additional Acquiring Fund Common Shares, and a certificate setting for the vote of holders of Acquiring Fund DARTS approving the issuance of additional Acquiring Fund DARTS, each certified by its Secretary or Assistant
Secretary.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That the Target Fund shall have received from the Acquiring Fund a statement of assets, liabilities and capital, with values determined as provided in Section 4 of this Agreement, together with a schedule of such Fund&#146;s investments, all as of the Valuation Time, certified on the Acquiring Fund&#146;s behalf by its President (or any </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 14 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>Vice President) and its Treasurer or Assistant Treasurer, and a certificate signed by the Fund&#146;s President (or any Vice President) and its Treasurer or Assistant Treasurer, dated as of the Closing Date, certifying that as of the Valuation Time and as of the Closing Date there has been no material adverse change in the financial position of the Acquiring Fund since the date of such Fund&#146;s most recent Annual or Semi-Annual Report, as applicable, other than changes in its portfolio securities since that date or changes in the market value of its portfolio securities.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That the Acquiring Fund shall have furnished to the Target Fund a certificate signed by the Acquiring Fund&#146;s President (or any Vice President) and its Treasurer or Assistant Treasurer, dated as of the Closing Date, certifying that, as of the Valuation Time and as of the Closing Date, all representations and warranties of the Acquiring Fund made in this Agreement are true and correct in all material respects with the same effect as if made at and as of such dates, and that the Acquiring Fund has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied at or prior to each of such dates.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That there shall not be any material litigation pending with respect to the matters contemplated by this Agreement.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund shall have received the opinion(s) of K&amp;L Gates, counsel for the Acquiring Fund, dated as of the Closing Date, addressed to the Target Fund substantially in the form and to the effect that:</font></p> </td> </tr></table>
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        <td width="144" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the Acquiring Fund is duly formed and validly existing under the laws of its state of organization;</font></p> </td> </tr></table>
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        <td width="144" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the Acquiring Fund is registered as a closed-end, management investment company under the 1940 Act;</font></p> </td> </tr></table>
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        <td width="144" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>this Agreement and the Reorganization provided for herein and the execution of this Agreement have been duly authorized and approved by all requisite action of the Acquiring Fund, and this Agreement has been duly executed and delivered by the Acquiring Fund and (assuming this Agreement is a valid and binding obligation of the other party hereto) is a valid and binding obligation of the Acquiring Fund;</font></p> </td> </tr></table>
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        <td width="144" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>neither the execution or delivery by the Acquiring Fund of this Agreement nor the consummation by the Acquiring Fund of the transactions contemplated hereby violate any provision of any statute or any published regulation or any judgment or order disclosed to counsel by the Acquiring Fund as being applicable to the Acquiring Fund;</font></p> </td> </tr></table>
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        <td width="144" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(v)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the Acquiring Fund Common Shares and Acquiring Fund DARTS have been duly authorized and, upon issuance thereof in accordance </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.88in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 15 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.88in;text-align:left;'><font size=2>with this Agreement, will be validly issued, fully paid and nonassessable and no person is entitled to any preemptive or other similar rights with respect to Acquiring Fund Common Shares and Acquiring Fund DARTS.  In regard to the statement that Acquiring Fund Common Shares and Acquiring Fund DARTS are non-assessable, such opinion will note that the Acquiring Fund is an entity of the type commonly known as a &#147;Massachusetts business trust.&#148;  Under Massachusetts&#146;s law, shareholders could, under certain circumstances, be held personally liable for the obligations of the Acquiring Fund; and</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(vi)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>to their knowledge and subject to the qualifications set forth below, the execution and delivery by the Acquiring Fund of this Agreement and the consummation of the transactions herein contemplated do not require, under the laws of its state of organization or any state in which the Acquiring Fund is qualified to do business or the federal laws of the United States, the consent, approval, authorization, registration, qualification or order of, or filing with, any court or governmental agency or body (except such as have been obtained). Counsel need express no opinion, however, as to any such consent, approval, authorization, registration, qualification, order or filing which may be required as a result of the involvement of other parties to this Agreement in the transactions herein contemplated because of their legal or regulatory
status or because of any other facts specifically pertaining to them. </font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Target Fund shall have obtained an opinion from K&amp;L Gates dated as of the Closing Date, addressed to the Target Fund, and based upon such representations of the parties as K&amp;L Gates may reasonably request, that the consummation of the transactions set forth in this Agreement comply with the requirements of a reorganization as described in Section 368(a) of the Code.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That all proceedings taken by each of the Funds and its counsel in connection with the Reorganization and all documents incidental thereto shall be satisfactory in form and substance to the others.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That the N-14 Registration Statement shall have become effective under the 1933 Act, and no stop order suspending such effectiveness shall have been instituted or, to the knowledge of the Acquiring Fund, be contemplated by the Commission.</font></p> </td> </tr></table>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Acquiring Fund Conditions.</font></b></p> </td> </tr></table>
</div>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The obligations of the Acquiring Fund hereunder shall be subject to the following conditions:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That this Agreement shall have been adopted, and the Reorganization shall have been approved, by the Board of Trustees of the Acquiring Fund and that the issuance of additional Acquiring Fund Common Shares shall have been approved </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 16 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>by the holders of Acquiring Fund Common Shares by an affirmative vote of a majority of the votes cast, provided that total votes cast represent over 50% in interest of all securities entitled to vote on the matter; and that the issuance of additional Acquiring Fund DARTS shall have been approved by the holders of Acquiring Fund DARTS by an affirmative vote of at least a majority of the shares of the DARTS then outstanding; and the Target Fund shall have delivered to the Acquiring Fund a copy of the resolution approving this Agreement adopted by the Target Fund&#146;s Board of Trustees, and a certificate setting forth the vote of the holders of Target Fund Common Shares and Target Fund Preferred Shares obtained, each certified by its Secretary or Assistant Secretary.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That the Target Fund shall have furnished to the Acquiring Fund a statement of its assets, liabilities and capital, with values determined as provided in Section 4 of this Agreement, together with a schedule of investments with their respective dates of acquisition and tax costs, all as of the Valuation Time, certified on the Target Fund&#146;s behalf by its President (or any Vice President) and its Treasurer or Assistant Treasurer, and a certificate signed by such Fund&#146;s President (or any Vice President) and its Treasurer or Assistant Treasurer, dated as of the Closing Date, certifying that as of the Valuation Time and as of the Closing Date there has been no material adverse change in the financial position of the Target Fund since the date of such Fund&#146;s most recent Annual Report or Semi-Annual Report, as applicable,
other than changes in the Target Fund Investments since that date or changes in the market value of the Target Fund Investments.</font></p> </td> </tr></table>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That the Target Fund shall have furnished to the Acquiring Fund a certificate signed by the Target Fund&#146;s President (or any Vice President) and its Treasurer or Assistant Treasurer, dated the Closing Date, certifying that as of the Valuation Time and as of the Closing Date all representations and warranties of the Target Fund made in this Agreement are true and correct in all material respects with the same effect as if made at and as of such dates and the Target Fund has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied at or prior to such dates.</font></p> </td> </tr></table>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That there shall not be any material litigation pending with respect to the matters contemplated by this Agreement.</font></p> </td> </tr></table>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That the Acquiring Fund shall have received the opinion of K&amp;L Gates, counsel for the Target Fund, dated as of the Closing Date, addressed to the Acquiring Fund, substantially in the form and to the effect that:</font></p> </td> </tr></table>
</div>



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        <td width="144" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the Target Fund is duly formed and validly existing under the laws of its state of organization;</font></p> </td> </tr></table>
</div>



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        <td width="144" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the Target Fund is registered as a closed-end, management investment company under the 1940 Act;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 17 -</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>this Agreement and the Reorganization provided for herein and the execution of this Agreement have been duly authorized by all requisite action of the Target Fund, and this Agreement has been duly executed and delivered by the Target Fund and (assuming this Agreement is a valid and binding obligation of the other party hereto) is a valid and binding obligation of the Target Fund;</font></p> </td> </tr></table>
</div>



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        <td width="144" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>neither the execution or delivery by the Target Fund of this Agreement nor the consummation by the Target Fund of the transactions contemplated hereby violate any provision of any statute, or any published regulation or any judgment or order disclosed to them by the Target Fund as being applicable to the Target Fund; and</font></p> </td> </tr></table>
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        <td width="144" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(v)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>to their knowledge and subject to the qualifications set forth below, the execution and delivery by the Target Fund of the Agreement and the consummation of the transactions herein contemplated do not require, under the laws of its state of organization or any state in which the Target Fund is qualified to do business, or the federal laws of the United States, the consent, approval, authorization, registration, qualification or order of, or filing with, any court or governmental agency or body (except such as have been obtained under the 1933 Act, 1934 Act, the 1940 Act or the rules and regulations thereunder).  Counsel need express no opinion, however, as to any such consent, approval, authorization, registration, qualification, order or filing which may be required as a result of the involvement of other parties to this
Agreement in the transactions herein contemplated because of their legal or regulatory status or because of any other facts specifically pertaining to them.</font></p> </td> </tr></table>
</div>



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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That the Acquiring Fund shall have obtained an opinion from K&amp;L Gates, counsel for the Target Fund, dated as of the Closing Date, addressed to the Acquiring Fund, and based upon such representation of the parties as K&amp;L Gates may reasonably request, that the consummation of the transactions set forth in this Agreement comply with the requirements of a reorganization as described in Section 368(a) of the Code.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That the N-14 Registration Statement shall have become effective under the 1933 Act and no stop order suspending such effectiveness shall have been instituted or, to the knowledge of the Target Fund, be contemplated by the Commission.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That all proceedings taken by the Target Fund and its counsel in connection with the Reorganization and all documents incidental thereto shall be satisfactory in form and substance to the Acquiring Fund.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>That prior to the Closing Date the Target Fund shall have declared a dividend or dividends which, together with all such previous dividends, shall have the effect </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 18 -</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>of distributing to its shareholders all of its net investment company taxable income for the period to and including the Closing Date, if any (computed without regard to any deduction for dividends paid), and all of its net capital gain, if any, realized to and including the Closing Date. </font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(j)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The NYSE shall have approved the listing of the additional Acquiring Fund Common Shares to be issued to common shareholders of the Target Fund in connection with the reorganization.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(k)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Acquiring Fund shall have obtained written confirmation from Moody&#146;s Investors Service, Inc. (&#147;Moody&#146;s&#148;) and Standard and Poor&#146;s Ratings Group (&#147;S&amp;P&#148;) that: (i)&nbsp;consummation of the Reorganization will not impair the ratings assigned by such rating agencies to the existing Acquiring Fund DARTS; and (ii)&nbsp;the Acquiring Fund DARTS to be issued pursuant to the Reorganization will be rated &#147;aa2&#148; by Moody&#146;s and &#147;AA&#148; by S&amp;P.</font></p> </td> </tr></table>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Termination, Postponement and Waivers.</font></b></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notwithstanding anything contained in this Agreement to the contrary, this Agreement may be terminated and the Reorganization abandoned at any time (whether before or after adoption thereof by the shareholders of the Funds) prior to the Closing Date, or the Closing Date may be postponed: (i)&nbsp;by mutual consent of the Boards of Trustees of the Funds; (ii)&nbsp;by the Board of Trustees of the Target Fund if any condition of the Target Fund&#146;s obligations set forth in Section 8 of this Agreement has not been fulfilled or waived by such Board; or (iii)&nbsp;by the Board of Trustees of the Acquiring Fund if any condition of the Acquiring Fund&#146;s obligations set forth in Section 9 of this Agreement have not been fulfilled or waived by such Board.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>If the transactions contemplated by this Agreement have not been consummated by December 31, 2007, this Agreement automatically shall terminate on that date, unless a later date is mutually agreed to by the Boards of Trustees of the Funds.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>In the event of termination of this Agreement pursuant to the provisions hereof, the same shall become void and have no further effect, and there shall not be any liability on the part of any Fund or persons who are their directors, trustees, officers, agents or shareholders in respect of this Agreement.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>At any time prior to the Closing Date, any of the terms or conditions of this Agreement benefiting a Fund may be waived by the Board of Trustees of such Fund, if, in the judgment of such Board after consultation with its counsel, such action or waiver will not have a material adverse effect on the benefits intended under this Agreement to the shareholders of their respective fund, on behalf of which such action is taken.</font></p> </td> </tr></table>
</div>



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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The respective representations and warranties contained in Sections 1 and 2 of this Agreement shall expire with, and be terminated by, the consummation of the Reorganization, and neither Fund nor any of its officers, trustees, agents or </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 19 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>shareholders shall have any liability with respect to such representations or warranties after the Closing Date.  This provision shall not protect any officer, trustee, agent or shareholder of either Fund against any liability to the entity for which that officer, trustee, agent or shareholder so acts or to its shareholders, to which that officer, trustee, agent or shareholder otherwise would be subject by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties in the conduct of such office.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>If any order or orders of the Commission with respect to this Agreement shall be issued prior to the Closing Date and shall impose any terms or conditions which are determined by action of the Boards of Trustees of the Funds to be acceptable, such terms and conditions shall be binding as if a part of this Agreement without further vote or approval of the shareholders of the Funds unless such terms and conditions shall result in a change in the method of computing the number of Acquiring Fund Common Shares or Acquiring Fund DARTS to be issued to the Target Fund, in which event, unless such terms and conditions shall have been included in the proxy solicitation materials furnished to the shareholders of the Funds prior to the meetings at which the Reorganization shall have been approved, this Agreement shall not be consummated and
shall terminate unless the Funds promptly shall call a special meeting of shareholders at which such conditions so imposed shall be submitted for approval.</font></p> </td> </tr></table>
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        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>11.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Indemnification.</font></b></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Each party (an &#147;Indemnitor&#148;) shall indemnify and hold the other and its officers, trustees, agents and persons controlled by or controlling any of them (each an &#147;Indemnified Party&#148;) harmless from and against any and all losses, damages, liabilities, claims, demands, judgments, settlements, deficiencies, taxes, assessments, charges, costs and expenses of any nature whatsoever (including reasonable attorneys&#146; fees) including amounts paid in satisfaction of judgments, in compromise or as fines and penalties, and counsel fees reasonably incurred by such Indemnified Party in connection with the defense or disposition of any claim, action, suit or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which such Indemnified Party may be or may have been involved
as a party or otherwise or with which such Indemnified Party may be or may have been threatened (collectively, the &#147;Losses&#148;) arising out of or related to any claim of a breach of any representation, warranty or covenant made herein by the Indemnitor, provided, however, that no Indemnified Party shall be indemnified hereunder against any Losses arising directly from such Indemnified Party&#146;s willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of such Indemnified Party&#146;s position.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Indemnified Party shall use its best efforts to minimize any liabilities, damages, deficiencies, claims, judgments, assessments, costs and expenses in respect of which indemnity may be sought hereunder.  The Indemnified Party shall give written notice to Indemnitor within the earlier of ten (10) days of </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 20 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>receipt of written notice to Indemnified Party or thirty (30) days from discovery by Indemnified Party of any matters which may give rise to a claim for indemnification or reimbursement under this Agreement.  The failure to give such notice shall not affect the right of Indemnified Party to indemnity hereunder unless such failure has materially and adversely affected the rights of the Indemnitor; provided that in any event such notice shall have been given prior to the expiration of the Survival Period.  At any time after ten (10) days from the giving of such notice, Indemnified Party may, at its option, resist, settle or otherwise compromise, or pay such claim unless it shall have received notice from Indemnitor that Indemnitor intends, at Indemnitor&#146;s sole cost and expense, to assume the defense of any such matter, in which case Indemnified Party shall have the right, at no cost or
expense to Indemnitor, to participate in such defense.  If Indemnitor does not assume the defense of such matter, and in any event until Indemnitor states in writing that it will assume the defense, Indemnitor shall pay all costs of Indemnified Party arising out of the defense until the defense is assumed; provided, however, that Indemnified Party shall consult with Indemnitor and obtain Indemnitor&#146;s prior written consent to any payment or settlement of any such claim.  Indemnitor shall keep Indemnified Party fully apprised at all times as to the status of the defense.  If Indemnitor does not assume the defense, Indemnified Party shall keep Indemnitor apprised at all times as to the status of the defense.  Following indemnification as provided for hereunder, Indemnitor shall be subrogated to all rights of Indemnified Party with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="36" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>12.</font></b></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other Matters.</font></b></p> </td> </tr></table>
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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>All covenants, agreements, representations and warranties made under this Agreement and any certificates delivered pursuant to this Agreement shall be deemed to have been material and relied upon by each of the parties, notwithstanding any investigation made by them or on their behalf.</font></p> </td> </tr></table>
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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>All notices hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally or sent by registered mail or certified mail, postage prepaid.  Notice to the Target Fund shall be addressed to the Target Fund c/o John Hancock, 601 Congress Street, Boston, Massachusetts 02210, Attention: General Counsel, or at such other address as the Target Fund may designate by written notice to the Acquiring Fund.  Notice to the Acquiring Fund shall be addressed to the Acquiring Fund c/o 601 Congress Street, Boston, Massachusetts 02210, Attention: General Counsel, or at such other address and to the attention of such other person as the Acquiring Fund may designate by written notice to the Target Fund.  Any notice shall be deemed to have been served or given as of the date such notice is delivered personally
or mailed.</font></p> </td> </tr></table>
</div>



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    <tr >
        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>This Agreement supersedes all previous correspondence and oral communications between the parties regarding the Reorganization, constitutes the only understanding with respect to the Reorganization, may not be changed except by a </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 21 -</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>letter of agreement signed by each party and shall be governed by and construed in accordance with the laws of The Commonwealth of Massachusetts applicable to agreements made and to be performed in said state.</font></p>


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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>It is expressly agreed that the obligations of the Acquiring Fund and the Target Fund hereunder shall not be binding upon any of their respective trustees, shareholders, nominees, officers, agents, or employees personally, but shall bind only the trust property of the respective Fund as provided in such Fund&#146;s Declaration of Trust.  A copy of the Declaration of Trust of each of the Acquiring Fund and the Target Fund is on file with the Secretary of State of The Commonwealth of Massachusetts.  The execution and delivery of this Agreement has been authorized by the trustees of each Fund and signed by authorized officers of each Fund, acting as such, and neither such authorization by such trustees, nor such execution and delivery by such officers shall be deemed to have been made by any of them individually or to impose any
liability on any of them personally, but shall bind only the trust property of each Fund as provided in such Fund&#146;s Declaration of Trust.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>It is further expressly agreed that this Agreement shall be construed in accordance with and governed by the laws of The Commonwealth of Massachusetts.</font></p> </td> </tr></table>
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        <td width="72" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>This Agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original but all such counterparts together shall constitute but one instrument.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 22 -</font></p>
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<p style=' margin-bottom:24pt; margin-top:0pt;text-align:left;'>
<font size=2>IN WITNESS WHEREOF, the parties have hereunto caused this Agreement to be executed and delivered by their duly authorized officers as of the 9<sup>th</sup> day of October, 2007.</font></p>

<p style=' margin-bottom:36pt; margin-top:0pt;text-align:left;'><font SIZE=2>JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II</font></p>


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        <td width="72" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="149" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Keith F. Hartstein</font></u></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="205" style='border-collapse:collapse; '>
    <tr >
        <td width="72" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td width="133" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Keith F. Hartstein</font></p> </td> </tr></table>
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    <tr >
        <td width="72" nowrap valign=top style='padding:0pt 0pt 36.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td width="263" nowrap valign=top style='padding:0pt 0pt 36.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>President and Chief Executive Officer</font></p> </td> </tr></table>
</div>



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    <tr >
        <td width="72" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Attest:</font></p> </td>
        <td width="155" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Alfred P. Ouellette</font></u></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="212" style='border-collapse:collapse; '>
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        <td width="72" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td width="140" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Alfred P. Ouellette</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td width="141" nowrap valign=top style='padding:0pt 0pt 36.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Assistant Secretary</font></p> </td> </tr></table>
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<p style=' margin-bottom:36pt; margin-top:0pt;text-align:left;'><font SIZE=2>JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="149" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Gordon M. Shone</font></u></p> </td> </tr></table>
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        <td width="72" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td width="133" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Gordon M. Shone</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title</font></p> </td>
        <td width="80" nowrap valign=top style='padding:0pt 0pt 36.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Treasurer</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Attest:</font></p> </td>
        <td width="155" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Alfred P. Ouellette</font></u></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="212" style='border-collapse:collapse; '>
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        <td width="72" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td width="140" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Alfred P. Ouellette</font></p> </td> </tr></table>
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        <td width="72" nowrap valign=top style='padding:0pt 0pt 36.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td width="141" nowrap valign=top style='padding:0pt 0pt 36.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Assistant Secretary</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 23 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<TYPE>EX-99.77Q1 OTHR EXHB
<SEQUENCE>5
<FILENAME>bylawamended1.htm
<DESCRIPTION>AMENDED AND RESTATED BY-LAWS
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=3>&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=3>AMENDMENT TO </font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=3>AMENDED AND RESTATED</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=3>BY-LAWS OF</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=3>PATRIOT PREMIUM DIVIDEND FUND II</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="112" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>As Amended:</font></p> </td>
        <td width="365" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 22, 2007 (Article VI, Sections 6.1, 6.2 and 6.4)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Article VI, Section 6.1, is hereby amended to read in its entirety as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><u><b><font size=2>Designation</font></b></u><font size=2>.  A class of 3706</font><b><font size=2> </font></b><font size=2>shares of preferred stock, without par value, liquidation preference of $100,000 per share plus accumulated but unpaid dividends (including Additional Dividends), if any thereon (whether or not earned or declared), is hereby designated &#147;Dutch Auction Rate Transferable Securities<SUP>SM</SUP> Preferred Stock&#148; (the &#147;DARTS&#148;<SUP>SM</SUP> ).  The DARTS shall be issued in multiple series: 598 shares designated as Dutch Auction Rate Transferable Securities Preferred Stock, Series A (the &#147;Series A DARTS&#148;); 598 shares designated as Dutch Auction Rate Transferable Securities Preferred Stock, Series B (the &#147;Series B DARTS&#148;); 685 shares designated as Dutch Auction Rate Transferable Securities Preferred Stock, Series C (the &#147;Series C DARTS&#148;), 700
shares designated as Dutch Auction Rate Transferable Securities Preferred Stock, Series D (the &#147;Series D DARTS&#148;),  525 shares designated as Dutch Auction Rate Transferable Securities Preferred Stock, Series E (the &#147;Series E DARTS&#148;) and  600 shares designated as Dutch Auction Rate Transferable Securities Preferred Stock, Series F (the &#147;Series F DARTS&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>Each share within an individual series (e.g., each share within Series A DARTS) shall be identical and equal in all respects to every other share within that series, and each of the shares across series, from Series A DARTS through Series E DARTS, except as expressly provided in this Article VI, shall be identical and equal in all respects.  No fractional shares of DARTS shall be issued.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>Each of the Series C DARTS, Series D DARTS, Series E DARTS and Series F DARTS shall have the same characteristics as Series B DARTS, and each reference to Series B DARTS herein shall also be construed to reference each respective Series C DARTS, Series D DARTS, Series E DARTS and Series F DARTS.  Where Series B DARTS differ from Series A DARTS herein, each respective Series C DARTS, Series D DARTS, Series E DARTS and Series F DARTS shall have the characteristics identical to Series B DARTS, except as stated in Sections 6.2(ff) and (zz) and 6.4(b)(i) and (c)(i)(A).  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Article VI, Section 6.2, </font><u><b><font size=2>Definitions</font></b></u><font size=2>, is hereby amended to read in excerpt as follows:</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>(ff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Eligible Asset Evaluation Date&#148; means (i) the Date of Original Issue, (ii) each succeeding seventh day following the Date of Original Issue (or, if such day is not a Business Day, the first Business Day following such day) and (iii) the Business Day preceding the day on which an Additional Dividend is declared... [END OF EXCERPT]</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2> (zz)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Projected Dividend Amount&#148; for the Series A DARTS, Series B DARTS, Series C DARTS, Series D DARTS, Series E DARTS or Series F DARTS (the &#147;applicable series&#148;) as of any Eligible Asset Evaluation Date, means the amount of dividends, based on the number of shares of the applicable series outstanding on such Eligible Asset Evaluation Date, projected to accumulate on such shares from such Eligible Asset Evaluation Date until the 63rd day, as specified below, after such Eligible Asset Evaluation Date, at the following rates:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;except as provided in clauses (iii) through (v) of this paragraph (zz), if such Eligible Asset Evaluation Date is the Date of Original Issue or a Dividend Payment Date for the applicable series, (A) for the period beginning on such Eligible Asset Evaluation Date and ending on the first following Dividend Payment Date for the applicable series, the Applicable Rate for the applicable series in effect on such valuation date, and (B) for the period beginning on such first following Dividend Payment Date and ending on the 63rd day following such valuation date, the product of 2.18 (for purposes of determining the Eligible Asset Coverage Amount for the Moody&#146;s Eligible Assets) or 2.58 (for purposes of determining the Eligible Asset Coverage Amount for the S&amp;P Eligible Asset) and (1) the Maximum Applicable Rate for the
related Auction Date on a day, selected by the Fund, within three Business Days of the Date of Original Issue (if such Eligible Asset Evaluation Date is the Date of Original Issue or (2) the Maximum Applicable Rate on the last occurring Auction Date for the applicable series (if such Eligible Asset Evaluation Date is a Dividend Payment Date);</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;except as provided in clauses (iii) and (iv) of this paragraph (zz), if such Eligible Asset Evaluation Date is not the Date of Original Issue or a Dividend Payment Date for the Series A DARTS or Series B DARTS, (A) for the period beginning on such Eligible Asset Evaluation Date and ending on the first following Dividend Payment Date for the applicable series, the Applicable Rate for the applicable series in effect on such valuation date, (B) for the period beginning on such first following Dividend Payment Date and ending on the second following Dividend Payment Date for the applicable series the product of 2.22 (in the case of the Series A DARTS), 2.28 (in the case of the Series B DARTS) and (1) the Maximum Rate on such Eligible Asset Evaluation Date (if such valuation date is the Eligible Asset Evaluation Date first
following the Date of Original Issue) or (2) the Maximum Applicable Rate on the last occurring Auction Date for either series (if such valuation date is any other valuation date), and (C) in the case of an Eligible Asset Evaluation Date for the Series A DARTS immediately preceding a Dividend Payment Date for the Series A DARTS, for the period beginning on the second following Dividend Payment Date and ending on the 63rd day following such Eligible Asset Evaluation Date, the product of 3.35 and the Maximum Applicable Rate on the last occurring Auction Date for the Series B DARTS; </font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for the Series B DARTS, if the Eligible Asset Evaluation Date is a Dividend Payment Date for the Series A DARTS, (A) for the period beginning on such Eligible Asset Evaluation Date and ending on the first following Dividend Payment Date for the Series B DARTS, the Applicable Rate in effect on such valuation date, and (B) for the period beginning on such first following Dividend Payment Date and ending on the second following Dividend Payment Date the product of 1.5 days and the Maximum Applicable Rate on the last occurring Auction Date for the series A DARTS and (C) for the period beginning on the second following Dividend Payment Date and ending on the 63rd day, the product of 2.58 and (1) the Maximum Applicable Rate on such valuation date (if such valuation date is the valuation date first following the Date of Original Issue) or
(2) the Maximum Rate on the last occurring Auction Date for the Series A DARTS (if such valuation date is any other valuation date); and</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for Series B DARTS, if such Eligible Asset Evaluation Date is the date of Original Issue or any valuation date prior to the first Dividend Payment Date, for the Series A DARTS, (A) for the period beginning on such Eligible Asset Evaluation Date and ending on the first following Dividend Payment Date for Series B DARTS, the Applicable Rate for Series B DARTS in effect on such Eligible Asset Evaluation Date, and (B) for the period beginning on such first following Dividend Payment Date and ending on the 62nd day following such Eligible Asset Evaluation Date, the product of the Maximum Applicable Rate on such Eligible Asset Evaluation Date (or on a day, selected by the Fund, within three Business Days of such valuation date if such Eligible Asset Evaluation Date is the Date of Original Issue) and 2.58.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;except as provided in clause (i) of this paragraph (zz), if such Eligible Asset Evaluation Date is not the Date of Original Issue or a Dividend Payment Date for the Series C DARTS, Series D DARTS, Series E DARTS or Series F DARTS, (A) for the period beginning on such Eligible Asset Evaluation Date and ending on the first following Dividend Payment Date for the applicable series, the Applicable Rate for the applicable series in effect on such valuation date and (B) for the period beginning on such first following Dividend Payment Date and ending on the second following Dividend Payment Date for the applicable series the product of 3.2 (in the case of the Series C DARTS), 2.79 (in the case of the Series D DARTS), 2.26 (in the case of the Series E DARTS), 2.85 (in the case of the Series F DARTS) and (1) the Maximum Rate on such
Eligible Asset Evaluation Date (if such valuation date is the Eligible Asset Evaluation Date first following the Date of Original Issue) or (2) the Maximum Applicable Rate on the last occurring Auction Date for any series (if such valuation date is any other valuation date).</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>The number of days in each of the periods referred to in clauses (i) through (v) of this paragraph (zz) shall be determined by including the first day and excluding the last day of each such period.  If the date of determination is not an Eligible Asset Evaluation Date, then the Projected Dividend Amount for the applicable series as of such date of determination shall equal the Projected Dividend Amount on the immediately preceding Eligible Asset Evaluation Date, adjusted to reflect any decrease in the number of shares of such series outstanding.  The calculation of the Projected Dividend Amount may be made on bases other than those set forth above if the relevant Rating Agency has advised the Trust in writing that the revised calculation </font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>of the Projected Dividend Amount would not adversely affect its then-current rating of the DARTS.  If the Board of Trustees increases the number of Dividend Period Days pursuant to Section 6.4(b)(i) below, the Projected Dividend Amount shall be determined in accordance with procedures established in consultation with the relevant Rating Agency with a view to maintaining its then-current rating of the DARTS, provided that Trust shall cause to be made available a written statement setting forth the revised method of determination of the Projected Dividend Amount for inspection by the Holders at the principal executive office of the Trust...  [END OF EXCERPT]</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Article VI, Section 6.4, </font><u><b><font size=2>Dividends</font></b></u><font size=2>, is hereby amended to read in excerpt as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2> (b)(i)&nbsp;&nbsp;&nbsp;Dividends on the shares of each series shall accumulate at the Applicable Rate (whether or not earned or declared) from the Date of Original Issue and shall be payable (I) in the case of Series A DARTS commencing on February 7, 1990 and thereafter on each successive seventh Wednesday following such date, and (II) in the case of Series B DARTS, commencing on February 14, 1990, and thereafter on each successive seventh Wednesday, (III) in the case of Series C DARTS, commencing on June 25, 2007 and thereafter on each successive seventh Monday, (IV) in the case of Series D DARTS, commencing on October 10, 2007 and thereafter on each successive seventh Wednesday, (V) in the case of Series E DARTS, commencing on May 29, 2007 and thereafter on each successive seventh Tuesday, and (VI) in the case of Series F DARTS, commencing on June 4, 2007 and thereafter on each
successive seventh Monday (the initial dividend payment date for the Series A DARTS, Series B DARTS, Series C DARTS, Series D DARTS, Series E DARTS or Series F DARTS, being herein referred to as the &#147;Initial Dividend Payment Date&#148;, and each such Wednesday or other day on which dividends on the Series A DARTS, Series B DARTS, Series C DARTS, Series D DARTS, Series E DARTS or Series F DARTS, would be payable but for the provisos below being referred to as a &#147;Normal Dividend Payment Date&#148;) except that... [END OF EXCERPT]</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2> (c)(i)(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The dividend rate on the Series A DARTS for the period commencing on the Date of Original Issue and ending on the Initial Dividend Payment Date shall be 7.20% per annum, the dividend rate on the Series B DARTS commencing on the Date of Original Issue and ending on the Initial Dividend Payment Date shall be 7.25% per annum, the dividend rate on the Series C DARTS commencing on the Date of Original Issue and ending on the Initial Dividend Payment Date shall be 4.24% per annum, the dividend rate on the Series D DARTS commencing on the Date of Original Issue and ending on the Initial Dividend Payment Date shall be 5.50% per annum, the dividend rate on the Series E DARTS commencing on the Date of Original Issue and ending on the Initial Dividend Payment Date shall be 4.10% per annum, the dividend rate on the Series F DARTS
commencing on the Date of Original Issue and ending on the Initial Dividend Payment Date shall be 4.14% per annum, and (B) the dividend rate on the Series A DARTS, Series B DARTS, Series C DARTS, Series D DARTS, Series E DARTS or Series F DARTS for each subsequent period commencing on the last Dividend Payment Date for the applicable series and ending on the next Dividend Payment Date for such series (each such period, and the period commencing on the Date of Original Issue and ending on the Initial Dividend Payment Date, being referred to herein as a &#147;Dividend Period&#148; for the applicable series) shall be the rate per annum equal to the rate determined for the applicable series pursuant to the Auction Procedures set forth in Section 6.9 below.  Notwithstanding the foregoing, (I) in the event that an Auction with respect to any Dividend Period for the applicable series is not held </font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>for any reason or is deemed not to have been held as provided in Section 6.4(b)(ii) above, the dividend rate on the shares of such series for such Dividend Period shall be the Maximum Applicable Rate on the Auction Date with respect to such Dividend Period, and (II) in the event that shares of the Series A DARTS, Series B DARTS, Series C DARTS, Series D DARTS, Series E DARTS or Series F DARTS are called for redemption, the dividend rate for such shares until the commencement of the next Dividend Period shall be the dividend rate otherwise in effect on the date of the Notice of Redemption, and the dividend rate for such shares for each subsequent Dividend Period or part thereof (if any) until the redemption date shall be the Maximum Applicable Rate on the Auction Date with respect to such Dividend Period.  The dividend rate on the Series A DARTS, Series B DARTS, Series C DARTS, Series D DARTS, Series E DARTS or
Series F DARTS for any Dividend Period or part thereof determined as set forth in this clause (i) is referred to herein as the &#147;Applicable Rate&#148; for such Dividend Period or part thereof.  [END OF EXCERPT]</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>AMENDMENT TO </font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>AMENDED AND RESTATED</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>BY-LAWS OF</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PATRIOT PREMIUM DIVIDEND FUND II</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>As Amended:</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 22, 2007 (Article VI, Section 6.3(b))</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>Standard &amp; Poor&#146;s (&#147;S&amp;P&#148;) approves the change in calculation of &#147;S&amp;P Eligible Assets,&#148; as defined in the Amended and Restated By-Laws of Patriot Premium Dividend Fund II (&#147;Bylaws&#148;), pursuant to the authorization granted in the Bylaws, as stated in Article VI - </font><u><i><font size=2>Terms of Preferred Stock</font></i></u><i><font size=2>,</font></i><font size=2>, Section 6.3.  Such calculation shall be conducted as though Section 6.3(b) of the Bylaws were to read in its entirety as follows:</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>6.3</font></u></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Eligible Asset Coverage and Dividend Coverage</font></u><b><font size=2>.</font></b></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;S&amp;P Eligible Assets&#148; means:</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>cash (including, for this purpose, receivables for securities sold and, dividends receivable on S&amp;P Eligible Assets);</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Short-Term Money Market Instruments (provided, however, that for purposes of this definition such instruments need not meet any otherwise applicable Standard &amp; Poor&#146;s rating criteria);</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>commercial paper that is not included as a Short-Term Money Market Instrument having on the date of purchase or other acquisition a rating from Standard &amp; Poor&#146;s of &#147;A-1+&#148;, &#147;A-1&#148; or &#147;A-2&#148; and issued or irrevocably and fully guaranteed by an obligor having at the time long-term unsecured debt obligations with a rating from Standard &amp; Poor&#146;s of at least &#147;BBB&#148;;</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>preferred stocks (A) which either (1) are issued by issuers whose senior debt securities are rated at least &#147;BBB&#148; by Standard &amp; Poor&#146;s or (2) are rated at least &#147;BBB&#148; by Standard &amp; Poor&#146;s, (B) of issuers which have (or, in the case of issuers which are special purpose corporations, whose parent companies have) common stock listed on the New York Stock Exchange or the American Stock Exchange, (C) which have a minimum issue size </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>BOS-1079986&nbsp;v5</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(when taken together with other of the issuer&#146;s issues of similar tenor) of $50 million, (D) which have paid consistent cash dividends during the preceding three-year period (or, in the case of new issuers without a dividend history, are rated at least &#147;A&#148; by Standard &amp; Poor&#146;s), (E) which pay cumulative cash dividends in U.S. dollars, (F) which are not convertible into any other class of stock and do not have warrants attached, and (G) in the case of auction preferred stocks, which have dividend periods of less than or equal to 49 days (or, in the case of a new issue of auction preferred stock, 64 days for the initial dividend period) and have never had a failed auction; </font><i><font size=2>provided</font></i><font size=2>, that for this purpose the aggregate Market Value of the Trust&#146;s holdings of (x) any issue of preferred stock which is not an auction
preferred stock shall not be less than $500,000 and the issue of preferred stock shall not exceed 10% of the aggregate Market Value of all of the Trust&#146;s investments meeting the criteria set forth in the terms in clauses (i) through (vi) of this Section 6.3</font><b><font size=2>;</font></b></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(v)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>common stocks (A) which are issued by issuers whose senior debt securities are rated at least &#147;BBB&#148; by Standard &amp; Poor&#146;s, (B) which are traded on the New York Stock Exchange or the American Stock Exchange, (C) which in the case of common stocks other than utility common stocks have a market capitalization greater than $500 million, (D) which in the case of utility common stocks are currently paying cash dividends or, in the case of other common stocks, are currently paying cash dividends and have paid consistent cash dividends during the preceding three-year period, and in the case of common stocks other than utility common stocks (E) which pay dividends in U.S. dollars; </font><i><font size=2>provided</font></i><font size=2>, that (1) the aggregate Market Value of the Trust&#146;s holdings of the common stock
of any eligible issuer (x) shall be less than 5% of the number of outstanding shares multiplied by the Market Value of such common stock and (y) shall not exceed 5% of the number of outstanding shares (less the number of shares held by insiders as determined in accordance with standards established by Standard &amp; Poor&#146;s) times the Market Value of such common stock and (2) the number of shares of common stock of any eligible issuer held by the Trust shall not exceed the average weekly trading volume of such common stock during the preceding month;</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(vi)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Defensive Securities (U.S. government securities which (A) are direct obligations of, or fully guaranteed by the full faith and credit of, the United States of America, (B) either mature in less than one year or pay interest periodically and pay principal at maturity or call, (C) are registered in the name of the Trust (custodian account), (D) are free and clear of third party claims, and (E) the trustee (if any) has a first perfected security interest in the collateral);</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(vii)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Utility Bonds which are (A) rated at least A by Standard &amp; Poor&#146;s, (B) have a minimum issue size of at least $100 million, (C) have a maturity of </font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 2 -</font></p> </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>not more than 30 years, and (D) are non-convertible and pay interest in U.S. currency; and</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(viii)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Corporate bonds which are (A) rated at least A by Standard &amp; Poor&#146;s, (B) have a minimum issue size of at least $100 million, (C) are registered under the 1933 Act, (D) have a maturity of not more than 30 years, (E) pay interest periodically in cash, and (F) are not convertible or exchangeable into equity of the issuing corporation.</font></p> </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><i><font size=2>provided, however</font></i><font size=2>, that the Trust&#146;s investments in preferred and common stocks described in clauses (iv) and (v) above of any single issuer whose senior debt securities are rated &#147;A&#148; or better by Standard &amp; Poor&#146;s or in such preferred stock which is rated &#147;A&#148; or better by Standard &amp; Poor&#146;s, as the case may be, shall be included in the S&amp;P Eligible Assets only to the extent that the aggregate Market Value of all such stocks of such issuer does not exceed 10% of the aggregate Market Value of all the Trust&#146;s investments meeting the criteria set forth in clauses (i) through (vi) above; and </font><i><font size=2>provided, further</font></i><font size=2>, that the Trust&#146;s, investments in preferred and common stocks described in clauses (iv) and (v) above of any single issuer whose senior debt securities are rated &#147;BBB&#148; by
Standard &amp; Poor&#146;s or in such preferred stock which is rated &#147;BBB&#148; by Standard &amp; Poor&#146;s, as the case may be, shall be included in the S&amp;P Eligible Assets only to the extent that the aggregate Market Value of all such stocks of such issuer does not exceed 2.5% (or 5% taken together with common stocks described in clause (v) above issued by a utility whose senior debt securities are rated &#147;BBB&#148; or better by Standard &amp; Poor&#146;s) of the aggregate Market Value of all the Trust&#146;s investments meeting the criteria set forth in clauses (i) through (vi) above less the aggregate Market Value of those investments excluded from the S&amp;P Eligible Assets pursuant to the immediately preceding proviso; and </font><i><font size=2>provided, furthe</font></i><font size=2>r, that the Trust&#146;s investments in any one industry (other than the utilities industry) shall be included in the S&amp;P Eligible Assets only to the extent that the aggregate
Market Value of such investments does not exceed 20% of the aggregate Market Value of all of the Trust&#146;s investments meeting the criteria set forth in clauses (i) through (vi) above less the aggregate Market Value of those investments excluded from the S&amp;P Eligible Assets pursuant to the two immediately preceding provisos; and </font><i><font size=2>provided, further</font></i><font size=2>, that the Trust&#146;s investments in preferred and common stocks described in clauses (iv) and (v) above of all issuers whose senior debt securities are rated &#147;BBB-&#148; by Standard &amp; Poor&#146;s or in such preferred stocks which are rated &#147;BBB-&#148; by Standard &amp; Poor&#146;s, as the case may be, shall be included in the S&amp;P Eligible Assets only to the extent that the aggregate Market Value of all such stocks of such issuers does not exceed 25% of the aggregate Market Value of all of the Trust&#146;s investments meeting the criteria set forth in clauses (i) through
(vi) above less the aggregate Market Value of those investments excluded form the S&amp;P Eligible Assets pursuant to the three immediately preceding provisos; and provided further Utility and Corporate bonds described in clauses (vii) and (viii) be diversified by issuer and industry independently of the diversification provisions described above for common and preferred stocks.  The diversification percentages of the corporate and utility bonds includable as S&amp;P Eligible Assets shall be based on the total percentage of the defensive pool comprised of U.S. government securities described in clause (vi), utility bonds described in clause (vii) and corporate bonds described in clause (viii) determined by dividing the aggregate Market Value of the investments meeting the criteria described in clauses (vi) through (viii) by the aggregate Market Value of the Trust&#146;s investments meeting the criteria set forth in clauses (i) through (viii) above.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 3 -</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Defensive Pool</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:2.0pt'><font size=2>Percent of Trust&#146;s</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:2.0pt'><font size=2>Investments Composed of Investments described under </font><u><font size=2>Clauses vi, vii and viii above</font></u><font size=2>.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:2.0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:2.0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:2.0pt'><u><font size=2>Issuer %</font></u></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:2.0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:2.0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:2.0pt'><u><font size=2>Industry %</font></u><u></u></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>0% - 29%</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5%</font></p> </td>
        <td width="213" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>10%</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>30% - 59%</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>6%</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>12%</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>60% - 79%</font></p> </td>
        <td width="213" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>8%</font></p> </td>
        <td width="213" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>17%</font></p> </td> </tr>
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        <td width="213" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>80% - 100%</font></p> </td>
        <td width="213" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>10%</font></p> </td>
        <td width="213" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:12.0pt'><font size=2>20%</font></p> </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>The Trust&#146;s investments in utility and corporate bonds described in clauses (vii) and (viii) of any single issuer which are rated &#147;A&#148; or better by Standard &amp; Poor&#146;s shall be included as S&amp;P Eligible Assets only to the extent that the Market Value of all such corporate bonds and utility bonds of such issuer does not exceed the appropriate Defensive Pool single issuer percentage of the aggregate Market Value of all of the Trust&#146;s investments in utility and corporate bonds meeting the criteria set forth in clauses (vii) and (viii) above and provided further that the Trust&#146;s investments in corporate bonds in any one industry (other than the utilities industry) shall be included in the S&amp;P Eligible Assets only to the extent that the aggregate Market Value of all such corporate bonds does not exceed the appropriate Defensive Pool single industry percentage of the aggregate
Market Value of all of the Trust&#146;s investments in utility and corporate bonds meeting the criteria set forth in clauses (vii) and (viii) above less the aggregate Market Value of all those corporate bonds and utility bonds excluded from the S&amp;P Eligible Assets pursuant to the immediately preceding proviso.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>These diversification tests for corporate and utility bonds will be met after the Trust is fully invested in such bonds.  While the Trust is in the initial process of purchasing corporate and utility bonds (&#147;the invest-up period&#148;) the above issuer and industry diversification restrictions will not apply; however, such &#147;invest-up period&#148; shall not exceed 10 business days.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>By resolution of the Board of Trustees and without amending the By-Laws of the Trust or otherwise submitting such resolution for shareholder approval, other assets (including investments which either do not meet the criteria set forth in clauses (i) through (viii) above or meet such criteria but are excluded from the S&amp;P Eligible Assets by the foregoing provisos) may be included in the S&amp;P Eligible Assets if Standard &amp; Poor&#146;s has advised the Trust in writing that the inclusion of such assets in the S&amp;P Eligible Assets would not adversely affect its then-current rating of the DARTS, </font><i><font size=2>provided</font></i><font size=2> that the Trust shall cause to be made available a written statement setting forth the S&amp;P Eligible Assets, as changed and/or supplemented, for inspection by the Holders at the principal executive office of the Trust.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 4 -</font></p> </td> </tr></table>
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<TYPE>EX-99.77Q1 OTHR EXHB
<SEQUENCE>7
<FILENAME>bylawamended3.htm
<DESCRIPTION>AMENDED AND RESTATED BY-LAWS
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>AMENDMENT TO </font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>AMENDED AND RESTATED</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>BY-LAWS OF</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PATRIOT PREMIUM DIVIDEND FUND II</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="112" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>As Amended:</font></p> </td>
        <td width="284" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>July 23, 2007 (Article VI, Section 6.3(a))</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>Moody&#146;s Investors Service approves the change in calculation of &#147;Moody&#146;s Eligible Assets,&#148; as defined in the Amended and Restated By-Laws of Patriot Premium Dividend Fund II (&#147;Bylaws&#148;), pursuant to the authorization granted in the Bylaws, as stated in Article VI - </font><u><i><font size=2>Terms of Preferred Stock</font></i></u><i><font size=2>,</font></i><font size=2>, Section 6.3.  Such calculation shall be conducted as though Section 6.3 of the Bylaws were to read in its entirety as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>6.3</font></u></p> </td>
        <td width="335" nowrap valign=top style='padding:0pt 0pt 12.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Eligible Asset Coverage and Dividend Coverage</font></u><b><font size=2>.</font></b></p> </td> </tr></table>
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            <p  ><font size=1>&nbsp;</font></p>  </td>
        <td width="48" nowrap valign=top style='padding:0pt 0pt 12.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td width="241" nowrap valign=top style='padding:0pt 0pt 12.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;Moody&#146;s Eligible Assets&#148; means:</font></p> </td> </tr></table>
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        <td width="96" nowrap valign=top style='padding:0pt 0pt 12.0pt 0pt; '>
            <p  ><font size=1>&nbsp;</font></p>  </td>
        <td width="48" nowrap valign=top style='padding:0pt 0pt 12.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td width="451" nowrap valign=top style='padding:0pt 0pt 12.0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>cash (including, for this purpose, receivables for securities sold and</font></p> </td> </tr></table>
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        <td width="144" nowrap valign=top style='padding:0pt 0pt 12.0pt 0pt; '>
            <p  ><font size=1>&nbsp;</font></p>  </td>
        <td width="375" nowrap valign=top style='padding:0pt 0pt 12.0pt 0pt; '>
            <p   style='margin-bottom:0pt'><font size=2>dividends receivable on Moody&#146;s Eligible Assets);</font></p>  </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:1.04in;text-align:left;'><font size=2>(ii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Short-Term Money Market Instruments (</font><u><font size=2>provided</font></u><font size=2>, </font><u><font size=2>however</font></u><font size=2>, that for </font><font size=2>purposes of this definition, such instruments need not meet any otherwise </font><font size=2>applicable Standard &amp; Poor&#146;s rating criteria);</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:1.04in;text-align:left;'><font size=2> (iii)</font><font size=1>&nbsp;</font><font size=2>commercial paper that is not included as a Short-Term Money Market </font><font size=2>Instrument having on the date of purchase or other acquisition a rating </font><font size=2>from Moody&#146;s of &#147;P-1&#148; and issued or irrevocably and fully guaranteed by </font><font size=2>an obligor having at the time long-term unsecured debt obligations with a </font><font size=2>rating from Moody&#146;s of at least &#147;Baa&#148;;</font></p>


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        <td width="96" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p  ><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>preferred stocks, subject to the ratings and issuer limitations as follows:</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p  align=center style='text-align:center'><b><font size=2>Ratings(1)</font></b></p> </td>
        <td width="120" valign=top style='border:solid black 1.0pt; border-left:none;padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><b><font size=2>Maximum Single Issuer(2)(3)</font></b></p> </td>
        <td width="113" valign=top style='border:solid black 1.0pt; border-left:none;padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><b><font size=2>Maximum Single Industry(3)(4)</font></b></p> </td>
        <td width="134" valign=top style='border:solid black 1.0pt; border-left:none;padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><b><font size=2>Minimum Issue Size  ($ in million)(5)</font></b></p> </td> </tr>
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        <td width="120" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font size=2>Aaa</font>                       </p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>100%</font></p> </td>
        <td width="113" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>100%</font></p> </td>
        <td width="134" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>$100</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>BOS-1135340&nbsp;v5</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="120" valign=top style='border:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font size=2>Aa</font>                              </p> </td>
        <td width="120" valign=top style='border:solid black 1.0pt; border-left:none;padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>20</font></p> </td>
        <td width="113" valign=top style='border:solid black 1.0pt; border-left:none;padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>60</font></p> </td>
        <td width="134" valign=top style='border:solid black 1.0pt; border-left:none;padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>100</font></p> </td> </tr>
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        <td width="120" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font SIZE=2>A</font>                                     </p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>10</font></p> </td>
        <td width="113" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>40</font></p> </td>
        <td width="134" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>100</font></p> </td> </tr>
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        <td width="120" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font size=2>Baa</font>                        </p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>6</font></p> </td>
        <td width="113" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>20</font></p> </td>
        <td width="134" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>100</font></p> </td> </tr>
    <tr >
        <td width="120" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font size=2>Ba</font>                               </p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>4</font></p> </td>
        <td width="113" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>12</font></p> </td>
        <td width="134" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>50(6)</font></p> </td> </tr>
    <tr >
        <td width="120" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font SIZE=2>B1-B2</font>      </p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>3</font></p> </td>
        <td width="113" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>8</font></p> </td>
        <td width="134" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>50(6)</font></p> </td> </tr>
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        <td width="120" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font size=2>B3 or below</font>                    </p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>2</font></p> </td>
        <td width="113" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>5</font></p> </td>
        <td width="134" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>50(6)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(1) Refers to the preferred stock and senior debt rating of the portfolio holding. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(2) Companies subject to common ownership of 25% or more are considered as one issuer. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(3) Percentages represent a portion of the aggregate Market Value of corporate debt securities. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(4) Industries are determined according to Moody's Industry Classifications, as defined herein.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(5) Except for preferred stock, which has a minimum issue size of $40 million. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(6) Portfolio holdings from issues ranging from $50 million ($40 million for preferred stocks) to $100 million are limited to 20% of the Fund's total assets or unless otherwise approved by Moody&#146;s. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>Unless conclusions regarding liquidity risk as well as estimates of both the probability and severity of default for the Fund's assets can be derived from other sources, securities rated below B by Moody's and unrated securities, which are securities rated by neither Moody's, S&amp;P nor Fitch, are limited to 10% of Moody's Eligible Assets. If a corporate, municipal or other debt security is unrated by Moody's, S&amp;P or Fitch, the Fund will use the percentage set forth under "Below B and Unrated" in this table. Ratings assigned by S&amp;P or Fitch are generally accepted by Moody's at face value. However, adjustments to face value may be made to particular categories of credits for which the S&amp;P and/or Fitch rating does not seem to approximate a Moody's rating equivalent.  Split-rated securities assigned by S&amp;P and Fitch Ratings (i.e., these Rating Agencies assign different rating
categories to the security) will be accepted at the lower of the two ratings; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(B) utility preferred stocks, subject to the ratings and issuer limitations as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="347" style='border-collapse:collapse'>
    <tr >
        <td width="299" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 2 -</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="492" style='margin-left:113.4pt;border-collapse:collapse'>
    <tr style='height:46.4pt'>
        <td width="122" style='border:solid black 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:46.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Industry Category </font></b></p> </td>
        <td width="118" valign=top style='border:solid black 1.0pt; border-left:none; padding:0pt 5.4pt 0pt 5.4pt;height:46.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Maximum Single Issuer (%)(1) </font></b></p> </td>
        <td width="120" valign=top style='border:solid black 1.0pt; border-left:none; padding:0pt 5.4pt 0pt 5.4pt;height:46.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Maximum Single Industry(%)(1) </font></b></p> </td>
        <td width="132" valign=top style='border:solid black 1.0pt; border-left:none; padding:0pt 5.4pt 0pt 5.4pt;height:46.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Maximum Single State (%)(1) </font></b></p> </td> </tr>
    <tr style='height:11.9pt'>
        <td width="122" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Utility ............... </font></p> </td>
        <td width="118" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4 </font></p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>50 </font></p> </td>
        <td width="132" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>7(2) </font></p> </td> </tr>
    <tr style='height:11.75pt'>
        <td width="122" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt;height:11.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Industrial .......... </font></p> </td>
        <td width="118" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4 </font></p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>45 </font></p> </td>
        <td width="132" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>7 </font></p> </td> </tr>
    <tr style='height:11.9pt'>
        <td width="122" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Financial............ </font></p> </td>
        <td width="118" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5 </font></p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>40 </font></p> </td>
        <td width="132" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>6 </font></p> </td> </tr>
    <tr style='height:11.9pt'>
        <td width="122" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other ................ </font></p> </td>
        <td width="118" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>6 </font></p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>20 </font></p> </td>
        <td width="132" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>N/A </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(1) Percentages represent both a portion of the aggregate market value and the number of outstanding shares of the common stock portfolio. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(2) Utility companies operating in more than one state should be diversified according to the state of incorporation. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:1in;text-align:left;'><font size=2>(v)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>common stocks: (A) which are issued by issuers whose senior debt </font><font size=2>securities are rated at least &#147;Baa&#148; by Moody&#146;s (or, in the event an issuer&#146;s </font><font size=2>senior debt securities are not rated by Moody&#146;s, which are issued by an </font><font size=2>issuer whose senior debt securities are rated at least &#147;BBB&#148; by Standard &amp; </font><font size=2>Poor&#146;s and which for this purpose have been assigned a Moody&#146;s </font><font size=2>equivalent rating of at least &#147;Baa&#148;); (B) which are traded on the New York </font><font size=2>Stock Exchange or the American Stock Exchange; (C) which in the case </font><font size=2>of common stocks other than utility common stocks have a market </font><font size=2>capitalization greater than $500 million; (D)
which in the case of utility </font><font size=2>common stocks are currently paying cash dividends or, in the case of other </font><font size=2>common stocks, are currently paying cash dividends and have paid </font><font size=2>consistent cash dividends during the preceding three-year period, and in </font><font size=2>the case of common stocks other than utility common stocks; and (E) </font><font size=2>which pay dividends in U.S. dollars; </font><i><font size=2>provided</font></i><font size=2>, that (1) the aggregate </font><font size=2>Market Value of the Trust&#146;s holdings of the common stock of any eligible </font><font size=2>issuer shall be subject to the industry, issuer and state requirements, as </font><font size=2>follows: </font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="492" style='margin-left:113.4pt;border-collapse:collapse'>
    <tr style='height:46.4pt'>
        <td width="122" style='border:solid black 1.0pt;padding:0pt 5.4pt 0pt 5.4pt;height:46.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Industry Category </font></b></p> </td>
        <td width="118" valign=top style='border:solid black 1.0pt; border-left:none; padding:0pt 5.4pt 0pt 5.4pt;height:46.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Maximum Single Issuer (%)(1) </font></b></p> </td>
        <td width="120" valign=top style='border:solid black 1.0pt; border-left:none; padding:0pt 5.4pt 0pt 5.4pt;height:46.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Maximum Single Industry(%)(1) </font></b></p> </td>
        <td width="132" valign=top style='border:solid black 1.0pt; border-left:none; padding:0pt 5.4pt 0pt 5.4pt;height:46.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Maximum Single State (%)(1) </font></b></p> </td> </tr>
    <tr style='height:11.9pt'>
        <td width="122" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Utility ............... </font></p> </td>
        <td width="118" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4 </font></p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>50 </font></p> </td>
        <td width="132" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>7(2) </font></p> </td> </tr>
    <tr style='height:11.75pt'>
        <td width="122" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt;height:11.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Industrial .......... </font></p> </td>
        <td width="118" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4 </font></p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>45 </font></p> </td>
        <td width="132" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>7 </font></p> </td> </tr>
    <tr style='height:11.9pt'>
        <td width="122" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Financial............ </font></p> </td>
        <td width="118" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5 </font></p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>40 </font></p> </td>
        <td width="132" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>6 </font></p> </td> </tr>
    <tr style='height:11.9pt'>
        <td width="122" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other ................ </font></p> </td>
        <td width="118" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>6 </font></p> </td>
        <td width="120" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>20 </font></p> </td>
        <td width="132" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt;height:11.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>N/A </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(1) Percentages represent both a portion of the aggregate market value and the number of outstanding shares of the common stock portfolio. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(2) Utility companies operating in more than one state should be diversified according to the state of incorporation. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 3 -</font></p> </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>and (2) the number&#146; of shares of common stock of any eligible issuer held by the Trust shall not exceed the average weekly trading volume of such common stock during the preceding month;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p  ><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(vi)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Defensive Securities (U.S. government securities which are direct obligations of, or obligations the full and timely payment of the principal and interest of which is fully guaranteed by, the full faith and credit of the United States of America); and</font></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p  ><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(vii)</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 12.0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>bonds (A) with respect to corporate bonds and (B) utility bonds, subject to the ratings and issuer limitations as follows:</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='margin-left:113.4pt;border-collapse:collapse; '>
    <tr >
        <td width="157" valign=top style='border:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><b><font size=2>Ratings(1)</font></b></p> </td>
        <td width="157" valign=top style='border:solid black 1.0pt; border-left:none;padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><b><font size=2>Maximum Single Issuer(2)(3)</font></b></p> </td>
        <td width="148" valign=top style='border:solid black 1.0pt; border-left:none;padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><b><font size=2>Maximum Single Industry(3)(4)</font></b></p> </td>
        <td width="175" valign=top style='border:solid black 1.0pt; border-left:none;padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><b><font size=2>Minimum Issue Size  ($ in million)(5)</font></b></p> </td> </tr>
    <tr >
        <td width="157" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font size=2>Aaa</font>                       </p> </td>
        <td width="157" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>100%</font></p> </td>
        <td width="148" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>100%</font></p> </td>
        <td width="175" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>$100</font></p> </td> </tr>
    <tr >
        <td width="157" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font size=2>Aa</font>                              </p> </td>
        <td width="157" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>20</font></p> </td>
        <td width="148" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>60</font></p> </td>
        <td width="175" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>100</font></p> </td> </tr>
    <tr >
        <td width="157" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font SIZE=2>A</font>                                     </p> </td>
        <td width="157" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>10</font></p> </td>
        <td width="148" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>40</font></p> </td>
        <td width="175" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>100</font></p> </td> </tr>
    <tr >
        <td width="157" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font size=2>Baa</font>                        </p> </td>
        <td width="157" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>6</font></p> </td>
        <td width="148" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>20</font></p> </td>
        <td width="175" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>100</font></p> </td> </tr>
    <tr >
        <td width="157" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font size=2>Ba</font>                               </p> </td>
        <td width="157" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>4</font></p> </td>
        <td width="148" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>12</font></p> </td>
        <td width="175" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>50(6)</font></p> </td> </tr>
    <tr >
        <td width="157" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font SIZE=2>B1-B2</font>      </p> </td>
        <td width="157" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>3</font></p> </td>
        <td width="148" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>8</font></p> </td>
        <td width="175" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>50(6)</font></p> </td> </tr>
    <tr >
        <td width="157" valign=top style='border:solid black 1.0pt; border-top:none; padding:0pt 5.4pt 0pt 5.4pt'>
            <p ><font size=2>B3 or below</font>                    </p> </td>
        <td width="157" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>2</font></p> </td>
        <td width="148" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='text-align:center'><font size=2>5</font></p> </td>
        <td width="175" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0pt 5.4pt 0pt 5.4pt'>
            <p  align=center style='margin-left:8.65pt;text-align:center'><font size=2>50(6)</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(1) Refers to the preferred stock and senior debt rating of the portfolio holding. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(2) Companies subject to common ownership of 25% or more are considered as one issuer. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(3) Percentages represent a portion of the aggregate Market Value of corporate debt securities. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(4) Industries are determined according to Moody's Industry Classifications, as defined herein.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(5) Except for preferred stock, which has a minimum issue size of $40 million. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>(6) Portfolio holdings from issues ranging from $50 million ($40 million for preferred stocks) to $100 million are limited to 20% of the Fund's total assets or unless otherwise approved by Moody&#146;s. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="299" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 4 -</font></p> </td> </tr></table>
</div>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>Unless conclusions regarding liquidity risk as well as estimates of both the probability and severity of default for the Fund's assets can be derived from other sources, securities rated below B by Moody's and unrated securities, which are securities rated by neither Moody's, S&amp;P nor Fitch, are limited to 10% of Moody's Eligible Assets. If a corporate, municipal or other debt security is unrated by Moody's, S&amp;P or Fitch, the Fund will use the percentage set forth under "Below B and Unrated" in this table. Ratings assigned by S&amp;P or Fitch are generally accepted by Moody's at face value. However, adjustments to face value may be made to particular categories of credits for which the S&amp;P and/or Fitch rating does not seem to approximate a Moody's rating equivalent.  Split-rated securities assigned by S&amp;P and Fitch Ratings (i.e., these Rating Agencies assign different rating
categories to the security) will be accepted at the lower of the two ratings.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>By resolution of the Board of Trustees and without amending the By-Laws of the Trust or otherwise submitting such resolution for shareholder approval, other assets (including investments which either do not meet the criteria set forth in clauses (i) through (vii) above or meet such criteria but are excluded from the Moody&#146;s Eligible Assets by the foregoing provisos) may be included in the Moody&#146;s Eligible Assets if Moody&#146;s has advised the Trust in writing that the inclusion of such assets in the Moody&#146;s Eligible Assets would not adversely affect its then-current rating of the shares of the AMPS, provided that the Trust shall cause to be made available a written statement setting forth the Moody&#146;s Eligible Assets, as changed and/or supplemented, for inspection by the Holders at the principal executive office of the Trust.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 5 -</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
<SEQUENCE>8
<FILENAME>bylawamended4.htm
<DESCRIPTION>AMENDED AND RESTATED BY-LAWS
<TEXT>
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<TITLE> </TITLE>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>AMENDMENT TO </font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>AMENDED AND RESTATED</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>BY-LAWS OF</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PATRIOT PREMIUM DIVIDEND FUND II</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="563" style='border-collapse:collapse; '>
    <tr >
        <td width="128" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="112" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>As Amended:</font></p> </td>
        <td width="323" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>December 17, 2007 (Article VI, Section 6.9(a))</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>Article VI, Section 6.9, </font><u><b><font size=2>Auction Procedures.</font></b></u><font size=2>,</font><b><font size=2> </font></b><font size=2>(a) </font><b><font size=2>Certain Definitions.</font></b><font size=2>, (xii)</font><b><font size=2> </font></b><font size=2>&#147;Maximum Applicable Rate&#148; is hereby amended to read in its entirety as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in; text-indent:0.58in;text-align:left;'><b><font size=2> </font></b><font size=2>(xii) &#147;Maximum Applicable Rate&#148; for any Auction subsequent to the date hereof means the higher of the Applicable Percentage or the Applicable Spread of the two-month LIBOR Rate (defined below) based upon the Prevailing Rating of the DARTS in effect on the Action Date:</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="241" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="6" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Applicable Percentages or Spreads</font></p> </td> </tr>
    <tr >
        <td width="241" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Prevailing Rating</font></u></p> </td>
        <td  colspan="2" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style=' border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style=' border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="241" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="101" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Percentage</font></p> </div> </td>
        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Spread</font></p> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td>
        <td width="54" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td>
        <td width="55" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="241" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;AAA&#148;/&#148;aaa&#148;  </font></p> </td>
        <td width="101" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>125%</font></p> </div> </td>
        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>125bp</font></p> </div> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td>
        <td width="54" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td>
        <td width="55" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="241" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;AA&#148;/&#148;aa&#148;  </font></p> </td>
        <td width="101" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>150%</font></p> </div> </td>
        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>150bp</font></p> </div> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td>
        <td width="54" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td>
        <td width="55" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <div style='border-top:solid black 1.0pt;padding:1.0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="241" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;A&#148;/&#148;a&#148;</font></p> </td>
        <td width="101" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>200%</font></p> </td>
        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>200bp</font></p> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="54" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="55" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="241" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;BBB&#148;/&#148;baa&#148;</font></p> </td>
        <td width="101" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>250%</font></p> </td>
        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>250bp</font></p> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="54" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="55" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="241" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Below &#147;BBB&#148;/&#148;baa&#148; (includes) no rating</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="101" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>300%</font></p> </td>
        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>300bp</font></p> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="59" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="54" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="55" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>For purposes of this definition, the &#147;Prevailing Rating&#148; of DARTS shall be </font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>(i) &#147;AAA/aaa&#148; if the DARTS have a rating of &#147;AAA&#148; by Standard &amp; Poor&#146;s or &#147;aaa&#148; by Moody&#146;s, or the equivalent of either or both of such ratings by such agencies or a substitute rating agency or substitute rating agencies selected as provided below, (ii) if not &#147;AAA/aaa&#148;, then &#147;AA&#148;/&#148;aa&#148; or Above if the DARTS have a rating of &#147;AA-&#148; or better by Standard &amp; Poor&#146;s or &#147;aa3&#148; or better by Moody&#146;s, or the equivalent of either or both of such ratings by such agencies or a substitute rating agency or substitute rating agencies selected as provided below, (ii) if not &#147;AAA/aaa&#148; or &#147;AA&#148;/&#148;aa&#148; or Above, then &#147;A&#148;/&#148;a&#148; if the DARTS have a rating of &#147;A-&#148; or better by Standard &amp; Poor&#146;s or &#147;a3&#148; or better by </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>BOS-1149887&nbsp;v3</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>Moody&#146;s or the equivalent of either or both of such ratings by such agencies or a substitute rating agency or substitute rating agencies selected as provided below, (iii) if not &#147;AAA/aaa&#148; or &#147;AA&#148;/&#148;aa&#148; or Above or &#147;A&#148;/&#148;a,&#148; then &#147;BBB&#148;/&#148;baa&#148; if the DARTS have a rating of &#147;BBB-&#148; or better by Standard &amp; Poor&#146;s or &#147;baa3&#148; or better by Moody&#146;s or the equivalent of either or both of such ratings by such agencies or a substitute rating agency or substitute rating agencies selected as provided below, (iv) if not &#147;AAA/aaa&#148; or &#147;AA&#148;/&#148;aa&#148; or Above, &#147;A&#148;/&#148;a&#148; or &#147;BBB&#148;/&#148;baa,&#148; then Below &#147;BBB&#148;/&#148;baa&#148;.  The Trust shall take all reasonable action necessary to enable Standard &amp; Poor&#146;s and Moody&#146;s to
provide a rating for the DARTS.  If either Standard &amp; Poor&#146;s or Moody&#146;s shall not make such a rating available, or neither Standard &amp; Poor&#146;s nor Moody&#146;s shall make such a rating available, the Trust in consultation with the primary Broker-Dealer for a series of DARTS shall select a nationally recognized statistical rating organization (as that term is used in the rules and regulations of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended) or two nationally recognized statistical rating organizations to act as substitute rating agency or substitute rating agencies, as the case may be, and the Trust shall take all reasonable action to enable such Rating Agency or rating agencies to provide a rating or ratings for the DARTS.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>For purposes of this definition, &#147;two-month LIBOR Rate&#148; means on any Auction Date (i) the rate for deposits in U.S. dollars for a two-month period, which appears on display page 3750 of Moneyline&#146;s Telerate Service (&#145;&#145;Telerate Page 3750&#146;&#146;) (or such other page as may replace that page on that service, or such other service as may be selected by the Trust in consultation with the LIBOR Dealer (as defined below) or its successors that are LIBOR Dealers) as of 11:00 a.m. (London time) on the day that preceding the Auction Date on which commercial banks are generally open for business in London (the &#145;&#145;LIBOR Determination Date&#146;&#146;), or (ii) if such rate does not appear on Telerate Page 3750 or such other page as may replace such Telerate Page 3750, (A) the LIBOR Dealer shall determine the arithmetic mean of the offered quotations of the
Reference Banks (as defined below) to leading banks in the London interbank market for deposits in U.S. dollars for the designated Dividend Period in an amount determined by such LIBOR Dealer by reference to requests for quotations as of approximately 11:00 a.m. (London time) on such date made by such LIBOR Dealer to the Reference Banks, (B) if at least two of the Reference Banks provide such quotations, the two-month LIBOR Rate shall equal such arithmetic mean of such quotations, (C) if only one or none of the Reference Banks provide such quotations, the two-month LIBOR Rate shall be deemed to be the arithmetic mean of the offered quotations that leading banks in The City of New York, selected by the LIBOR Dealer (after obtaining the Trust&#146;s approval), are quoting on the relevant LIBOR Determination Date for deposits in U.S. dollars for the designated Dividend Period in an amount determined by the LIBOR Dealer (after obtaining the Trust&#146;s approval) that is representative of
a single transaction in such market at such time by reference to the principal London offices of leading banks in the London interbank market; provided, however, that if one of the LIBOR Dealers does not quote a rate required to determine the two-month LIBOR Rate, the LIBOR Rate will be determined on the basis of the quotation or quotations furnished by any Substitute LIBOR Dealer or Substitute LIBOR Dealers selected by the Trust to provide such rate or rates not being supplied by the LIBOR Dealer; provided further, that if the LIBOR Dealer and Substitute LIBOR Dealers are required but unable to determine a rate in accordance with at least </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="299" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 2 -</font></p> </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>one of the procedures provided above, the LIBOR Rate shall be LIBOR Rate as determined on the previous Auction Date.</font></p>


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        <td width="96" nowrap valign=top style='padding:0pt 0pt 12.0pt 0pt; '>
            <p ><font size=1>&nbsp;</font></p> </td>
        <td width="360" nowrap valign=top style='padding:0pt 0pt 12.0pt 0pt; '>
            <p  style='margin-bottom:0pt'><font size=2>&#147;LIBOR&#148; means the London Interbank Offered Rate.</font></p> </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in; text-indent:0.54in;text-align:left;'><font size=2>&#147;LIBOR Dealer&#148; means the primary Broker-Dealer with respect to a series of DARTS and such other dealer or dealers as the Trust may from time to time appoint, or, in lieu of any thereof, their respective affiliates or successors.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in; text-indent:0.54in;text-align:left;'><font size=2> &#147;Reference Banks&#148; means four major banks in the London interbank market selected by the LIBOR Dealer or its affiliates or successors or such other party as the Trust may from time to time appoint.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>Unless the context otherwise requires, &#147;Maximum Applicable Rate,&#148; when used in this Section 6.9, means the Maximum Applicable Rate on the Auction Date.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>Article VI, Section 6.9, </font><u><b><font size=2>Auction Procedures.</font></b></u><font size=2>,</font><b><font size=2> </font></b><font size=2>(a) </font><b><font size=2>Certain Definitions.</font></b><font size=2>,</font><b><font size=2> </font></b><font size=2>(xiii)</font><b><font size=2> </font></b><font size=2>&#147;Minimum Applicable Rate&#148; is hereby amended to read in its entirety as follows:</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(xiii) &#147;Minimum Applicable Rate&#148; for any Auction Date means 59% of the two-month London Interbank Offered Rate published as of the London Business Day preceeding an Auction Date.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 3 -</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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