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<SEC-DOCUMENT>0000950137-08-002628.txt : 20080222
<SEC-HEADER>0000950137-08-002628.hdr.sgml : 20080222
<ACCEPTANCE-DATETIME>20080222172758
ACCESSION NUMBER:		0000950137-08-002628
CONFORMED SUBMISSION TYPE:	N-2/A
PUBLIC DOCUMENT COUNT:		18
FILED AS OF DATE:		20080222
DATE AS OF CHANGE:		20080222

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CALAMOS GLOBAL TOTAL RETURN FUND
		CENTRAL INDEX KEY:			0001285650
		IRS NUMBER:				203377281
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		N-2/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-146944
		FILM NUMBER:		08637539

	BUSINESS ADDRESS:	
		STREET 1:		2020 CALAMOS COURT
		STREET 2:		C/O CALAMOS ADVISORS LLC
		CITY:			NAPERVILLE
		STATE:			IL
		ZIP:			60563
		BUSINESS PHONE:		6302451046

	MAIL ADDRESS:	
		STREET 1:		2020 CALAMOS COURT
		STREET 2:		C/O CALAMOS ADVISORS LLC
		CITY:			NAPERVILLE
		STATE:			IL
		ZIP:			60563

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CALAMOS GLOBAL TOTAL RETURN FUND
		CENTRAL INDEX KEY:			0001285650
		IRS NUMBER:				203377281
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		N-2/A
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21547
		FILM NUMBER:		08637540

	BUSINESS ADDRESS:	
		STREET 1:		2020 CALAMOS COURT
		STREET 2:		C/O CALAMOS ADVISORS LLC
		CITY:			NAPERVILLE
		STATE:			IL
		ZIP:			60563
		BUSINESS PHONE:		6302451046

	MAIL ADDRESS:	
		STREET 1:		2020 CALAMOS COURT
		STREET 2:		C/O CALAMOS ADVISORS LLC
		CITY:			NAPERVILLE
		STATE:			IL
		ZIP:			60563
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-2/A
<SEQUENCE>1
<FILENAME>c19483a2nv2za.htm
<DESCRIPTION>AMENDMENT TO REGISTRATION STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>nv2za</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>




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


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

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As
filed with the Securities and Exchange Commission on
February&nbsp;22, 2008</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 0pt"><B>1933
Act File No.&nbsp;333-146944</B></div>

<DIV align="right" style="font-size: 10pt; margin-top: 0pt"><B>1940 Act File No.&nbsp;811-21547</B>
</DIV>



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




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

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

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


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


<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B></TD>
</TR>
</TABLE>
</DIV>

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

</FONT></DIV>
<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Pre-Effective Amendment No.&nbsp;2</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Post-Effective Amendment No.&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></B></TD>
</TR>
</TABLE>
</DIV>

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

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940</B></TD>
</TR>
</TABLE>
</DIV>

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

</FONT></DIV>
<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Amendment No.&nbsp;12</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CALAMOS GLOBAL TOTAL RETURN FUND</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>2020 Calamos Court<br>
Naperville, Illinois 60563</B></DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>(630)&nbsp;245-7200</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Agent for Service</B><BR>
John P. Calamos, Sr.<BR>
President<BR>
Calamos Advisors LLC<BR>
2020 Calamos Court<BR>
Naperville, Illinois 60563

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Copies of Communications to:</B>

</DIV>

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

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">David A. Sturms, Esq.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Cameron S. Avery, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Vedder Price P.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Bell, Boyd &#038; Lloyd LLP</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">222 N. LaSalle Street
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">70 West Madison Street</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Chicago, IL 60601
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Chicago, IL 60602</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Approximate Date of Proposed Public Offering: </B>From time to time after the effective date of the
Registration Statement.
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> when declared effective pursuant to section&nbsp;8(c)
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="12" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

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

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

    <TD nowrap align="center"><B>Being Registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registered</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Offering Price</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registration Fee</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(3)</B></SUP></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>

<TD style="border-top: 2px solid #000000" nowrap><DIV style="margin-left:0px; text-indent:-0px">Common shares, no
par value per
share; preferred
shares, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no par
value per share;
debt securities</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

<TD align="center" valign="bottom" style="border-top: 2px solid #000000">$75,000,000</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

<TD align="center" valign="bottom" style="border-top: 2px solid #000000">$2,302.50</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="12" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

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


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 1pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>There are being registered hereunder a presently indeterminate number of shares of common
stock, shares of preferred stock and debt securities to be offered on an immediate, continuous
or delayed basis.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated solely for the purpose of calculating the registration fee pursuant to Rule&nbsp;457(o)
under the Securities Act of 1933. In no event will the aggregate initial offering price of
all securities offered from time to time pursuant to the prospectus included as a part of this
Registration Statement exceed $75,000,000.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Transmitted prior to filing.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Registrant hereby amends this Registration Statement on such date or dates as may be
necessary to delay its effective date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall thereafter become effective in
accordance with Section&nbsp;</B><B>8(a)</B><B> of the Securities Act of 1933 or until the Registration Statement
shall become effective on such dates as the Commission, acting pursuant to said Section&nbsp;</B><B>8(a)</B><B>, may
determine.</B>
</DIV>

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






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

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

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






<P style="padding: 5px; border: 3px double #000000; font-size: 11pt; color: #FF0000"><I>The information in this prospectus is not complete and may be changed. We may not sell these
securities until the registration statement filed with the Securities and Exchange Commission is
effective. This prospectus is not an offer to sell these securities and is not soliciting an offer
to buy these securities in any state where the offer or sale is not permitted.</I><BR>




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

</FONT></DIV>
<DIV align="center" style="font-size: 12pt; margin-top: 18pt"><B>SUBJECT
TO COMPLETION, DATED FEBRUARY&nbsp;22, 2008</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>$75,000,000</B>

</DIV>
<DIV align="Center" style="font-size: 18pt; margin-top: 6pt"><B>Calamos Global Total Return Fund</B></DIV>


<DIV align="Center" style="font-size: 12pt; margin-top: 0pt"><B>Common Shares<br>
Preferred Shares<br>
Debt Securities</B></DIV>



<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Global Total Return Fund (the &#147;Fund,&#148; &#147;we&#148; or &#147;our&#148;) is a diversified, closed-end
management investment company which commenced investment operations in October&nbsp;2005. Our
investment objective is to provide total return through a combination of capital appreciation and
current income.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer, on an immediate, continuous or delayed basis, up to $75,000,000 aggregate
initial offering price of our common shares (no par value per share), preferred shares (liquidation
preference of $25,000 per share) or debt securities, which we refer to in this prospectus
collectively as our securities, in one or more offerings. We may offer our common shares,
preferred shares and debt securities separately or together, in amounts, at prices and on terms set
forth in a prospectus supplement to this prospectus. You should read this prospectus and the
related prospectus supplement carefully before you decide to invest in any of our securities.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer our securities directly to one or more purchasers, through agents that we or they
designate from time to time, or to or through underwriters or dealers. The prospectus supplement
relating to the particular offering will identify any agents or underwriters involved in the sale
of our securities, and will set forth any applicable purchase price, fee, commission or discount
arrangement between us and such agents or underwriters or among the underwriters or the basis upon
which such amount may be calculated. For more information about the manner in which we may offer
our securities, see &#147;Plan of Distribution.&#148; Our securities may not be sold through agents,
underwriters or dealers without delivery of a prospectus supplement.
</DIV>

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

</FONT></DIV>
<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
common shares are listed on the New York Stock Exchange under the symbol &#147;CGO.&#148; As of
February&nbsp;21, 2008, the last reported sale price for our common
shares was $16.50.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in our securities involves certain risks. You could lose some or all of your
investment. See &#147;Risk Factors&#148; beginning on page 33 of this prospectus. You should consider
carefully these risks together with all of the other information contained in this prospectus and
any prospectus supplement before making a decision to purchase our securities.</B>
</DIV>


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

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

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Prospectus dated February&nbsp;&#95;&#95;&#95;&#95;, 2008
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

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

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

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

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus, together with any prospectus supplement, sets forth concisely the information
that you should know before investing. You should read the prospectus and prospectus supplement,
which contain important information, before deciding whether to invest in our securities. You
should retain the prospectus and prospectus supplement for future reference. A statement of
additional information, dated February&nbsp;&#95;&#95;&#95;&#95;, 2008, as supplemented from time to time, containing
additional information, has been filed with the Securities and Exchange Commission (&#147;Commission&#148;)
and is incorporated by reference in its entirety into this prospectus. You may request a free copy
of the statement of additional information, the table of contents of which is on page
70 of this
prospectus, request a free copy of our annual and semi-annual reports, request other information or
make shareholder inquiries, by calling toll-free 1-800-582-6959 or by writing to the Fund at 2020
Calamos Court, Naperville, Illinois 60563. The Fund&#146;s annual and semi-annual reports also are
available on our website at www.calamos.com, which also provides a link to the Commission&#146;s
website, as described below, where the Fund&#146;s statement of additional information can be obtained.
Information included on our website does not form part of this prospectus. You can review and copy
documents we have filed at the Commission&#146;s Public Reference Room in Washington, D.C. Call
1-202-551-8090 for information. The Commission charges a fee for copies. You can get the same
information free from the Commission&#146;s website (http://www.sec.gov). You may also e-mail requests
for these documents to publicinfo@sec.gov or make a request in writing to the Commission&#146;s Public
Reference Section, Washington, D.C. 20549-0102.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our securities do not represent a deposit or obligation of, and are not guaranteed or endorsed
by, any bank or other insured depository institution and is not federally insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
</DIV>

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

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


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


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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="94%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">Prospectus Summary</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">Summary of Fund Expenses</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">Financial Highlights</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">Market and Net Asset Value Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">The Fund</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">Investment Objective and Principal Investment Strategies</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">Leverage</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">Interest Rate Transactions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">Management of the Fund</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">Closed-End Fund Structure</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">Certain Federal Income Tax Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">Net Asset Value</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">Dividends and Distributions; Automatic Dividend Reinvestment Plan</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116">Description of Securities</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#117">Rating Agency Guidelines</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#118">Certain Provisions of the Agreement and Declaration of Trust and Bylaws</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#119">Plan of Distribution</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#120">Custodian, Transfer Agent, Dividend Disbursing Agent and Registrar</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#121">Legal Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#122">Available Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#123">Table of Contents of the Statement of Additional Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxayx1y.htm">Agreement and Declaration of Trust</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxby.htm">By-Laws</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxey.htm">Terms and Conditions of the Dividend Reinvestment Plan</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxhyx1y.htm">Form of Underwriting Agreement Relating to Common Shares</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxhyx4y.htm">Form of Underwriting Agreement Relating to Preferred Shares</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxjyx1y.htm">Custody Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxjyx2y.htm">Foreign Custody Manager Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxkyx1y.htm">Stock Transfer Agency Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxkyx2y.htm">Financial Accounting Services Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxkyx3y.htm">Master Services Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxkyx8y.htm">Form of DTC Representations Letter</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxly.htm">Opinion of Morris, Nichols, Arsht & Tunnell</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxny.htm">Consent of Auditors</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c19483a2exv99wxryx1y.htm">Code of Ethics</A></FONT></TD></TR>
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should rely only on the information contained or incorporated by reference in this
prospectus and any related prospectus supplement in making your investment decisions. We have not
authorized any other person to provide you with different or inconsistent information. If anyone
provides you with different or inconsistent information, you should not rely on it. This
prospectus and any prospectus supplement do not constitute an offer to sell or solicitation of an
offer to buy any securities in any jurisdiction where the offer or sale is not permitted. The
information appearing in this prospectus and in any prospectus supplement is accurate only as of
the dates on their covers. Our business, financial condition and prospects may have changed since
such dates. We will advise investors of any material changes to the extent required by applicable
law.</B>
</DIV>



<DIV align="left">
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS</B></DIV>


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

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

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left">
<A name="101"></A>
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following summary contains basic information about us and our securities. It is not
complete and may not contain all of the information you may want to consider. You should review
the more detailed information contained in this prospectus and in any related prospectus supplement
and in the statement of additional information, especially the information set forth under the
heading &#147;Risk Factors&#148; beginning on page
33 of this prospectus.</I>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Fund</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a diversified, closed-end management investment company. We commenced operations
in October&nbsp;2005 following our initial public offering. As of the date of this prospectus, we have
$59&nbsp;million of auction rate cumulative preferred shares (&#147;Preferred Shares&#148;) outstanding. Our
fiscal year ends on October&nbsp;31. Our investment objective is to provide total return through a
combination of capital appreciation and current income.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos
Advisors LLC (the &#147;Adviser&#148; or &#147;Calamos&#148;) serves as our investment adviser. Calamos is responsible
on a day-to-day basis for investment of the Fund&#146;s portfolio in accordance with its investment
objective and policies. Calamos makes all investment decisions for the Fund and places purchase
and sale orders for the Fund&#146;s portfolio securities. As of
December 31, 2007, Calamos managed
approximately $46.2 billion in assets of individuals and institutions. Calamos is a wholly-owned
subsidiary of Calamos Holdings, LLC (&#147;Holdings&#148;) and an indirect subsidiary of Calamos Asset
Management, Inc., a publicly traded holding company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund pays Calamos an annual fee, payable monthly, for its investment management services
equal to 1.00% of the Fund&#146;s average weekly managed assets. &#147;Managed Assets&#148; means the total
assets of the Fund (including any assets attributable to any leverage that may be outstanding)
minus the sum of accrued liabilities (other than debt representing financial leverage). See
&#147;Management of the Fund.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal business address of the Adviser is 2020 Calamos Court, Naperville, Illinois
60563.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer, on an immediate, continuous or delayed basis, up to $75,000,000 of our
securities on terms to be determined at the time of the offering. Our securities will be offered
at prices and on terms to be set forth in one or more prospectus supplements to this prospectus.
Preferred shares and debt securities (collectively, &#147;senior securities&#148;) may be auction rate
securities, in which case the senior securities will not be listed on any exchange or automated
quotation system. Rather, investors generally may only buy and sell senior securities through an
auction conducted by an auction agent and participating broker-dealers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer our securities directly to one or more purchasers, through agents that we or they
designate from time to time, or to or through underwriters or dealers. The prospectus supplement
relating to the offering will identify any agents or underwriters involved in the sale of our
securities, and will set forth any applicable purchase price, fee, commission or discount
arrangement between us and such agents or underwriters or among underwriters or the basis upon
which such amount may be calculated. See &#147;Plan of Distribution.&#148; Our securities may not be sold
through agents, underwriters or dealers without delivery of a prospectus supplement describing the
method and terms of the offering of our securities.
</DIV>
</DIV>



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

</DIV>
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified in a prospectus supplement, we intend to use the net proceeds from
the sale of our securities primarily to invest in accordance with our investment objective and
policies within approximately three months of receipt of such proceeds. We also may use sale
proceeds to retire all or a portion of any short-term debt, and for working capital purposes,
including the payment of interest and operating expenses, although there is currently no intent to
issue securities primarily for this purpose.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund has made regular monthly distributions to its common
shareholders in amounts ranging from $0.0750 to $0.1150 since
January&nbsp;2006. Additionally, the Fund made a distribution of
$0.0250 in January 2006. The
Fund intends to distribute to common shareholders all or a portion of its net investment income
monthly and net realized capital gains, if any, at least annually.
</DIV>

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund currently intends to make monthly distributions to common shareholders at a level
rate established by the Board of Trustees. The rate may be modified by the Board of Trustees from
time to time. Monthly distributions may include net investment income, net realized short-term
capital gain and, if necessary to maintain a level distribution, return of capital. The Fund may
at times in its discretion pay out less than the entire amount of net investment income earned in
any particular period and may at times pay out such accumulated undistributed income in addition to
net investment income earned in other periods in order to permit the Fund to maintain a more stable
level of distributions. As a result, the dividends paid by the Fund to holders of common shares
for any particular period may be more or less than the amount of net investment income earned by
the Fund during such period. Net realized short-term capital gains distributed to shareholders
will be taxed as ordinary income for federal income tax purposes. In addition, one distribution per calendar year may include net
realized long-term capital gain (if any), which will be taxed for federal income tax purposes at
long-term capital gain rates. To the extent the Fund distributes an amount in excess of the Fund&#146;s
current and accumulated earnings and profits, such excess, if any, will be treated by a shareholder
for federal income tax purposes as a tax-free return of capital to the extent of the shareholder&#146;s
adjusted tax basis in his, her or its shares and thereafter as a gain from the sale or exchange of
such shares. Any such distributions made by the Fund will reduce the shareholder&#146;s adjusted
tax basis in his, her or its shares to the extent that the distribution constitutes a return of
capital. To date, however, none of the Fund&#146;s distributions have
included a return of capital as determined on a tax basis during any calendar year. To the extent that the Fund&#146;s distributions exceed the Fund&#146;s current and
accumulated earnings and profits, the distribution payout rate will exceed the yield generated
from the Fund&#146;s investments. There is no guarantee that the Fund will realize capital gain in any given year.
Pursuant to the requirements of the 1940 Act and other applicable laws, a notice would accompany
each monthly distribution with respect to the estimated source of the distribution made.
Distributions are subject to re-characterization for federal income tax purposes after the end of
the fiscal year.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January&nbsp;2004, Calamos, on behalf of itself and certain funds that it manages, filed an
exemptive application with the Commission seeking an order under the 1940 Act facilitating the
implementation of a dividend policy calling for monthly distributions of a fixed percentage of its
net asset value (&#147;Managed Dividend Policy&#148;). In March&nbsp;2007, an amended and restated exemptive
application was filed with the Commission. If, and when, Calamos, on behalf of itself and other
parties, receives the requested relief, the Fund may, subject to the determination of its Board of
Trustees, implement a Managed Dividend Policy. Under a Managed Dividend Policy, if, for any
distribution, net investment income and net realized capital gains were less than the amount of the
distribution, the differences would be distributed from the Fund&#146;s other assets. There can be no
assurance that the Fund will receive the requested relief.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Fund&#146;s Automatic Dividend Reinvestment Plan, unless a shareholder is
ineligible or elects otherwise, all dividends and capital gain distributions on common shares are
automatically reinvested in additional common shares of the Fund. However, an investor can choose
to receive dividends and distributions in cash. Since investors can participate in the
automatic dividend reinvestment plan only if their broker or nominee
participates in our plan,
you should contact your broker or nominee to confirm that you are eligible to participate in the plan.
See &#147;Dividends and Distributions; Automatic Dividend
Reinvestment Plan.&#148;
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Primary Investments. </I>Under normal circumstances, the Fund will invest primarily in a
portfolio of common and preferred stocks, convertible securities and income producing securities
such as investment grade and below investment grade (high yield/high risk) debt securities. The
Fund, under normal circumstances, will invest at least 50% of its managed assets in equity
securities (including securities that are convertible into equity securities). The Fund may invest
up to 100% of its managed assets in securities of foreign issuers, including debt and equity
securities of corporate issuers and debt securities of government issuers, in developed and
emerging markets. Under normal circumstances, the Fund will invest at least 30% of its managed
assets in securities of foreign issuers. The Fund will invest in the securities of issuers of
several different countries throughout the world, in addition to the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos will dynamically allocate the Fund&#146;s investments among multiple asset classes (rather
than maintaining a fixed or static allocation), seeking to obtain an appropriate balance of risk
and reward through all market cycles using multiple strategies and combining them to seek to
achieve favorable risk adjusted returns. See &#147;Investment Objective and Principal Investment
Strategies&#151;Principal Investment Strategies.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will attempt to keep a consistent balance between risk and reward over the course of
different market cycles, through various combinations of stocks, bonds, and/or convertible
securities, to achieve what Calamos believes to be an appropriate blend for the then current
market. As the market environment changes, portfolio securities may change in an attempt to
achieve a relatively consistent risk level over time. At some points in a market cycle, one type
of security may make up a substantial portion of the Fund&#146;s portfolio, while at other times certain
securities may have minimal or no representation, depending on market conditions. See &#147;Investment
Objective and Principal Investment Strategies&#151;Principal Investment Strategies.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may also seek to generate income from option premiums by writing (selling)&nbsp;options
(with an aggregate notional value of up to 33% of the value of the Fund&#146;s managed assets). The
Fund will opportunistically employ a strategy of writing options. The extent of option writing
activity will depend upon market conditions and Calamos&#146; ongoing assessment of the attractiveness
of writing options on the Fund&#146;s equity holdings. See &#147;Investment Objective and Principal
Investment Strategies&#151;Principal Investment Strategies.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Equity Securities. </I>Equity securities include common and preferred stocks, warrants, rights,
and depository receipts. Under normal circumstances, the Fund will invest at least 50% of its
managed assets in equity securities (including securities that are convertible into equity
securities). The Fund may invest in preferred stocks and convertible securities of any rating,
including below investment grade. See &#147;&#151; High Yield Securities&#148; below. An investment in the
equity securities of a company represents a proportionate ownership interest in that company.
Therefore, the Fund participates in the financial success or failure of any company in which it has
an equity interest. See &#147;Investment Objective and Principal Investment Strategies&#151;Principal
Investment Strategies&#151;Equity Securities.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>High Yield Securities. </I>The Fund may invest in high yield securities for either current income
or capital appreciation or both. These securities are rated below investment grade (i.e., rated Ba
or lower by Moody&#146;s or BB or lower by Standard&nbsp;&#038; Poor&#146;s) or are unrated securities of comparable
quality as determined by Calamos, the Fund&#146;s investment adviser. The Fund may invest in high yield
securities of any rating. Non-convertible debt securities rated below investment grade are
commonly referred to as &#147;junk bonds&#148; and are considered speculative with respect to the issuer&#146;s
capacity to pay interest and repay principal. They involve greater risk of loss, are subject to
greater price volatility and are less liquid, especially during periods of economic uncertainty or
change, than higher rated debt securities. See
</DIV>
</DIV>



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<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Investment Objective and Principal Investment Strategies&#151;Principal Investment Strategies&#151;High
Yield Securities.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Foreign Securities. </I>The Fund may invest up to 100% of its managed assets in securities of
foreign issuers in developed and emerging markets, including debt and equity securities of
corporate issuers and debt securities of government issuers. Under normal circumstances, the Fund
will invest at least 30% of its managed assets in securities of foreign issuers; however, the Fund
anticipates that ordinarily Calamos&#146; investment process will result in the Fund investing at least
40% of its managed assets in securities of foreign issuers. The Fund will invest in the securities
of issuers of several different countries throughout the world, in addition to the United States.
A foreign issuer is a foreign government or a company organized under the laws of a foreign
country. See &#147;Investment Objective and Principal Investment Strategies&#151;Principal Investment
Strategies&#151;Foreign Securities.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Convertible Securities. </I>The Fund may invest in convertible securities. A convertible
security is a debt security or preferred stock that is exchangeable for an equity security
(typically of the same issuer) at a predetermined price (the &#147;conversion price&#148;). Depending upon
the relationship of the conversion price to the market value of the underlying security, a
convertible security may trade more like an equity security than a debt instrument. The Fund may
invest in convertible securities of any rating. Securities that are convertible into equity
securities are considered equity securities for purposes of the Fund&#146;s policy to invest at least
50% of its managed assets in equity securities. See &#147;Investment Objective and Principal Investment
Strategies&#151;Principal Investment Strategies&#151;Convertible Securities.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Synthetic Convertible Securities. </I>The Fund may invest in &#147;synthetic&#148; convertible securities.
A synthetic convertible security is a financial instrument that is designed to simulate the
characteristics of another instrument (i.e., a convertible security) through the combined features
of a collection of other securities or assets. Calamos may create a synthetic convertible security
by combining separate securities that possess the two principal characteristics of a true
convertible security, i.e., a fixed-income security (&#147;fixed-income component&#148;, which may be a
convertible or non-convertible security) and the right to acquire an equity security (&#147;convertible
component&#148;). The fixed-income component is achieved by investing in non-convertible, fixed-income
securities such as bonds, preferred stocks and money market instruments. The convertible component
is achieved by investing in warrants or options to buy common stock at a certain exercise price, or
options on a stock index.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may also invest in synthetic convertible securities created by third parties,
typically investment banks. Synthetic convertible securities created by such parties may be
designed to simulate the characteristics of traditional convertible securities or may be designed
to alter or emphasize a particular feature. Traditional convertible securities typically offer
stable cash flows with the ability to participate in capital appreciation of the underlying common
stock. Because traditional convertible securities are exercisable at the option of the holder, the
holder is protected against downside risk. Synthetic convertible securities may alter these
characteristics by offering enhanced yields in exchange for reduced capital appreciation or less
downside protection, or any combination of these features. Synthetic convertible instruments may
include structured notes, equity-linked notes, mandatory convertibles and combinations of
securities and instruments, such as a debt instrument combined with a forward contract. The Fund&#146;s
holdings of synthetic convertible securities are considered equity securities for purposes of the
Fund&#146;s policy to invest at least 50% of its managed assets in equity securities. If the Fund
purchases a synthetic convertible security, a component of which is an option, such option will not
be considered an option for the purpose of the Fund&#146;s limitations on options described below. See
&#147;Investment Objective and Principal Investment Strategies&#151;Principal Investment Strategies&#151;Synthetic
Convertible Securities.&#148;
</DIV>
</DIV>



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<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Options. </I>The Fund may also seek to generate income from option premiums by writing (selling)
options (with an aggregate notional value of up to 33% of the value of the Fund&#146;s managed assets).
The Fund may write (sell)&nbsp;call options (i)&nbsp;on a portion of the equity securities (including
securities that are convertible into equity securities) in the Fund&#146;s portfolio and (ii)&nbsp;on
broad-based securities indices (such as the S&#038;P 500 or MSCI EAFE) or certain ETFs (exchange traded
funds) that trade like common stocks but seek to replicate such market indices. See &#147;Investment
Objective and Principal Investment Strategies&#151;Principal Investment Strategies&#151;Options.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Rule&nbsp;144A Securities. </I>The Fund may invest without limit in certain securities (&#147;Rule&nbsp;144A
Securities&#148;), such as convertible and debt securities, that are typically purchased in transactions
exempt from the registration requirements of the 1933 Act pursuant to Rule&nbsp;144A under that act.
Rule&nbsp;144A Securities may only be sold to qualified institutional buyers, such as the Fund. Any
resale of these securities must generally be effected through a sale that is registered under the
1933 Act or otherwise exempted or excepted from such registration requirements. Under the
supervision of the Fund&#146;s Board of Trustees, Calamos will determine whether Rule&nbsp;144A Securities
are illiquid. Typically, the Fund purchases Rule&nbsp;144A Securities only if Calamos has determined
them to be liquid. If any Rule&nbsp;144A Security held by the Fund should become illiquid, the value of
the security may be reduced and a sale of the security may be more difficult. See &#147;Investment
Objective and Principal Investment Strategies&#151;Principal Investment Strategies&#151;Rule&nbsp;144A
Securities.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Zero Coupon Securities. </I>The securities in which the Fund invests may include zero coupon
securities, which are debt obligations that are issued or purchased at a significant discount from
face value. The discount approximates the total amount of interest the security will accrue and
compound over the period until maturity or the particular interest payment date at a rate of
interest reflecting the market rate of the security at the time of issuance. Zero coupon
securities do not require the periodic payment of interest. These investments benefit the issuer
by mitigating its need for cash to meet debt service, but generally require a higher rate of return
to attract investors who are willing to defer receipt of cash. These investments may experience
greater volatility in market value than U.S. government or other securities that make regular
payments of interest. The Fund accrues income on these investments for tax and accounting
purposes, which is distributable to shareholders and which, because no cash is received at the time
of accrual, may require the liquidation of other portfolio securities to satisfy the Fund&#146;s
distribution obligations, in which case the Fund will forego the opportunity to purchase additional
income producing assets with the liquidation proceeds. Zero coupon U.S. government securities
include STRIPS and CUBES, which are issued by the U.S. Treasury as component parts of U.S. Treasury
bonds and represent scheduled interest and principal payments on the bonds. See &#147;Investment
Objective and Principal Investment Strategies&#151;Principal Investment Strategies&#151;Zero Coupon
Securities.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other Securities. </I>The Fund may invest in other securities of various types to the extent
consistent with its investment objective. Normally, the Fund invests substantially all of its
assets to meet its investment objective. For temporary defensive purposes, the Fund may depart
from its principal investment strategies and invest part or all of its assets in securities with
remaining maturities of less than one year, cash equivalents, or may hold cash. During such
periods, the Fund may not be able to achieve its investment
objective. There are no restrictions as to the ratings of debt
securities acquired by the Fund or the portion of the Fund&#146;s
assets that may be invested in debt securities in a particular
ratings category. See &#147;Investment Objective
and Principal Investment Strategies&#151;Principal Investment Strategies.&#148;
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund currently uses, and may in the future use, financial leverage. On January&nbsp;6, 2006,
the Fund issued Preferred Shares with an aggregate liquidation
preference of $59,000,000. As of December 31, 2007, the aggregate liquidation preference of outstanding Preferred Shares represented
approximately 27.39% of the Fund&#146;s total assets. The Fund may make further use of financial leverage
through the
</DIV>
</DIV>



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<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">issuance of additional preferred shares or may borrow money or issue debt securities. As a
non-fundamental policy, the aggregate liquidation preference of preferred shares and the aggregate
principal amount of debt securities or borrowings may not exceed 38% of the Fund&#146;s total assets.
However, the Board of Trustees reserves the right to issue preferred shares or debt securities or
borrow to the extent permitted by the 1940 Act. See &#147;Leverage.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may not be leveraged at all times and the amount of leverage, if any, may vary
depending upon a variety of factors, including Calamos&#146; outlook for the market and the costs that
the Fund would incur as a result of such leverage. Leverage involves greater risks to common
shareholders. The Fund&#146;s leveraging strategy may not be successful. By leveraging its investment
portfolio, the Fund creates an opportunity for increased net income or capital appreciation.
However, the use of leverage also involves risks, which can be significant. These risks include
the possibility that the value of the assets acquired with the proceeds of leverage decreases
although the Fund&#146;s liability to holders of preferred shares or other types of leverage is fixed,
greater volatility in the Fund&#146;s net asset value and the market price of the Fund&#146;s common shares,
and higher expenses. In addition, the rights of lenders, the holders of preferred shares and the
holders of debt securities issued by the Fund will be senior to the rights of the holders of common
shares with respect to the payment of dividends or upon liquidation. Holders of preferred shares
have voting rights in addition to, and separate from, the voting rights of common shareholders.
See &#147;Description of Securities &#151; Preferred Shares&#148; and &#147;Certain Provisions of the Agreement and
Declaration of Trust and Bylaws.&#148; The holders of preferred shares, on the one hand, and the holders
of the common shares, on the other, may have interests that conflict in certain situations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because Calamos&#146; management fee is based upon a percentage of the Fund&#146;s managed assets, which
include assets attributable to any outstanding leverage, Calamos&#146; fee is higher when the Fund is
leveraged and Calamos will have an incentive to leverage the Fund. See &#147;Leverage&#148; and &#147;Risk
Factors &#151; Leverage.&#148;
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to seek to reduce the interest rate risk inherent in the Fund&#146;s underlying
investments and capital structure, the Fund, if market conditions are deemed favorable, may enter
into interest rate swap or cap transactions to attempt to protect itself from increasing dividend
or interest expenses on its leverage. The use of interest rate swaps and caps is a highly
specialized activity that involves investment techniques and risks different from those associated
with ordinary portfolio security transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In an interest rate swap, the Fund would agree to pay to the other party to the interest rate
swap (which is known as the &#147;counterparty&#148;) a fixed rate payment in exchange for the counterparty
agreeing to pay to the Fund a payment at a variable rate that is expected to approximate the rate
on any variable rate payment obligation on the Fund&#146;s leverage. The payment obligations would be
based on the notional amount of the swap.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In an interest rate cap, the Fund would pay a premium to the counterparty to the interest rate
cap and, to the extent that a specified variable rate index exceeds a predetermined fixed rate,
would receive from the counterparty payments of the difference based on the notional amount of such
cap. Depending on the state of interest rates in general, the Fund&#146;s use of interest rate swap or
cap transactions could enhance or harm the overall performance of the common shares. See &#147;Interest
Rate Transactions.&#148;
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conflicts of interest may arise from the fact that Calamos and its affiliates carry on
substantial investment activities for other clients, in which we have no interest. Calamos or its
affiliates may have financial incentives to favor certain of these accounts over us. Any of their
proprietary accounts or other
</DIV>
</DIV>



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<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">customer accounts may compete with us for specific trades. Calamos or its affiliates may give
advice and recommend securities to, or buy or sell securities for, other accounts and customers,
which advice or securities recommended may differ from advice given to, or securities recommended
or bought or sold for, us, even though their investment objectives may be the same as, or similar
to, our objective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Situations may occur when we could be disadvantaged because of the investment activities
conducted by Calamos and its affiliates for their other accounts. Such situations may be based on,
among other things, the following: (1)&nbsp;legal or internal restrictions on the combined size of
positions that may be taken for us or the other accounts, thereby limiting the size of our
position; or (2)&nbsp;the difficulty of liquidating an investment for us or the other accounts where the
market cannot absorb the sale of the combined position. See &#147;Investment Objective and Principal
Investment Strategies&#151;Conflicts of Interest.&#148;
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Equity Securities Risk. </I>Equity investments are subject to greater fluctuations in market
value than other asset classes as a result of such factors as the issuer&#146;s business performance,
investor perceptions, stock market trends and general economic conditions. Equity securities are
subordinated to bonds and other debt instruments in a company&#146;s capital structure in terms of
priority to corporate income and liquidation payments. The Fund may invest in preferred stocks and
convertible securities of any rating, including below investment
grade. See &#147;Risk Factors&#151;Fund Risks&#151;Equity
Securities Risk.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>High Yield Securities Risk. </I>The Fund may invest in high yield securities of any rating.
Investment in high yield securities involves substantial risk of loss. Below investment grade
non-convertible debt securities or comparable unrated securities are commonly referred to as &#147;junk
bonds&#148; and are considered predominantly speculative with respect to the issuer&#146;s ability to pay
interest and principal and are susceptible to default or decline in market value due to adverse
economic and business developments. The market values for high yield securities tend to be very
volatile, and these securities are less liquid than investment grade debt securities. For these
reasons, your investment in the Fund is subject to the following specific risks:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increased price sensitivity to changing interest rates and to a deteriorating
economic environment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>greater risk of loss due to default or declining credit quality;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>greater sensitivity to adverse company specific events, which are more likely to
render the issuer unable to make interest and/or principal payments; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a negative perception of the high yield market develops, the price and liquidity
of high yield securities may be depressed. This negative perception could last for a
significant period of time.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adverse changes in economic conditions are more likely to lead to a weakened capacity of a
high yield issuer to make principal payments and interest payments than an investment grade issuer.
The principal amount of high yield securities outstanding has proliferated in the past decade as
an increasing number of issuers have used high yield securities for corporate financing. An
economic downturn could severely affect the ability of highly leveraged issuers to service their
debt obligations or to repay their obligations upon maturity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The secondary market for high yield securities may not be as liquid as the secondary market
for more highly rated securities, a factor that may have an adverse effect on the Fund&#146;s ability to
dispose of a
</DIV>
</DIV>



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<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">particular security. There are fewer dealers in the market for high yield securities than for
investment grade obligations. The prices quoted by different dealers may vary significantly and
the spread between the bid and asked price is generally much larger than for higher quality
instruments. Under adverse market or economic conditions, the secondary market for high yield
securities could contract further, independent of any specific adverse changes in the condition of
a particular issuer, and these instruments may become illiquid. As a result, the Fund could find
it more difficult to sell these securities or may be able to sell the securities only at prices
lower than if such securities were widely traded. Prices realized upon the sale of such lower
rated or unrated securities, under these circumstances, may be less than the prices used in
calculating the Fund&#146;s net asset value. See &#147;Risk
Factors&#151;Fund Risks&#151;High Yield Securities Risk.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Foreign Securities Risk. </I>Investments in non-U.S. issuers may involve unique risks compared to
investing in securities of U.S. issuers. These risks are more pronounced to the extent that the
Fund invests a significant portion of its non-U.S. investments in one region or in the securities
of emerging market issuers. These risks may include:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>less information about non-U.S. issuers or markets may be available due to less
rigorous disclosure or accounting standards or regulatory practices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>many non-U.S. markets are smaller, less liquid and more volatile. In a changing
market, Calamos may not be able to sell the Fund&#146;s portfolio securities at times, in
amounts and at prices it considers reasonable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the economies of non-U.S. countries may grow at slower rates than expected or may
experience a downturn or recession;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>economic, political and social developments may adversely affect the securities
markets, including expropriation and nationalization;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the difficulty in obtaining or enforcing a court judgment in non-U.S. countries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>restrictions on foreign investments in non-U.S. jurisdictions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties in effecting the repatriation of capital invested in non-U.S.
countries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>withholding and other non-U.S. taxes may decrease the Fund&#146;s return; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>dividend income the Fund receives from foreign securities may not be eligible for
the special tax treatment applicable to qualified dividend income.</TD>
</TR>

</TABLE>
</DIV>

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
upon the Fund&#146;s test for determining whether an issuer is a
&#147;foreign issuer&#148; as described above, it is possible that an
issuer of securities in which the Fund invests could be organized
under the laws of a foreign country, yet still conduct a substantial
portion of its business in the U.S. or have substantial assets in the
U.S. In this case, such a &#147;foreign issuer&#148; may be subject
to the market conditions in the U.S. to a greater extent than it may
be subject to the market conditions in the country of its organization. See
&#147;Risk Factors&#151;Fund Risks&#151;Foreign Securities Risk.&#148;
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Currency Risk. </I>The value of the securities denominated or quoted in foreign currencies may be
adversely affected by fluctuations in the relative currency exchange rates and by exchange control
regulations. The Fund&#146;s investment performance may be negatively affected by a devaluation of a
currency in which the Fund&#146;s investments are denominated or quoted. Further, the Fund&#146;s investment
performance may be significantly affected, either positively or negatively, by currency exchange
rates because the U.S. dollar value of securities denominated or quoted in another country will
increase or decrease in response to changes in the value of such currency in relation to the U.S.
dollar. See &#147;Risk Factors&#151;Fund Risks&#151;Currency Risk.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest Rate Risk. </I>In addition to the risks discussed above, debt securities, including high
yield securities, are subject to certain risks, including the following:
</DIV>
</DIV>



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<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if interest rates go up, the value of debt securities in the Fund&#146;s portfolio
generally will decline;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>during periods of declining interest rates, the issuer of a security may exercise
its option to prepay principal earlier than scheduled, forcing the Fund to reinvest in
lower yielding securities. This is known as call or prepayment risk. Debt securities
frequently have call features that allow the issuer to repurchase the security prior to
its stated maturity. An issuer may redeem an obligation if the issuer can refinance
the debt at a lower cost due to declining interest rates or an improvement in the
credit standing of the issuer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>during periods of rising interest rates, the average life of certain types of
securities may be extended because of slower than expected principal payments. This
may lock in a below market interest rate, increase the security&#146;s duration (the
estimated period until the security is paid in full) and reduce the value of the
security. This is known as extension risk;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>rising interest rates could result in an increase in the cost of the Funds&#146; leverage
and could adversely affect the ability of the Fund to meet asset coverage requirements
with respect to leverage; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>market interest rates currently are near historically low levels.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Risk Factors&#151;Fund Risks&#151;Interest Rate Risk.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Default Risk. </I>Default risk refers to the risk that a company that issues a debt security will
be unable to fulfill its obligations to repay principal and interest. The lower a debt security is
rated, the greater the default risk. See &#147;Risk Factors&#151;Fund Risks&#151;Default Risk.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Liquidity Risk. </I>The Fund may invest up to 15% of its managed assets in securities that, at
the time of investment, are illiquid (determined using the Commission&#146;s standard applicable to
investment companies, i.e., securities that cannot be disposed of within 7&nbsp;days in the ordinary
course of business at approximately the value at which the Fund has valued the securities). The
Fund may also invest without limit in Rule&nbsp;144A Securities. Calamos, under the supervision of the
Board of Trustees, will determine whether Rule&nbsp;144A Securities are illiquid (that is, not readily
marketable) and thus subject to the Fund&#146;s limit on investing no more than 15% of its managed
assets in illiquid securities. Investments in Rule&nbsp;144A Securities could have the effect of
increasing the amount of the Fund&#146;s assets invested in illiquid securities if qualified
institutional buyers are unwilling to purchase these Rule&nbsp;144A Securities. Illiquid securities may
be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to
do so. Investment of the Fund&#146;s assets in illiquid securities may restrict the Fund&#146;s ability to
take advantage of market opportunities. The market price of illiquid securities generally is more
volatile than that of more liquid securities, which may adversely affect the price that the Fund
pays for or recovers upon the sale of illiquid securities. Illiquid securities are also more
difficult to value and Calamos&#146; judgment may play a greater role in the valuation process. The
risks associated with illiquid securities may be particularly acute in situations in which the
Fund&#146;s operations require cash and could result in the Fund borrowing to meet its short-term needs
or incurring losses on the sale of illiquid securities. See
&#147;Risk Factors&#151;Fund Risks&#151;Liquidity Risk.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Convertible Securities Risk. </I>The value of a convertible security is influenced by both the
yield of non-convertible securities of comparable issuers and by the value of the underlying common
stock. The value of a convertible security viewed without regard to its conversion feature (i.e.,
strictly on the basis of its yield) is sometimes referred to as its &#147;investment value.&#148; A
convertible security&#146;s investment value
</DIV>
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">tends to decline as prevailing interest rate levels increase. Conversely, a convertible
security&#146;s investment value increases as prevailing interest rate levels decline.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, the convertible&#146;s market value tends to reflect the market price of the common stock
of the issuing company when that stock price is greater than the convertible&#146;s &#147;conversion price.&#148;
The conversion price is defined as the predetermined price at which the convertible could be
exchanged for the associated stock. As the market price of the underlying common stock declines,
the price of the convertible security tends to be influenced more by the yield of the convertible
security. Thus, the convertible security may not decline in price to the same extent as the
underlying common stock. In the event of a liquidation of the issuing company, holders of
convertible securities would be paid before the company&#146;s common stockholders. Consequently, the
issuer&#146;s convertible securities generally entail less risk than its common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Synthetic Convertible Securities Risk. </I>The value of a synthetic convertible security may
respond differently to market fluctuations than a convertible security because a synthetic
convertible security is composed of two or more separate securities, each with its own market
value. In addition, if the value of the underlying common stock or the level of the index involved
in the convertible component falls below the exercise price of the warrant or option, the warrant
or option may lose all value. Synthetic convertible securities created by other parties have the
same attributes of a convertible security, however, the issuer of the synthetic convertible
security assumes the credit risk associated with the investment, rather than the issuer of the
underlying equity security into which the instrument is convertible. Therefore, the Fund is
subject to the credit risk associated with the party creating the synthetic convertible security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Risks Associated with Options. </I>There are several risks associated with transactions in
options. For example, there are significant differences between the securities markets and options
markets that could result in an imperfect correlation among these markets, causing a given
transaction not to achieve its objectives. A decision as to whether, when and how to use options
involves the exercise of skill and judgment, and even a well-conceived transaction may be
unsuccessful to some degree because of market behavior or unexpected events. The Fund&#146;s ability to
utilize options successfully will depend on Calamos&#146; ability to predict pertinent market movements,
which cannot be assured.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s ability to close out its position as a purchaser or seller of an Options Clearing
Corporation (&#147;OCC&#148;) or exchange listed put or call option is dependent, in part, upon the liquidity
of the option market. Among the possible reasons for the absence of a liquid option market are:
(i)&nbsp;insufficient trading interest in certain options; (ii)&nbsp;restrictions on transactions imposed by
an exchange; (iii)&nbsp;trading halts, suspensions or other restrictions imposed with respect to
particular classes or series of options or underlying securities, including reaching daily price
limits; (iv)&nbsp;interruption of the normal operations of the OCC or an exchange; (v)&nbsp;inadequacy of the
facilities of an exchange or OCC to handle current trading volume; or (vi)&nbsp;a decision by one or
more exchanges to discontinue the trading of options (or a particular class or series of options),
in which event the relevant market for that option on that exchange would cease to exist, although
outstanding options on that exchange would generally continue to be exercisable in accordance with
their terms. If the Fund were unable to close out an option that it had purchased on a security,
it would have to exercise the option in order to realize any profit or the option would expire and
become worthless. If the Fund were unable to close out a covered call option that it had written
on a security, it would not be able to sell the underlying security until the option expired. As
the writer of a covered call option on a security, the Fund foregoes, during the option&#146;s life, the
opportunity to profit from increases in the market value of the security covering the call option
above the sum of the premium and the exercise price of the call.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The hours of trading for listed options may not coincide with the hours during which the
underlying financial instruments are traded. To the extent that the option markets close before
the
</DIV>
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">markets for the underlying financial instruments, significant price and rate movements can
take place in the underlying markets that would not have been reflected in the option markets at
their closing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the parties provide for it, there is no central clearing or guaranty function in an
over-the-counter (&#147;OTC&#148;) option. As a result, if the counterparty fails to make or take delivery
of the security or other instrument underlying an OTC option it has entered into with the Fund or
fails to make a cash settlement payment due in accordance with the terms of that option, the Fund
will lose any premium it paid for the option as well as any anticipated benefit of the transaction.
Accordingly, Calamos must assess the creditworthiness of each such counterparty or any guarantor
or credit enhancement of the counterparty&#146;s credit to determine the likelihood that the terms of
the OTC option will be satisfied. The Fund will engage in OTC option transactions only with U.S.
government securities dealers recognized by the Federal Reserve Bank of New York as &#147;primary
dealers&#148; or broker/dealers, domestic or foreign banks or other financial institutions that have
received (or the guarantors of the obligation of which have received) a short-term credit rating of
A-1 from Standard&nbsp;&#038; Poor&#146;s or P-1 from Moody&#146;s or an equivalent rating from any nationally
recognized statistical rating organization (&#147;NRSRO&#148;) or, in the case of OTC currency transactions,
are determined to be of equivalent credit quality by Calamos.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may sell call options on individual securities and securities indices. All calls
sold by the Fund must be &#147;covered.&#148; Even though the Fund will receive the option premium to help
protect it against loss, a call option sold by the Fund exposes the Fund during the term of the
option to possible loss of opportunity to realize appreciation in the market price of the
underlying security or instrument and may require the Fund to hold a security or instrument that it
might otherwise have sold. The Fund may purchase and sell put options on individual securities and
securities indices. In selling put options, there is a risk that the Fund may be required to buy
the underlying security at a disadvantageous price above the market price. See &#147;Risk
Factors&#151;Fund Risks&#151;Risks Associated with Options.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax Risk. </I>The Fund may invest in certain securities, such as certain convertible and high
yield securities, for which the federal income tax treatment may not be clear or may be subject to
re-characterization by the Internal Revenue Service (&#147;IRS&#148;). It could be more difficult for the
Fund to comply with the tax requirements applicable to regulated investment companies if the tax
characterization of the Fund&#146;s investments are not clear or if the tax treatment of the income from
such investments were successfully challenged by the IRS. See
&#147;Risk Factors&#151;Fund Risks&#151;Tax Risk&#148; and
&#147;Certain Federal Income Tax Matters.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Management Risk. </I>Calamos&#146; judgment about the attractiveness, relative value or potential
appreciation of a particular sector, security or investment strategy may prove to be incorrect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Antitakeover Provisions. </I>The Fund&#146;s Agreement and Declaration of Trust and By-Laws include
provisions that could limit the ability of other entities or persons to acquire control of the Fund
or to change the composition of its Board of Trustees. Such provisions could limit the ability of
shareholders to sell their shares at a premium over prevailing market prices by discouraging a
third party from seeking to obtain control of the Fund. These provisions include staggered terms
of office for the Trustees, advance notice requirements for shareholder proposals, and
super-majority voting requirements for certain transactions with affiliates, converting the Fund to
an open-end investment company or a merger, asset sale or similar transaction. Holders of
Preferred Shares will have voting rights in addition to and separate from the voting rights of
common shareholders with respect to certain of these matters. See &#147;Description of Shares&#151;Preferred
Shares&#148; and &#147;Certain Provisions of the Agreement and Declaration of Trust and By-Laws.&#148; The holders
of Preferred Shares, on the one hand, and the holders of the common shares, on the other, may have
interests that conflict in these situations. &#147;Risk Factors&#151;Fund Risks&#151;Antitakeover Provisions.&#148;
</DIV>
</DIV>




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<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Disruption Risk. </I>Certain events have a disruptive effect on the securities markets,
such as terrorist attacks, war and other geopolitical events, earthquakes, storms and other
disasters. The Fund cannot predict the effects of similar events in the future on the U.S. economy
or any foreign economy.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Leverage Risk</I>. The Fund has issued Preferred Shares and may issue additional preferred shares
or borrow money or issue debt securities. The borrowing of money or issuance of debt securities
and preferred shares, including the outstanding Preferred Shares, represents the leveraging of the
Fund&#146;s common shares. As a non-fundamental policy, the aggregate liquidation preference of
preferred shares, and the aggregate principal amount of debt securities or borrowings, may not
exceed 38% of the Fund&#146;s total assets. Leverage creates risks which may adversely affect the
return for the holders of common shares, including:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the likelihood of greater volatility of net asset value and market price of the
Fund&#146;s common shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fluctuations in the dividend rates on any preferred shares or in interest rates on
borrowings and short-term debt;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increased operating costs, which are effectively borne by common shareholders, may
reduce the Fund&#146;s total return; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the potential for a decline in the value of an investment acquired with borrowed
funds, while the Fund&#146;s obligations under such borrowing or
preferred shares remain fixed.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These risks include the possibility that the value of the assets acquired with the proceeds of
leverage decreases although the Fund&#146;s liability to holders of preferred shares or other types of
leverage is fixed, greater volatility in the Fund&#146;s net asset value and the market price of the
Fund&#146;s common shares, and higher expenses. In addition, the rights of lenders and the holders of
Preferred Shares and debt securities issued by the Fund will be senior to the rights of the holders
of common shares with respect to the payment of dividends or upon liquidation. Holders of
Preferred Shares have voting rights in addition to and separate from the voting rights of common
shareholders. See &#147;Description of Shares&#151;Preferred Shares&#148; and &#147;Certain Provisions of the
Agreement and Declaration of Trust and By-Laws.&#148; The holders of Preferred Shares, on the one hand,
and the holders of the common shares, on the other, may have interests that conflict in certain
situations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leverage is a speculative technique that could adversely affect the returns to common
shareholders. Leverage can cause the Fund to lose money and can magnify the effect of any losses.
To the extent the income or capital appreciation derived from securities purchased with funds
received from leverage exceeds the cost of leverage, the Fund&#146;s return will be greater than if
leverage had not been used. Conversely, if the income or capital appreciation from the securities
purchased with such funds is not sufficient to cover the cost of leverage or if the Fund incurs
capital losses, the return of the Fund will be less than if leverage had not been used, and
therefore the amount available for distribution to common shareholders as dividends and other
distributions will be reduced or potentially eliminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will pay, and common shareholders will effectively bear, any costs and expenses
relating to any borrowings and to the issuance and ongoing
maintenance of Preferred Shares or debt securities. Such
costs and expenses include the higher management fee resulting from the use of any such leverage,
offering and/or issuance costs, and interest and/or dividend expense and ongoing maintenance.
</DIV>
</DIV>



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<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain types of borrowings may result in the Fund being subject to covenants in credit
agreements, including those relating to asset coverage, borrowing base and portfolio composition
requirements and additional covenants that may affect the Fund&#146;s ability to pay dividends and
distributions on common shares in certain instances. The Fund may also be required to pledge its
assets to the lenders in connection with certain types of borrowings. The Fund may be subject to
certain restrictions on investments imposed by guidelines of one or more NRSROs which may issue
ratings for the preferred shares or short-term debt instruments issued by the Fund. These
guidelines may impose asset coverage or portfolio composition requirements that are more stringent
than those imposed by the 1940 Act. See &#147;Risk Factors &#151; Leverage.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest Rate Transactions Risk</I>. The Fund may enter into an interest rate swap or cap
transaction to attempt to protect itself from increasing dividend or interest expenses on its
leverage resulting from increasing short-term interest rates. A decline in interest rates may
result in a decline in the value of the swap or cap, which may result in a decline in the net asset
value of the Fund. See &#147;Risk Factors &#151; Interest Rate Transactions Risk.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Impact Risk</I>. The sale of our common shares (or the perception that such sales may
occur) may have an adverse effect on prices in the secondary market for our common shares by
increasing the number of shares available, which may put downward pressure on the market price for
our common shares. These sales also might make it more difficult for us to sell additional equity
securities in the future at a time and price we deem appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dilution Risk</I>. The voting power of current shareholders will be diluted to the extent that
such shareholders do not purchase shares in any future common share offerings or do not purchase
sufficient shares to maintain their percentage interest. In addition, if we are unable to invest
the proceeds of such offering as intended, our per share distribution may decrease (or may consist
of return of capital) and we may not participate in market advances to the same extent as if such
proceeds were fully invested as planned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Discount Risk</I>. The Fund&#146;s common shares have traded both at a premium and at a
discount relative to net asset value. Common shares of closed-end investment companies frequently
trade at prices lower than their net asset value. Depending on the premium of the Fund&#146;s common
shares, the Fund&#146;s net asset value may be reduced immediately following an offering of the Fund&#146;s
common shares by the offering expenses paid by the Fund, including the sales load. See &#147;Use of
Proceeds.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to net asset value, the market price of the Fund&#146;s common shares may be affected
by such factors as the Fund&#146;s use of leverage, dividend stability, portfolio credit quality,
liquidity, market supply and demand of the common shares and the Fund&#146;s dividends paid (which are,
in turn, affected by expenses), call protection for portfolio securities and interest rate
movements. See &#147;Leverage,&#148; &#147;Risk Factors&#148; and &#147;Description of Securities.&#148; The Fund&#146;s common
shares are designed primarily for long-term investors, and you should not purchase common shares if
you intend to sell them shortly after purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Risk Factors&#151;Additional Risks to Common Shareholders&#148; for a more detailed discussion of
these risks.
</DIV>
</DIV>



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

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Additional Risks to Senior Security Holders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Additional risks of investing in senior securities include the following:</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest Rate Risk</I>. To the extent that senior securities trade through an auction, such
securities pay dividends or interest based on short-term interest rates. If short-term interest
rates rise, dividends or interest on the auction rate senior securities may rise so that the amount
of dividends or interest due to holders of auction rate senior securities would exceed the cash
flow generated by our portfolio securities. This might require that we sell portfolio securities
at a time when we would otherwise not do so, which may affect adversely our future ability to
generate cash flow. In addition, rising market interest rates could impact negatively the value of
our investment portfolio, reducing the amount of assets serving as asset coverage for the senior
securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Senior Leverage Risk</I>. Our preferred shares will be junior in liquidation and with respect to
distribution rights to our debt securities and any other borrowings. Senior securities
representing indebtedness may constitute a substantial lien and burden on preferred shares by
reason of their prior claim against our income and against our net assets in liquidation. We may
not be permitted to declare dividends or other distributions with respect to any series of our
preferred shares unless at such time we meet applicable asset coverage requirements and the payment
of principal or interest is not in default with respect to any borrowings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ratings and Asset Coverage Risk</I>. To the extent that senior securities are rated, a rating
does not eliminate or necessarily mitigate the risks of investing in our senior securities, and a
rating may not fully or accurately reflect all of the credit and market risks associated with that
senior security. A rating agency could downgrade the rating of our preferred shares or debt
securities, which may make such securities less liquid at an auction or in the secondary market,
though probably with higher resulting interest rates. If a rating agency downgrades the rating
assigned to a senior security, we may alter our portfolio or redeem the senior security. We may
voluntarily redeem senior securities under certain circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Inflation Risk</I>. Inflation is the reduction in the purchasing power of money resulting from an
increase in the price of goods and services. Inflation risk is the risk that the inflation
adjusted or &#147;real&#148; value of an investment in preferred shares or debt securities or the income from
that investment will be worth less in the future. As inflation occurs, the real value of the
preferred shares or debt securities and the dividend payable to holders of preferred shares or
interest payable on debt securities declines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Auction Risk</I>. To the extent that senior securities trade through an auction, there are
certain risks associated with participating in an auction and certain risks if you try to sell
senior securities outside of an auction in the secondary market. These risks will be described in
more detail in an applicable prospectus supplement if we issue senior securities pursuant to this
registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Decline
in Net Asset Value Risk</I>. A material decline in our net asset
value (&#147;NAV&#148;) may impair our ability to
maintain required levels of asset coverage for our preferred shares or debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Risk Factors&#151;Additional Risks to Senior Security Holders&#148; for a more detailed discussion
of these risks.
</DIV>
</DIV>




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

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


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



<DIV align="left">
<A name="102"></A>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY OF FUND EXPENSES</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table and example contain information about the costs and expenses that common
shareholders will bear directly or indirectly. In accordance with Commission requirements, the
table below shows our expenses, including leverage costs, as a percentage of our average net assets as of
October&nbsp;31, 2007, and not as a percentage of gross assets or managed assets. By showing expenses
as a percentage of average net assets, expenses are not expressed as a percentage of all of the assets we
invest. The table and example are based on our capital structure as
of October&nbsp;31, 2007. As of
that date, we had $59 million in senior securities outstanding. Such senior securities
represent 25.93% of total assets as of October&nbsp;31, 2007.
</DIV>

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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales Load (as a percentage of offering price)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(1)&nbsp;</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering Expenses Borne by the Fund (as a percentage of offering price)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)&nbsp;</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Automatic Dividend Reinvestment Plan Fees<SUP style="font-size: 85%; vertical-align: text-top">(2)&nbsp;</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="right">None</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage of Net</B></TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assets</B></TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Attributable to</B></TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common</B></TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Annual Expenses</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Shareholders</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Management Fee<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leverage Costs<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Annual Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.72</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following example illustrates the expenses that common shareholders would pay on a $1,000
investment in common shares, assuming (1)&nbsp;net annual expenses of
1.72% of net assets attributable
to common shares; (2)&nbsp;a 5% annual
return; and (3)&nbsp;all distributions are reinvested at net asset value:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="68%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>3 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>10 Years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Expenses Paid by Common Shareholders<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <td align="left" nowrap></TD>
    <TD align="right">$17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
       <td align="left" nowrap></TD>
    <TD align="right">$54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
       <td align="left" nowrap></TD>
    <TD align="right">$93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
       <td align="left" nowrap></TD>
    <TD align="right">$203</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The example should not be considered a representation of future expenses. Actual expenses may be
greater or less than those assumed. Moreover, our actual rate of return may be greater or less
than the hypothetical 5% return shown in the example.</B>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If the securities to which this prospectus relates are sold to or through underwriters, the
prospectus supplement will set forth any applicable sales load and the estimated offering
expenses borne by us.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Shareholders will pay a transaction fee plus brokerage charges if they direct the Plan Agent
to sell common shares held in a Plan account. See &#147;Automatic Dividend Reinvestment Plan.&#148;</TD>
</TR>


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

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

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>
<TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>The Fund pays Calamos an annual management fee, payable monthly, for its investment
management services equal to 1.00% of the Fund&#146;s average weekly managed assets.
In accordance with the requirements of the Commission, the table above shows the Fund&#146;s
management fee as a percentage of average net assets. By showing the management fee as a
percentage of net assets, the management fee is not expressed as a percentage of all of the
assets the Fund intends to invest. For purposes of the table, the
management fee has been converted to 1.41% of the Fund&#146;s average
daily net
assets as of October&nbsp;31, 2007 by dividing the total dollar amount
of the management fee by the Fund&#146;s average daily net assets (managed assets
less outstanding leverage).</TD>
</TR>

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

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

<TR><TD>                                                        </TD></TR>
<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>
<TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Leverage Costs in the table reflect the cost of auction and rating agency fees on
preferred shares, expressed as a percentage of net assets. The table assumes outstanding
Preferred Shares of $59 million, which reflects leverage in an amount representing
approximately 25.93% of total assets.</TD>
</TR>
<TR><TD>                                                        </TD></TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



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







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

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

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>The example does not include sales load or estimated offering costs.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of the table and the example above is to help investors understand the fees and
expenses that they, as common shareholders, would bear directly or indirectly. For additional
information with respect to our expenses, see &#147;Management of the Fund.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


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

<DIV align="left">
<A name="103"></A>
</DIV>



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


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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information
in this table is derived from our financial statements audited by
Deloitte &#038; Touche LLP, whose report on
such financial statements is contained in our 2007 Annual Report and
included in
the statement of additional information, both of which are available from us.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">October 27,</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2005*</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">For the</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">through</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">Year Ended October 31,</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">October 31,</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net asset value, beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">14.32</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income from investment operations:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.96</TD>
    <TD nowrap>**</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net realized and unrealized gain (loss)&nbsp;from investments, written options
and foreign currency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distributions to preferred shareholders from:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income (common share equivalent basis)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.39</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.29</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital gains (common share equivalent basis)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&#151;</TD>
    <TD>b&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total from investment operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less distributions to common shareholders from:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.09</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.65</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.19</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital charge resulting from issuance of common and preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.11</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net asset value, end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">21.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14.29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market value, end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">19.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total investment return based on(c):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net asset value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">38.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.24</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">33.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratios and supplemental data:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net assets applicable to common shareholders, end of period (000&#146;s omitted)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">168,551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">130,588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">114,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred shares, at redemption value ($25,000 per share liquidation
preference) (000&#146;s omitted)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">59,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">59,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratios to average net assets applicable to common shareholders:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net expenses(d)(e)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.72</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.70</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.33</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gross expenses(d)(e)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.72</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.70</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.37</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income (loss)(d)(e)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.33</TD>
    <TD nowrap>)%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Preferred share distributions from net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.17</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.89</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income (loss), net of preferred share distributions from net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.20</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Portfolio turnover rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">85</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average commission rate paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.0377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.0258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset coverage per preferred share, at end of period(f)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">96,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">80,358</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV style="margin-top: 3pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Commencement of operations.</TD>
</TR>
 <TR><TD>                                                        </TD></TR>
<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>
 <TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Net investment income allocated based on average shares method.</TD>
</TR>
 <TR><TD>                                                        </TD></TR>
<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>
 <TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">(a)</TD>
    <TD>&nbsp;</TD>
    <TD>Net of sales load of $0.675 on initial shares issued and
beginning net asset value of $14.325. </TD>
</TR>
<TR><TD>                                                        </TD></TR>
<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>
 <TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">(b)</TD>
    <TD>&nbsp;</TD>
    <TD>Amount equated to less
than $0.005 per common share.</TD>
</TR>
<TR><TD>                                                        </TD></TR>
</TABLE>
</DIV>

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

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





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





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">(c)</TD>
    <TD>&nbsp;</TD>
    <TD>Total investment return is calculated assuming a purchase of common shares on the opening of
the first day and a sale on the closing of the last day of the period reported. Dividends and
distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained
under the Fund&#146;s dividend reinvestment plan. Total return is not annualized for periods less than
one year. Brokerage commissions are not reflected. NAV per share is determined by dividing the
value of the Fund&#146;s portfolio securities, cash and other assets, less all liabilities, by the total
number of common shares outstanding. The common share market price is the price the market is
willing to pay for shares of the Fund at a given time. Common share market price is influenced by a
range of factors, including supply and demand and market conditions.</TD>
</TR>
 <TR><TD>                                                        </TD></TR>
<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>
 <TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">(d)</TD>
    <TD>&nbsp;</TD>
    <TD>Annualized for periods less than one year.</TD>
</TR>
<TR><TD>                                                        </TD></TR>
<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>
<TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">(e)</TD>
    <TD>&nbsp;</TD>
    <TD>Does not reflect the effect of dividend payments to the shareholders of Preferred Shares.</TD>
</TR>
<TR><TD>                                                        </TD></TR>
<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>
<TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">(f)</TD>
    <TD>&nbsp;</TD>
    <TD>Calculated by subtracting the Fund&#146;s total liabilities (not including Preferred Shares)
from the Fund&#146;s total assets and dividing this by the number of Preferred Shares outstanding.</TD>
</TR>
<TR><TD>                                                        </TD></TR>
</TABLE>


<DIV align="left">
<A name="104"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common shares are listed on the New York Stock Exchange (&#147;NYSE&#148;) under the symbol &#147;CGO.&#148;
Our common shares commenced trading on the NYSE on October&nbsp;27, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common shares have traded both at a premium and at a discount in relation to NAV. We
cannot predict whether our shares will trade in the future at a premium or discount to NAV. The
provisions of the 1940 Act generally require that the public offering price of common shares (less
any underwriting commissions and discounts) must equal or exceed the NAV per share of a company&#146;s
common stock (calculated within 48 hours of pricing). Our issuance of common shares may have an
adverse effect on prices in the secondary market for our common shares by increasing the number of
common shares available, which may put downward pressure on the market price for our common shares.
Shares of common stock of closed-end investment companies frequently trade at a discount from NAV.
See &#147;Risk Factors&#151;Additional Risks to Common Shareholders&#151;Market Discount Risk.&#148;
</DIV>

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth for each of the periods indicated the high and low closing
market prices for our common shares on the NYSE, the NAV per share and the premium or discount to
NAV per share at which our common shares were trading. NAV is determined on the last
business day of each month. See &#147;Determination of Net Asset Value&#148; for information as
to the determination of our NAV.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="46%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Premium/(Discount)&nbsp;</B> <B>to</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Market Price</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Net Asset</B></TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Net Asset</B> <B>Value</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(3)</B></SUP></TD>

</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Quarter Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Value</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>

</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;31, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.04</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.97</TD>
    <TD>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-3.16</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-14.71</TD>
    <TD>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April&nbsp;30, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>-10.96</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>-14.60</TD>
    <TD>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-3.60</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-11.50</TD>
    <TD>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-2.64</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-8.40</TD>
    <TD>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.23</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-9.82</TD>
    <TD>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April&nbsp;30, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-0.56</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-12.51</TD>
    <TD>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.20</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-4.09</TD>
    <TD>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-7.32</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">-31.69</TD>
    <TD>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

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

<TR valign="top">
    <TD nowrap align="left">Source:</TD>
    <TD>&nbsp;</TD>
    <TD>Bloomberg Financial and Fund Accounting Records.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>
<TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Based on high and low closing market price during the respective quarter.</TD>
</TR>
 <TR><TD>                                                        </TD></TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

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

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





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR><TD>                                                       </TD></TR>
<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Based on the NAV calculated on the close of business on the last business day of each
calendar quarter.</TD>
</TR>
 <TR><TD>                                                        </TD></TR>
<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Based on the Fund&#146;s computations.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The last reported sale price, NAV per common share and percentage discount to NAV per
common share on December 31, 2007 were $19.10, $19.54 and -2.25%,
respectively. As of December 31, 2007, we had 8,006,981 common shares outstanding and net assets of approximately
$215,433,704.
</DIV>


<DIV align="left">
<A name="105"></A>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified in a prospectus supplement, we will invest the net proceeds of any
sales of securities in accordance with our investment objective and policies as described under
&#147;Investment Objective and Principal Investment Strategies&#148;
within approximately three&nbsp;months of receipt
of such proceeds. We may also use proceeds from the sale of our securities to retire all or a
portion of any short-term debt we incur in pursuit of our investment objective and policies, and
for working capital purposes, including the payment of interest and operating expenses, although
there is currently no intent to issue securities primarily for this purpose. Such investments may
be delayed if suitable investments are unavailable at the time or for other reasons. Pending such
investment, we anticipate that we will invest the proceeds in securities issued by the U.S.
government or its agencies or instrumentalities or in high quality, short-term or long-term debt
obligations. A delay in the anticipated use of proceeds could lower returns, reduce our
distribution to common shareholders and reduce the amount of cash available to make dividend and
interest payments on preferred shares and debt securities, respectively.
</DIV>
<DIV align="left">
<A name="106"></A>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE FUND</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Global Total Return Fund is a diversified, closed-end management investment company
which commenced investment operations in October&nbsp;2005. The Fund was organized under the laws of
the State of Delaware on March&nbsp;30, 2004, and has registered under the 1940 Act. On October&nbsp;31,
2005, the Fund issued an aggregate of 8,000,000 common shares, no par value, in an initial public
offering and commenced its operations. The Fund granted the underwriters an option to purchase up
to 1,021,536 additional common shares at the public offering price less the sales load. The Fund
did not issue any common shares in connection with the over-allotment option. The net proceeds of
the initial public offering were approximately $114,700,003 after the payment of offering
expenses. On January&nbsp;6, 2006, the Fund issued Preferred Shares, liquidation preference $25,000 per
share ($59,000,000 in the aggregate). The Fund&#146;s common shares are listed on the NYSE under the
symbol &#147;CGO.&#148; The Fund&#146;s principal office is located at 2020 Calamos Court, Naperville, Illinois
60563, and its telephone number is 1-800-582-6959.
</DIV>


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



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



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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table provides information about our outstanding securities
as of December 31, 2007:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Held by the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fund or for</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">&nbsp;&nbsp;&nbsp;<B>Title of Class</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Authorized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>its Account</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Outstanding</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Unlimited</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,006,981</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Unlimited</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,360</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Series&nbsp;T</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,360</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following sets forth information about the Fund&#146;s outstanding Preferred Shares as of the
dates indicated below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Asset Coverage Per Share</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Average Fair Value Per</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total Liquidation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>($25,000 Liquidation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>$25,000 Denomination or</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">

<TD nowrap align="center" style="border-bottom: 1px solid #000000">&nbsp;<B>Fiscal Year Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Preference</B> <B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Preference)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Per Share Amount</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(a)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;31,
2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">59,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">96,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;31,
2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">59,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">80,358</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

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

<TR valign="top">
    <TD nowrap align="left">(a)</TD>
    <TD>&nbsp;</TD>
    <TD>Fair value of the Preferred Shares approximates the liquidation preference because dividend
rates payable on the Preferred Shares are determined at auctions and fluctuate with changes in
current market interest rates.</TD>
</TR>

</TABLE>


<DIV align="left">
<A name="107"></A>
</DIV>

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


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s investment objective is to provide total return through a combination of capital
appreciation and current income. The Fund&#146;s investment objective may be changed by its Board of
Trustees without a shareholder vote, except that the Fund will give shareholders at least 60&nbsp;days&#146;
notice of any change to the Fund&#146;s investment objective. The Fund makes no assurance that it will
realize its objective. An investment in the Fund may be speculative in that it involves a high
degree of risk and should not constitute a complete investment program. See &#147;Risk Factors.&#148;
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under normal circumstances, the Fund will invest primarily in a portfolio of common and
preferred stocks, convertible securities and income producing securities such as investment grade
and below investment grade (high yield/high risk) debt securities. The Fund, under normal
circumstances, will invest at least 50% of its managed assets in equity securities (including
securities that are convertible into equity securities). The Fund may invest up to 100% of its
managed assets in securities of foreign issuers, including debt and equity securities of corporate
issuers and debt securities of government issuers, in developed and emerging markets. Under normal
circumstances, the Fund will invest at least 30% of its managed assets in securities of foreign
issuers. The Fund will invest in the securities of issuers of several different countries
throughout the world, in addition to the United States.
</DIV>

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos will dynamically allocate the Fund&#146;s investments among multiple asset classes (rather
than maintaining a fixed or static allocation), seeking to obtain an appropriate balance of risk
and reward on a long-term basis through all market cycles using multiple strategies and combining them to seek to
achieve favorable risk adjusted returns.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will attempt to keep a consistent balance between risk and reward over the course of
different market cycles, through various combinations of stocks, bonds, and/or convertible
securities, to achieve what Calamos believes to be an appropriate blend for the then current
market. As the market environment changes, portfolio securities may change in an attempt to
achieve a relatively consistent risk level over time. At some points in a market cycle, one type
of security may make up a substantial portion of the Fund&#146;s portfolio, while at other times certain
securities may have minimal or no representation, depending on market conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may also seek to generate income from option premiums by writing (selling)&nbsp;options
(with an aggregate notional value of up to 33% of the value of the Fund&#146;s managed assets). The
Fund will opportunistically employ a strategy of writing options. The extent of option writing
activity will depend upon market conditions and Calamos&#146; ongoing assessment of the attractiveness
of writing options on the Fund&#146;s equity holdings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Equity Securities</I>. Equity securities include common and preferred stocks, warrants, rights,
and depository receipts. Under normal circumstances, the Fund will invest at least 50% of its
managed assets in equity securities (including securities that are convertible into equity
securities). The Fund may invest in preferred stocks and convertible securities of any rating,
including below investment grade. See &#147;&#151;High Yield Securities&#148; below. An investment in the equity
securities of a company represents a proportionate ownership interest in that company. Therefore,
the Fund participates in the financial success or failure of any company in which it has an equity
interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>High Yield Securities. </I>The Fund may invest in high yield securities for either current income
or capital appreciation or both. The high yield securities in which the Fund invests are rated
below investment grade (i.e., rated Ba or lower by Moody&#146;s or BB or lower by S&#038;P&#146;s) or are unrated
but determined by Calamos to be of comparable quality. The Fund may invest in high yield
securities of any rating. Non-convertible debt securities rated below investment grade are
commonly referred to as &#147;junk bonds&#148; and are considered speculative with respect to the issuer&#146;s
capacity to pay interest and repay principal. Below investment grade non-convertible debt
securities involve greater risk of loss, are subject to greater price volatility and are less
liquid, especially during periods of economic uncertainty or change, than higher rated debt
securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other Income Securities. </I>The Fund may also invest in investment grade debt securities. The
Fund&#146;s investments in investment grade debt securities may have fixed or variable principal
payments and all types of interest rate and dividend payment and reset terms, including fixed rate,
adjustable rate, zero coupon, contingent, deferred, payment in kind and auction rate features.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Foreign Securities</I>. The Fund may invest up to 100% of its managed assets in securities of
foreign issuers in developed and emerging markets, including debt and equity securities of
corporate issuers and debt securities of government issuers. Under normal circumstances, the Fund
will invest at least 30% of its managed assets in securities of foreign issuers; however, the Fund
anticipates that ordinarily Calamos&#146; investment process will result in the Fund investing at least
40% of its managed assets in securities of foreign issuers. The Fund will invest in the securities
of issuers of several different countries throughout the world, in addition to the United States.
A foreign issuer is a foreign government or a company organized under the laws of a foreign
country.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Convertible Securities</I>. The Fund may invest in convertible securities. A convertible
security is a debt security or preferred stock that is exchangeable for an equity security
(typically of the same issuer) at a predetermined price (the &#147;conversion price&#148;). Depending upon
the relationship of the conversion price to the market value of the underlying security, a
convertible security may trade more like an equity security than a debt instrument. The Fund may
invest in convertible securities of any rating including
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">below investment grade. See &#147;&#151;High Yield Securities&#148; above. Securities that are convertible
into equity securities are considered equity-securities for purposes of the Fund&#146;s policy to invest
at least 50% of its managed assets in equity securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Synthetic Convertible Securities</I>. The Fund may invest in &#147;synthetic&#148; convertible securities.
A synthetic convertible security is a financial instrument that is designed to simulate the
characteristics of another instrument (i.e., a convertible security) through the combined features
of a collection of other securities or assets. Calamos may create a synthetic convertible security
by combining separate securities that possess the two principal characteristics of a true
convertible security, i.e., a fixed-income security (&#147;fixed-income component&#148;, which may be a
convertible or non-convertible security) and the right to acquire an equity security (&#147;convertible
component&#148;). The fixed-income component is achieved by investing in non-convertible, fixed-income
securities such as bonds, preferred stocks and money market instruments. The convertible component
is achieved by investing in warrants or options to buy common stock at a certain exercise price, or
options on a stock index. The Fund may also purchase synthetic convertible securities created by
other parties, typically investment banks, including convertible structured notes. Convertible
structured notes are fixed income debentures linked to equity. Convertible structured notes have
the attributes of a convertible security; however, the investment bank that issued the convertible
note assumes the credit risk associated with the investment, rather than the issuer of the
underlying common stock into which the note is convertible. Different companies may issue the
fixed-income and convertible components, which may be purchased separately and at different times.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may also invest in synthetic convertible securities created by third parties,
typically investment banks. Synthetic convertible securities created by such parties may be
designed to simulate the characteristics of traditional convertible securities or may be designed
to alter or emphasize a particular feature. Traditional convertible securities typically offer
stable cash flows with the ability to participate in capital appreciation of the underlying common
stock. Because traditional convertible securities are exercisable at the option of the holder, the
holder is protected against downside risk. Synthetic convertible securities may alter these
characteristics by offering enhanced yields in exchange for reduced capital appreciation or less
downside protection, or any combination of these features. Synthetic convertible instruments may
include structured notes, equity-linked notes, mandatory convertibles and combinations of
securities and instruments, such as a debt instrument combined with a forward contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some examples of these securities include:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred equity redeemable cumulative stock (&#147;PERCS&#148;) are shares that automatically convert
into one ordinary share upon maturity. They are usually issued at the prevailing share price,
convertible into one ordinary share, with an enhanced dividend yield. PERCS pay a higher dividend
than common shares, but the equity upside is capped. Above a certain share price, the conversion
ratio will fall as the stock rises, capping the upside at that level. Below this level, the
conversion ratio remains one-for-one, giving the same downside exposure as the ordinary shares,
excluding the income difference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend enhanced convertible stock (&#147;DECS&#148;) are either preference shares or subordinated
bonds. These, like PERCS, mandatorily convert into ordinary shares at maturity, if not already
converted. DECS give no significant downside protection and are very equity sensitive with minimal
direct bond characteristics and interest rate exposure. As with PERCS, some of the upside
performance is given away and in return, the investor receives an enhanced yield over the ordinary
shares. Unlike PERCS, however, the investor&#146;s upside is not capped. Instead, the investor trades
a zone of flat exposure to the share price for the enhanced income.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred Redeemable Increased Dividend Equity Security (&#147;PRIDES&#148;) are synthetic securities
consisting of a forward contract to purchase the issuer&#146;s underlying security and an interest
bearing deposit. Interest payments are made at regular intervals, and conversion into the
underlying security is mandatory at maturity. Similar to convertible securities, PRIDES allow
investors to earn stable cash flows while still participating in the capital gains of an underlying
stock. This is possible because these products are valued along the same lines as the underlying
security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s holdings of synthetic convertible securities are considered equity securities for
purposes of the Fund&#146;s policy to invest at least 50% of its managed assets in equity securities.
If the Fund purchases a synthetic convertible instrument, a component of which is an option, such
option will not be considered an option for the purpose of the Fund&#146;s limitations on options
described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Options Strategy. </I>The Fund may seek to generate income from option premiums by writing
(selling)&nbsp;options (with an aggregate notional value of up to 33% of the value of the Fund&#146;s managed
assets). The Fund may write (sell)&nbsp;call options (i)&nbsp;on a portion of the equity securities
(including securities that are convertible into equity securities)&nbsp;in the Fund&#146;s portfolio and
(ii)&nbsp;on broad-based securities indices (such as the S&#038;P 500 or MSCI EAFE) or certain ETFs (exchange
traded funds) that trade like common stocks but seek to replicate such market indices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, to seek to offset some of the risk of a large potential decline in the event the
overall stock market has a sizeable short-term or intermediate-term decline, the Fund may also, to
a limited extent, purchase put options (with an aggregate notional value of not more than 5% of the
value of the Fund&#146;s managed assets) on broad-based securities indices (such as the S&#038;P 500 or MSCI
EAFE) or certain ETFs (exchange-traded funds) that trade like common stocks but seek to replicate
such market indices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Options in General</I>. A call option, upon payment of a premium, gives the purchaser of the
option the right to buy, and the seller the obligation to sell, the underlying security, index or
other instrument at the exercise price. A put option gives the purchaser of the option, upon
payment of a premium, the right to sell, and the seller the obligation to buy, the underlying
security, index, or other instrument at the exercise price.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
options, known as &#147;American style&#148; options, may be exercised at any time during the
term of the option. Other options, known as &#147;European style&#148; options, may be exercised
only on the expiration date of the option. The Fund expects that substantially all of the options
written by the Fund will be American style options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is authorized to purchase and sell exchange listed options and over-the-counter
options (&#147;OTC options&#148;). Exchange listed options are issued by a regulated intermediary such as
the OCC, which guarantees the performance of the obligations of the parties to such options. In
addition, the Fund may purchase instruments structured by broker-dealers or investment banks that
package or possess economic characteristics of options. The discussion below uses the OCC as an
example, but is also applicable to other financial intermediaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With certain exceptions, OCC issued and exchange listed options generally settle by physical
delivery of the underlying security, although in the future cash settlement may become available.
Index options are cash settled for the net amount, if any, by which the option is &#147;in-the-money&#148;
(i.e., where the value of the underlying instrument exceeds, in the case of a call option, or is
less than, in the case of a put option, the exercise price of the option) at the time the option is
exercised. Frequently, rather than taking or making delivery of the underlying instrument through
the process of exercising the option, listed options are closed by entering into offsetting
purchase or sale transactions that do not result in ownership of the new option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTC options are purchased from or sold to securities dealers, financial institutions or other
parties (&#147;Counterparties&#148;) through direct bilateral agreement with the Counterparty. In contrast
to exchange listed options, which generally have standardized terms and performance mechanics, all
the
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">terms of an OTC option, including such terms as method of settlement, term, exercise price,
premium, guarantees and security, are set by negotiation of the parties. The Fund may sell OTC
options (other than OTC currency options) that are subject to a buy-back provision permitting the
Fund to require the Counterparty to sell the option back to the Fund at a formula price within
seven days. The Fund expects generally to enter into OTC options that have cash settlement
provisions, although it is not required to do so. The staff of the Commission currently takes the
position that OTC options purchased by a fund, and portfolio securities &#147;covering&#148; the amount of a
fund&#146;s obligation pursuant to an OTC option sold by it (or the amount of assets equal to the
formula price for the repurchase of the option, if any, less the amount by which the option is
in-the-money) are illiquid. OTC options purchased by the Fund and any portfolio securities used to
cover obligations pursuant to such options are not considered illiquid by Calamos for the purposes
of the Fund&#146;s limitation on investments in illiquid securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund
may also purchase and sell options on stocks, indices, rates, credit spreads or currencies.
Options on securities indices and other financial indices are similar to options on a security or
other instrument except that, rather than settling by physical delivery of the underlying
instrument, they settle by cash settlement, i.e., an option on an index gives the holder the right
to receive, upon exercise of the option, an amount of cash if the closing level of the index upon
which the option is based exceeds, in the case of a call, or is less than, in the case of a put,
the exercise price of the option (except if, in the case of an OTC option, physical delivery is
specified). This amount of cash is equal to the excess of the closing price of the index over the
exercise price of the option, which also may be multiplied by a formula value. The seller of the
option is obligated, in return for the premium received, to make delivery of this amount. The gain
or loss on an option on an index depends on price movements in the instruments making up the
market, market segment, industry or other composite on which the underlying index is based, rather
than price movements in individual securities, as is the case with respect to options on
securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will write call options and put options only if they are &#147;covered.&#148; For example, a
call option written by the Fund will require the Fund to hold the securities subject to the call
(or securities convertible into those securities without additional consideration) or to segregate
cash or liquid assets sufficient to purchase and deliver the securities if the call is exercised.
A call option sold by the Fund on an index will require the Fund to own portfolio securities that
correlate with the index or to segregate cash or liquid assets equal to the excess of the index
value over the exercise price on a current basis. A put option written by the Fund requires the
Fund to segregate cash or liquid assets equal to the exercise price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTC options entered into by the Fund will generally provide for cash settlement. As a result,
when the Fund sells these instruments it will only segregate an amount of cash or liquid assets
equal to its accrued net obligations, as there is no requirement for payment or delivery of amounts
in excess of the net amount. Those amounts will equal 100% of the exercise price in the case of a
non cash-settled put, the same as an OCC guaranteed listed option sold by the Fund, or the
in-the-money amount plus any sell-back formula amount in the case of a cash-settled put or call.
In addition, when the Fund sells a call option on an index at a time when the in-the-money amount
exceeds the exercise price, the Fund will segregate, until the option expires or is closed out,
cash or cash equivalents equal in value to such excess. OTC options other than those above may
also settle with physical delivery, or with an election of either physical delivery or cash
settlement and the Fund will segregate an amount of cash or liquid assets equal to the full value
of the option. OTC options settling with physical delivery, or with an election of either physical
delivery or cash settlement, will be treated the same as other options settling with physical
delivery.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an option written by the Fund expires, the Fund will generally realize a short-term capital
gain equal to the premium received at the time the option was written. If an option purchased by
the Fund
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expires, the Fund realizes a capital loss equal to the premium paid, which will either be
short-term or long-term depending on the Fund&#146;s holding period for the option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will generally realize a capital gain from a closing purchase transaction if the cost
of the closing option is less than the premium received from writing the option, or, if it is more,
the Fund will generally realize a capital loss. If the premium received from a closing sale
transaction is more than the premium paid to purchase the option, the Fund will generally realize a
capital gain or, if it is less, the Fund will generally realize a capital loss. The principal
factors affecting the market value of a put or a call option include supply and demand, interest
rates, the current market price of the underlying security or index in relation to the exercise
price of the option, the volatility of the underlying security or index, and the time remaining
until the expiration date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A put option purchased by the Fund is an asset of the Fund, valued initially at the premium
paid for the option. The premium received for an option written by the Fund is recorded as a
deferred credit. The value of an option purchased or written is marked-to-market daily and is
valued at the closing price on the exchange on which it is traded or, if not traded on an exchange
or no closing price is available, at the mean between the last bid and asked prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Rule&nbsp;144A Securities</I>. The Fund may invest without limit in Rule&nbsp;144A Securities. Calamos,
under the supervision of the Board of Trustees, will consider whether securities purchased under
Rule&nbsp;144A are illiquid and thus subject to the Fund&#146;s limit on investing no more than 15% of its
managed assets in illiquid securities. A determination of whether a Rule&nbsp;144A Security is liquid
or not is a question of fact. In making this determination, Calamos will consider the trading
markets for the specific security, taking into account the unregistered nature of a Rule&nbsp;144A
Security. In addition, Calamos could consider the (1)&nbsp;frequency of trades and quotes, (2)&nbsp;number of
dealers and potential purchasers, (3)&nbsp;dealer undertakings to make a market and (4)&nbsp;nature of a
security and of marketplace trades (e.g., the time needed to dispose of the security, the method of
soliciting offers and the mechanics of transfer). The liquidity of Rule&nbsp;144A Securities will be
monitored and, if as a result of changed conditions, it is determined that a Rule&nbsp;144A Security is
no longer liquid, the Fund&#146;s holdings of illiquid securities would be reviewed to determine what,
if any, steps are required to assure that the Fund does not invest more than 15% of its managed
assets in illiquid securities. Investing in Rule&nbsp;144A Securities could have the effect of
increasing the amount of the portfolio&#146;s assets invested in illiquid securities if qualified
institutional buyers are unwilling to purchase such securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>U.S. Government Securities</I>. U.S. government securities in which the Fund invests include debt
obligations of varying maturities issued by the U.S. Treasury or issued or guaranteed by an agency
or instrumentality of the U.S. government, including the Federal Housing Administration, Federal
Financing Bank, Farmers Home Administration, Export-Import Bank of the United States, Small
Business Administration, Government National Mortgage Association, General Services Administration,
Central Bank for Cooperatives, Federal Farm Credit Banks, Federal Home Loan Banks, Federal Home
Loan Mortgage Corporation, Federal National Mortgage Association (&#147;FNMA&#148;), Maritime Administration,
Tennessee Valley Authority, District of Columbia Armory Board, Student Loan Marketing Association,
Resolution Fund Corporation and various institutions that previously were or currently are part of
the Farm Credit System (which has been undergoing reorganization since 1987). Some U.S. government
securities, such as U.S. Treasury bills, Treasury notes and Treasury bonds, which differ only in
their interest rates, maturities and times of issuance, are supported by the full faith and credit
of the United States. Others are supported by: (i)&nbsp;the right of the issuer to borrow from the
U.S. Treasury, such as securities of the Federal Home Loan Banks; (ii)&nbsp;the discretionary authority
of the U.S. government to purchase the agency&#146;s obligations, such as securities of the FNMA; or
(iii)&nbsp;only the credit of the issuer. No assurance can be given that the U.S. government will
provide financial support in the future to U.S.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">government agencies, authorities or instrumentalities that are not supported by the full faith
and credit of the United States. Securities guaranteed as to principal and interest by the U.S.
government, its agencies, authorities or instrumentalities include: (i)&nbsp;securities for which the
payment of principal and interest is backed by an irrevocable letter of credit issued by the U.S.
government or any of its agencies, authorities or instrumentalities; and (ii)&nbsp;participations in
loans made to non-U.S. governments or other entities that are so guaranteed. The secondary market
for certain of these participations is limited and, therefore, may be regarded as illiquid. U.S.
Government securities include STRIPS and CUBES, which are issued by the U.S. Treasury as component
parts of U.S. Treasury bonds and represent scheduled interest and principal payments on the bonds.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Zero Coupon Securities</I>. The securities in which the Fund invests may include zero coupon
securities, which are debt obligations that are issued or purchased at a significant discount from
face value. The discount approximates the total amount of interest the security will accrue and
compound over the period until maturity or the particular interest payment date at a rate of
interest reflecting the market rate of the security at the time of issuance. Zero coupon securities
do not require the periodic payment of interest. These investments benefit the issuer by
mitigating its need for cash to meet debt service, but generally require a higher rate of return to
attract investors who are willing to defer receipt of cash. These investments may experience
greater volatility in market value than U.S. government or other securities that make regular
payments of interest. The Fund accrues income on these investments for tax and accounting
purposes, which is distributable to shareholders and which, because no cash is received at the time
of accrual, may require the liquidation of other portfolio securities to satisfy the Fund&#146;s
distribution obligations, in which case the Fund will forgo the opportunity to purchase additional
income producing assets with the liquidation proceeds. Zero coupon U.S. government securities
include STRIPS and CUBES, which are issued by the U.S. Treasury as component parts of U.S. Treasury
bonds and represent scheduled interest and principal payments on the bonds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other Investment Companies</I>. The Fund may invest in the securities of other investment
companies to the extent that such investments are consistent with the Fund&#146;s investment objective
and policies and are permissible under the 1940 Act. Under the 1940 Act, the Fund may not acquire
the securities of other domestic or non-U.S. investment companies if, as a result, (1)&nbsp;more than
10% of the Fund&#146;s total assets would be invested in securities of other investment companies, (2)
such purchase would result in more than 3% of the total outstanding voting securities of any one
investment company being held by the Fund, or (3)&nbsp;more than 5% of the Fund&#146;s total assets would be
invested in any one investment company. These limitations do not apply to the purchase of shares
of money market funds or of any investment company in connection with a merger, consolidation,
reorganization or acquisition of substantially all the assets of another investment company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund, as a holder of the securities of other investment companies, will bear its pro rata
portion of the other investment companies&#146; expenses, including advisory fees. These expenses are
in addition to the direct expenses of the Fund&#146;s own operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Temporary Defensive Investments</I>. Under unusual market or economic conditions or for temporary
defensive purposes, the Fund may invest up to 100% of its total assets in securities issued or
guaranteed by the U.S. government or its instrumentalities or agencies, certificates of deposit,
bankers&#146; acceptances and other bank obligations, commercial paper rated in the highest category by
a NRSRO or other fixed income securities deemed by Calamos to be consistent with a defensive
posture, or may hold cash. The yield on such securities may be lower than the yield on lower rated
fixed income securities. During such periods, the Fund may not be able to achieve its investment
objective.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Repurchase Agreements</I>. The Fund may enter into repurchase agreements with broker-dealers,
member banks of the Federal Reserve System and other financial institutions. Repurchase agreements
are arrangements under which the Fund purchases securities and the seller agrees to repurchase the
securities within a specific time and at a specific price. The repurchase price is generally
higher than the Fund&#146;s purchase price, with the difference being income to the Fund. The
counterparty&#146;s obligations under the repurchase agreement are collateralized with U.S. Treasury
and/or agency obligations with a market value of not less than 100% of the obligations, valued
daily. Collateral is held by the Fund&#146;s custodian in a segregated, safekeeping account for the
benefit of the Fund. Repurchase agreements afford the Fund an opportunity to earn income on
temporarily available cash at low risk. In the event of commencement of bankruptcy or insolvency
proceedings with respect to the seller of the security before repurchase of the security under a
repurchase agreement, the Fund may encounter delay and incur costs before being able to sell the
security. Such a delay may involve loss of interest or a decline in price of the security. If a
court characterizes a repurchase transaction as a loan and the Fund has not perfected a security
interest in the security, the Fund may be required to return the security to the seller&#146;s estate
and be treated as an unsecured creditor of the seller. As an unsecured creditor, the Fund would be
at risk of losing some or all of the principal and interest involved in the transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lending of Portfolio Securities</I>. The Fund may lend portfolio securities to registered
broker-dealers or other institutional investors deemed by Calamos to be of good standing under
agreements which require that the loans be secured continuously by collateral in cash, cash
equivalents or U.S. Treasury bills maintained on a current basis at an amount at least equal to the
market value of the securities loaned. The Fund continues to receive the equivalent of the
interest or dividends paid by the issuer on the securities loaned as well as the benefit of an
increase and the detriment of any decrease in the market value of the securities loaned and would
also receive compensation based on investment of the collateral. The Fund would not, however, have
the right to vote any securities having voting rights during the existence of the loan, but could
call the loan in anticipation of an important vote to be taken among holders of the securities or
of the giving or withholding of consent on a material matter affecting the investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As with other extensions of credit, there are risks of delay in recovery or even loss of
rights in the collateral should the borrower of the securities fail financially. At no time would
the value of the securities loaned exceed 33 1/3% of the value of the Fund&#146;s total assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Portfolio Turnover</I>. Although the Fund does not purchase securities with a view to rapid
turnover, there are no limitations on the length of time that portfolio securities must be held.
Portfolio turnover can occur for a number of reasons, including calls for redemption, general
conditions in the securities markets, more favorable investment opportunities in other securities,
or other factors relating to the desirability of holding or changing a portfolio investment. The
portfolio turnover rates may vary greatly from year to year. A high rate of portfolio turnover in
the Fund would result in increased transaction expense, which must be borne by the Fund. High
portfolio turnover may also result in the realization of capital gains or losses and, to the extent
net short-term capital gains are realized, any distributions resulting from such gains will be
considered ordinary income for federal income tax purposes.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conflicts of interest may arise from the fact that Calamos and its affiliates carry on
substantial investment activities for other clients, in which we have no interest, some of which
may have similar investment strategies as us. Calamos or its affiliates may have financial
incentives to favor certain of such accounts over us. Any of their proprietary accounts and other
customer accounts may compete with
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">us for specific trades. Calamos or its affiliates may give advice and recommend securities
to, or buy or sell securities for, us which advice or securities may differ from advice given to,
or securities recommended or bought or sold for, other accounts and customers, even though their
investment objectives may be the same as, or similar to, our objectives. When two or more clients
advised by Calamos or its affiliates seek to purchase or sell the same publicly traded securities,
the securities actually purchased or sold will be allocated among the clients on a good faith
equitable basis by Calamos in its discretion and in accordance with the client&#146;s various investment
objectives and Calamos&#146; procedures. In some cases, this system may adversely affect the price or
size of the position we may obtain or sell. In other cases, our ability to participate in volume
transactions may produce better execution for us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos will evaluate a variety of factors in determining whether a particular investment
opportunity or strategy is appropriate and feasible for the relevant account at a particular time,
including, but not limited to, the following: (1)&nbsp;the nature of the investment opportunity taken
in the context of the other investments at the time; (2)&nbsp;the liquidity of the investment relative
to the needs of the particular entity or account; (3)&nbsp;the availability of the opportunity (i.e.,
size of obtainable position); (4)&nbsp;the transaction costs involved; and (5)&nbsp;the investment or
regulatory limitations applicable to the particular entity or account. Because these
considerations may differ when applied to us and relevant accounts under management in the context
of any particular investment opportunity, our investment activities, on the one hand, and other
managed accounts, on the other hand, may differ considerably from time to time. In addition, our
fees and expenses will differ from those of the other managed accounts. Accordingly, investors
should be aware that our future performance and future performance of other accounts of Calamos may
vary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Situations may occur when we could be disadvantaged because of the investment activities
conducted by Calamos and its affiliates for its other funds or accounts. Such situations may be
based on, among other things, the following: (1)&nbsp;legal or internal restrictions on the combined
size of positions that may be taken for us or the other accounts, thereby limiting the size of our
position; (2)&nbsp;the difficulty of liquidating an investment for us or the other accounts where the
market cannot absorb the sale of the combined position; or (3)&nbsp;limits on co-investing in negotiated
transactions under the 1940 Act, as discussed further below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos and its principals, officers, employees, and affiliates may buy and sell securities or
other investments for their own accounts and may have actual or potential conflicts of interest
with respect to investments made on our behalf. As a result of differing trading and investment
strategies or constraints, positions may be taken by principals, officers, employees, and
affiliates of Calamos that are the same as, different from, or made at a different time than
positions taken for us.
</DIV>
<DIV align="left">
<A name="108"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may issue preferred shares or debt securities or borrow to increase its assets
available for investment. The Fund has Preferred Shares outstanding with an aggregate liquidation
preference representing approximately 27.39% of the Fund&#146;s total
assets as of December&nbsp;31, 2007. As a
non-fundamental policy, the aggregate liquidation of preferred shares and the aggregate principal
amount of debt securities or borrowings may not exceed 38% of the Fund&#146;s total assets. However,
the Board of Trustees reserves the right to issue preferred shares or debt securities or borrow to
the extent permitted by the 1940 Act. The Fund generally will not issue preferred shares or debt
securities or borrow unless Calamos expects that the Fund will achieve a greater return on such
leverage than the additional costs the Fund incurs as a result of such leverage. The Fund also may
borrow money as a temporary measure for extraordinary or emergency purposes, including the payment
of dividends and the settlement of securities transactions, which otherwise might require untimely
dispositions of the Fund&#146;s holdings. When the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>

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



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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fund leverages its assets, the fees paid to Calamos for investment management services will be
higher than if the Fund did not leverage because Calamos&#146; fees are calculated based on the Fund&#146;s
managed assets, which include the proceeds of the issuance of preferred shares or debt securities
or any outstanding borrowings. Consequently, the Fund and Calamos may have differing interests in
determining whether to leverage the Fund&#146;s assets. The
Fund&#146;s Board of Trustees monitors any potential conflicts of interest on
an ongoing basis.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s use of leverage is premised upon the expectation that the Fund&#146;s leverage costs
will be lower than the return the Fund achieves on its investments with the leverage proceeds.
Such difference in return may result from the Fund&#146;s higher credit rating or the short-term nature
of its borrowing compared to the long-term nature of its investments. Because Calamos seeks to
invest the Fund&#146;s total assets (including the assets obtained from leverage) in the higher yielding
portfolio investments or portfolio investments with the potential for capital appreciation, the
holders of common shares will be the beneficiaries of any incremental return. Should the
differential between the underlying assets and cost of leverage narrow, the incremental return
&#147;pick up&#148; will be reduced. Furthermore, if long-term interest rates rise without a corresponding
increase in the yield on the Fund&#146;s portfolio investments or the Fund otherwise incurs losses on
its investments, the Fund&#146;s net asset value attributable to its common shares will reflect the
decline in the value of portfolio holdings resulting therefrom.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leverage creates risks which may adversely affect the return for the holders of common shares,
including:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the likelihood of greater volatility of net asset value and market price of common shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fluctuations in the dividend rates on any preferred shares or in interest rates on
borrowings and short-term debt;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increased operating costs, which are effectively borne by common shareholders, may
reduce the Fund&#146;s total return; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the potential for a decline in the value of an investment acquired with borrowed
funds, while the Fund&#146;s obligations under such borrowing remains fixed.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leverage is a speculative technique that could adversely affect the returns to common
shareholders. Leverage can cause the Fund to lose money and can magnify the effect of any losses.
To the extent the income or capital appreciation derived from securities purchased with funds
received from leverage exceeds the cost of leverage, the Fund&#146;s return will be greater than if
leverage had not been used. Conversely, if the income or capital appreciation from the securities
purchased with such funds is not sufficient to cover the cost of leverage or if the Fund incurs
capital losses, the return of the Fund will be less than if leverage had not been used, and
therefore the amount available for distribution to common shareholders as dividends and other
distributions will be reduced or potentially eliminated (or will consist of return of capital).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos may determine to maintain the Fund&#146;s leveraged position if it expects that the
long-term benefits to the Fund&#146;s common shareholders of maintaining the leveraged position will
outweigh the current reduced return. Capital raised through the issuance of preferred shares or
debt securities or borrowing will be subject to dividend payments or interest costs that may or may
not exceed the income and appreciation on the assets purchased. The issuance of additional classes
of preferred shares involves offering expenses and other costs and may limit the Fund&#146;s freedom to
pay dividends on common shares or to engage in other activities. The Fund also may be required to
maintain minimum average balances in connection with borrowings or to pay a commitment or other fee
to maintain a line of credit; either of these requirements would increase the cost of borrowing
over the stated interest rate. The Fund will pay
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(and common shareholders will bear) any costs and expenses relating to any borrowings and to
the issuance and ongoing maintenance of preferred shares or debt securities (for example,
distribution-related expenses such as a participation fee paid at an annual rate of 0.25% of
preferred share liquidation preference to broker-dealers successfully participating in Preferred
Share auctions, the higher management fee resulting from the use of any such leverage, and interest
and/or dividend expense and ongoing maintenance). Net asset value will be reduced immediately
following any additional offering of preferred shares or debt securities by the costs of that
offering paid by the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the 1940 Act, the Fund is not permitted to issue preferred shares unless immediately
after such issuance the Fund has an asset coverage of at least 200% of the liquidation value of the
aggregate amount of outstanding preferred shares (i.e., such liquidation value may not exceed 50%
of the value of the Fund&#146;s total assets). Under the 1940 Act, the Fund may only issue one class of
senior securities representing equity. So long as preferred shares are outstanding, additional
senior equity securities must rank on a parity with the preferred shares. In addition, the Fund is
not permitted to declare any cash dividend or other distribution on its common shares unless, at
the time of such declaration, the net asset value of the Fund&#146;s portfolio (determined after
deducting the amount of such dividend or distribution) is at least 200% of such liquidation value.
Under the 1940 Act, the Fund is not permitted to incur indebtedness unless immediately after such
borrowing the Fund has an asset coverage of at least 300% of the aggregate outstanding principal
balance of indebtedness (i.e., such indebtedness may not exceed 33 1/3% of the value of the Fund&#146;s
total assets). Under the 1940 Act, the Fund may only issue one class of senior securities
representing indebtedness. Additionally, under the 1940 Act, the Fund may not declare any dividend
or other distribution upon any class of its shares, or purchase any such shares, unless the
aggregate indebtedness of the Fund has, at the time of the declaration of any such dividend or
distribution or at the time of any such purchase, an asset coverage of at least 300% after
deducting the amount of such dividend, distribution, or purchase price, as the case may be.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is subject to certain restrictions on investments imposed by guidelines of Standard&nbsp;&#038;
Poor&#146;s and Fitch, which have issued ratings for the Preferred Shares and may do so for any debt
securities or preferred shares issued by the Fund in the future. These guidelines impose asset coverage and portfolio composition
requirements that are more stringent than those imposed by the 1940 Act. Certain types of
borrowings may result in the Fund being subject to covenants in credit agreements, including those
relating to asset coverage, borrowing base and portfolio composition requirements and additional
covenants that may affect the Fund&#146;s ability to pay dividends and distributions on common shares in
certain instances. The Fund also may be required to pledge its assets to the lenders in connection
with certain types of borrowings. Calamos does not anticipate that these covenants or restrictions
will adversely affect its ability to manage the Fund&#146;s portfolio in accordance with the Fund&#146;s
investment objective and policies. Due to these covenants or restrictions, the Fund may be forced
to liquidate investments at times and at prices that are not favorable to the Fund, or the Fund may
be forced to forgo investments that Calamos otherwise views as favorable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The extent to which the Fund employs leverage will depend on many factors, the most important
of which are investment outlook, market conditions and interest rates. Successful use of a
leveraging strategy depends on Calamos&#146; ability to predict correctly interest rates and market
movements. There is no assurance that a leveraging strategy will be successful during any period
in which it is employed.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;6, 2006, the Fund issued Preferred Shares with an aggregate liquidation preference
of $59,000,000. The aggregate liquidation preference of Preferred Shares represented approximately
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">27.39% of
the Fund&#146;s total assets as of December 31, 2007. Asset coverage with respect to the
Preferred Shares was 365.14% as of that date. The dividend rate payable by the Fund on the Preferred
Shares varies based on auctions normally held every 7 or
28&nbsp;days. As of December&nbsp;31, 2007, a dividend
rate of 6.00% per year was in effect for Series&nbsp;T Preferred Shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table illustrates the hypothetical effect on the return to a holder of the
Fund&#146;s common shares of the leverage obtained by issuing preferred shares with a liquidation value
equal to 33% of the Fund&#146;s total assets, assuming hypothetical annual returns of the Fund&#146;s
portfolio of minus 10% to plus 10% and dividends on preferred shares
at an annual dividend rate of 6.00%. The purpose of the table is to assist you in understanding the effects of leverage. As
the table shows, leverage generally increases the return to shareholders when portfolio return is
positive and greater than the cost of leverage and decreases the return when the portfolio return
is negative or less than the cost of leverage. The figures appearing in the table are hypothetical
and actual returns may be greater or less than those appearing in the table.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assumed Portfolio Return (Net of Expenses)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corresponding Common Share Return</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>-18.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>-10.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right" nowrap>-3.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.00</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
further information about leveraging, see &#147;Risk Factors
&#151;Additional Risks to Common Shareholders&#151;Leverage.&#148;
</DIV>

<DIV align="left">
<A name="109"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to reduce the interest rate risk inherent in the Fund&#146;s underlying investments and
capital structure, the Fund, if market conditions are deemed favorable, may enter into interest
rate swap or cap transactions to attempt to protect itself from increasing dividend or interest
expenses on its leverage and to hedge portfolio securities from interest rate changes. Interest
rate swaps involve the Fund&#146;s agreement with the swap counterparty to pay a fixed rate payment in
exchange for the counterparty agreeing to pay the Fund a payment at a variable rate that is
expected to approximate the rate of any variable rate payment obligation on the Fund&#146;s leverage.
The payment obligations would be based on the notional amount of the swap.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may use an interest rate cap, which would require it to pay a premium to the
counterparty and would entitle it, to the extent that a specified variable rate index exceeds a
predetermined fixed rate, to receive from the counterparty payment of the difference based on the
notional amount of such cap. The Fund would use interest rate swaps or caps only with the intent
to reduce or eliminate the risk that an increase in short-term interest rates could have on common
share net earnings as a result of leverage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will usually enter into swaps or caps on a net basis; that is, the two payment
streams will be netted out in a cash settlement on the payment date or dates specified in the
instrument, with the Fund receiving or paying, as the case may be, only the net amount of the two
payments. The Fund intends to segregate with its custodian cash or liquid securities having a
value at least equal to the Fund&#146;s net payment obligations under any swap transaction,
marked-to-market daily.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The use of interest rate swaps and caps is a highly specialized activity that involves
investment techniques and risks different from those associated with ordinary portfolio security
transactions. Depending on the state of interest rates in general, the Fund&#146;s use of interest rate
swaps or caps could enhance or harm the overall performance of the Fund&#146;s common shares. To the
extent that there is a decline in interest rates for maturities equal to the remaining maturity on
the Fund&#146;s fixed rate payment obligation under the interest rate swap or equal to the remaining
term of the interest rate cap, the value of
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the swap or cap (which initially has a value of zero) could decline, and could result in a
decline in the net asset value of the common shares. If, on the other hand, such rates were to
increase, the value of the swap or cap could increase, and thereby increase the net asset value of
the common shares. As interest rate swaps or caps approach their maturity, their positive or
negative value due to interest rate changes will approach zero.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, if the short-term interest rates effectively received by the Fund during the term
of an interest rate swap are lower than the Fund&#146;s fixed rate of payment on the swap, the swap will
increase the Fund&#146;s operating expenses and reduce common share net earnings. For example, if the
Fund were to (A)&nbsp;issue Preferred Shares representing 33% of the Fund&#146;s total assets and (B)&nbsp;enter
into one or more interest rate swaps in a notional amount equal to 75% of its outstanding Preferred
Shares under which the Fund would receive a short-term swap rate of 5.01% and pay a fixed swap rate
of 5.35% over the term of the swap, the swap would effectively increase Fund expenses and reduce
Fund common share net earnings by approximately 0.13% as a percentage of net assets attributable to
common shares and approximately 0.08% as a percentage of managed assets. If, on the other hand,
the short-term interest rates effectively received by the Fund are higher than the Fund&#146;s fixed
rate of payment on the interest rate swap, the swap would enhance common share net earnings. In
either case, the swap would have the effect of reducing fluctuations in the Fund&#146;s cost of leverage
due to changes in short-term interest rates during the term of the swap. The example above is
purely for illustrative purposes and is not predictive of the actual percentage of the Fund&#146;s
leverage that will be hedged by a swap, the actual fixed rates that the Fund will pay under the
swap (which will depend on market interest rates for the applicable maturities at the time the Fund
enters into swaps) or the actual short-term rates that the Fund will receive on any swaps (which
fluctuate frequently during the term of the swap, and may change significantly from initial
levels), or the actual impact such swaps will have on the Fund&#146;s expenses and common share net
earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buying interest rate caps could enhance the performance of the Fund&#146;s common shares by
providing a maximum leverage expense. Buying interest rate caps could also increase the operating
expenses of the Fund and decrease the net earnings of the common shares in the event that the
premium paid by the Fund to the counterparty exceeds the additional amount the Fund would have been
required to pay on its preferred shares due to increases in short-term interest rates during the
term of the cap had it not entered into the cap agreement. The Fund has no current intention of
selling an interest rate swap or cap. The Fund will monitor any interest rate swaps or caps with a
view to ensuring that it remains in compliance with the federal
income tax requirements for qualification as a regulated investment
company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps and caps do not involve the delivery of securities or other underlying
assets or principal. Accordingly, the risk of loss with respect to interest rate swaps and caps is
limited to the net amount of interest payments that the Fund is contractually obligated to make.
If the counterparty defaults, the Fund would not be able to use the anticipated net receipts under
the swap or cap to offset the dividend or interest payments on the Fund&#146;s leverage. Depending on
whether the Fund would be entitled to receive net payments from the counterparty on the swap or
cap, which in turn would depend on the general state of short-term interest rates at that point in
time, such a default could negatively impact the performance of the common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will not enter into an interest rate swap or cap transaction with any counterparty
that Calamos believes does not have the financial resources to honor its obligation under the
interest rate swap or cap transaction. Further, Calamos will continually monitor the financial
stability of a counterparty to an interest rate swap or cap transaction in an effort to proactively
protect the Fund&#146;s investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, at the time the interest rate swap or cap transaction reaches its scheduled
termination date, there is a risk that the Fund will not be able to obtain a replacement
transaction or that
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the terms of the replacement will not be as favorable as on the expiring transaction. If this
occurs, it could have a negative impact on the performance of the Fund&#146;s common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may choose or be required to redeem some or all preferred shares or prepay any
borrowings. This redemption or prepayment would likely result in the Fund seeking to terminate
early all or a portion of any swap or cap transaction. Such early termination of a swap could
result in a termination payment by or to the Fund. An early termination of a cap could result in a
termination payment to the Fund.
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investing in any of our securities involves risk, including the risk that you may receive
little or no return on your investment or even that you may lose part or all of your investment.
Therefore, before investing in any of our securities you should consider carefully the following
risks, as well as any risk factors included in the applicable prospectus supplement.</I>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>General</I>. The Fund is a diversified, closed-end management investment company designed
primarily as a long-term investment and not as a trading tool. The Fund invests primarily in a
diversified portfolio of common and preferred stocks, convertible securities and income-producing
securities such as investment grade and below investment grade debt securities. An investment in
the Fund&#146;s common shares may be speculative and it involves a high degree of risk. The Fund should
not constitute a complete investment program. Due to the uncertainty in all investments, there can
be no assurance that the Fund will achieve its investment objective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Equity Securities Risk</I>. Equity investments are subject to greater fluctuations in market
value than other asset classes as a result of such factors as the issuer&#146;s business performance,
investor perceptions, stock market trends and general economic conditions. Equity securities are
subordinated to bonds and other debt instruments in a company&#146;s capital structure in terms of
priority to corporate income and liquidation payments. The Fund may invest in preferred stocks and
convertible securities of any rating, including below investment grade.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>High Yield Securities Risk</I>. The Fund may invest in high yield securities of any rating.
Investment in high yield securities involves substantial risk of loss. Below investment grade
non-convertible debt securities or comparable unrated securities are commonly referred to as &#147;junk
bonds&#148; and are considered predominantly speculative with respect to the issuer&#146;s ability to pay
interest and principal and are susceptible to default or decline in market value due to adverse
economic and business developments. The market values for high yield securities tend to be very
volatile, and these securities are less liquid than investment grade debt securities. For these
reasons, your investment in the Fund is subject to the following specific risks:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increased price sensitivity to changing interest rates and to a deteriorating
economic environment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>greater risk of loss due to default or declining credit quality;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse company specific events are more likely to render the issuer unable to make
interest and/or principal payments; and</TD>
</TR>

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

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


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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a negative perception of the high yield market develops, the price and liquidity
of high yield securities may be depressed. This negative perception could last for a
significant period of time.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities rated below investment grade are speculative with respect to the capacity to pay
interest and repay principal in accordance with the terms of such securities. A rating of C from
Moody&#146;s means that the issue so rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing. Standard &#038; Poor&#146;s assigns a rating of C to issues that are
currently highly vulnerable to nonpayment, and the C rating may be used to cover a situation in
which a bankruptcy petition has been filed or similar action taken, but payments on the obligation
are being continued (a C rating is also assigned to a preferred stock issue in arrears on dividends
or sinking fund payments, but that is currently paying). See the statement of additional
information for a description of Moody&#146;s and Standard &#038; Poor&#146;s ratings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adverse changes in economic conditions are more likely to lead to a weakened capacity of a
high yield issuer to make principal payments and interest payments than an investment grade issuer.
The principal amount of high yield securities outstanding has proliferated in the past decade as
an increasing number of issuers have used high yield securities for corporate financing. An
economic downturn could severely affect the ability of highly leveraged issuers to service their
debt obligations or to repay their obligations upon maturity. Similarly, downturns in
profitability in specific industries could adversely affect the ability of high yield issuers in
those industries to meet their obligations. The market values of lower quality debt securities
tend to reflect individual developments of the issuer to a greater extent than do higher quality
securities, which react primarily to fluctuations in the general level of interest rates. Factors
having an adverse impact on the market value of lower quality securities may have an adverse effect
on the Fund&#146;s net asset value and the market value of its common shares. In addition, the Fund may
incur additional expenses to the extent it is required to seek recovery upon a default in payment
of principal or interest on its portfolio holdings. In certain circumstances, the Fund may be
required to foreclose on an issuer&#146;s assets and take possession of its property or operations. In
such circumstances, the Fund would incur additional costs in disposing of such assets and potential
liabilities from operating any business acquired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The secondary market for high yield securities may not be as liquid as the secondary market
for more highly rated securities, a factor that may have an adverse effect on the Fund&#146;s ability to
dispose of a particular security. There are fewer dealers in the market for high yield securities
than for investment grade obligations. The prices quoted by different dealers may vary
significantly and the spread between the bid and asked price is generally much larger than for
higher quality instruments. Under adverse market or economic conditions, the secondary market for
high yield securities could contract further, independent of any specific adverse changes in the
condition of a particular issuer, and these instruments may become illiquid. As a result, the Fund
could find it more difficult to sell these securities or may be able to sell the securities only at
prices lower than if such securities were widely traded. Prices realized upon the sale of such
lower rated or unrated securities, under these circumstances, may be less than the prices used in
calculating the Fund&#146;s net asset value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since investors generally perceive that there are greater risks associated with lower quality
debt securities of the type in which the Fund may invest a portion of its assets, the yields and
prices of such securities may tend to fluctuate more than those for higher rated securities. In
the lower quality segments of the debt securities market, changes in perceptions of issuers&#146;
creditworthiness tend to occur more frequently and in a more pronounced manner than do changes in
higher quality segments of the debt securities market, resulting in greater yield and price
volatility.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund invests in high yield securities that are rated C or below, the Fund will incur
significant risk in addition to the risks associated with investments in high yield securities and
corporate loans. Distressed securities frequently do not produce income while they are
outstanding. The Fund may purchase distressed securities that are in default or the issuers of
which are in bankruptcy. The Fund may be required to bear certain extraordinary expenses in order
to protect and recover its investment. The Fund also will be subject to significant uncertainty as
to when and in what manner and for what value the obligations evidenced by the distressed
securities will eventually be satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Foreign Securities Risk</I>. Investments in non-U.S. issuers may involve unique risks compared to
investing in securities of U.S. issuers. These risks are more pronounced to the extent that the
Fund invests a significant portion of its non-U.S. investments in one region or in the securities
of emerging market issuers. These risks may include:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>less information about non-U.S. issuers or markets may be available due to less
rigorous disclosure or accounting standards or regulatory practices;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>many non-U.S. markets are smaller, less liquid and more volatile. In a changing
market, Calamos may not be able to sell the Fund&#146;s portfolio securities at times, in
amounts and at prices it considers reasonable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the economies of non-U.S. countries may grow at slower rates than expected or may
experience a downturn or recession;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>economic, political and social developments may adversely affect the securities
markets, including expropriation and nationalization;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the difficulty in obtaining or enforcing a court judgment in non-U.S. countries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>restrictions on foreign investments in non-U.S. jurisdictions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties in effecting the repatriation of capital invested in non-U.S.
countries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>withholding and other non-U.S. taxes may decrease the Fund&#146;s return; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>dividend income the Fund receives from foreign securities may not be eligible for
the special tax treatment applicable to qualified dividend income.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There may be less publicly available information about non-U.S. markets and issuers than is
available with respect to U.S. securities and issuers. Non-U.S. companies generally are not
subject to accounting, auditing and financial reporting standards, practices and requirements
comparable to those applicable to U.S. companies. The trading markets for most non-U.S. securities
are generally less liquid and subject to greater price volatility than the markets for comparable
securities in the United States. The markets for securities in certain emerging markets are in the
earliest stages of their development. Even the markets for relatively widely traded securities in
certain non-U.S. markets, including emerging market countries, may not be able to absorb, without
price disruptions, a significant increase in trading volume or trades of a size customarily
undertaken by institutional investors in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, market making and arbitrage activities are generally less extensive in such
markets, which may contribute to increased volatility and reduced liquidity.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

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


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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Economies and social and political conditions in individual countries may differ unfavorably
from the United States. Non-U.S. economies may have less favorable rates of growth of gross
domestic product, rates of inflation, currency valuation, capital reinvestment, resource
self-sufficiency and balance of payments positions. Many countries have experienced substantial,
and in some cases extremely high, rates of inflation for many years. Inflation and rapid
fluctuations in inflation rates have had, and may continue to have, very negative effects on the
economies and securities markets of certain emerging market countries. Unanticipated political or
social developments may also affect the values of the Fund&#146;s investments and the availability to
the Fund of additional investments in such countries.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
upon the Fund&#146;s test for determining whether an issuer is a
&#147;foreign issuer&#148; as described above, it is possible that an
issuer of securities in which the Fund invests could be organized
under the laws of a foreign country, yet still conduct a substantial
portion of its business in the U.S. or have substantial assets in the
U.S. In this case, such a &#147;foreign issuer&#148; may be subject
to the market conditions in the U.S. to a greater extent than it may
be subject to the market conditions in the country of its organization.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Currency Risk</I>. The value of the securities denominated or quoted in foreign currencies may be
adversely affected by fluctuations in the relative currency exchange rates and by exchange control
regulations. The Fund&#146;s investment performance may be negatively affected by a devaluation of a
currency in which the Fund&#146;s investments are denominated or quoted. Further, the Fund&#146;s investment
performance may be significantly affected, either positively or negatively, by currency exchange
rates because the U.S. dollar value of securities denominated or quoted in another currency will
increase or decrease in response to changes in the value of such currency in relation to the U.S.
dollar.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest Rate Risk</I>. Fixed income securities, including high yield securities, are subject to
certain common risks, including the following:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if interest rates go up, the value of debt securities in the Fund&#146;s portfolio
generally will decline;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>during periods of declining interest rates, the issuer of a security may exercise
its option to prepay principal earlier than scheduled, forcing the Fund to reinvest in
lower yielding securities. This is known as call or prepayment risk. Debt securities
frequently have call features that allow the issuer to repurchase the security prior to
its stated maturity. An issuer may redeem an obligation if the issuer can refinance
the debt at a lower cost due to declining interest rates or an improvement in the
credit standing of the issuer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>during periods of rising interest rates, the average life of certain types of
securities may be extended because of slower than expected principal payments. This
may lock in a below market interest rate, increase the security&#146;s duration (the
estimated period until the security is paid in full) and reduce the value of the
security. This is known as extension risk;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>rising interest rates could result in an increase in the cost of the Funds&#146; leverage
and could adversely affect the ability of the Fund to meet asset coverage requirements
with respect to leverage; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>market interest rates currently are at historically low levels.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Default Risk</I>. Default risk refers to the risk that a company that issues a debt security will
be unable to fulfill its obligations to repay principal and interest. The lower a debt security is
rated, the greater its default risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Liquidity Risk</I>. The Fund may invest up to 15% of its managed assets in securities that, at
the time of investment, are illiquid (determined using the Commission&#146;s standard applicable to
investment companies, i.e., securities that can not be disposed of within 7&nbsp;days in the ordinary
course of business at approximately the value at which the Fund has valued the securities). The
Fund may also invest without limit in Rule&nbsp;144A Securities. Calamos, under the supervision of the
Board of Trustees, will determine whether securities purchased under Rule&nbsp;144A are illiquid (that
is, not readily marketable) and thus
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">subject to the Fund&#146;s limit on investing no more than 15% of its managed assets in illiquid
securities. Investments in Rule&nbsp;144A Securities could have the effect of increasing the amount of
the Fund&#146;s assets invested in illiquid securities if qualified institutional buyers are unwilling
to purchase these Rule&nbsp;144A Securities. Illiquid securities may be difficult to dispose of at a
fair price at the times when the Fund believes it is desirable to do so. Investment of the Fund&#146;s
assets in illiquid securities may restrict the Fund&#146;s ability to take advantage of market
opportunities. The market price of illiquid securities generally is more volatile than that of
more liquid securities, which may adversely affect the price that the Fund pays for or recovers
upon the sale of illiquid securities. Illiquid securities are also more difficult to value and
Calamos&#146; judgment may play a greater role in the valuation process. The risks associated with
illiquid securities may be particularly acute in situations in which the Fund&#146;s operations require
cash and could result in the Fund borrowing to meet its short-term needs or incurring losses on the
sale of illiquid securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Convertible Securities Risk</I>. The value of a convertible security is influenced by both the
yield of non-convertible securities of comparable issuers and by the value of the underlying common
stocks. The value of a convertible security viewed without regard to its conversion feature (i.e.,
strictly on the basis of its yield) is sometimes referred to as its &#147;investment value.&#148; A
convertible security&#146;s investment value tends to decline as prevailing interest rate levels
increase. Conversely, a convertible security&#146;s investment value increases as prevailing interest
rate levels decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, a convertible security&#146;s market value will also be influenced by its &#147;conversion
price,&#148; which is the market value of the underlying common stock that would be obtained if the
convertible security were converted. A convertible security&#146;s conversion price tends to increase
as the price of the underlying common stock increases, and decrease as the price of the underlying
common stock decreases. As the market price of the underlying common stock declines such that the
conversion price is substantially below the investment value of the convertible security, the price
of the convertible security tends to be influenced more by the yield of the convertible security.
Thus, the convertible security may not decline in price to the same extent as the underlying common
stock. If the market price of the underlying common stock increases to a point where the
conversion value approximates or exceeds the investment value, the price of the convertible
security tends to be influenced more by the market price of the underlying common stock. In the
event of a liquidation of the issuing company, holders of convertible securities would be paid
before the company&#146;s common stockholders. Consequently, an issuer&#146;s convertible securities
generally entail less risk than its common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Synthetic Convertible Securities Risk</I>. The value of a synthetic convertible security may
respond differently to market fluctuations than a convertible security because a synthetic
convertible security is composed of two or more separate securities, each with its own market
value. In addition, if the value of the underlying common stock or the level of the index involved
in the convertible component falls below the exercise price of the warrant or option, the warrant
or option may lose all value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Risks Associated with Options</I>. There are several risks associated with transactions in
options. For example, there are significant differences between the securities markets and options
markets that could result in an imperfect correlation among these markets, causing a given
transaction not to achieve its objectives. A decision as to whether, when and how to use options
involves the exercise of skill and judgment, and even a well-conceived transaction may be
unsuccessful to some degree because of market behavior or unexpected events. The ability of the
Fund to utilize options successfully will depend on Calamos&#146; ability to predict pertinent market
movements, which cannot be assured.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s ability to close out its position as a purchaser or seller of an OCC or exchange
listed put or call option is dependent, in part, upon the liquidity of the option market. Among
the possible
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">reasons for the absence of a liquid option market are: (i)&nbsp;insufficient trading interest in
certain options; (ii)&nbsp;restrictions on transactions imposed by an exchange; (iii)&nbsp;trading halts,
suspensions or other restrictions imposed with respect to particular classes or series of options
or underlying securities, including reaching daily price limits; (iv)&nbsp;interruption of the normal
operations of the OCC or an exchange; (v)&nbsp;inadequacy of the facilities of an exchange or OCC to
handle current trading volume; or (vi)&nbsp;a decision by one or more exchanges to discontinue the
trading of options (or a particular class or series of options), in which event the relevant market
for that option on that exchange would cease to exist, although outstanding options on that
exchange would generally continue to be exercisable in accordance with their terms. If the Fund
were unable to close out an option that it has purchased on a security, it would have to exercise
the option in order to realize any profit or the option would expire and become worthless. If the
Fund were unable to close out a covered call option that it had written on a security, it would not
be able to sell the underlying security until the option expired. As the writer of a covered call
option on a security, the Fund foregoes, during the option&#146;s life, the opportunity to profit from
increases in the market value of the security covering the call option above the sum of the premium
and the exercise price of the call.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The hours of trading for listed options may not coincide with the hours during which the
underlying financial instruments are traded. To the extent that the option markets close before
the markets for the underlying financial instruments, significant price and rate movements can take
place in the underlying markets that cannot be reflected in the option markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the parties provide for it, there is no central clearing or guaranty function in an OTC
option. As a result, if the Counterparty (as described above under &#147;Principal Investment
Strategies&#151;Options in General&#148;) fails to make or take delivery of the security or other instrument
underlying an OTC option it has entered into with the Fund or fails to make a cash settlement
payment due in accordance with the terms of that option, the Fund will lose any premium it paid for
the option as well as any anticipated benefit of the transaction. Accordingly, Calamos must assess
the creditworthiness of each such Counterparty or any guarantor or credit enhancement of the
Counterparty&#146;s credit to determine the likelihood that the terms of the OTC option will be
satisfied. The Fund will engage in OTC option transactions only with U.S. government securities
dealers recognized by the Federal Reserve Bank of New York as &#147;primary dealers&#148; or broker/dealers,
domestic or foreign banks or other financial institutions that have received (or the guarantors of
the obligation of which have received) a short-term credit rating of A-1 from S&#038;P or P-1 from
Moody&#146;s or an equivalent rating from any NRSRO or, in the case of OTC currency transactions, are
determined to be of equivalent credit quality by Calamos.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may sell options on individual securities and securities indices. All calls sold by
the Fund must be &#147;covered.&#148; Even though the Fund will receive the option premium to help protect it
against loss, a call option sold by the Fund exposes the Fund during the term of the option to
possible loss of opportunity to realize appreciation in the market price of the underlying security
or instrument and may require the Fund to hold a security or instrument that it might otherwise
have sold. The Fund may purchase and sell put options on individual securities and securities
indices. In selling put options, there is a risk that the Fund may be required to buy the
underlying security at a disadvantageous price above the market price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax Risk</I>. The Fund may invest in certain securities, such as certain convertible and high
yield securities, for which the federal income tax treatment may not be clear or may be subject to
re-characterization by the IRS. It could be more difficult for the
Fund to comply with certain federal income tax
requirements applicable to regulated investment companies if the tax characterization of the Fund&#146;s
investments is uncertain or if the tax treatment of the income from such investments were
successfully challenged by the IRS. See &#147;Certain Federal Income Tax Matters.&#148;
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of the Fund&#146;s investment practices are subject to special and complex federal income
tax provisions that may, among other things, (i)&nbsp;disallow, suspend or otherwise limit the allowance
of certain losses or deductions, (ii)&nbsp;convert tax-advantaged, long-term capital gains and qualified
dividend income into higher taxed short-term capital gain or ordinary income, (iii)&nbsp;convert an
ordinary loss or a deduction into a capital loss (the deductibility of which is more limited),
(iv)&nbsp;cause the Fund to recognize income or gain without a corresponding receipt of cash,
(v)&nbsp;adversely affect the timing as to when a purchase or sale of stock or securities is deemed to
occur, and (vi)&nbsp;adversely alter the characterization of certain complex financial transactions.
The Fund will monitor its transactions and may make certain tax elections where applicable in order
to mitigate the effect of these provisions, if possible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Management Risk</I>. Calamos&#146; judgment about the attractiveness, relative value or potential
appreciation of a particular sector, security or investment strategy may prove to be incorrect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Antitakeover Provisions</I>. The Fund&#146;s Agreement and Declaration of Trust and Bylaws include
provisions that could limit the ability of other entities or persons to acquire control of the Fund
or to change the composition of its Board of Trustees. Such provisions could limit the ability of
shareholders to sell their shares at a premium over prevailing market prices by discouraging a
third party from seeking to obtain control of the Fund. These provisions include staggered terms
of office for the Trustees, advance notice requirements for shareholder proposals, and
super-majority voting requirements for certain transactions with affiliates, converting the Fund to
an open-end investment company or a merger, asset sale or similar transaction. Holders of
preferred shares have voting rights in addition to and separate from the voting rights of common
shareholders with respect to certain of these matters. See &#147;Description of Shares&#151;Preferred
Shares&#148; and &#147;Certain Provisions of the Agreement and Declaration of Trust and Bylaws.&#148; The holders
of preferred shares, on the one hand, and the holders of the common shares, on the other, may have
interests that conflict in these situations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Disruption Risk</I>. Certain events have a disruptive effect on the securities markets,
such as terrorist attacks, war and other geopolitical events, earthquakes, storms and other
disasters. The Fund cannot predict the effects of similar events in the future on the U.S. economy
or any foreign economy.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Leverage Risk</I>. The Fund has issued Preferred Shares and may issue additional preferred shares
or borrow money or issue debt securities. The Fund&#146;s use of leverage creates risk. As a
non-fundamental policy, such preferred shares, borrowing or debt securities may not exceed 38% of
the Fund&#146;s total assets. However, the Board of Trustees reserves the right to issue preferred
shares or borrow to the extent permitted by the 1940 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leverage creates risks which may adversely affect the return for the holders of common shares,
including:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the likelihood of greater volatility of net asset value and market price of common shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fluctuations in the dividend rates on any preferred shares or in interest rates on
borrowings and short-term debt;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increased operating costs, which are effectively borne by common shareholders, may
reduce the Fund&#146;s total return; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the potential for a decline in the value of an investment acquired with borrowed
funds, while the Fund&#146;s obligations under such borrowing remain fixed.</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s use of leverage is premised upon the expectation that the Fund&#146;s preferred share
dividends or borrowing cost will be lower than the return the Fund achieves on its investments with
the proceeds of the issuance of preferred shares or debt securities or borrowing. Such difference
in return may result from the Fund&#146;s higher credit rating or the short-term nature of its borrowing
compared to the long-term nature of its investments. Because Calamos seeks to invest the Fund&#146;s
total assets (including the assets obtained from leverage) in the higher yielding portfolio
investments or portfolio investments with the potential for capital appreciation, the holders of
common shares will be the beneficiaries of the incremental return. Should the differential between
the underlying assets and cost of leverage narrow, the incremental return &#147;pick up&#148; will be
reduced. Furthermore, if long-term interest rates rise without a corresponding increase in the
yield on the Fund&#146;s portfolio investments or the Fund otherwise incurs losses on its investments,
the Fund&#146;s net asset value attributable to its common shares will reflect the decline in the value
of portfolio holdings resulting therefrom.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leverage is a speculative technique that could adversely affect the returns to common
shareholders. Leverage can cause the Fund to lose money and can magnify the effect of any losses.
To the extent the income or capital appreciation derived from securities purchased with funds
received from leverage exceeds the cost of leverage, the Fund&#146;s return will be greater than if
leverage had not been used. Conversely, if the income or capital appreciation from the securities
purchased with such funds is not sufficient to cover the cost of leverage or if the Fund incurs
capital losses, the return of the Fund will be less than if leverage had not been used, and
therefore the amount available for distribution to common shareholders as dividends and other
distributions will be reduced or potentially eliminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund
will pay, and common shareholders will effectively bear, any costs and expenses relating to any
borrowings and to the issuance and ongoing maintenance of preferred shares or debt securities.
Such costs and expenses include the higher management fee resulting from the use of any such
leverage, offering and/or issuance costs, and interest and/or dividend expense and ongoing
maintenance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain types of borrowings may result in the Fund being subject to covenants in credit
agreements, including those relating to asset coverage, borrowing base and portfolio composition
requirements and additional covenants that may affect the Fund&#146;s ability to pay dividends and
distributions on common shares in certain instances. The Fund may also be required to pledge its
assets to the lenders in connection with certain types of borrowings. The Fund is subject to
certain restrictions on investments imposed by guidelines of Standard&nbsp;&#038; Poor&#146;s and Fitch, which
have issued ratings for the Preferred Shares and may do so for short-term debt instruments issued
by the Fund. These guidelines may impose asset coverage or portfolio composition requirements that
are more stringent than those imposed by the 1940 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund&#146;s ability to make dividends and distributions on its common shares is limited,
such limitation could, under certain circumstances, impair the ability of the Fund to maintain its
qualification for taxation as a regulated investment company, which would have adverse tax
consequences for common shareholders. To the extent that the Fund is required, in connection with
maintaining 1940 Act asset coverage requirements or otherwise, or elects to redeem any preferred
shares or debt securities or prepay any borrowings, the Fund may need to liquidate investments to
fund such redemptions or prepayments. Liquidation at times of adverse economic conditions may
result in capital loss and reduce returns to common shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because Calamos&#146; investment management fee is a percentage of the Fund&#146;s managed assets,
Calamos&#146; fee will be higher if the Fund is leveraged and Calamos will have an incentive to be more
aggressive and leverage the Fund. Consequently, the Fund and Calamos may have differing interests
in determining whether to leverage the Fund&#146;s assets. Any additional use of leverage by the Fund would require
approval by the Board of Trustees of the Fund. In considering whether to approve the use of
additional leverage, the Board would be presented with all relevant information necessary to make a
determination whether or not additional leverage would be in the best interests of the Fund,
including information regarding any potential conflicts of interest.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest Rate Transactions Risk</I>. The Fund may enter into an interest rate swap or cap
transaction to attempt to protect itself from increasing dividend or interest expenses on its
leverage resulting from increasing short-term interest rates. A decline in interest rates may
result in a decline in the value of the swap or cap, which may result in a decline in the net asset
value of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depending on the state of interest rates in general, the Fund&#146;s use of interest rate swap or
cap transactions could enhance or harm the overall performance of the common shares. To the extent
there is a decline in interest rates, the value of the interest rate swap or cap could decline, and
could result in a decline in the net asset value of the common shares. In addition, if the
counterparty to an interest rate swap or cap defaults, the Fund would not be able to use the
anticipated net receipts under the swap or cap to offset the dividend or interest payments on the
Fund&#146;s leverage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depending on whether the Fund would be entitled to receive net payments from the counterparty
on the swap or cap, which in turn would depend on the general state of short-term interest rates at
that point in time, such a default could negatively impact the performance of the common shares.
In addition, at the time an interest rate swap or cap transaction reaches its scheduled termination
date, there is a risk that the Fund would not be able to obtain a replacement transaction or that
the terms of the replacement would not be as favorable as on the expiring transaction. If either
of these events occurs, it could have a negative impact on the performance of the common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund fails to maintain a required 200% asset coverage of the liquidation value of the
outstanding preferred shares or if the Fund loses its rating on its preferred shares or fails to
maintain other covenants with respect to the preferred shares, the Fund may be required to redeem
some or all of the preferred shares. Similarly, the Fund could be required to prepay the principal
amount of any debt securities or other borrowings. Such redemption or prepayment would likely
result in the Fund seeking to terminate early all or a portion of any swap or cap transaction.
Early termination of a swap could result in a termination payment by or to the Fund. Early
termination of a cap could result in a termination payment to the Fund. The Fund intends to
segregate with its custodian cash or liquid securities having a value at least equal to the Fund&#146;s
net payment obligations under any swap transaction, marked-to-market daily.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Impact Risk</I>. The sale of our common shares (or the perception that such sales may
occur) may have an adverse effect on prices in the secondary market for our common shares. An
increase in the number of common shares available may put downward pressure on the market price for
our common shares. These sales also might make it more difficult for us to sell additional equity
securities in the future at a time and price we deem appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dilution Risk</I>. The voting power of current shareholders will be diluted to the extent that
current shareholders do not purchase shares in any future common share offerings or do not purchase
sufficient shares to maintain their percentage interest. In addition, if we are unable to invest
the proceeds of such offering as intended, our per share distribution may decrease and we may not
participate in market advances to the same extent as if such proceeds were fully invested as
planned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Discount Risk</I>. The Fund&#146;s common shares have traded both at a premium and at a
discount in relation to net asset value. Shares of closed-end investment companies frequently
trade at a discount from net asset value, but in some cases trade above net asset value. The risk
of the common shares trading at a discount is a risk separate from the risk of a decline in the
Fund&#146;s net asset value as a result of investment activities. The Fund&#146;s net asset value may be reduced immediately following this offering
by the offering costs for common shares, including the sales load, which will be borne entirely by
all common shareholders.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether shareholders will realize a gain or loss upon the sale of the Fund&#146;s common shares
depends upon whether the market value of the shares at the time of sale is above or below the price
the shareholder paid, taking into account transaction costs for the shares, and is not directly
dependent upon the Fund&#146;s net asset value. Because the market value of the Fund&#146;s common shares
will be determined by factors such as the relative demand for and supply of the shares in the
market, general market conditions and other factors beyond the control of the Fund, the Fund cannot
predict whether its common shares will trade at, below or above net asset value, or below or above
the public offering price for the common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Additional Risks to Senior Security Holders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, an investment in preferred shares or debt securities (collectively, &#147;senior
securities&#148;) is subject to the following risks:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest Rate Risk</I>. Auction rate senior securities pay dividends or interest based on
short-term interest rates. If short-term interest rates rise, dividends or interest on the auction
rate senior securities may rise so that the amount of dividends or interest due to holders of
auction rate senior securities would exceed the cash flow generated by our portfolio securities.
This might require us to sell portfolio securities at a time when we would otherwise not do so,
which may affect adversely our future ability to generate cash flow. In addition, rising market
interest rates could impact negatively the value of our investment portfolio, reducing the amount
of assets serving as asset coverage for the senior securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Senior Leverage Risk</I>. Preferred shares will be junior in liquidation and with respect to
distribution rights to debt securities and any other borrowings. Senior securities representing
indebtedness may constitute a substantial lien and burden on preferred shares by reason of their
prior claim against our income and against our net assets in liquidation. We may not be permitted
to declare dividends or other distributions with respect to any series of preferred shares unless
at such time we meet applicable asset coverage requirements and the payment of principal or
interest is not in default with respect to any borrowings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ratings and Asset Coverage Risk</I>. To the extent that senior securities are rated, a rating
does not eliminate or necessarily mitigate the risks of investing in our senior securities, and a
rating may not fully or accurately reflect all of the credit and market risks associated with a
security. A rating agency could downgrade the rating of our shares of preferred stock or debt
securities, which may make such securities less liquid at an auction or in the secondary market,
though probably with higher resulting interest rates. If a rating agency downgrades the rating
assigned to a senior security, we may alter our portfolio or redeem the senior security. We may
voluntarily redeem a senior security under certain circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Inflation Risk</I>. Inflation is the reduction in the purchasing power of money resulting from an
increase in the price of goods and services. Inflation risk is the risk that the inflation
adjusted or &#147;real&#148; value of an investment in preferred stock or debt securities or the income from
that investment will be worth less in the future. As inflation occurs, the real value of the
preferred stock or debt securities and the dividend payable to holders of preferred stock or
interest payable to holders of debt securities declines. In an inflationary period, however, it is
expected that, through the auction process, dividend or interest rates would increase, tending to
offset this risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Auction Risk</I>. To the extent that senior securities trade through an auction, there are
certain risks associated with participating in an auction and certain risks if you try to sell
senior securities outside of an auction in the secondary market. These risks will be described in
more detail in an applicable prospectus supplement if we issue senior securities pursuant to this
registration statement.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Decline in Net Asset Value Risk</I>. A material decline in our NAV may impair our ability to
maintain required levels of asset coverage for our preferred shares or debt securities.
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

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


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Board of Trustees provides broad supervision over the affairs of the Fund. The
officers of the Fund are responsible for the Fund&#146;s operations. There are seven Trustees of the
Fund, one of whom is an &#147;interested person&#148; of the Fund (as defined in the 1940 Act) and six of
whom are not &#147;interested persons.&#148; The names and business addresses of the trustees and officers of
the Fund and their principal occupations and other affiliations during the past five years are set
forth under &#147;Management of the Fund&#148; in the statement of additional information.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund&#146;s investments are managed by Calamos, 2020 Calamos Court,
Naperville, IL. On December 31, 2007 Calamos managed approximately
$46.2 billion in assets of individuals and
institutions. Calamos is a wholly-owned subsidiary of Holdings and indirect subsidiary of Calamos
Asset Management, Inc., a publicly traded holding company whose shares are listed on the NASDAQ
exchange under the ticker symbol &#147;CLMS.&#148;
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the overall authority of the Board of Trustees, Calamos regularly provides the Fund
with investment research, advice and supervision and furnishes continuously an investment program
for the Fund. In addition, Calamos furnishes for use of the Fund such office space and facilities
as the Fund may require for its reasonable needs, supervises the business and affairs of the Fund
and provides the following other services on behalf of the Fund and not provided by persons not a
party to the investment management agreement: (a)&nbsp;preparing or assisting in the preparation of
reports to and meeting materials for the Trustees; (b)&nbsp;supervising, negotiating contractual
arrangements with, to the extent appropriate, and monitoring the performance of, accounting agents,
custodians, depositories, transfer agents and pricing agents, accountants, attorneys, printers,
underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be
necessary or desirable to Fund operations; (c)&nbsp;assisting in the preparation and making of filings
with the Commission and other regulatory and self-regulatory organizations, including, but not
limited to, preliminary and definitive proxy materials, amendments to the Fund&#146;s registration
statement on Form N-2 and semi-annual reports on Form N-SAR; (d)&nbsp;overseeing the tabulation of
proxies by the Fund&#146;s transfer agent; (e)&nbsp;assisting in the preparation and filing of the Fund&#146;s
federal, state and local tax returns; (f)&nbsp;assisting in the preparation and filing of the Fund&#146;s
federal excise tax return pursuant to Section&nbsp;4982 of the Code; (g)&nbsp;providing assistance with
investor and public relations matters; (h)&nbsp;monitoring the valuation of portfolio securities and the
calculation of net asset value; (i)&nbsp;monitoring the registration of shares of beneficial interest of
the Fund under applicable federal and state securities laws; (j)&nbsp;maintaining or causing to be
maintained for the Fund all books, records and reports and any other information required under the
1940 Act, to the extent that such books, records and reports and other information are not
maintained by the Fund&#146;s custodian or other agents of the Fund; (k)&nbsp;assisting in establishing the
accounting policies of the Fund; (l)&nbsp;assisting in the resolution of accounting issues that may
arise with respect to the Fund&#146;s operations and consulting with the Fund&#146;s independent accountants,
legal counsel and the Fund&#146;s other agents as necessary in connection therewith; (m)&nbsp;reviewing the
Fund&#146;s bills; (n)&nbsp;assisting the Fund in determining the amount of dividends and distributions
available to be paid by the Fund to its shareholders, preparing and arranging for the printing of
dividend notices to
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">shareholders, and providing the transfer and dividend paying agent, the custodian, and the
accounting agent with such information as is required for such parties to effect the payment of
dividends and distributions; and (o)&nbsp;otherwise assisting the Fund as it may reasonably request in
the conduct of the Fund&#146;s business, subject to the direction and control of the Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the investment management agreement, the Fund pays Calamos a fee based on the average
weekly managed assets that is computed weekly and paid on a monthly basis. The fee paid by the
Fund is at the annual rate of 1.00% of managed assets. Because the fees paid to Calamos are
determined on the basis of the Fund&#146;s managed assets, Calamos&#146; interest in determining whether to
leverage the Fund may differ from the interests of the Fund and its common shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of its investment management agreement, except for the services and facilities
provided by Calamos as set forth therein, the Fund shall assume and pay all expenses for all other
Fund operations and activities and shall reimburse Calamos for any such expenses incurred by
Calamos. The expenses borne by the Fund shall include, without limitation: (a)&nbsp;organization
expenses of the Fund (including out-of-pocket expenses, but not including Calamos&#146; overhead or
employee costs); (b)&nbsp;fees payable to Calamos; (c)&nbsp;legal expenses; (d)&nbsp;auditing and accounting
expenses; (e)&nbsp;maintenance of books and records that are required to be maintained by the Fund&#146;s
custodian or other agents of the Fund; (f)&nbsp;telephone, telex, facsimile, postage and other
communications expenses; (g)&nbsp;taxes and governmental fees; (h)&nbsp;fees, dues and expenses incurred by
the Fund in connection with membership in investment company trade organizations and the expense of
attendance at professional meetings of such organizations; (i)&nbsp;fees and expenses of accounting
agents, custodians, subcustodians, transfer agents, dividend disbursing agents and registrars;
(j)&nbsp;payment for portfolio pricing or valuation services to pricing agents, accountants, bankers and
other specialists, if any; (k)&nbsp;expenses of preparing share certificates; (l)&nbsp;expenses in connection
with the issuance, offering, distribution, sale, redemption or repurchase of securities issued by
the Fund; (m)&nbsp;expenses relating to investor and public relations provided by parties other than
Calamos; (n)&nbsp;expenses and fees of registering or qualifying shares of beneficial interest of the
Fund for sale; (o)&nbsp;interest charges, bond premiums and other insurance expenses; (p)&nbsp;freight,
insurance and other charges in connection with the shipment of the Fund&#146;s portfolio securities;
(q)&nbsp;the compensation and all expenses (specifically including travel expenses relating to Fund
business) of Trustees, officers and employees of the Fund who are not affiliated persons of
Calamos; (r)&nbsp;brokerage commissions or other costs of acquiring or disposing of any portfolio
securities of the Fund; (s)&nbsp;expenses of printing and distributing reports, notices and dividends to
shareholders; (t)&nbsp;expenses of preparing and setting in type, printing and mailing prospectuses and
statements of additional information of the Fund and supplements thereto; (u)&nbsp;costs of stationery;
(v)&nbsp;any litigation expenses; (w)&nbsp;indemnification of Trustees and officers of the Fund; (x)&nbsp;costs of
shareholders&#146; and other meetings; (y)&nbsp;interest on borrowed money, if any; and (z)&nbsp;the fees and
other expenses of listing the Fund&#146;s shares on the NYSE or any other national
stock exchange.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos employs a team approach to portfolio management, with teams led by the Co-Chief
Investment Officers (the &#147;Co-CIOs&#148;) and comprised generally of the Co-CIOs, senior strategy
analysts, intermediate analysts and junior analysts. The Co-CIOs and senior strategy analysts are
supported by and lead a team of investment professionals whose valuable contributions create a
synergy of expertise that can be applied across many different investment strategies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio holdings are reviewed and trading activity is discussed on a regular basis by team
members. Team members generally may make trading decisions guided by
the Fund&#146;s
investment objective and strategy.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While day-to-day management of each portfolio is a team effort, the Co-CIOs, along with the
Director of Fixed Income and certain of the senior strategy analysts, have joint primary and
supervisory responsibility for the Fund and work with all team members in developing and executing
each respective portfolio&#146;s investment program. The Fund&#146;s portfolio investment program includes
implementation of distinct strategies, including a fixed income approach which is lead by the
Director of Fixed Income of Calamos. All team leaders are further identified below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John P. Calamos, Sr., Co-CIO of Calamos, generally focuses on the top-down approach of
diversification by industry sector and macro-level investment themes. Nick P. Calamos, Co-CIO of
Calamos, also focuses on the top-down approach of diversification by industry sector and
macro-level investment themes and, in addition, focuses on the bottom-up approach and corresponding
research and analysis. Matthew Toms is Director of Fixed Income. John P. Calamos,&nbsp;Jr., John
Hillenbrand, Steve Klouda, Jeff Scudieri and Jon Vacko are each senior strategy analysts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the past five years, John P. Calamos, Sr. has been President and Trustee of the Fund
and chairman, CEO and Co-CIO of Calamos and its predecessor company. Nick P. Calamos has been Vice
President of the Fund and Senior Executive Vice President and Co-CIO of Calamos and its predecessor
company. Matthew Toms joined Calamos in March&nbsp;2007 as Director of Fixed Income. John P.
Calamos,&nbsp;Jr., Executive Vice President of Calamos, joined the firm in 1985 and has held various
senior investment positions since that time. John Hillenbrand joined Calamos in 2002 and has been
a senior strategy analyst since August&nbsp;2002. Steve Klouda joined Calamos in 1994 and has been a
senior strategy analyst since July&nbsp;2002. Jeff Scudieri joined Calamos in 1997 and has been a
senior strategy analyst since September&nbsp;2002. Jon Vacko joined Calamos in 2000 and has been a
senior strategy analyst since July&nbsp;2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For over 20&nbsp;years, the Calamos portfolio management team has managed money for its clients in
convertible, high yield and global strategies. Furthermore, Calamos has extensive experience
investing in foreign markets through its convertible securities and high yield securities
strategies. Such experience has included investments in established as well as emerging foreign
markets. The Fund&#146;s statement of additional information provides additional information about the
team leaders, including other accounts they manage, their ownership in the Calamos Family of Funds
and their compensation.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the arrangements with State Street to provide fund accounting services, State Street
provides certain administrative and accounting services to the Fund and such other funds advised by
Calamos that may be part of those arrangements (the Fund and such other fund are collectively
referred to as the &#147;Calamos Funds&#148;) as described more fully in the statement of additional
information. For the services rendered to the Calamos Funds, State Street receives fees based on
the combined managed assets of the Calamos Funds (&#147;Combined Assets&#148;). Each fund of the Calamos
Funds pays its pro-rata share of the fees payable to State Street described below based on relative
managed assets of each fund. State Street receives a fee at the annual rate of .009% for the first
$5.0&nbsp;billion of Combined Assets, .0075% for the next $5.0&nbsp;billion of Combined Assets, .005% for the
next $5.0&nbsp;billion of Combined Assets and .0035% for the Combined Assets in excess of $15.0&nbsp;billion.
Because the fees payable to State Street are based on the managed assets of the Calamos Funds, the
fees increase as the Calamos Funds increase their leverage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, Calamos also provides certain other financial accounting services to the Calamos
Funds described more fully in the statement of additional information. For providing those
services, Calamos receives a fee at the annual rate of .0175% on the first $1&nbsp;billion of the daily
average net assets of the Calamos Funds; .0150% on the next $1&nbsp;billion of the daily average net
assets of the Calamos
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Funds; and .0110% on the daily average net assets of the Calamos Funds above $2&nbsp;billion
(&#147;financial accounting service fee&#148;). Each fund of the Calamos Funds will pay its pro-rata share
of the financial accounting service fee to Calamos based on relative net assets of each fund.
</DIV>
<DIV align="left">
<A name="112"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a diversified, closed-end management investment company (commonly referred to as a
closed-end fund) which commenced investment operations in October&nbsp;2005. Closed-end funds differ
from open-end management investment companies (which are generally referred to as mutual funds) in
that closed-end funds generally list their shares for trading on a stock exchange and do not redeem
their shares at the request of the shareholder. This means that if you wish to sell your shares of
a closed-end fund you must trade them on the market like any other stock at the prevailing market
price at that time. In a mutual fund, if the shareholder wishes to sell shares of the fund, the
mutual fund will redeem or buy back the shares at &#147;net asset value.&#148; Also, mutual funds generally
offer new shares on a continuous basis to new investors, and closed-end funds generally do not.
The continuous inflows and outflows of assets in a mutual fund can make it difficult to manage the
fund&#146;s investments. By comparison, closed-end funds are generally able to stay more fully invested
in securities that are consistent with their investment objectives and also have greater
flexibility to make certain types of investments and to use certain investment strategies, such as
financial leverage and investments in illiquid securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of closed-end funds frequently trade at a discount to their net asset value. To the
extent the common shares do trade at a discount, the Fund&#146;s Board of Trustees may from time to time
engage in open-market repurchases or tender offers for shares after balancing the benefit to
shareholders of the increase in the net asset value per share resulting from such purchases against
the decrease in the assets of the Fund and potential increase in the expense ratio of expenses to
assets of the Fund. The Board of Trustees believes that in addition to the beneficial effects
described above, any such purchases or tender offers may result in the temporary narrowing of any
discount but will not have any long-term effect on the level of any discount. We cannot guarantee
or assure, however, that the Fund&#146;s Board of Trustees will decide to engage in any of these
actions. Nor is there any guarantee or assurance that such actions, if undertaken, would result in
the shares trading at a price equal or close to net asset value per share. The Board of Trustees
might also consider converting the Fund to an open-end mutual fund, which would also require a vote
of the shareholders of the Fund. Conversion of the Fund to an open-end mutual fund would require
an amendment to the Fund&#146;s Declaration of Trust. Such an amendment would require the favorable
vote of the holders of at least 75% of the Fund&#146;s outstanding shares (including any preferred
shares) entitled to be voted on the matter, voting as a single class (or a majority of such shares
if the amendment were previously approved, adopted or authorized by 75% of the total number of
Trustees fixed in accordance with the By-laws), and, assuming preferred shares are issued, the
affirmative vote of a majority of outstanding preferred shares, voting as a separate class.
</DIV>
<DIV align="left">
<A name="113"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a general summary of certain federal income tax considerations affecting us
and our security holders. This discussion does not purport to be complete or to deal with all
aspects of federal income taxation that may be relevant to shareholders in light of their
particular circumstances or who are subject to special rules, such as banks, thrift institutions
and certain other financial institutions, REITs, regulated investment
companies, insurance companies, brokers and dealers in securities or currencies, certain securities
traders, tax-exempt investors, individual retirement accounts, certain tax-deferred accounts, and
foreign investors. Tax matters are very complicated, and the tax consequences of an investment in
and holding of our securities will depend on the particular facts of each investor&#146;s
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">situation. Investors are advised to consult their own tax advisors with respect to the
application to their own circumstances of the general federal income taxation rules described below
and with respect to other federal, state, local or foreign tax consequences to them before making
an investment in our securities. Unless otherwise noted, this discussion assumes that
investors are U.S. persons and hold our securities as capital assets. More detailed information
regarding the federal income tax consequences of investing in our securities is in the statement of
additional information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to U.S. Treasury Department Circular 230, we are informing you that (1)&nbsp;this
discussion is not intended to be used, was not written to be used, and cannot be used, by any
taxpayer for the purpose of avoiding penalties under the U.S. federal tax laws, (2)&nbsp;this discussion
was written by us in connection with the registration of our securities and our promotion or
marketing, and (3)&nbsp;each taxpayer should seek advice based on his, her or its particular
circumstances from an independent tax advisor.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has elected to be treated, and intends to qualify each year, as a &#147;regulated
investment company&#148; under Subchapter M of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;), so that it will not pay U.S. federal income tax on income and capital gains timely
distributed to shareholders. If the Fund qualifies as a regulated investment company and
distributes to its shareholders at least 90% of the sum of (i)&nbsp;its &#147;investment company taxable
income&#148; as that term is defined in the Code (which includes, among other things, dividends, taxable
interest, the excess of any net short-term capital gains over net long-term capital losses and
certain net foreign exchange gains, less certain deductible expenses) without regard to the
deduction for dividends paid, and (ii)&nbsp;the excess of its gross tax-exempt interest, if any, over
certain disallowed deductions, the Fund will be relieved of U.S. federal income tax on any income
of the Fund, including long-term capital gains, distributed to shareholders. However, if the Fund
retains any investment company taxable income or net capital gain (i.e., the excess of net
long-term capital gain over net short-term capital loss), it will be subject to U.S. federal income
tax at regular corporate federal income tax rates (currently at a maximum rate of 35%) on the
amount retained. The Fund intends to distribute at least annually all or substantially all of its
investment company taxable income, net tax-exempt interest, and net capital gain. Under the Code,
the Fund will generally be subject to a nondeductible 4% federal excise tax on its undistributed
ordinary income and capital gains if it fails to meet certain distribution requirements with
respect to each calendar year. The Fund intends to make distributions in a timely manner in
amounts necessary to avoid the excise tax and accordingly does not expect to be subject to this
tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, for any taxable year, the Fund does not qualify as a regulated investment company for U.S.
federal income tax purposes, it would be treated in the same manner as a regular corporation
subject to U.S. federal income tax and distributions to its shareholders would not be deducted by
the Fund in computing its taxable income. In such event, the Fund&#146;s distributions, to the extent
derived from the Fund&#146;s current or accumulated earnings and profits, would generally constitute
ordinary dividends, which would generally be eligible for the dividends received deduction
available to corporate shareholders, and noncorporate shareholders would generally be able to
treat such distributions as &#147;qualified dividend income&#148; eligible for reduced rates of U.S. federal
income taxation in taxable years beginning on or before December&nbsp;31, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of the Fund&#146;s investment practices are subject to special and complex federal income
tax provisions that may, among other things, (i)&nbsp;disallow, suspend or otherwise limit the allowance
of certain losses or deductions, (ii)&nbsp;convert tax-advantaged, long-term capital gains and qualified
dividend income into higher taxed short-term capital gain or ordinary income, (iii)&nbsp;convert an
ordinary loss or a deduction into a capital loss (the deductibility of which is more limited),
(iv)&nbsp;cause the Fund to recognize income or
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">gain without a corresponding receipt of cash, (v)&nbsp;adversely affect the timing as to when a
purchase or sale of stock or securities is deemed to occur, and (vi)&nbsp;adversely alter the
characterization of certain complex financial transactions. The Fund will monitor its transactions
and may make certain tax elections where applicable in order to mitigate the effect of these
provisions, if possible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends, interest and some capital gains received by the Fund on foreign securities may be
subject to foreign tax withholdings or other foreign taxes. If it
meets certain requirements, the Fund may make an
election under the Code to pass through such taxes to shareholders of the Fund. If such an
election is not made, any foreign taxes paid or accrued by the Fund will represent an expense of
the Fund. If an election is made, shareholders will generally be able to claim a credit or
deduction on their federal income tax return for, and will be required to treat as part of the
amounts distributed to them, their pro rata portion of the income taxes paid by the Fund to foreign
countries (which taxes relate primarily to investment income).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Federal Income Taxation of Common and Preferred Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Federal Income Tax Treatment of Common Share Distributions. </I>Unless a shareholder is
ineligible to participate or elects otherwise, all distributions will be automatically reinvested
in additional shares of common stock of the Fund pursuant to the
Fund&#146;s Automatic Dividend Reinvestment Plan (the
&#147;Plan&#148;). For taxpayers subject to
U.S. federal income tax, all dividends will generally be taxable regardless of whether a
shareholder takes them in cash or they are reinvested pursuant to the Plan in additional shares of
the Fund. Distributions of the Fund&#146;s investment company taxable income (determined without regard
to the deduction for dividends paid) will generally be taxable at
ordinary federal income tax rates to the
extent of the Fund&#146;s current and accumulated earnings and profits. However, a portion of such
distributions derived from certain corporate dividends, if any, may qualify for either the
dividends received deduction available to corporate shareholders under Section&nbsp;243 of the Code or
the reduced rates of U.S. federal income taxation for &#147;qualified dividend income&#148; currently
available to noncorporate shareholders under Section&nbsp;1(h)(11) of the Code, provided certain holding
period and other requirements are met at both the Fund and shareholder levels. The provisions of
the Code applicable to &#147;qualified dividend income&#148; are currently effective for taxable years
beginning on or before December&nbsp;31, 2010. Distributions of net capital gain, if any, are generally
taxable as long-term capital gains for U.S. federal income tax purposes without regard to the
length of time a shareholder has held shares of the Fund. A distribution of an amount in excess of
the Fund&#146;s current and accumulated earnings and profits, if any, will be treated by a shareholder
as a tax-free return of capital, which is applied against and reduces the shareholder&#146;s basis in
his, her or its shares. To the extent that the amount of any such distribution exceeds the
shareholder&#146;s basis in his, her or its shares, the excess will be treated by the shareholder as
gain from the sale or exchange of shares. The U.S. federal income tax status of all dividends and
distributions will be designated by the Fund and reported to the shareholders annually.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund retains any net capital gain, the Fund may designate the retained amount as
undistributed capital gains in a notice to shareholders who, if subject to U.S. federal income tax
on long-term capital gains, (i)&nbsp;will be required to include in income as long-term capital gain
their proportionate share of such undistributed amount, and (ii)&nbsp;will be entitled to credit their
proportionate share of the federal income tax paid by the Fund on the undistributed amount against
their U.S. federal income tax liabilities, if any, and to claim refunds to the extent the credit
exceeds such liabilities. If such an event occurs, the tax basis of shares owned by a shareholder
of the Fund will, for U.S. federal income tax purposes, generally be increased by the difference
between the amount of undistributed net capital gain included in the shareholder&#146;s gross income and
the federal income tax deemed paid by the shareholders.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a shareholder&#146;s distributions are automatically reinvested pursuant to the Plan and the
plan agent invests the distribution in shares acquired on behalf of the shareholder in open-market
purchases, for U.S. federal income tax purposes, the shareholder will be treated as having received
a taxable distribution in the amount of the cash dividend that the shareholder would have received
if the shareholder had elected to receive cash. If a shareholder&#146;s distributions are automatically
reinvested pursuant to the Plan and the plan agent invests the distribution in newly issued shares
of the Fund, the shareholder will be treated as receiving a taxable distribution equal to the fair
market value of the stock the shareholder receives.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends declared by the Fund in October, November or December with a record date in such month that are paid during the following January will be treated for federal income tax purposes as paid by the Fund and received by the shareholders on December 31 of the calendar year in which they were declared.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Federal Income Tax Treatment of Preferred Share Distributions. </I>Under present law, we are of
the opinion that our preferred shares will constitute equity, and thus distributions with respect
to preferred shares (other than distributions in redemption of preferred shares subject to
Section&nbsp;302(b) of the Code) will generally constitute dividends to the extent of the Fund&#146;s current
or accumulated earnings and profits, as calculated for federal income tax purposes. Except in the
case of distributions of net capital gain, such dividends generally will be taxable to holders at
ordinary federal income tax rates but may qualify for the dividends received deduction available to
corporate shareholders under Section&nbsp;243 of the Code or the reduced rates of U.S. federal income
taxation under Section&nbsp;1(h)(11) of the Code that apply to qualified dividend income received by
noncorporate shareholders. Distributions designated by the Fund as net capital gain distributions
will be taxable as long-term capital gain regardless of the length of time a shareholder has held
shares of the Fund. Please see the discussion above on qualified dividend income, dividends
received deductions and net capital gain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Internal Revenue Service (&#147;IRS&#148;) currently requires that a regulated investment company that has two or more classes of
stock allocate to each such class proportionate amounts of each type of its income (such as
ordinary income and capital gains). Accordingly, the Fund intends to designate distributions made
with respect to preferred shares as ordinary income, capital gain distributions, dividends
qualifying for the dividends received deduction, if any, and qualified dividend income, if any,
in proportion to the preferred shares&#146; share of total dividends paid during the year. See &#147;Federal
Income Tax Matters&#148; in the statement of additional information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings and profits are generally treated, for federal income tax purposes, as first being
used to pay distributions on the preferred shares, and then to the extent remaining, if any, to pay
distributions on the common shares. Distributions in excess of the Fund&#146;s earnings and profits, if
any, will first reduce a shareholder&#146;s adjusted tax basis in his or her preferred shares and, after
the adjusted tax basis is reduced to zero, will constitute capital gains to a shareholder who holds
such shares as a capital asset.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends declared by the Fund in October, November or December with a record date in such month that are paid during the following January will be treated for federal income tax purposes as paid by the Fund and received by the shareholders on December 31 of the calendar year in which they were declared.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Sale of Shares</I>. Sales and other dispositions of the Fund&#146;s shares generally are taxable
events for shareholders that are subject to U.S. federal income tax. Shareholders should consult
their own tax advisors with reference to their individual circumstances to determine whether any
particular transaction in the Fund&#146;s shares is properly treated as a sale or exchange for federal
income tax purposes, as the following discussion assumes, and the tax treatment of any gains or
losses recognized in such transactions. Gain or loss will generally be equal to the difference
between the amount of cash and the fair market value of other property received and the
shareholder&#146;s adjusted tax basis in the shares sold or exchanged. Such gain or loss will generally
be characterized as capital gain or loss and will be long-term or short-term depending on the
shareholder&#146;s holding period in the shares disposed. However, any loss realized by a shareholder
upon the sale or other disposition of shares with a federal income tax holding period of six months or less will
be treated as a long-term capital loss to the extent of any amounts treated as distributions of
long-term capital gain with respect to such shares. The ability to deduct capital losses may be
limited. In addition, losses on sales or other dispositions of shares may be disallowed under the
&#147;wash sale&#148; rules in the event that substantially identical
stock or securities are acquired (including those
made
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">pursuant to reinvestment of dividends) within a period of 61&nbsp;days beginning 30&nbsp;days before and
ending 30&nbsp;days after a sale or other disposition of shares. In such a case, the disallowed portion
of any loss generally would be included in the U.S. federal tax basis of the shares acquired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Backup Withholding. </I>The Fund is required in certain circumstances to withhold federal income
tax (&#147;backup withholding&#148;) at a current rate of 28% on reportable payments including dividends,
capital gain distributions, and proceeds of sales or other dispositions of the Fund&#146;s shares paid
to certain holders of the Fund&#146;s shares who do not furnish the Fund with their correct social
security number or other taxpayer identification number and certain other certifications, or who
are otherwise subject to backup withholding. Backup withholding is not an additional tax. Any
amounts withheld from payments made to a shareholder may be refunded or credited against such
shareholder&#146;s U.S. federal income tax liability, if any, provided that the required information is
furnished to the IRS.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Federal Income Tax Treatment of Holders of Debt Securities</I>. Under present law, we are of the
opinion that the debt securities will constitute indebtedness of the Fund for federal income tax
purposes, which the discussion below assumes. We intend to treat all payments made with respect to
the debt securities consistent with this characterization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation of Interest. </I>Payments or accruals of interest on debt securities generally will be
taxable to you as ordinary interest income at the time such interest is received (actually or
constructively) or accrued, in accordance with your regular method of accounting for federal income
tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Purchase, Sale and Redemption of Debt Securities</I>. Initially, your tax basis in debt
securities acquired generally will be equal to your cost to acquire such debt securities. This
basis will increase by the amounts, if any, that you include in income under the rules governing
market discount, and will decrease by the amount of any amortized premium on such debt securities,
as discussed below. When you sell or exchange any of your debt securities, or if any of your debt
securities are redeemed, you generally will recognize gain or loss equal to the difference between
the amount you realize on the transaction (less any accrued and unpaid interest, which will be
subject to federal income tax as interest in the manner described above) and your tax basis in the debt securities
relinquished.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as discussed below with respect to market discount, the gain or loss that you recognize
on the sale, exchange or redemption of any of your debt securities generally will be capital gain
or loss. Such gain or loss will generally be long-term capital gain or loss if the disposed debt
securities were held for more than one year and will be short-term capital gain or loss if the
disposed debt securities were held for one year or less. Net long-term capital gain recognized by
a noncorporate U.S. holder generally will be subject to federal income tax at a lower rate
(currently a maximum rate of 15%, although this rate will increase to
20% for taxable years beginning after December 31, 2010) than net
short-term capital gain or ordinary income (currently a maximum rate of 35%). For corporate
holders, capital gain is generally taxed for federal income tax purposes at
the same rate as ordinary income, that is, currently at a maximum rate
of 35%. A holder&#146;s ability to deduct capital losses may be limited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amortizable Premium</I>. If you purchase debt securities at a cost greater than their stated
principal amount, plus accrued interest, you will be considered to have purchased the debt
securities at a premium, and you generally may elect to amortize this premium as an offset to
interest income, using a constant yield method, over the remaining term of the debt securities. If
you make the election to amortize the premium, it generally will apply to all debt instruments that
you hold at the beginning of the first taxable year to which the
election applies, as well as any debt instruments that you subsequently
acquire. In addition, you may not revoke the election without the consent of the IRS. If you
elect to amortize the premium, you will be required to reduce your tax basis in the debt securities
by the amount of the premium amortized during your holding period. If you
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">do not elect to amortize premium, the amount of premium will be included in your tax basis in
the debt securities. Therefore, if you do not elect to amortize the premium and you hold the debt
securities to maturity, you generally will be required to treat the premium as a capital loss when
the debt securities are redeemed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Discount</I>. If you purchase debt securities at a price that reflects a &#147;market
discount,&#148; any principal payments on, or any gain that you realize on the disposition of the debt
securities generally will be treated as ordinary interest income to the extent of the market
discount that accrued on the debt securities during the time you held such debt securities.
&#147;Market discount&#148; is defined under the Code as, in general, the excess of the
stated redemption price at maturity over the purchase price of the debt security, except that if
the market discount is less than 0.25% of the stated redemption price at maturity multiplied by the
number of complete years to maturity, the market discount is considered to be zero. In addition,
you may be required to defer the deduction of all or a portion of any interest paid on any
indebtedness that you incurred or continued to purchase or carry the debt securities that were
acquired at a market discount. In general, market discount will be treated as accruing ratably
over the term of the debt securities, or, at your election, under a constant yield method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may elect to include market discount in gross income currently as it accrues (on either a
ratable or constant yield basis), in lieu of treating a portion of any gain realized on a sale of
the debt securities as ordinary income. If you elect to include market discount on a current
basis, the interest deduction deferral rule described above will not apply and you will increase
your basis in the debt security by the amount of market discount you include in gross income. If
you do make such an election, it will apply to all market discount debt instruments that you
acquire on or after the first day of the first taxable year to which the election applies. This
election may not be revoked without the consent of the IRS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Information Reporting and Backup Withholding</I>. In general, information reporting requirements
will apply to payments of principal, interest, and premium, if any, paid on debt securities and to
the proceeds of the sale of debt securities paid to U.S. holders other than certain exempt
recipients (such as certain corporations). Information reporting generally will apply to payments
of interest on the debt securities to non-U.S. Holders (as defined below) and the amount of tax, if
any, withheld with respect to such payments. Copies of the information returns reporting such
interest payments and any withholding may also be made available to the tax authorities in the
country in which the non-U.S. Holder resides under the provisions of an applicable income tax
treaty. In addition, for non-U.S. Holders, information reporting will apply to the proceeds of the
sale of debt securities within the United States or conducted through United States-related
financial intermediaries unless the certification requirements described below have been complied
with and the statement described below in &#147;Taxation of Non-U.S. Holders&#148; has been received (and the
payor does not have actual knowledge or reason to know that the holder is a United States person)
or the holder otherwise establishes an exemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may be required to withhold, for U.S. federal income tax purposes, a portion of all
payments (including redemption proceeds) payable to holders of debt securities who fail to provide
us with their correct taxpayer identification number, who fail to make required certifications or
who have been notified by the IRS that they are subject to backup withholding (or if we have been
so notified). Certain corporate and other shareholders specified in the Code and
the regulations thereunder are exempt from backup withholding. Backup withholding is not an
additional tax. Any amounts withheld may be credited against the holder&#146;s U.S. federal income tax
liability provided the appropriate information is furnished to the IRS. If you are a non-U.S.
Holder, you may have to comply with certification procedures to establish your non-U.S. status in
order to avoid backup withholding tax
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">requirements. The certification procedures required to claim the exemption from withholding
tax on interest income described below will satisfy these requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation of Non-U.S. Holders</I>. If you are a non-resident alien individual or a foreign
corporation (a &#147;non-U.S. Holder&#148;), the payment of interest on the debt securities generally will be
considered &#147;portfolio interest&#148; and thus generally will be
exempt from U.S. federal
withholding tax. This exemption will apply to you provided that (1)&nbsp;interest paid on the debt
securities is not effectively connected with your conduct of a trade or business in the United
States, (2)&nbsp;you are not a bank whose receipt of interest on the debt securities is described in
Section&nbsp;881(c)(3)(A) of the Code, (3)&nbsp;you do not actually or constructively own
10&nbsp;percent or more of the combined voting power of all classes of the Fund&#146;s stock entitled to
vote, (4)&nbsp;you are not a controlled foreign corporation that is
related, directly or indirectly, to
the Fund through stock ownership, and (5)&nbsp;you satisfy the certification requirements described
below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To satisfy the certification requirements, either (1)&nbsp;the holder of any debt securities must
certify, under penalties of perjury, that such holder is a non-U.S. person and must provide such
owner&#146;s name, address and taxpayer identification number, if any, on IRS Form W-8BEN, or (2)&nbsp;a
securities clearing organization, bank or other financial institution that holds customer
securities in the ordinary course of its trade or business and holds the debt securities on behalf
of the holder thereof must certify, under penalties of perjury, that it has received a valid and
properly executed IRS Form W-8BEN from the beneficial holder and comply with certain other
requirements. Special certification rules apply for debt securities held by a foreign partnership
and other intermediaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on debt securities received by a non-U.S. Holder that is not excluded from U.S.
federal withholding tax under the portfolio interest exemption as described above generally will be
subject to withholding at a 30% rate, except where (1) the interest
is effectively connected with the conduct of a U.S. trade or business, in which case the interest will generally
be subject to U.S. income tax on a net basis as applicable to U.S. holders generally or (2)
a non-U.S. Holder can claim the benefits of an
applicable income tax treaty to reduce or eliminate such withholding
tax. To claim the benefit of an income tax treaty or to claim an exemption from withholding because the interest is
effectively connected with a U.S. trade or business, a non-U.S. Holder must timely provide the appropriate, properly
executed IRS forms.  These forms may be required to be periodically updated.  Also, a non-U.S. Holder who is claiming the
benefits of an income tax treaty may be required to obtain a U.S. taxpayer identification number and to provide certain
documentary evidence issued by foreign governmental authorities to prove residence in the foreign country.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any capital gain that a non-U.S. Holder realizes on a sale, exchange or other disposition of
debt securities generally will be exempt from United States federal income tax, including
withholding tax. This exemption will not apply to you if your gain is effectively connected with
your conduct of a trade or business in the U.S. or you are an individual holder and are present in
the U.S. for a period or periods aggregating 183&nbsp;days or more in the taxable year of the disposition and either your gain is
attributable to an office or other fixed place of business that you maintain in the U.S. or you
have a tax home in the United States.
</DIV>

<DIV align="left">
<A name="114"></A>
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net asset value per share is determined no less frequently than the close of regular session
trading on the New York Stock Exchange (usually 4:00&nbsp;p.m., Eastern time), on the last business day
in each week, or such other time as the Fund may determine. Net asset value is calculated by
dividing the value of all of the securities and other assets of the Fund, less its liabilities
(including accrued expenses and indebtedness) and the aggregate liquidation value of any
outstanding preferred shares, by the total number of common shares outstanding. Currently, the net
asset values of shares of publicly traded closed-end investment companies investing in debt
securities are published in Barron&#146;s, the Monday edition of The Wall Street Journal and the Monday
and Saturday editions of The New York Times.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The values of the securities in the Fund are based on market prices from the primary market in
which they are traded. As a general rule, equity securities listed on a U.S. securities exchange
are valued at the last current reported sale price as of the time of valuation. Securities quoted
on the NASDAQ
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">National Market System are valued at the Nasdaq Official Closing Price (&#147;NOCP&#148;), as determined
by Nasdaq, or lacking an NOCP, at the last current reported sale price as of the time of valuation.
Bonds and other fixed-income securities that are traded over the counter and on an exchange will
be valued according to the broadest and most representative market, and it is expected this will
ordinarily be the over-the-counter market. The foreign securities held by the Fund are traded on
exchanges throughout the world. Trading on these foreign securities exchanges is completed at
various times throughout the day and often does not coincide with the close of trading on the NYSE.
The value of foreign securities is generally determined at the close of trading of the exchange on
which the securities are traded or at the close of trading on the NYSE, whichever is earlier.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If market prices are not readily available or the Fund&#146;s valuation methods do not produce a
value reflective of the fair value of the security, securities and other assets are priced at a
fair value determined in accordance with procedures adopted by the Board of Trustees, which may
include a systematic fair valuation model provided by an independent service provider.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund also may use fair value pricing if the value of a security it holds has been affected
by events occurring before the Fund&#146;s pricing time, but after the close of the primary markets or
exchanges on which the security is traded. When fair value pricing is employed, the prices of
portfolio securities used to calculate the Fund&#146;s net asset value may differ from market quotations
or official closing prices for the same securities. This means that the Fund may value those
securities higher or lower than another fund that uses market quotations or official closing
prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair value pricing procedures recognize that volatility in the U.S. markets may cause
prices of foreign securities determined at the close of the foreign market or exchange on which the
securities are traded to no longer be reliable when the Fund&#146;s net asset value is determined. As a
result, at least some of the Fund&#146;s foreign securities may be valued at their fair value in
accordance with the fair value pricing procedures on any day the Fund calculates its net asset
value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Values of foreign securities are translated from local currencies into U.S. dollars using
current exchange rates. Trading in securities in foreign markets takes place on some days
(including some weekend days and U.S. holidays) when the NYSE is not open, and does not take place
on some days when the NYSE is open. So, the value of the Fund&#146;s portfolio may be affected on days
when the Fund does not calculate its net asset value.
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DIVIDENDS AND DISTRIBUTIONS ON COMMON SHARES; AUTOMATIC DIVIDEND REINVESTMENT PLAN</B>
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund has made regular monthly distributions to its common
shareholders in an amount ranging from $0.0750 to $0.1150 since
January&nbsp;2006. Additionally, the Fund made a distribution of
$0.0250 in January 2006. The
Fund currently intends to make monthly distributions to common shareholders at a level rate
established by the Board of Trustees. The rate may be modified by the Board of Trustees from time
to time. Monthly distributions may include net investment income, net realized short-term capital
gain and, if necessary, return of capital. Net realized short-term capital gains distributed to
common shareholders will be taxed as ordinary income. In addition, one distribution per calendar
year may include net realized long-term capital gains. There is no guarantee that the Fund will
realize capital gains in any given year. Pursuant to the requirements of the 1940 Act and other
applicable laws, a notice would accompany each monthly distribution with respect to the estimated
source of the distribution made. Distributions are subject to re-characterization for federal
income tax purposes after the end of the fiscal year. The Fund may at times in its discretion pay
out less than the entire amount of net investment income earned in any particular period and may at
times pay out such accumulated undistributed income in addition to net
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">investment income earned in other periods in order to permit the Fund to maintain its level
distribution policy. As a result, the dividend paid by the Fund to holders of common shares for
any particular period may be more or less than the amount of net investment income earned by the
Fund during such period. In addition, in order to make such distributions, the Fund might have to
sell a portion of its investment portfolio at a time when independent investment judgment might not
dictate such action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For U.S. federal income tax purposes, the Fund is required to distribute substantially all of
its net investment income and net realized capital gains each year to both reduce its federal income tax
liability and to avoid a potential excise tax. Accordingly, the Fund intends to distribute all or
substantially all of its net investment income and all net realized capital gains, if any.
Therefore, the Fund&#146;s final distribution with respect to each calendar year would include any remaining net
investment income and net realized capital gains, if any, undistributed during the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, for any calendar year, the Fund&#146;s total distributions exceeded net investment income and
net realized capital gains (the &#147;Excess&#148;), the Excess, distributed from the Fund&#146;s assets, would
generally be treated as dividend income to the extent of the Fund&#146;s current and accumulated
earnings and profits. Thereafter, such Excess would be treated as a tax-free return of capital up
to the amount of the common shareholder&#146;s tax basis in his, her or its common shares, with any
amounts exceeding such basis treated as gain from the sale of common
shares. See &#147;Certain Federal
Income Tax Matters.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event the Fund distributed the Excess, such distribution would decrease the Fund&#146;s
total assets and, therefore, have the likely effect of increasing the Fund&#146;s expense ratio. There
is a risk that the Fund would not eventually realize capital gains in an amount corresponding to a
distribution of the Excess.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January&nbsp;2004, Calamos, on behalf of itself and certain funds, filed an exemptive
application with the Commission seeking an order under the 1940 Act facilitating the implementation
of the Managed Dividend Policy. In March&nbsp;2007, an amended and restated exemptive application was
filed with the Commission. If, and when, Calamos, on behalf of itself and other parties, receives
the requested relief, the Fund may, subject to the determination of its Board of Trustees,
implement a Managed Dividend Policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under a Managed Dividend Policy, the Fund would seek to distribute a monthly fixed percentage
of net asset value to common shareholders. If, for any distribution, net investment income and net
realized capital gains were less than the amount of the distribution, the differences would be
distributed from the Fund&#146;s assets. In addition, in order to make such distributions, the Fund
might have to sell a portion of its investment portfolio at a time when independent investment
judgment might not dictate such action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the 1940 Act, the Fund is not permitted to incur indebtedness unless immediately after
such incurrence the Fund has an asset coverage of at least 300% of the aggregate outstanding
principal balance of indebtedness. Additionally, under the 1940 Act, the Fund may not declare any
dividend or other distribution upon any class of its capital shares, or purchase any such capital
shares, unless the aggregate indebtedness of the Fund has, at the time of the declaration of any
such dividend or distribution or at the time of any such purchase, an asset coverage of at least
300% after deducting the amount of such dividend, distribution, or purchase price, as the case may
be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While any preferred shares are outstanding, the Fund may not declare any dividend or other
distribution on its common shares, unless at the time of such declaration, (1)&nbsp;all accumulated
preferred dividends have been paid and (2)&nbsp;the net asset value of the Fund&#146;s portfolio (determined
after deducting
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the amount of such dividend or other distribution) is at least 200% of the liquidation value
of the outstanding preferred shares (expected to be equal to the original purchase price per share
plus any accumulated and unpaid dividends thereon).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the limitations imposed by the 1940 Act described above, certain lenders may
impose additional restrictions on the payment of dividends or distributions on common shares in the
event of a default on the Fund&#146;s borrowings. If the Fund&#146;s ability to make distributions on its
common shares is limited, such limitation could, under certain circumstances, impair the ability of
the Fund to maintain its qualification for federal income taxation as a regulated investment company, which would
have adverse tax consequences for shareholders. See
&#147;Leverage&#148; and &#147;Certain Federal Income Tax
Matters.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;&#151; Automatic Dividend Reinvestment Plan&#148; for information concerning the manner in which
dividends and distributions to common shareholders may be automatically reinvested in common
shares. Dividends and distributions are taxable to shareholders for
federal income tax purposes whether they are reinvested in
shares of the Fund or received in cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The yield on the Fund&#146;s common shares will vary from period to period depending on factors
including, but not limited to, market conditions, the timing of the Fund&#146;s investment in portfolio
securities, the securities comprising the Fund&#146;s portfolio, changes in interest rates including
changes in the relationship between short-term rates and long-term rates, the amount and timing of
the use of borrowings and other leverage by the Fund, the effects of leverage on the common shares
discussed above under &#147;Leverage,&#148; the timing of the investment of leverage proceeds in portfolio
securities, the Fund&#146;s net assets and its operating expenses. Consequently, the Fund cannot
guarantee any particular yield on its common shares and the yield for any given period is not an
indication or representation of future yields on the Fund&#146;s common shares.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Plan, unless a shareholder is
ineligible or elects otherwise, all dividend and capital gains distributions are automatically
reinvested by The Bank of New York, as agent for shareholders in administering the Plan (&#147;Plan
Agent&#148;), in additional common shares of the Fund. Shareholders who elect not to participate in the
Plan will receive all dividends and distributions payable in cash paid by check mailed directly to
the shareholder of record (or, if the shares are held in street or other nominee name, then to such
nominee) by Plan Agent, as dividend paying agent. Such shareholders may elect not to participate
in the Plan and to receive all dividends and distributions in cash by sending written instructions
to Plan Agent, as dividend paying agent, at the address set forth below. Participation in the Plan
is completely voluntary and may be terminated or resumed at any time without penalty by giving
notice in writing to the Plan Agent; such termination will be effective with respect to a
particular dividend or distribution if notice is received prior to the record date for the
applicable distribution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever the Fund declares a dividend or distribution payable either in shares or in cash,
non-participants in the Plan will receive cash, and participants in the Plan will receive the
equivalent in shares of common shares. The shares are acquired by the Plan Agent for the
participant&#146;s account, depending upon the circumstances described below, either (i)&nbsp;through receipt
of additional common shares from the Fund (&#147;newly issued shares&#148;)&nbsp;or (ii)&nbsp;by purchase of
outstanding common shares on the open market (&#147;open-market purchases&#148;) on the NYSE or elsewhere.
If, on the payment date, the net asset value per share of the common shares is equal to or less
than the market price per common share plus estimated brokerage commissions (such condition being
referred to herein as &#147;market premium&#148;), the Plan Agent will receive newly issued shares from the
Fund for each participant&#146;s account. The number of newly issued common shares to be credited to
the participant&#146;s account will be determined by dividing the dollar
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">amount of the dividend or distribution by the greater of (i)&nbsp;the net asset value per common
share on the payment date, or (ii)&nbsp;95% of the market price per common share on the payment date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, on the payment date, the net asset value per common share exceeds the market price plus
estimated brokerage commissions (such condition being referred to herein as &#147;market discount&#148;), the
Plan Agent has until the last business day before the next date on which the shares trade on an
&#147;ex-dividend&#148; basis or in no event more than 30&nbsp;days after the payment date (&#147;last purchase date&#148;)
to invest the dividend or distribution amount in shares acquired in open-market purchases. It is
contemplated that the Fund will pay monthly income dividends. Therefore, the period during which
open-market purchases can be made will exist only from the payment date on the dividend through the
date before the next ex-dividend date, which typically will be approximately ten days. The
weighted average price (including brokerage commissions) of all common shares purchased by the Plan
Agent as Plan Agent will be the price per common share allocable to each participant. If, before
the Plan Agent has completed its open-market purchases, the market price of a common share exceeds
the net asset value per share, the average per share purchase price paid by the Plan Agent may
exceed the net asset value of the Fund&#146;s shares, resulting in the acquisition of fewer shares than
if the dividend had been paid in newly issued shares on the payment date. Because of the foregoing
difficulty with respect to open-market purchases, the Plan provides that if the Plan Agent is
unable to invest the full dividend amount in open-market purchases during the purchase period or if
the market discount shifts to a market premium during the purchase period, the Plan Agent will
cease making open-market purchases and will invest the uninvested portion of the dividend or
distribution amount in newly issued shares at the close of business on the last purchase date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan Agent maintains all shareholders&#146; accounts in the Plan and furnishes written
confirmation of each acquisition made for the participant&#146;s account as soon as practicable, but in
no event later than 60&nbsp;days after the date thereof. Shares in the account of each Plan participant
will be held by the Plan Agent in non-certificated form in the Plan Agent&#146;s name or that of its
nominee, and each shareholder&#146;s proxy will include those shares purchased or received pursuant to
the Plan. The Plan Agent will forward all proxy solicitation materials to participants and vote
proxies for shares held pursuant to the Plan first in accordance with the instructions of the
participants then with respect to any proxies not returned by such participant, in the same
proportion as the Plan Agent votes the proxies returned by the participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There will be no brokerage charges with respect to shares issued directly by the Fund as a
result of dividends or distributions payable either in shares or in cash. However, each
participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan
Agent&#146;s open-market purchases in connection with the reinvestment of dividends or distributions.
If a participant elects to have the Plan Agent sell part or all of his or her common shares and
remit the proceeds, such participant will be charged his or her pro rata share of brokerage
commissions on the shares sold, plus a $15 transaction fee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The automatic reinvestment of dividends and distributions will not relieve participants of any
federal, state or local income tax that may be payable (or required to be withheld) on such
dividends. See &#147;Certain Federal Income Tax Matters.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders participating in the Plan may receive benefits not available to shareholders not
participating in the Plan. If the market price plus commissions of the Fund&#146;s shares is higher
than the net asset value, participants in the Plan will receive shares of the Fund at less than
they could otherwise purchase them and will have shares with a cash value greater than the value of
any cash distribution they would have received on their shares. If the market price plus
commissions is below the net asset value, participants receive distributions of shares with a net
asset value greater than the value of any cash
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">distribution they would have received on their shares. However, there may be insufficient
shares available in the market to make distributions in shares at prices below the net asset value.
Also, since the Fund does not redeem its shares, the price on resale may be more or less than the
net asset value. See &#147;Certain Federal Income Tax Matters&#148;
for a discussion of federal income tax consequences of the
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience under the Plan may indicate that changes are desirable. Accordingly, the Fund
reserves the right to amend or terminate the Plan if in the judgment of the Board of Trustees such
a change is warranted. The Plan may be terminated by the Plan Agent or the Fund upon notice in
writing mailed to each participant at least 60&nbsp;days prior to the effective date of the termination.
Upon any termination, the Plan Agent will cause a certificate or certificates to be issued for the
full shares held by each participant under the Plan and cash adjustment for any fraction of a
common share at the then current market value of the common shares to be delivered to him or her.
If preferred, a participant may request the sale of all of the common shares held by the Plan Agent
in his or her Plan account in order to terminate participation in the Plan. If such participant
elects in advance of such termination to have the Plan Agent sell part or all of his shares, the
Plan Agent is authorized to deduct from the proceeds a $15.00 fee plus the brokerage commissions
incurred for the transaction. If a participant has terminated his or her participation in the Plan
but continues to have common shares registered in his or her name, he or she may re-enroll in the
Plan at any time by notifying the Plan Agent in writing at the address above. The terms and
conditions of the Plan may be amended by the Plan Agent or the Fund at any time but, except when
necessary or appropriate to comply with applicable law or the rules or policies of the Commission
or any other regulatory authority, only by mailing to each participant appropriate written notice
at least 30&nbsp;days prior to the effective date thereof. The amendment shall be deemed to be accepted
by each participant unless, prior to the effective date thereof, the Plan Agent receives notice of
the termination of the participant&#146;s account under the Plan. Any such amendment may include an
appointment by the Plan Agent of a successor Plan Agent, subject to the prior written approval of
the successor Plan Agent by the Fund. There is no direct service charge to participants in the
Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by
the participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All correspondence concerning the Plan should be directed to the Plan Agent at Dividend
Reinvestment Department, P.O. Box 1958, Newark, NJ 07101-9774.
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is authorized to issue an unlimited number of common shares, without par value. The
Fund is also authorized to issue preferred shares. The Board of Trustees is authorized to classify
and reclassify any unissued shares into one or more additional
classes or series of shares. As of December 31, 2007, the Fund had
8,006,981 common shares outstanding and 2,360 Preferred Shares
outstanding. The Board of Trustees may establish such series or class from time to time by setting
or changing in any one or more respects the designations, preferences, conversion or other rights,
voting powers, restrictions, limitations as to dividends, qualifications or terms or conditions of
redemption of such shares and pursuant to such classification or reclassification to increase or
decrease the number of authorized shares of any existing class or series. The Board of Trustees,
without shareholder approval, is authorized to amend the Agreement and Declaration of Trust and
By-laws to reflect the terms of any such class or series. The Fund is also authorized to issue
other securities, including debt securities.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares, when issued and outstanding, will be legally issued, fully paid and non-assessable.
Shareholders are entitled to share pro rata in the net assets of the Fund available for
distribution to
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">common shareholders upon liquidation of the Fund. Common shareholders are entitled to one
vote for each share held.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as any shares of the Fund&#146;s preferred shares are outstanding, holders of common shares
will not be entitled to receive any net income of or other distributions from the Fund unless all
accumulated dividends on preferred shares have been paid, and unless asset coverage (as defined in
the 1940 Act) with respect to preferred shares would be at least 200% after giving effect to such
distributions. See &#147;Leverage.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will send unaudited reports at least semiannually and audited annual financial
statements to all of its shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other offerings of common shares, if made, will require approval of the Board of Trustees and
will be subject to the requirement of the 1940 Act that common shares may not be sold at a price
below the then-current net asset value, exclusive of underwriting discounts and commissions, except
in limited circumstances including in connection with an offering to existing shareholders.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;6, 2006, the Fund issued Preferred Shares, liquidation preference of $25,000 per
share ($59,000,000 in the aggregate). As a non-fundamental policy, the Fund may not issue
preferred shares or borrow money and issue debt securities with an aggregate liquidation preference
and aggregate principal amount exceeding 38% of the Fund&#146;s total assets. However, the Board of
Trustees reserves the right to issue preferred shares to the extent permitted by the 1940 Act,
which currently limits the aggregate liquidation preference of all outstanding preferred shares to
50% of the value of the Fund&#146;s total assets less the Fund&#146;s liabilities and indebtedness. The
preferred shares pay dividends at dividend rates based on auctions normally held every 7 or 28
days. Under the 1940 Act, the Fund may only issue one class of preferred shares. So long as any
preferred shares are outstanding, additional issuances of preferred shares may not have preference or priority over the
outstanding preferred shares. It is expected that any additional issuance of preferred
shares would be additional shares of an existing series of preferred shares or shares of an
additional series of preferred shares.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 1940 Act requires that the holders of any preferred shares, voting separately as a single
class, have the right to elect at least two Trustees at all times. The remaining Trustees will be
elected by holders of common shares and preferred shares, voting together as a single class. In
addition, subject to the prior rights, if any, of the holders of any other class of senior
securities outstanding, the holders of any preferred shares have the right to elect a majority of
the Trustees at any time two years&#146; accumulated dividends on any preferred shares are unpaid. The
1940 Act also requires that, in addition to any approval by shareholders that might otherwise be
required, the approval of the holders of a majority of any outstanding preferred shares, voting
separately as a class, would be required to (1)&nbsp;adopt any plan of reorganization that would
adversely affect the preferred shares, and (2)&nbsp;take any action requiring a vote of security holders
under Section&nbsp;13(a) of the 1940 Act, including, among other things, changes in the Fund&#146;s
subclassification as a closed-end investment company or changes in its fundamental investment
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">restrictions. See &#147;Certain Provisions of the Agreement and Declaration of Trust and Bylaws.&#148;
As a result of these voting rights, the Fund&#146;s ability to take any such actions may be impeded to
the extent that there are any preferred shares outstanding. Except as otherwise indicated in this
prospectus and except as otherwise required by applicable law, holders of preferred shares have
equal voting rights with holders of common shares (one vote per share, unless otherwise required by
the 1940 Act) and will vote together with holders of common shares as a single class.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The affirmative vote of the holders of a majority of the outstanding preferred shares, voting
as a separate class, will be required to amend, alter or repeal any of the preferences, rights or
powers of holders of preferred shares so as to affect materially and adversely such preferences,
rights or powers, or to increase or decrease the authorized number of preferred shares. The class
vote of holders of preferred shares described above will in each case be in addition to any other
vote required to authorize the action in question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the outstanding preferred shares provide that (i)&nbsp;they are redeemable by the Fund
in whole or in part at the original purchase price per share plus accrued dividends per share,
(ii)&nbsp;the Fund may tender for or purchase preferred shares and (iii)&nbsp;the Fund may subsequently
resell any shares so tendered for or purchased. Any redemption or purchase of preferred shares by
the Fund will reduce the leverage applicable to the common shares, while any resale of shares by
the Fund will increase that leverage.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>General</I>. Under Delaware law and our Agreement and Declaration of Trust, we may borrow money,
without prior approval of holders of common and preferred shares. We may issue debt securities, or
other evidence of indebtedness (including bank borrowings or commercial paper) and may secure any
such notes or borrowings by mortgaging, pledging or otherwise subjecting as security our assets to
the extent permitted by the 1940 Act or rating agency guidelines. Any borrowings will rank senior
to preferred shares and the common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the 1940 Act, we may only issue one class of senior securities representing
indebtedness, which in the aggregate, may represent no more than 33 1/3% of our total assets. A
prospectus supplement and indenture (a summary of the expected terms of which is attached as
Appendix&nbsp;B to the statement of additional information) relating to any debt securities will include
specific terms relating to the offering. These terms are expected to include the following:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the form and title of the security;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the aggregate principal amount of the securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the interest rate of the securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the maturity dates on which the principal of the securities will be payable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the frequency with which auctions will be held;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any changes to or additional events of default or covenants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any optional or mandatory redemption provisions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any changes in trustees, auction agents, paying agents or security registrar; and</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->59<!-- /Folio -->
</DIV>

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


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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other terms of the securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest</I>. Unless otherwise stated in a prospectus supplement, debt securities will bear
interest as generally determined by the results of an auction for such securities and/or by the
Board of Trustees, as more fully described in the related prospectus supplement. Interest on debt
securities shall be payable when due as described in the related prospectus supplement. If we do
not pay interest when due, it will trigger an event of default and we will be restricted from
declaring dividends and making other distributions with respect to our common shares and preferred
shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Limitations</I>. Under the requirements of the 1940 Act, immediately after issuing any senior
securities representing indebtedness, we must have an asset coverage of at least 300%. Asset
coverage means the ratio which the value of our total assets, less all liabilities and indebtedness
not represented by senior securities, bears to the aggregate amount of senior securities
representing indebtedness. Other types of borrowings also may result in our being subject to
similar covenants in credit agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Events of Default and Acceleration of Maturity of Debt Securities; Remedies</I>. Unless stated
otherwise in the related prospectus supplement, any one of the following events are expected to
constitute an &#147;event of default&#148; for that series under the indenture:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>default in the payment of any interest upon a series of debt securities when it
becomes due and payable and the continuance of such default for 30&nbsp;days;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>default in the payment of the principal of, or premium on, a series of debt
securities at its stated maturity;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>default in the performance, or breach, of any covenant or warranty of ours in the
indenture, and continuance of such default or breach for a period of 90&nbsp;days after
written notice has been given to us by the trustee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain voluntary or involuntary proceedings involving us and relating to
bankruptcy, insolvency or other similar laws;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if, on the last business day of each of twenty-four consecutive calendar months, the
debt securities have a 1940 Act asset coverage of less than 100%; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other &#147;event of default&#148; provided with respect to a series, including a default
in the payment of any redemption price payable on the redemption date.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence and continuance of an event of default, the holders of a majority in
principal amount of a series of outstanding debt securities or the trustee may declare the
principal amount of that series of debt securities immediately due and payable upon written notice
to us. A default that relates only to one series of debt securities does not affect any other
series and the holders of such other series of debt securities are not entitled to receive notice
of such a default under the indenture. Upon an event of default relating to bankruptcy, insolvency
or other similar laws, acceleration of maturity occurs automatically with respect to all series.
At any time after a declaration of acceleration with respect to a series of debt securities has
been made, and before a judgment or decree for payment of the money due has been obtained, the
holders of a majority in principal amount of the outstanding debt securities of that series, by
written notice to us and the trustee, may rescind and annul the declaration of acceleration and its
consequences if all events of default with respect to that series of debt securities, other than
the non-payment of the principal of that series of debt securities which has become due solely by
such declaration of acceleration, have been cured or waived and other conditions have been met.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->60<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Liquidation Rights</I>. In the event of (a)&nbsp;any insolvency or bankruptcy case or proceeding, or
any receivership, liquidation, reorganization or other similar case or proceeding in connection
therewith, relative to us or to our creditors, as such, or to our assets, or (b)&nbsp;any liquidation,
dissolution or other winding up of the Fund, whether voluntary or involuntary and whether or not
involving insolvency or bankruptcy, or (c)&nbsp;any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of ours, then (after any payments with respect to any secured
creditor of ours outstanding at such time) and in any such event the holders of debt securities
shall be entitled to receive payment in full of all amounts due or to become due on or in respect
of all debt securities (including any interest accruing thereon after the commencement of any such
case or proceeding), or provision shall be made for such payment in cash or cash equivalents or
otherwise in a manner satisfactory to the holders of the debt securities, before the holders of any
common or preferred stock of the Fund are entitled to receive any payment on account of any
redemption proceeds, liquidation preference or dividends from such shares. The holders of debt
securities shall be entitled to receive, for application to the payment thereof, any payment or
distribution of any kind or character, whether in cash, property or securities, including any such
payment or distribution which may be payable or deliverable by reason of the payment of any other
indebtedness of ours being subordinated to the payment of the debt securities, which may be payable
or deliverable in respect of the debt securities in any such case, proceeding, dissolution,
liquidation or other winding up event.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured creditors of ours may include, without limitation, service providers including
Calamos, custodian, administrator, auction agent, broker-dealers and the trustee, pursuant to the
terms of various contracts with us. Secured creditors of ours may include without limitation
parties entering into any interest rate swap, floor or cap transactions, or other similar
transactions with us that create liens, pledges, charges, security interests, security agreements
or other encumbrances on our assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A consolidation, reorganization or merger of the Fund with or into any other company, or a
sale, lease or exchange of all or substantially all of our assets in consideration for the issuance
of equity securities of another company shall not be deemed to be a liquidation, dissolution or
winding up of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting Rights</I>. Debt securities have no voting rights, except to the extent required by law or
as otherwise provided in the Indenture relating to the acceleration of maturity upon the occurrence
and continuance of an event of default. In connection with any other borrowings (if any), the 1940
Act does in certain circumstances grant to the lenders certain voting rights in the event of
default in the payment of interest on or repayment of principal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market</I>. Unless otherwise stated in a prospectus supplement, our debt securities may be bought
or sold at an auction held periodically by submitting orders through a broker-dealer who has
entered into an agreement with us (a &#147;broker-dealer&#148;). Our debt securities are not listed on an
exchange or automated quotation system. Debt securities may be transferred outside of an auction
through a broker-dealer, but we cannot assure you that any such secondary market will exist or
whether it will provide holders of debt securities with liquidity. The details of the auction
process are further described in the related prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Book-Entry, Delivery and Form</I>. Unless otherwise stated in the related prospectus supplement,
the debt securities will be issued in book-entry form and will be represented by one or more notes
in registered global form. The global notes will be deposited with the trustee as custodian for
The Depository Trust Company (&#147;DTC&#148;) and registered in the name of Cede&nbsp;&#038; Co., as nominee of DTC. DTC will maintain the notes in
designated denominations through its book-entry facilities.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->61<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the expected terms of the indenture, we and the trustee may treat the persons in whose
names any notes, including the global notes, are registered as the owners thereof for the purpose
of receiving payments and for any and all other purposes whatsoever. Therefore, so long as DTC or
its nominee is the registered owner of the global notes, DTC or such nominee will be considered the
sole holder of outstanding notes under the indenture. We or the trustee may give effect to any
written certification, proxy or other authorization furnished by DTC or its nominee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A global note may not be transferred except as a whole by DTC, its successors or their
respective nominees. Interests of beneficial owners in the global note may be transferred or
exchanged for definitive securities in accordance with the rules and procedures of DTC. In
addition, a global note may be exchangeable for notes in definitive form if:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>DTC notifies us that it is unwilling or unable to continue as a depository and we do
not appoint a successor within 60&nbsp;days;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we, at our option, notify the trustee in writing that we elect to cause the issuance
of notes in definitive form under the indenture; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an event of default has occurred and is continuing.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In each instance, upon surrender by DTC or its nominee of the global note, notes in definitive
form will be issued to each person that DTC or its nominee identifies as being the beneficial owner
of the related notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the expected terms of the indenture, the holder of any global note may grant proxies and
otherwise authorize any person, including its participants and persons who may hold interests
through DTC participants, to take any action which a holder is entitled to take under the
indenture.
</DIV>
<DIV align="left">
<A name="117"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Rating Agencies, which assign ratings to our senior securities, impose asset coverage
requirements, which may limit our ability to engage in certain types of transactions and may limit
our ability to take certain actions without confirming that such action will not impair the
ratings. The outstanding preferred shares are currently rated &#147;Aaa&#148; and &#147;AAA&#148; by Moody&#146;s Investor
Services Inc. (&#147;Moody&#146;s&#148;) and Fitch Ratings (&#147;Fitch&#148;), respectively. Moody&#146;s and Fitch, and any
other agency that may rate our debt securities or preferred shares in the future, are collectively
referred to as the &#147;Rating Agencies.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may, but are not required to, adopt any modification to the guidelines that may hereafter
be established by any Rating Agency. Failure to adopt any modifications, however, may result in a
change in the ratings described above or a withdrawal of ratings altogether. In addition, any
Rating Agency may, at any time, change or withdraw any rating. The Board may, without shareholder
approval, modify, alter or repeal certain of the definitions and related provisions which have been
adopted pursuant to each Rating Agency&#146;s guidelines (&#147;Rating Agency Guidelines&#148;) only in the event
we receive written confirmation from the Rating Agency or Agencies that any amendment, alteration
or repeal would not impair the ratings then assigned to the senior securities.
</DIV>

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to satisfy two separate asset maintenance requirements with respect to
outstanding debt securities and with respect to preferred shares: (1)&nbsp;we must maintain assets in
our portfolio that have a value, discounted in accordance with guidelines set forth by each Rating
Agency, at
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->62<!-- /Folio -->
</DIV>

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



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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">least equal to 115% of the aggregate principal amount/liquidation preference of the debt
securities/ preferred stock, respectively, plus specified liabilities, payment obligations and
other amounts (the &#147;Basic Maintenance Amount&#148;); and (2)&nbsp;we must satisfy the 1940 Act asset coverage
requirements.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Basic Maintenance Amounts</I>. We must maintain, as of each valuation date on which senior
securities are outstanding, eligible assets having an aggregate discounted value at least equal to
115% of the applicable basic maintenance amount (&#147;Basic Maintenance Amount&#148;), which is calculated
separately for debt securities and preferred shares for each Rating Agency that is then rating the
senior securities and so requires. If we fail to maintain eligible assets having an aggregated
discounted value at least equal to 115% of the applicable Basic Maintenance Amount as of any
valuation date and such failure is not cured, we will be required in certain circumstances to
redeem certain of the senior securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The applicable Basic Maintenance Amount is defined in the Rating Agency&#146;s Guidelines. Each
Rating Agency may amend the definition of the applicable Basic Maintenance Amount from time to
time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market value of our portfolio securities (used in calculating the discounted value of
eligible assets) is calculated using readily available market quotations when appropriate, and in
any event, consistent with our valuation procedures. For the purpose of calculating the applicable
Basic Maintenance Amount, portfolio securities are valued in the same manner as we calculate our
NAV. See &#147;Determination of Net Asset Value.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Rating Agency&#146;s discount factors, the criteria used to determine whether the assets held
in our portfolio are eligible assets, and the guidelines for determining the discounted value of
our portfolio holdings for purposes of determining compliance with the applicable Basic Maintenance
Amount are based on Rating Agency Guidelines established in connection with rating the senior
securities. The discount factor relating to any asset, the applicable basic maintenance amount
requirement, the assets eligible for inclusion in the calculation of the discounted value of our
portfolio and certain definitions and methods of calculation relating thereto may be changed from
time to time by the applicable Rating Agency, without our approval, or the approval of our Board of
Trustees or shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Rating Agency&#146;s Guidelines will apply to the senior securities only so long as that Rating
Agency is rating such securities. We will pay certain fees to Moody&#146;s, Fitch and any other Rating
Agency that may provide a rating for the senior securities. The ratings assigned to the senior
securities are not recommendations to buy, sell or hold the senior securities. Such ratings may be
subject to revision or withdrawal by the assigning Rating Agency at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>1940 Act Asset Coverage</I>. We are also required to maintain, with respect to senior securities,
as of the last business day on any month in which any senior securities are outstanding, asset
coverage of at least 300% for debt securities and 200% for preferred stock (or such other
percentage as may in the future be specified in or under the 1940 Act as the minimum asset coverage
for senior securities representing shares of a closed-end investment company as a condition of
declaring dividends on its common stock). If we fail to maintain the applicable 1940 Act asset
coverage as of the last business day of any month and such failure is not cured as of the last
business day of the following month (the &#147;Asset Coverage Cure Date&#148;), we will be required to redeem
certain senior securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Notices</I>. Under the current Rating Agency Guidelines, in certain circumstances, we are
required to deliver to any Rating Agency which is then rating the senior securities (1)&nbsp;a
certificate with respect to the calculation of the applicable Basic Maintenance Amount; (2)&nbsp;a
certificate with respect to the calculation of the applicable 1940 Act asset coverage and the value
of our portfolio holdings; and (3)&nbsp;a letter prepared by our independent accountants regarding the
accuracy of such calculations.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->63<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein to the contrary, the Rating Agency Guidelines, as they may be
amended from time to time by each Rating Agency will be reflected in a written document and may be
amended by each Rating Agency without the vote, consent or approval of the Fund, the Board of
Trustees or any shareholder of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the current Rating Agency Guidelines will be provided to any holder of senior
securities promptly upon request made by such holder to the Fund by writing the Fund at 2020
Calamos Court, Naperville, Illinois 60563.
</DIV>
<DIV align="left">
<A name="118"></A>
</DIV>

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

<DIV align="center" style="font-size: 10pt"><B>AND DECLARATION OF TRUST AND BYLAWS</B></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Agreement and Declaration of Trust includes provisions that could have the effect
of limiting the ability of other entities or persons to acquire control of the Fund or to change
the composition of its Board of Trustees and could have the effect of depriving shareholders of an
opportunity to sell their shares at a premium over prevailing market prices by discouraging a third
party from seeking to obtain control of the Fund. These provisions, however, have the advantage of
potentially requiring persons seeking control of the Fund to negotiate with its management
regarding the price to be paid and facilitating the continuity of the Fund&#146;s investment objective
and policies. The Board of Trustees of the Fund has considered these provisions and concluded that
they are in the best interests of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Trustees is divided into three classes. The terms of the Trustees of the
different classes are staggered. A Trustee may be removed from office with or without cause by a
vote of at least a majority of the then Trustees if such removal is approved by the holders of at
least 75% of the shares entitled to vote with respect to the election of such Trustee and present
in person or by proxy at a meeting of shareholders called for such purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Agreement and Declaration of Trust requires the affirmative vote of at least
75% of the outstanding shares entitled to vote on the matter for the Trust to merge or consolidate
with any other corporation, association, trust or other organization or to sell, lease or exchange
all or substantially all of the Fund&#146;s assets; unless such action has been approved by the
affirmative vote of at least 75% of the Trustees then in office, in which case, the affirmative
vote of a majority of the outstanding shares entitled to vote on the matter is required.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, conversion of the Fund to an open-end investment company would require an
amendment to the Fund&#146;s Agreement and Declaration of Trust. Such an amendment would require the
favorable vote of a majority of the then Trustees followed by a favorable vote of the holders of at
least 75% of the shares entitled to vote on the matter, voting as separate classes or series (or a
majority of such shares if the amendment was previously approved by 75% of the Trustees). Such a
vote also would satisfy a separate requirement in the 1940 Act that the change be approved by the
shareholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the 1940 Act, shareholders of an open-end investment company may require the company to
redeem their shares of common stock at any time (except in certain circumstances as authorized by
or under the 1940 Act) at their net asset value, less such redemption charge, if any, as might be
in effect at the time of a redemption. If the Fund is converted to an open-end investment company,
it could be required to liquidate portfolio securities to meet requests for redemption, and the
common shares would no longer be listed on the NYSE. Conversion to an open-end investment company
would also require changes in certain of the Fund&#146;s investment policies and restrictions. In
addition, the Fund would be required to redeem all of its outstanding preferred shares prior to
conversion to an open-end investment company.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->64<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Agreement and Declaration of Trust requires the affirmative vote or consent
of a majority of the then Trustees followed by the affirmative vote or consent of the holders of at
least 75% of the shares of each affected class or series of the Fund outstanding, voting separately
as a class or series, to approve certain transactions with a Principal Shareholder, unless the
transaction has been approved by at least 75% of the Trustees, in which case a majority of the
outstanding shares entitled to vote shall be required. For purposes of these provisions, a
Principal Shareholder refers to any person who, whether directly or indirectly and whether alone or
together with its affiliates and associates, beneficially owns 5% or more of the outstanding shares
of any class or series of shares of beneficial interest of the Fund. The 5% holder transactions
subject to these special approval requirements are:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the merger or consolidation of the Fund or any subsidiary of the Fund with or into
any Principal Shareholder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the issuance of any securities of the Fund to any Principal Shareholder for cash
(other than pursuant to any automatic dividend reinvestment plan); or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the sale, lease or exchange to the Fund or any subsidiary of the Fund in exchange
for securities of the Fund, of any assets of any Principal Shareholder, except assets
having an aggregate fair market value of less than $1,000,000, aggregating for the
purpose of such computation all assets sold, leased or exchanged in any series of
similar transactions within a 12-month period.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may be terminated by the affirmative vote of not less than 75% of the Trustees then
in office by written notice to the shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agreement and Declaration of Trust and Bylaws provide that the Board of Trustees has the
power, to the exclusion of shareholders, to make, alter or repeal any of the Bylaws, except for any
Bylaw that requires a vote of the shareholders to be amended, adopted or repealed by the terms of
the Agreement and Declaration of Trust, Bylaws or applicable law. Neither this provision of the
Agreement and Declaration of Trust, nor any of the foregoing provisions thereof requiring the
affirmative vote of 75% of outstanding shares of the Fund, can be amended or repealed except by the
vote of such required number of shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to proposals by shareholders submitted outside the process of Rule&nbsp;14a-8 of the
Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;), the Fund&#146;s Bylaws generally require that advance notice be given
to the Fund in the event a shareholder desires to nominate a person for election to the Board of
Trustees or to transact any other business at an annual meeting of shareholders. With respect to
an annual meeting following the first annual meeting of shareholders, notice of any such nomination
or business must be delivered to the principal executive offices of the Fund not less than 90
calendar days nor more than 120 calendar days prior to the anniversary date of the mailing of the
notice for the prior year&#146;s annual meeting (subject to certain exceptions). Any notice by a
shareholder must be accompanied by certain information as provided in the Bylaws, including
information regarding the shares held by the shareholder and information regarding the
candidate&#146;s background and qualifications to serve as trustee.
</DIV>

<DIV align="left">
<A name="119"></A>
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may sell our common shares, preferred shares and debt securities, and certain of our
shareholders may sell our common shares, on an immediate, continuous or delayed basis, in one or
more offerings under this prospectus and any related prospectus supplement. The aggregate amount
of securities that may be offered by us is limited to $75 million. We may offer our common
shares, preferred shares and debt securities: (1)&nbsp;directly to one or more purchasers; (2)&nbsp;through
agents;
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->65<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(3)&nbsp;through underwriters; or (4)&nbsp;through dealers. Each prospectus supplement relating to an
offering of securities will state the terms of the offering, including as applicable:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the names of any agents, underwriters or dealers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any sales loads or other items constituting underwriters&#146; compensation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any discounts, commissions, or fees allowed or paid to dealers or agents;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the public offering or purchase price of the offered securities and the net proceeds
we will receive from the sale; provided, however, that we will not receive any of the
proceeds from a sale of our common stock by any selling shareholder; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any securities exchange on which the offered securities may be listed.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Direct Sales</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may sell our common shares, preferred shares and debt securities, or certain of our
shareholders may sell our common shares, directly to, and solicit offers from, institutional
investors or others who may be deemed to be underwriters as defined in the 1933 Act for any resales
of the securities. In this case, no underwriters or agents would be involved. We, or any selling
shareholder, may use electronic media, including the Internet, to sell offered securities directly.
The terms of any of those sales will be described in a prospectus supplement.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer our common shares, preferred shares and debt securities through agents that we or
they designate. Any agent involved in the offer and sale will be named and any commissions payable
by us will be described in the prospectus supplement. Unless otherwise indicated in the prospectus
supplement, the agents will be acting on a best efforts basis for the period of their appointment.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer and sell securities from time to time to one or more underwriters who would
purchase the securities as principal for resale to the public, either on a firm commitment or best
efforts basis. If we sell securities to underwriters, we will execute an underwriting agreement
with them at the time of the sale and will name them in the prospectus supplement. In connection
with these sales, the underwriters may be deemed to have received compensation from us in the form
of underwriting discounts and commissions. The underwriters also may receive commissions from
purchasers of securities for whom they may act as agent. Unless otherwise stated in the prospectus
supplement, the underwriters will not be obligated to purchase the securities unless the conditions
set forth in the underwriting agreement are satisfied, and if the underwriters purchase any of the
securities, they will be required to purchase all of the offered securities. The underwriters may
sell the offered securities to or through dealers, and those dealers may receive discounts,
concessions or commissions from the underwriters as well as from the purchasers for whom they may
act as agent. Any public offering price and any discounts or concessions allowed or reallowed or
paid to dealers may be changed from time to time.
</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->66<!-- /Folio -->
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer and sell securities from time to time to one or more dealers who would purchase
the securities as principal. The dealers then may resell the offered securities to the public at
fixed or varying prices to be determined by those dealers at the time of resale. The names of the
dealers and the terms of the transaction will be set forth in the prospectus supplement.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agents, underwriters or dealers participating in an offering of securities may be deemed to be
underwriters, and any discounts and commission received by them and any profit realized by them on
resale of the offered securities for whom they act as agent may be deemed to be underwriting
discounts and commissions under the 1933 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer to sell securities either at a fixed price or at prices that may vary, at market
prices prevailing at the time of sale, at prices related to prevailing market prices, or at
negotiated prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinarily, each series of offered securities will be a new issue of securities and will have
no established trading market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To facilitate an offering of common stock in an underwritten transaction and in accordance
with industry practice, the underwriters may engage in transactions that stabilize, maintain, or
otherwise affect the market price of the common stock or any other security. Those transactions
may include overallotment, entering stabilizing bids, effecting syndicate covering transactions,
and reclaiming selling concessions allowed to an underwriter or a dealer.
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An overallotment in connection with an offering creates a short position in the
common stock for the underwriter&#146;s own account.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An underwriter may place a stabilizing bid to purchase the common stock for the
purpose of pegging, fixing, or maintaining the price of the common stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Underwriters may engage in syndicate covering transactions to cover overallotments
or to stabilize the price of the common stock by bidding for, and purchasing, the
common stock or any other securities in the open market in order to reduce a short
position created in connection with the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The managing underwriter may impose a penalty bid on a syndicate member to reclaim a
selling concession in connection with an offering when the common stock originally sold
by the syndicate member is purchased in syndicate covering transactions or otherwise.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any of these activities may stabilize or maintain the market price of the securities above
independent market levels. The underwriters are not required to engage in these activities, and
may end any of these activities at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any underwriters to whom the offered securities are sold for offering and sale may make a
market in the offered securities, but the underwriters will not be obligated to do so and may
discontinue any market-making at any time without notice. The offered securities may or may not be
listed on a securities exchange. We cannot assure you that there will be a liquid trading market
for the offered securities.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->67<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under agreements entered into with us, underwriters and agents may be entitled to
indemnification by us against certain civil liabilities, including liabilities under the 1933 Act,
or to contribution for payments the underwriters or agents may be required to make.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The underwriters, agents, and their affiliates may engage in financial or other business
transactions with us and our subsidiaries in the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The maximum commission or discount to be received by any member of the National Association of
Securities Dealers, Inc. or independent broker-dealer will not be greater than eight percent of the
initial gross proceeds from the sale of any security being sold.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate offering price specified on the cover of this prospectus relates to the offering
of the securities not yet issued as of the date of this prospectus.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A prospectus and accompanying prospectus supplement in electronic form may be made available
on the websites maintained by underwriters. The underwriters may agree to allocate a number of
securities for sale to their online brokerage account holders. Such allocations of securities for
internet distributions will be made on the same basis as other allocations. In addition,
securities may be sold by the underwriters to securities dealers who resell securities to online
brokerage account holders.
</DIV>
<DIV align="left">
<A name="120"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s securities and cash are held under a custodian agreement with The Bank of New York,
One Wall Street, New York, New York 10286. The transfer agent, dividend disbursing agent and
registrar for the Fund&#146;s shares is also The Bank of New York.
</DIV>
<DIV align="left">
<A name="121"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vedder
Price P.C. (&#147;Vedder Price&#148;), Chicago, Illinois, is serving as our
special counsel in connection with the offerings under this prospectus and related prospectus
supplements. Vedder Price
is also counsel to Calamos.
 Morris, Nichols, Arsht &#038; Tunnell, Wilmington, Delaware (&#147;Morris Nichols&#148;)
will pass on the legality of the securities to be offered hereby. If certain legal matters in connection with an offering of securities are passed upon by counsel for the underwriters of such
offering, such matters will be passed upon by counsel to be identified in a prospectus
supplement. Vedder Price and counsel to the underwriters may rely on the opinion
of Morris Nichols for certain matters of Delaware law.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->68<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="122"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to the informational requirements of the Exchange Act and the 1940 Act and are
required to file reports, including annual and semi-annual reports, proxy statements and other
information with the Commission. Our most recent shareholder report filed with the Commission is
for the period ended October&nbsp;31, 2007. These documents are available on the Commission&#146;s EDGAR
system and can be inspected and copied for a fee at the Commission&#146;s public reference room,
Washington, D.C. 20549-0102. Additional information about the operation of the public reference
room facilities may be obtained by calling the Commission at (202)&nbsp;551-8090.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus does not contain all of the information in our registration statement,
including amendments, exhibits, and schedules. Statements in this prospectus about the contents of
any contract or other document are not necessarily complete and in each instance reference is made
to the copy of the contract or other document filed as an exhibit to the registration statement,
each such statement being qualified in all respects by this reference.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional information about us can be found in our registration statement (including
amendments, exhibits, and schedules) on Form N-2 filed with the Commission. The Commission
maintains a web site (http://www.sec.gov) that contains our registration statement, other documents
incorporated by reference, and other information we have filed electronically with the Commission,
including proxy statements and reports filed under the Exchange Act.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->69<!-- /Folio -->
</DIV>

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



<DIV align="left">
<A name="123"></A>
</DIV>

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

<DIV align="center" style="font-size: 10pt"><B>OF THE STATEMENT OF ADDITIONAL INFORMATION</B></DIV>

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

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#134">Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#135">Investment Objective and Policies</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#136">Investment Restrictions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#137">Management of the Fund</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#138">Portfolio Transactions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#139">Net Asset Value</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#140">Repurchase of Common Shares</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#141">Federal Income Tax Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#142">Custodian, Transfer Agent, Dividend Disbursing Agent and Registrar</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#143">Independent Registered Public Accounting Firm</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#144">Additional Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#145">Additional Information Concerning the Agreement and Declaration of Trust</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Statements and Report of Independent Auditors/Accountants</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#146">Appendix&nbsp;A &#150; Form of Calamos Global Total Return Fund Amended and Restated
Statement of Preferences of Auction Rate Cumulative Preferred Shares
(&#147;Preferred Shares&#148;)</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#147">Appendix&nbsp;B &#150; Summary of Certain Provisions of the Indenture and Form of
Supplemental Indenture</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">B-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#148">Appendix&nbsp;B-I &#150; Auction Procedures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">B-I-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#149">Appendix&nbsp;C &#150; Description of Ratings</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">C-1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

</FONT></DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->70<!-- /Folio -->
</DIV>

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

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 18pt"><B>$75,000,000<DIV style="font-size: 6pt">&nbsp;</DIV>
Common Shares<BR>
Preferred Shares<BR>
Debt Securities</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Calamos Global Total Return Fund</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROSPECTUS</B><BR>
<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

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

</FONT></DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>February&nbsp;&#95;&#95;&#95;&#95;,
2008</B>
<DIV align="left"><FONT size="1">

</FONT></DIV>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>



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



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

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


<P style="padding: 5px; border: 3px double #000000; font-size: 11pt; color: #FF0000">The information in this prospectus supplement, which relates to an effective Registration Statement
under the Securities Act of 1933, is not complete and may be changed. We may not sell these
securities until we deliver a final prospectus supplement. This prospectus supplement and the
attached prospectus do not constitute an offer to sell these securities or a solicitation of an
offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SUBJECT TO COMPLETION, DATED __________&nbsp;__, 2007</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 6pt">&#091;LOGO&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">FORM OF PROSPECTUS SUPPLEMENT<BR>
(To prospectus dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007)

</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>$___________</B></DIV>

<DIV align="center" style="font-size: 18pt"><B>CALAMOS GLOBAL TOTAL RETURN FUND</B></DIV>


<DIV align="center" style="font-size: 12pt"><B>Preferred Shares</B></DIV>


<DIV align="center" style="font-size: 12pt"><B>&#95;&#95;&#95; Shares, Series &#95;&#95;&#95;</B></DIV>


<DIV align="center" style="font-size: 12pt"><B>Liquidation Preference $25,000 per share</B></DIV>


<DIV align="center" style="font-size: 12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></DIV>



<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Global Total Return Fund (the &#147;Fund,&#148; &#147;we&#148;, &#147;us&#148; or &#147;our&#148;) is a diversified,
closed-end management investment company. Our investment objective is to provide total return
through a combination of capital appreciation and current income.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering an additional series (&#147;Series &#95;&#95;&#95;&#148;) of our auction rate preferred shares
(referred to as &#147;Preferred Shares&#148; or &#147;Series
&#95;&#95;&#95; Preferred Shares&#148;) in this prospectus supplement.
This prospectus supplement is not complete and should be read in conjunction with our prospectus
dated &#95;&#95;&#95;&#95;&#95;&#95;, 20&#95;&#95;&#95; (the &#147;prospectus&#148;), which accompanies this prospectus supplement. This
prospectus supplement does not include all information that you should consider before purchasing
any Preferred Shares. You should read this prospectus supplement and our prospectus prior to
purchasing any Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Series &#95;&#95;&#95; Preferred Shares offered in this prospectus supplement, together with the
previously issued and currently outstanding Preferred Shares, are collectively referred to as
&#147;Preferred Shares.&#148; Individual series of Preferred Shares are referred to as a &#147;series.&#148; Except
as otherwise described in this prospectus supplement, the terms of this series and all other series
are the same. Capitalized terms used but not defined in this prospectus supplement shall have the
meanings given to such terms in Appendix &#95;&#95;&#95; to the Statement of Additional Information, which is
available from us upon request.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Preferred Shares have a liquidation preference of $25,000 per share, plus any accumulated,
unpaid dividends. The Preferred Shares also have priority over the Fund&#146;s common shares as to
distribution of assets as described in this prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The dividend rate for the initial dividend period will be &#95;&#95;&#95;% per annum for Series &#95;&#95;&#95;
 Preferred Shares. The initial dividend period is from the date of issuance through &#95;&#95;&#95;&#95;&#95;&#95;,
2007, an initial dividend period of &#95;&#95;&#95; days. For subsequent dividend periods, Preferred Shares
pay dividends based on a rate set at auction, usually held weekly. Dividends on the Preferred
Shares will be cumulative. Prospective purchasers should carefully review the auction procedures
described in this prospectus supplement and should note: (1)&nbsp;a buy order (called a &#147;bid order&#148;) or
sell order is a commitment to buy or sell Preferred Shares based on the results of an auction; (2)
auctions will be conducted by telephone; and (3)&nbsp;purchases and sales will be settled on the next
business day after the auction.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Preferred Shares are redeemable, in whole or in part, at the option of the Fund on the
second business day prior to any date dividends are paid on the Preferred Shares, and will be
subject to mandatory redemption in certain circumstances at a redemption price of $25,000 per
share, plus accumulated, unpaid dividends to the date of redemption, plus a premium in certain
circumstances.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>(continued on next page)</I>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 18pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>

</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing
in Preferred Shares involves certain risks. See &#147;Risk
Factors&#148; beginning on page&nbsp;&#95;&#95;&#95; of the prospectus and &#147;The Auction-General&#148; beginning on page&nbsp;&#95;&#95;&#95; of this prospectus supplement.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus supplement is truthful
or complete. Any representation to the contrary is a criminal offense.</B>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></DIV>

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

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Public offering price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales load</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds to us (before expenses)<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Does not include offering expenses payable by us estimated to be $&#95;&#95;&#95;.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
underwriters expect to deliver the Series &#95;&#95;&#95; Preferred Shares in book-entry form, through
the facilities of The Depository Trust Company, to broker-dealers on or about &#95;&#95;&#95;&#95;&#95;&#95;, 20&#95;&#95;&#95;.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 18pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>

</DIV>

<DIV align="Center" style="font-size: 14pt; margin-top: 6pt"><B>&#091;UNDERWRITER(S)&#093;</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;

</DIV>

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

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


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Preferred Shares will not be listed on an exchange. You may only buy or sell Preferred
Shares through an order placed at an auction with or through a broker-dealer that has entered into
an agreement with the auction agent and the Fund or in a secondary market maintained by certain
broker-dealers. These broker-dealers are not required to maintain this market, and it may not
provide you with liquidity. See &#147;The Auction&#151;Secondary Market Trading and Transfer of Preferred
Shares.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
offering is conditioned upon the Series &#95;&#95;&#95; Preferred Shares receiving a rating of &#147;AAA&#148;
from Fitch Ratings and &#147;AAA&#148; from Standard &#038; Poor&#146;s Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The prospectus supplement has been filed with the Securities and Exchange Commission (the
&#147;SEC&#148;). Additional copies of this prospectus supplement, the prospectus, the Statement of
Additional Information dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, as supplemented from time to time, or the Fund&#146;s annual or
semi-annual reports are available by calling (800)&nbsp;582-6959 or by writing to the Fund, or you may
obtain copies (and other information regarding us) from the SEC&#146;s web site (http://www.sec.gov).
The Fund&#146;s annual and semi-annual reports are also available on the Fund&#146;s website at
<U>www.calamos.com</U>, which provides a link to the SEC&#146;s website where the Fund&#146;s Statement of
Additional Information may be obtained. You also may e-mail requests for these documents to the
SEC at publicinfo@sec.gov or make a request in writing to the SEC&#146;s Public Reference Section,
Washington, D.C. 20549-0102.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement, which describes the specific terms of this offering, also adds to
and updates information contained in the accompanying prospectus and the documents incorporated by
reference in the prospectus. The prospectus gives more general information, some of which may not
apply to this offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the description of this offering varies between this prospectus supplement and the
accompanying prospectus, you should rely on the information contained in this prospectus
supplement; provided that if any statement in one of these documents is inconsistent with a
statement in another document having a later date, the statement in the document having the later
date modifies or supersedes the earlier statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Preferred Shares do not represent a deposit or obligation of, and are not guaranteed or
endorsed by, any bank or other insured depository institution, and are not federally insured by the
Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
</DIV>

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

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


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

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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#124">Prospectus Supplement Summary</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#125">Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#126">Capitalization</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#127">Asset Coverage Requirements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#128">Description of Preferred Shares</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#129">The Auction</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#130">Underwriting</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#131">Where You Can Find More Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#132">Legal Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="right">S-__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#133">&#091;Unaudited&#093; Financial Statements as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 200___</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-__</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px"><B>Prospectus</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prospectus Summary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Summary of Fund Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Highlights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market and Net Asset Value Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Use of Proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment Objective and Principal Investment Strategies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leverage</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest Rate Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk Factors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Management of the Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Closed-End Fund Structure</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certain Federal Income Tax Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Asset Value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends and Distributions; Automatic Dividend Reinvestment Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Description of Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rating Agency Guidelines</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certain Provisions of the Agreement and Declaration of Trust and Bylaws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plan of Distribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Custodian, Transfer Agent, Dividend Disbursing Agent and Registrar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Available Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Table of Contents of the Statement of Additional Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">__</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information contained in or incorporated by reference in this
prospectus supplement. Neither we nor the underwriters have authorized anyone to provide you with
different or inconsistent information. If anyone provides you with different or inconsistent
information, you should not rely on it. We are not, and the underwriters are not, making an offer
to sell these Series &#95;&#95;&#95; Preferred Shares in any jurisdiction where the offer or sale is not
permitted. You should assume that the information in this prospectus supplement is accurate only
as of the date of this prospectus supplement, and that our business, financial condition and
prospects may have changed since this date. We will amend or supplement this prospectus supplement
to reflect material changes to the information contained in this prospectus supplement to the
extent required by applicable law.
</DIV>


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

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




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently known risk factors that could cause actual results to differ materially from our
expectations include, but are not limited to, the factors described in the &#147;Risk Factors&#148; section
of the prospectus accompanying this prospectus supplement as well as in &#147;Auction Risk&#148; and
&#147;Existing Holder&#146;s Ability to Resell Auction Rate Securities May&nbsp;Be Limited&#148; in &#147;The Auction&#148;
section of this prospectus supplement. We urge you to review carefully those sections for a more
detailed discussion of the risks of an investment in the Preferred Shares.
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">
<DIV align="left">
<A name="124"></A>
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>This summary contains basic information about us but does not contain all of the information
that is important to your investment decision. You should read this summary together with the more
detailed information contained elsewhere in this prospectus supplement and accompanying prospectus
and in the statement of additional information, especially the information set forth under the
heading &#147;Risk Factors&#148; beginning on page&nbsp;&#95;&#95;&#95;of the accompanying prospectus.</I>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Global Total Return Fund is a diversified, closed-end management investment company.
Throughout the prospectus, we refer to Calamos Global Total Return Fund as the &#147;Fund&#148; or as &#147;we,&#148;
&#147;us,&#148; or &#147;our.&#148; The Fund&#146;s common shares are traded on the New York Stock Exchange under the
symbol &#147;CGO.&#148; As of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007, the Fund had <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> common shares outstanding and net
assets of $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. The Fund&#146;s principal offices are located at 2020 Calamos Court, Naperville,
Illinois 60563. We have a fiscal year ending October&nbsp;31<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investment objective is to provide total return through a combination of capital
appreciation and current income. There can be no assurance that we will achieve our investment
objective. See &#147;The Fund&#148; in the accompanying prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We commenced operations in October&nbsp;2005 following our initial public offering. As of the date
of this prospectus supplement, we have we have $59&nbsp;million of Auction Rate Cumulative Preferred
Shares (&#147;Preferred Shares&#148;) outstanding.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Advisors LLC (&#147;Calamos&#148;) is the Fund&#146;s investment adviser. Calamos is responsible on
a day-to-day basis for investment of the Fund&#146;s portfolio in accordance with its investment
objective and policies. Calamos makes all investment decisions for the Fund and places purchase
and sale orders for the Fund&#146;s portfolio securities. As of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007, Calamos managed
approximately $&nbsp;billion in assets of individuals and institutions. Calamos is a wholly owned
subsidiary of Calamos Holdings LLC (&#147;Holdings&#148;) and an indirect subsidiary of Calamos Asset
Management, Inc., a publicly traded holding company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund pays Calamos an annual fee, payable monthly, for its investment management services
equal to &#95;&#95;&#95;% of the Fund&#146;s average weekly managed assets. See &#147;Management of the Fund&#148; in the
accompanying prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal business address of the Adviser is 2020 Calamos Court, Naperville, Illinois,
60563.
</DIV>

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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Preferred Shares offered by the Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We are offering &#95;&#95;&#95; Series &#95;&#95;&#95;
Preferred Shares, each at a
purchase price of $25,000 per
share. The Series &#95;&#95;&#95;Preferred
Shares are offered through
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Use of Proceeds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund estimates the net
proceeds of the offering of
Preferred Shares, after payment of
sales load and offering expenses,
will be approximately $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>



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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund will invest the net proceeds of
the offering in accordance with the Fund&#146;s
investment objective and policies as stated
below. It is presently anticipated that
the Fund will invest substantially all of
the net proceeds in securities that meet
its investment objective and policies
within three months after completion of
this offering. Pending such investment,
the Fund anticipates that all or a portion
of the proceeds will be invested in U.S.
government securities or high-grade,
short-term money market instruments. If
necessary, the Fund may also purchase, as
temporary investments, securities of other
open- or closed-end investment companies
that invest primarily in the types of
securities in which the Fund may invest
directly. See &#147;Investment Objective and
Principal Investment Strategies&#148; in the
accompanying prospectus.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Auction Agent
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Auction Agent&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Broker Dealer(s)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Broker-Dealer(s)&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Risk Factors
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See &#147;Risks Factors&#148; and other information included in the accompanying prospectus, as
well as &#147;Risks-Auction Risk&#148;, &#147;Risks-Secondary Market Trading and Transfer of Preferred
Shares&#148; and &#147;Risks-Ratings and Asset Coverage Risk&#148; under &#147;The Auction&#148; in this prospectus
supplement, for a discussion of the factors you should carefully consider before deciding to
invest in the Preferred Shares.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->S-2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="125"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund estimates the net proceeds of the offering of Preferred Shares, after payment of
sales load and offering expenses, will be approximately $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. The Fund will invest the net
proceeds of the offering in accordance with the Fund&#146;s investment objective and policies. It is
presently anticipated that the Fund will invest substantially all of the net proceeds in securities
that meet its investment objective and policies within three months after completion of this
offering. Pending such investment, the Fund anticipates that all or a portion of the proceeds will
be invested in U.S. government securities or high-grade, short-term money market instruments. If
necessary, the Fund may also purchase, as temporary investments, securities of other open- or
closed-end investment companies that invest primarily in the types of securities in which the Fund
may invest directly. See &#147;Investment Objective and Principal Investment Strategies&#148; in the
accompanying prospectus.
</DIV>
<DIV align="left">
<A name="126"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the capitalization of the Fund as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007, and as
adjusted, to give effect to the issuance of all the Preferred Shares offered hereby (including
estimated offering expenses and sales load of $&#95;&#95;&#95;). The sales load and offering expenses of the
Preferred Shares will be effectively borne by common shareholders.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>As Adjusted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Actual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Preferred Shares</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Shareholders&#146; Equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred Shares, no par value per share, $25,000 stated
value per share, at liquidation value; unlimited shares
authorized (no shares issued; no shares issued; and
_____ shares issued, respectively)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common shares, no par value per share, unlimited shares
authorized, _____ shares outstanding*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Undistributed net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accumulated net realized gain (loss)&nbsp;on investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net unrealized appreciation (depreciation)&nbsp;on investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>None of these outstanding shares are held by or for the account of the Fund.</TD>
</TR>

</TABLE>


<DIV align="left">
<A name="127"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may be subject to certain restrictions on investments imposed by guidelines of one or
more rating agencies that may issue ratings for the preferred shares or debt instruments issued by
the Fund. These guidelines may impose asset coverage or portfolio composition requirements that
are more stringent than those imposed by the 1940 Act. See &#147;The Auction&#150;Rating and Asset Coverage
Risk&#148; below. Certain types of borrowings may result in the Fund being subject to covenants in
credit agreements, including those relating to asset coverage, borrowing base and portfolio
composition requirements and additional covenants. The Fund may also be required to pledge its
assets to the lenders in connection with certain types of borrowing. Calamos does not anticipate
that these covenants or restrictions will adversely affect its ability to manage the Fund&#146;s
portfolio in accordance with the Fund&#146;s investment objective and policies. Due to these covenants
or restrictions, the Fund may be forced to liquidate investments at times and at prices that are
not favorable to the Fund, or the Fund may be forced to forgo investments that Calamos otherwise
views as favorable.
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="128"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a brief description of the terms of the Preferred Shares. For the complete
terms of the Preferred Shares, please refer to the detailed description of the Preferred Shares in
the Statement of Preferences of Auction Rate Cumulative Preferred Shares (the &#147;Statement&#148;) attached
as Appendix &#95;&#95;&#95; to the Statement of Additional Information. Where appropriate, terms used in
&#147;Description of Preferred Shares&#148; and in &#147;The Auction&#148; below will have the same meanings as those
terms in the Statement.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Agreement and Declaration of Trust authorizes the issuance of preferred shares, no
par value per share, in one or more classes or series with rights as determined by the Board of
Trustees without the approval of common shareholders. The Statement currently authorizes the
issuance of &#95;&#95;&#95; Preferred Shares, Series &#95;&#95;&#95;. All Preferred Shares will have a liquidation
preference of $25,000 per share, plus an amount equal to accumulated but unpaid dividends (whether
or not earned or declared).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Preferred Shares of each series will rank on parity with any other series of Preferred
Shares and any other series of preferred shares of the Fund as to the payment of dividends and the
distribution of assets upon liquidation. Each Preferred Share carries one vote on matters on which
Preferred Shares can be voted. The Preferred Shares, when issued by the Fund and paid for pursuant
to the terms of this prospectus supplement and the accompanying prospectus, will be fully paid and
non-assessable and will have no preemptive, exchange or conversion rights. Any Preferred Shares
repurchased or redeemed by the Fund will be classified as authorized and unissued Preferred Shares.
The Board of Trustees may by resolution classify or reclassify any authorized and unissued
Preferred Shares from time to time by setting or changing the preferences, rights, voting powers,
restrictions, limitations as to dividends, qualifications or terms or conditions of redemption of
such shares. The Preferred Shares will not be subject to any sinking fund, but will be subject to
mandatory redemption under certain circumstances described below.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a general description of dividends and dividend periods for the Preferred
Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividend
Periods</I>. The initial dividend period for the Preferred Shares is &#95;&#95;&#95; days and the
initial dividend rate is &#95;&#95;&#95;% per annum.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
subsequent dividend periods of Series &#95;&#95;&#95; Preferred Shares will generally be &#091;seven&#093; days.
The Fund, subject to certain conditions, may change the length of subsequent dividend periods by
designating them as special dividend periods. See &#147;&#151;Designation of Special Dividend Periods&#148;
below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividend Payment Dates</I>. Dividends on the Preferred Shares will be payable, when, as and if
declared by the Board of Trustees, out of legally available funds in accordance with the Agreement
and Declaration of Trust, the Statement and applicable law. The initial dividend payment date and
the day of the week upon which subsequent dividends, if any, will be paid for the Preferred Shares
is &#95;&#95;&#95;, 2007 and &#091;day of the week&#093;, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend periods generally will begin on the first business day after an auction. If
dividends are payable on a day that is not a business day, then dividends will generally be payable
on the next day if such day is a business day, or as otherwise specified in the Statement. In
addition, the Fund may specify different dividend payment dates for any special dividend period of
more than seven days, provided that
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such dates shall be set forth in the notice of special dividend period relating to such
special dividend period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;Dividends will be paid through the Depository Trust Company (&#147;DTC&#148;) on each dividend payment
date. The dividend payment date will normally be (A)&nbsp;the first business day after the dividend
period ends with respect to a dividend period of one year or less; provided, however, if the
dividend period is more than 91&nbsp;days then on the 91st, 181st and 271st days within such period, if
applicable, and on the business day following the last day of such dividend period; and (B)&nbsp;with
respect to any dividend period of more than one year, on a quarterly basis on each January&nbsp;1,
April&nbsp;1, July&nbsp;1 and October&nbsp;1 within such dividend period and on the business day following the
last day of such dividend period.&#093; DTC, in accordance with its current procedures, is expected to
distribute dividends received from the auction agent in same-day funds on each dividend payment
date to agent members (members of DTC that will act on behalf of existing or potential holders of
Preferred Shares). These agent members are in turn expected to distribute such dividends to the
persons for whom they are acting as agents. However, each of the current Broker-Dealers has
indicated to the Fund that dividend payments will be available in same-day funds on each dividend
payment date to customers that use a Broker-Dealer or a Broker-Dealer&#146;s designee as agent member.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Calculation of Dividend Payment</I>. The Fund computes the dividends per share payable on each
series of Preferred Shares by multiplying the applicable rate in effect by a fraction. For each
dividend period of less than one (1)&nbsp;year, the numerator of this fraction will normally be the
number of days in the dividend period and the denominator will normally be 360. This rate is then
multiplied by $25,000 to arrive at the dividends per share. For each dividend period of one (1)
year or more, the dividends per share payable is computed as described above, except that it will
be determined on the basis of a year consisting of twelve 30-day months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends on Preferred Shares will accumulate from the date of their original issue, which is
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007. For each dividend payment period after the initial dividend period, the dividend
will be the dividend rate determined at auction. The dividend rate that results from an auction
will not be greater than the maximum rate described below. Prior to each auction, Broker-Dealers
will notify holders of the term of the next succeeding dividend period as soon as practicable after
the Broker-Dealers have been so advised by the Fund. After each auction, on the auction date,
Broker-Dealers will notify holders of the applicable rate for the next succeeding dividend period
and as of the auction date of the next succeeding auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except during a Default Period as described below, the applicable rate resulting from an
auction will not be greater than the maximum rate. The maximum rate will be the applicable
percentage of the reference rate. The &#147;Reference Rate&#148; will be the applicable LIBOR Rate (as
defined below) (for a dividend period of fewer than 365&nbsp;days) or the applicable Treasury Index Rate
(as defined below) (for a dividend period of 365&nbsp;days or more). The applicable percentage for any
standard dividend period will generally be determined based on the credit ratings assigned to the
Preferred Shares by Fitch and S&#038;P on the auction date for such period (as set forth in the table
below). If Fitch and/or S&#038;P shall not make such rating available, the rate shall be determined by
reference to equivalent ratings issued by any other rating agency.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fitch and/or S&#038;P Credit Rating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Applicable Percentage</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" nowrap>AA&#150; or higher</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">150</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">A&#150; to A&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">200</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right" nowrap><DIV style="margin-left:15px; text-indent:-15px">BBB&#150; to BBB&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">250</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px">Below BBB&#150;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">275</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;LIBOR Rate&#148; is the applicable London Inter-Bank Offered Rate for deposits in U.S. dollars
for the period most closely approximating the applicable dividend period for a series of Preferred
Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The &#147;Treasury Index Rate&#148; is the average yield to maturity for certain U.S. Treasury
securities having substantially the same length to maturity as the applicable dividend period for a
series of Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Trustees may amend the maximum rate to increase the percentage amount by which
the reference rate described above is multiplied to determine the maximum rate shown without the
vote or consent of the holders of Preferred Shares, or any shareholder of the Fund, but only with
confirmation from each rating agency then rating the Preferred Shares that such action will not
impair such agency&#146;s then-current rating of the Preferred Shares, and after consultation with the
Broker-Dealers, provided that immediately following any such increase the Fund could meet the
Preferred Shares Basic Maintenance Amount test discussed below under &#147;&#151;Rating Agency Guidelines.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The maximum rate for the Preferred Shares will apply automatically following an auction for
such Preferred Shares in which sufficient clearing bids have not been made (other than because all
Preferred Shares were subject to submitted hold orders) or following the failure to hold an auction
for any reason on the auction date scheduled to occur (except for circumstances in which the
dividend rate is the Default Rate, as described below).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to each auction, Broker-Dealers will notify holders of the term of the next succeeding
dividend period as soon as practicable after the Broker-Dealers have been so advised by the Fund.
After each auction, on the auction date, Broker-Dealers will notify holders of the applicable rate
for the next succeeding dividend period and of the auction date of the next succeeding auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On each dividend payment date, the Fund is required to deposit with the paying agent
sufficient funds for the payment of declared dividends. The failure to make such deposit will not
result in the cancellation of any auction. The Fund does not intend to establish any reserves for
the payment of dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Default Period</I>. Subject to the applicable cure provisions, a &#147;Default Period&#148; with respect to
a particular series will commence on any date the Fund fails to deposit irrevocably in trust in
same-day funds, with the paying agent by 12:00 noon, New York City time, (A)&nbsp;the full amount of any
declared dividend on that series payable on the dividend payment date (a &#147;Dividend Default&#148;) or
(B)&nbsp;the full amount of any redemption price (the &#147;Redemption Price&#148;) payable on the date fixed for
redemption (the &#147;Redemption Date&#148;) (a &#147;Redemption Default&#148; and together with a Dividend Default,
hereinafter referred to as &#147;Default&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the applicable cure provisions, a Default Period with respect to a Dividend Default
or a Redemption Default shall end on the business day on which, by 12:00 noon, New York City time,
all unpaid dividends and any unpaid Redemption Price shall have been deposited irrevocably in trust
in same-day funds with the paying agent. In the case of a Dividend Default, the applicable rate
for each dividend period commencing during a Default Period will be equal to the default rate
described below, and each subsequent dividend period commencing after the beginning of a Default
Period shall be a standard dividend period; provided, however, that the commencement of a Default
Period will not by itself cause the commencement of a new dividend period. No Auction shall be
held during a Default Period applicable to that series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Default Period with respect to a Dividend Default or Redemption Default shall be deemed to
commence if the amount of any dividend or any Redemption Price due (if such default is not solely
due to the willful failure of the Fund) is deposited irrevocably in trust, in same-day funds with
the paying agent
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">by 12:00 noon, New York City time within three business days after the applicable dividend
payment date or Redemption Date, together with an amount equal to the default rate applied to the
amount of such non-payment based on the actual number of days comprising such period divided by 360
for each series. The default rate shall be equal to the Reference Rate multiplied by three (3).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Restrictions on Dividend, Redemption and Other Payments</I>. Under the 1940 Act, the Fund may not
(i)&nbsp;declare any dividend with respect to the Preferred Shares if, at the time of such declaration
(and after giving effect thereto), asset coverage with respect to the Fund&#146;s senior securities
representing indebtedness (as defined in the 1940 Act) would be less than 200% (or such other
percentage as may in the future be specified in or under the 1940 Act as the minimum asset coverage
for senior securities representing indebtedness of a closed-end investment company as a condition
of declaring dividends on its preferred shares) or (ii)&nbsp;declare any other distribution on the
Preferred Shares or purchase or redeem Preferred Shares if at the time of the declaration (and
after giving effect thereto), asset coverage with respect to the Fund&#146;s senior securities
representing indebtedness would be less than 300% (or such other percentage as may in the future be
specified in or under the 1940 Act as the minimum asset coverage for senior securities representing
indebtedness of a closed-end investment company as a condition of declaring distributions,
purchases or redemptions of its shares of beneficial interest). &#147;Senior securities representing
indebtedness&#148; generally means any bond, debenture, note or similar obligation or instrument
constituting a security (other than shares of beneficial interest) and evidencing indebtedness and
could include the Fund&#146;s obligations under any Borrowings. The term &#147;senior security&#148; also does
not include any promissory note or other evidence of indebtedness in any case where such a loan is
for temporary purposes only and in an amount not exceeding 5% of the value of the total assets of
the Fund at the time when the loan is made. A loan is presumed under the 1940 Act to be for
temporary purposes if it is repaid within 60&nbsp;days and is not extended or renewed; otherwise it is
presumed not to be for temporary purposes. For purposes of determining whether the 200% and 300%
asset coverage requirements described above apply in connection with dividends or distributions on
or purchases or redemptions of Preferred Shares, such asset coverages may be calculated on the
basis of values calculated as of a time within 48 hours (not including Sundays or holidays) next
preceding the time of the applicable determination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, a declaration of a dividend or other distribution on, or purchase or redemption
of, Preferred Shares may be prohibited (i)&nbsp;at any time when an event of default under any
Borrowings has occurred and is continuing; or (ii)&nbsp;if, after giving effect to such declaration, the
Fund would not have eligible portfolio holdings with an aggregated discounted value at least equal
to any asset coverage requirements associated with such Borrowings; or (iii)&nbsp;the Fund has not
redeemed the full amount of Borrowings, if any, required to be redeemed by any provision for
mandatory redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While any of the Preferred Shares are outstanding, the Fund generally may not declare, pay or
set apart for payment, any dividend or other distribution in respect of its common shares (other
than in additional common shares or rights to purchase common shares) or repurchase any of its
common shares (except by conversion into or exchange for shares of the Fund ranking junior to the
Preferred Shares as to the payment of dividends and the distribution of assets upon liquidation)
unless each of the following conditions has been satisfied:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the case of Fitch&#146;s coverage requirements, immediately after such transaction,
the aggregate discounted value (i.e., the aggregate value of the Fund&#146;s portfolio
discounted according to Fitch criteria) would be equal to or greater than the Preferred
Shares Basic Maintenance Amount (as defined in the Prospectus under &#147;Rating Agency
Guidelines&#148; below);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the case of S&#038;P&#146;s coverage requirements, immediately after such transaction, the
aggregate discounted value (i.e., the aggregate value of the Fund&#146;s portfolio
discounted</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->S-7<!-- /Folio -->
</DIV>

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


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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>according to S&#038;P criteria) would be equal to or greater than the Preferred Shares Basic
Maintenance Amount;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Immediately after such transaction, the 1940 Act Preferred Shares Asset Coverage (as
defined in this Prospectus under &#147;Rating Agency Guidelines&#148; below) is met;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Full cumulative dividends on the Preferred Shares due on or prior to the date of the
transaction have been declared and paid in full or have been declared and sufficient
funds for the payment thereof deposited with the auction agent; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Fund has redeemed the full number of Preferred Shares required to be redeemed by
any provision for mandatory redemption contained in the Statement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund generally will not declare, pay or set apart for payment any dividend on any shares
of the Fund ranking, as to the payment of dividends, on a parity with Preferred Shares unless the
Fund has declared and paid or contemporaneously declares and pays full cumulative dividends on the
Preferred Shares through its most recent dividend payment date. However, if the Fund has not paid
dividends in full on the Preferred Shares through the most recent dividend payment date or upon any
shares of the Fund ranking, as to the payment of dividends, on a parity with Preferred Shares
through their most recent respective dividend payment dates, the amount of dividends shall be
declared pro rata so that the amount of dividends declared per share on Preferred Shares and such
other class or series of shares will in all cases bear to each other the same ratio that
accumulated dividends per share on the Preferred Shares and such other class or series of shares
bear to each other.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Designation of Special Dividend Periods</I>. The Fund may, in certain situations, declare a
special dividend period. Prior to declaring a special dividend period, the Fund will give notice
(a &#147;notice of special dividend period&#148;) to the auction agent and to each Broker-Dealer. The notice
of special dividend period will state that the next succeeding dividend period for the Preferred
Shares will be a number of days as specified in such notice of special dividend period. The Fund
may not designate a special dividend period unless sufficient clearing bids were made in the most
recent auction. In addition, full cumulative dividends, any amounts due with respect to mandatory
redemptions and any additional dividends payable prior to such date must be paid in full or
deposited with the auction agent. In addition, the Fund does not intend to designate a special
dividend period if such designation would adversely affect Fitch&#146;s or S&#038;P&#146;s or any substitute
rating agency&#146;s then-current rating on the Preferred Shares. The Fund also must have portfolio
securities with a discounted value at least equal to the Preferred Share Maintenance Amount. A
notice of special dividend period also will specify whether the Preferred Shares will be subject to
optional redemption during such special dividend period and, if so, the redemption premium, if any,
required to be paid by the Fund in connection with such optional redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund proposes to designate any special dividend period, not fewer than seven business
days (or two business days in the event the duration of the dividend period prior to such special
dividend period is fewer than eight days) nor more than 30 business days prior to the first day of
such special dividend period, notice of special dividend period shall be (i)&nbsp;made by press release
and (ii)&nbsp;communicated by the Fund by telephonic or other means to the auction agent and each
Broker-Dealer and the rating agency and confirmed in writing promptly thereafter. Each such notice
of special dividend period shall state (A)&nbsp;that the Fund proposes to exercise its option to
designate a succeeding special dividend period, specifying the first and last days thereof and the
maximum rate for such special dividend period and (B)&nbsp;that the Fund will by 3:00 P.M., New York
City time, on the second business day next preceding the first day of such special dividend period,
notify the auction agent, who will promptly notify the Broker-Dealers, of either (x)&nbsp;its
determination, subject to certain conditions, to proceed with such special dividend period, subject
to the terms of any specific redemption provisions, or (y)&nbsp;its
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">determination not to proceed with such special dividend period, in which latter event the
succeeding dividend period shall be a standard dividend period. No later than 3:00 P.M., New York
City time, on the second business day next preceding the first day of any proposed special dividend
period, the Fund shall deliver to the auction agent, who will promptly deliver to the
Broker-Dealers and existing holders, either:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a notice of special dividend period stating (A)&nbsp;that the Fund has determined to
designate the next succeeding dividend period as a special dividend period, specifying
the first and last days thereof and (B)&nbsp;the terms of any specific redemption
provisions; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a notice of special dividend period stating that the Fund has determined not to
exercise its option to designate a special dividend period.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund fails to deliver either such notice of special dividend period to the auction
agent by 3:00 P.M., New York City time, on the second business day next preceding the first day of
such proposed special dividend period, the Fund shall be deemed to have delivered a notice to the
auction agent with respect to such dividend period to the effect set forth in clause (ii)&nbsp;above,
thereby resulting in a standard dividend period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, the Board of Trustees may amend the standard dividend periods of one or more series of
Preferred Shares on a permanent basis.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as noted below, the Fund&#146;s common shares and Preferred Shares have equal voting rights
of one vote per share and vote together as a single class. In elections of trustees, the holders
of Preferred Shares, as a separate class, vote to elect two trustees. The Board of Trustees will
determine to which class or classes the trustees elected by the holders of Preferred Shares will be
assigned. The holders of the Preferred Shares shall only be entitled to elect the trustees so
designated when their term shall have expired. Such trustees appointed by the holders of Preferred
Shares will be allocated as evenly as possible among the classes of trustees. The holders of the
common shares and holders of Preferred Shares vote together as a single class to elect the
remaining trustees. In addition, during any period in which the Fund has not paid dividends on the
Preferred Shares in an amount equal to two full years dividends (&#147;Voting Period&#148;), the holders of
Preferred Shares, voting as a single class, are entitled to elect (in addition to the two trustees
set forth above) the smallest number of additional trustees as is necessary to ensure that a
majority of the trustees has been elected by the holders of Preferred Shares. The holders of
Preferred Shares will continue to have these rights until all dividends in arrears have been paid
or otherwise provided for.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In an instance when the Fund has not paid dividends as set forth in the immediately preceding
paragraph, the terms of office of all persons who are trustees of the Fund at the time of the
commencement of a Voting Period will continue, notwithstanding the election by the holders of the
Preferred Shares of the number of trustees that such holders are entitled to elect. The persons
elected by the holders of the Preferred Shares, together with the incumbent trustees, will
constitute the duly elected trustees of the Fund. When all dividends in arrears on the Preferred
Shares have been paid or provided for, the terms of office of the additional trustees elected by
the holders of the Preferred Shares will terminate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as any of the Preferred Shares are outstanding, the Fund will not, without the
affirmative vote of the holders of a majority of the outstanding Preferred Shares, (i)&nbsp;institute
any proceedings to be adjudicated bankrupt or insolvent, or consent to the institution of
bankruptcy or insolvency proceedings against it, or file a petition seeking or consenting to
reorganization or relief under any applicable federal or state law relating to bankruptcy or
insolvency, or consent to the appointment of a receiver, liquidator,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assignee, trustee, sequestrator (or other similar official)&nbsp;of the Fund or a substantial part
of its property, or make any assignment for the benefit of creditors, or, except as may be required
by applicable law, admit in writing its inability to pay its debts generally as they become due or
take any corporate action in furtherance of any such action; (ii)&nbsp;create, incur or suffer to exist,
or agree to create, incur or suffer to exist, or consent to cause or permit in the future (upon the
happening of a contingency or otherwise) the creation, incurrence or existence of any material
lien, mortgage, pledge, charge, security interest, security agreement, conditional sale or trust
receipt or other material encumbrance of any kind upon any of the Fund&#146;s assets as a whole, except
(A)&nbsp;liens the validity of which are being contested in good faith by appropriate proceedings,
(B)&nbsp;liens for taxes that are not then due and payable or that can be paid thereafter without
penalty, (C)&nbsp;liens, pledges, charges, security interests, security agreements or other encumbrances
arising in connection with any indebtedness senior to the Preferred Shares, or arising in
connection with any futures contracts or options thereon, interest rate swap or cap transactions,
forward rate transactions, put or call options or other similar transactions, (D)&nbsp;liens, pledges,
charges, security interests, security agreements or other encumbrances arising in connection with
any indebtedness permitted under clause (iii)&nbsp;below and (E)&nbsp;liens to secure payment for services
rendered including, without limitation, services rendered by the Fund&#146;s paying agent and the
auction agent; or (iii)&nbsp;create, authorize, issue, incur or suffer to exist any indebtedness for
borrowed money or any direct or indirect guarantee of such indebtedness for borrowed money, except
the Fund may borrow as may be permitted by the Fund&#146;s investment restrictions; provided, however,
that transfers of assets by the Fund subject to an obligation to repurchase will not be deemed to
be indebtedness for purposes of this provision to the extent that after any such transaction the
Fund has eligible assets with an aggregate discounted value at least equal to the Preferred Shares
Basic Maintenance Amount as of the immediately preceding valuation date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the affirmative vote of the holders of a majority, as defined in the 1940 Act, of
the outstanding Preferred Shares is required to approve any plan of reorganization (as such term is
used in the 1940 Act) adversely affecting such shares or any action requiring a vote of security
holders of the Fund under Section&nbsp;13(a) of the 1940 Act, including, among other things, changes in
the Fund&#146;s fundamental investment restrictions described under &#147;Investment Restrictions&#148; in the
Statement of Additional Information and changes in the Fund&#146;s subclassification as a closed-end
investment company. The affirmative vote of the holders of a majority, as defined in the 1940 Act,
of the outstanding Preferred Shares of any series, voting separately from any other series, shall
be required with respect to any matter that materially and adversely affects the rights,
preferences, or powers of that series in a manner different from that of other series or classes of
the Fund&#146;s shares of beneficial interest. For purposes of the foregoing, no matter will be deemed
to adversely affect any rights, preference or power unless such matter (i)&nbsp;alters or abolishes any
preferential right of such series; (ii)&nbsp;creates, alters or abolishes any right in respect of
redemption of such series; or (iii)&nbsp;creates or alters (other than to abolish) any restriction on
transfer applicable to such series. The vote of holders of any series described in this paragraph
will in each case be in addition to a separate vote of the requisite percentage of common shares
and/or preferred shares necessary to authorize the action in question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common shares and the Preferred Shares also will vote separately to the extent otherwise
required under Delaware law or the 1940 Act as in effect from time to time. The class votes of
holders of Preferred Shares described above will in each case be in addition to any separate vote
of the requisite percentage of common shares and Preferred Shares, voting together as a single
class, necessary to authorize the action in question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purpose of any right of the holders of Preferred Shares to vote on any matter, whether
the right is created by the Agreement and Declaration of Trust, by statute or otherwise, a holder
of a Preferred Share is not entitled to vote and the Preferred Shares will not be deemed to be
outstanding for the purpose of voting or determining the number of Preferred Shares required to
constitute a quorum, if prior to or concurrently with a determination of the Preferred Shares
entitled to vote or of Preferred Shares deemed
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">outstanding for quorum purposes, as the case may be, a notice of redemption was given in
respect of those Preferred Shares and sufficient deposit securities for the redemption of those
Preferred Shares were deposited.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is required under Fitch and S&#038;P guidelines to maintain assets having in the aggregate
a discounted value at least equal to the Preferred Shares Basic Maintenance Amount (as defined
below). Fitch and S&#038;P have each established separate guidelines for determining discounted value.
To the extent any particular portfolio holding does not satisfy the applicable rating agency&#146;s
guidelines, all or a portion of such holding&#146;s value will not be included in the calculation of
discounted value (as defined by the rating agency). The Fitch and S&#038;P guidelines also impose
certain diversification requirements on the Fund&#146;s overall portfolio. The &#147;Preferred Shares Basic
Maintenance Amount&#148; means as of any valuation date the dollar amount equal to:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the sum of (A)&nbsp;the product of the number of Preferred Shares outstanding on
such date multiplied by $25,000 (plus the product of the number of shares of any other
series of preferred shares outstanding on such date multiplied by the liquidation
preference of such shares), plus any redemption premium applicable to the Preferred
Shares (or other preferred shares) then subject to redemption; (B)&nbsp;the aggregate amount
of dividends that will have accumulated at the respective applicable rates (whether or
not earned or declared) to (but not including) the first respective dividend payment
dates for Preferred Shares outstanding that follow such valuation date (plus the
aggregate amount of dividends, whether or not earned or declared, that will have
accumulated in respect of other outstanding preferred shares to, but not including, the
first respective dividend payment dates for such other shares that follow such
valuation date); (C)&nbsp;the aggregate amount of dividends that would accumulate on shares
of each series of Preferred Shares outstanding from such first respective dividend
payment date therefore through the 42nd day after such valuation date, at the maximum
rate (calculated as if such valuation date were the auction date for the dividend
period commencing on such dividend payment date) for a standard dividend period of shares of such series to commence on such dividend payment date, assuming, solely for
purposes of the foregoing, that if on such valuation date the Fund shall have delivered
a notice of special dividend period to the auction agent pursuant to Section&nbsp;4(b) of
Part&nbsp;I of the Statement with respect to shares of such series, such maximum rate shall
be the maximum rate for the special dividend period of shares of such series to
commence on such dividend payment date (except that (1)&nbsp;if such valuation date occurs
at a time when a failure to deposit (or, in the case of preferred shares other than
Preferred Shares, a failure similar to a failure to deposit) has occurred that has not
been cured, the dividend for purposes of calculation would accumulate at the current
dividend rate then applicable to the shares in respect of which such failure has
occurred and (2)&nbsp;for those days during the period described in this subparagraph (C)&nbsp;in
respect of which the applicable rate in effect immediately prior to such dividend
payment date will remain in effect (or, in the case of preferred shares other than
Preferred Shares, in respect of which the dividend rate or rates in effect immediately
prior to such respective dividend payment dates will remain in effect), the dividend
for purposes of calculation would accumulate at such applicable rate (or other rate or
rates, as the case may be in respect of those days); (D)&nbsp;the amount of anticipated
expenses of the Fund for the 90&nbsp;days subsequent to such valuation date; (E)&nbsp;the amount
of any indebtedness or obligations of the Fund senior in right of payments to the
Preferred Shares; and (F)&nbsp;any current liabilities as of such valuation date to the
extent not reflected in any of (i) (A)&nbsp;through (i) (E) (including, without limitation,
any payables for portfolio</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->S-11<!-- /Folio -->
</DIV>

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


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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>securities purchased as of such valuation date and any liabilities incurred for the
purpose of clearing securities transactions) less (ii)&nbsp;the value (i.e., the face
value of cash, short-term municipal obligations and short-term securities that are
the direct obligation of the U.S. government, provided in each case that such
securities mature on or prior to the date upon which any of (i) (A)&nbsp;though (i) (F)
became payable, otherwise the S&#038;P discounted value) of any of the Fund&#146;s assets
irrevocably deposited by the Fund for the payment of any of (i) (A)&nbsp;through (i) (F).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund also is required under rating agency guidelines to maintain, with respect to the
Preferred Shares, as of the last business day of each month in which Preferred Shares are
outstanding, asset coverage of at least 200% with respect to senior securities that are shares of
the Fund, including the Preferred Shares (or such other asset coverage as may in the future be
specified in or under the 1940 Act as the minimum asset coverage for senior securities that are
shares of a closed-end investment company as a condition of declaring dividends on its common
shares) (&#147;1940 Act Preferred Shares Asset Coverage&#148;). Fitch and S&#038;P have agreed that the auditors
must certify annually the asset coverage test on a date randomly selected by the auditors. Based
on the Fund&#146;s assets and liabilities as of &#95;&#95;&#95;, 2007, and assuming the issuance of all
Preferred Shares offered hereby and the use of the proceeds as intended, the 1940 Act Preferred
Shares Asset Coverage with respect to Preferred Shares would be computed as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="85%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Value of Fund assets less liabilities not constituting senior securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">=</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">=</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Senior securities representing indebtedness plus liquidation value of the Preferred Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund does not timely cure a failure to maintain (1)&nbsp;a discounted value of its portfolio
equal to the Preferred Shares Basic Maintenance Amount or (2)&nbsp;the 1940 Act Preferred Shares Asset
Coverage, in each case in accordance with the requirements of the rating agency or agencies then
rating the Preferred Shares, the Fund will be required to redeem Preferred Shares as described
below under &#147;&#151;Redemption.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may, but is not required to, adopt any modifications to the guidelines that may
hereafter be established by Fitch and S&#038;P. Failure to adopt any such modifications, however, may
result in a change or a withdrawal of the ratings altogether. In addition, any rating agency
providing a rating for the Preferred Shares may, at any time, change or withdraw any such rating.
The Board of Trustees may, without shareholder approval, amend, alter, add to or repeal any or all
of the definitions and related provisions that have been adopted by the Fund pursuant to the rating
agency guidelines in the event the Fund receives written confirmation from Fitch or S&#038;P, or both,
as appropriate, that any such change would not impair the ratings then assigned by Fitch and S&#038;P to
the Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Trustees may amend the definition of standard dividend period to change the
dividend period with respect to one or more series without the vote or consent of the holders of
the Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As described by Fitch and S&#038;P, the Preferred Shares rating is an assessment of the capacity
and willingness of the Fund to pay Preferred Shares&#146; obligations. The ratings on the Preferred
Shares are not recommendations to purchase, hold or sell the Preferred Shares, inasmuch as the
ratings do not comment as to market price or suitability for a particular investor. The rating
agency guidelines also do not address the likelihood that an owner of the Preferred Shares will be
able to sell such shares in an auction or otherwise. The ratings are based on current information
furnished to Fitch and S&#038;P by the Fund and Calamos and information obtained from other sources.
The ratings may be changed, suspended or withdrawn as a result of changes in, or the unavailability
of, such information.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rating agency guidelines will apply to the Preferred Shares only so long as such rating
agency is rating these shares. The Fund will pay fees to Fitch and S&#038;P for rating the Preferred
Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund shall deliver to the auction agent and each rating agency a certificate which sets
forth a determination regarding the Preferred Shares Basic Maintenance Amount (a &#147;Preferred Shares
Basic Maintenance Certificate&#148;) as of (A)&nbsp;within seven business days after the Date of Original
Issue, (B)&nbsp;the last valuation date of each month, (C)&nbsp;any date requested by any rating agency,
(D)&nbsp;a business day on or before any asset coverage cure date relating to the Fund&#146;s cure of a
failure to meet the Preferred Shares Basic Maintenance Amount test, (E)&nbsp;any day that common shares
or Preferred Shares are redeemed, and (F)&nbsp;any day the Fitch eligible assets have an aggregate
discounted value less than or equal to 110% of the Preferred Shares Basic Maintenance Amount. Such
Preferred Shares Basic Maintenance Certificate shall be delivered in the case of (A)&nbsp;above on or
before the seventh business day after the date of original issue and in the case of (B)&#150;(F) above
on or before the seventh business day after the relevant valuation date or asset coverage cure
date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund shall deliver to the auction agent and each rating agency a certificate which sets
forth a determination regarding the 1940 Act Preferred Shares Asset Coverage (a &#147;1940 Act Preferred
Shares Asset Coverage Certificate&#148;) (i)&nbsp;as of the date of original issue, and (ii)&nbsp;as of (A)&nbsp;the
last valuation date of each quarter thereafter, and (B)&nbsp;as of a business day on or before any asset
coverage cure date relating to the failure to meet the 1940 Act Preferred Shares Asset Coverage.
Such 1940 Act Preferred Shares Asset Coverage Certificate shall be delivered in the case of clause
(i)&nbsp;on or before the seventh business day after the date of original issue and in the case of
clause (ii)&nbsp;on or before the seventh business day after the relevant valuation date or the asset
coverage cure date. The certificates required by the Statement may be combined into a single
certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within ten business days of the date of original issue, the Fund shall deliver to the Auction
Agent and each Rating Agency a letter prepared by the Fund&#146;s independent auditors (an &#147;Auditor&#146;s
Certificate&#148;) regarding the accuracy of the calculations made by the Fund in the Preferred Shares
Basic Maintenance Certificate and the 1940 Act Preferred Shares Asset Coverage Certificate required
to be delivered by the Fund on or before the seventh business day after the date of original issue.
Within ten business days after delivery of the Preferred Shares Basic Maintenance Certificate and
the 1940 Act Preferred Shares Asset Coverage Certificate relating to the last valuation date of
each fiscal year of the Fund, the Fund will deliver to the auction agent and each rating agency an
Auditor&#146;s Certificate regarding the accuracy of the calculations made by the Fund in such
certificates. In addition, the Fund will deliver to the persons specified in the preceding
sentence an Auditor&#146;s Certificate regarding the accuracy of the calculations made by the Fund on
each Preferred Shares Basic Maintenance Certificate and 1940 Act Preferred Shares Asset Coverage
Certificate delivered in relation to an asset coverage cure date within ten days after the relevant
asset coverage cure date. If an Auditor&#146;s Certificate shows that an error was made in any such
report, the calculation or determination made by the Fund&#146;s independent auditors will be conclusive
and binding on the Fund.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mandatory Redemption</I>. If the Fund does not timely cure a failure to (1)&nbsp;maintain a discounted
value of its portfolio equal to the Preferred Shares Basic Maintenance Amount, (2)&nbsp;maintain the
1940 Act Preferred Shares Asset Coverage, or (3)&nbsp;file a required certificate related to asset
coverage on time, the Preferred Shares will be subject to mandatory redemption out of funds legally
available therefor in accordance with the Statement and applicable law, at the redemption price of
$25,000 per share plus an amount equal to accumulated but unpaid dividends thereon (whether or not
earned or declared) to (but not including) the date fixed for redemption and in certain cases a
redemption premium. Any such
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">redemption will be limited to the number of Preferred Shares necessary to restore the required
discounted value or the 1940 Act Preferred Shares Asset Coverage, as the case may be.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In determining the number of Preferred Shares required to be redeemed in accordance with the
foregoing, the Fund will allocate the number of shares required to be redeemed to satisfy the
Preferred Shares Basic Maintenance Amount or the 1940 Act Preferred Shares Asset Coverage, as the
case may be, pro rata among the Preferred Shares of the Fund and any other preferred shares of the
Fund, subject to redemption or retirement. If fewer than all outstanding shares of any series are,
as a result, to be redeemed, the Fund may redeem such shares pro rata, by lot or other method that
it deems fair and equitable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Optional Redemption</I>. After the initial dividend period, to the extent permitted under the
1940 Act and Delaware law, the Fund may, at its option, redeem, in whole or in part, Preferred
Shares having a dividend period of one year or less on the business day after the last day of such
dividend period upon not less than 15 calendar days and not more than 40 calendar days&#146; prior
notice. The redemption price per share will be $25,000 per share, plus an amount equal to
accumulated but unpaid dividends thereon (whether or not earned or declared) to the date fixed for
redemption. Preferred Shares having a dividend period of more than one year are redeemable at the
option of the Fund, in whole or in part, on any business day prior to the end of the relevant
dividend period upon not less than 15 calendar days and not more than 40 calendar days&#146; prior
notice, subject to any specific redemption provisions, which may include the payment of redemption
premiums to the extent required under any applicable specific redemption provisions. The Fund will
not make any optional redemption unless (i)&nbsp;the Fund has available certain deposit securities with
maturities or tender dates not later than the day preceding the applicable redemption date and
having a value not less than the amount (including any applicable premium) due to holders of the
Preferred Shares by reason of the redemption of the Preferred Shares on such date fixed for the
redemption and (ii)&nbsp;the Fund has eligible assets with an aggregate discounted value at least equal
to the Preferred Shares Basic Maintenance Amount immediately subsequent to such redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, Preferred Shares may not be redeemed at the option of the Fund
unless all dividends in arrears on the outstanding Preferred Shares, and any other outstanding
preferred shares, have been or are being contemporaneously paid or set aside for payment. This
would not prevent the lawful purchase or exchange offer for Preferred Shares made on the same terms
to holders of all outstanding preferred shares.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the rights of holders of any series or class or classes of shares ranking on a
parity with Preferred Shares with respect to the distribution of assets upon liquidation of the
Fund, upon a liquidation, dissolution or winding up of the affairs of the Fund, whether voluntary
or involuntary, the holders of Preferred Shares then outstanding will be entitled to receive and to
be paid out of the assets of the Fund available for distribution to its shareholders, after claims
of creditors but before any payment or distribution is made on the common shares or any other
shares of beneficial interest of the Fund ranking junior to the Preferred Shares, an amount equal
to the liquidation preference with respect to such shares ($25,000 per share), plus an amount equal
to all unpaid dividends thereon (whether or not declared by the Fund, but excluding the interest
thereon) accrued to and including the date fixed for such distribution in connection with the
liquidation of the Fund. After the payment to the holders of Preferred Shares of the full
preferential amounts provided for as described herein, the holders of Preferred Shares as such will
have no right or claim to any of the remaining assets of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, upon any such liquidation, dissolution or winding up of the affairs of the Fund, whether
voluntary or involuntary, the assets of the Fund available for distribution among the holders of
all outstanding Preferred Shares, including each series, shall be insufficient to permit the
payment in full to
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such holders of the amounts to which they are entitled, then such available assets shall be
distributed among the holders of all outstanding Preferred Shares, including each series, ratably
in any such distribution of assets according to the respective amounts which would be payable on
all such shares if all amounts thereon were paid in full. Unless and until payment in full has
been made to the holders of all outstanding Preferred Shares, including each series, of the
liquidation distributions to which they are entitled, no dividends or distributions will be made to
holders of common shares or any shares of beneficial interest of the Fund ranking junior to the
Preferred Shares as to liquidation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the consolidation nor merger of the Fund with or into any other business entity, nor
the sale, lease, exchange or transfer by the Fund of all or substantially all of its property and
assets, shall be deemed to be a liquidation, dissolution or winding up of the Fund for purposes of
the foregoing paragraph.
</DIV>
<DIV align="left">
<A name="129"></A>
</DIV>

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


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Statement provides that, except as otherwise described in this prospectus supplement or in
the accompanying prospectus, the applicable rate for the Preferred Shares for each dividend period
after the initial dividend period will be the rate that results from an auction conducted as set
forth in the Statement and summarized below. In such an auction, persons determine to hold or
offer to sell or, based on dividend rates bid by them, offer to purchase or sell Preferred Shares.
See the Statement included in the Statement of Additional Information for a more complete
description of the auction process.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Auction Agency Agreement</I>. The Fund will enter into an auction agency agreement with the
auction agent (currently, The Bank of New York) which provides, among other things, that the
auction agent will follow the auction procedures to determine the applicable rate for Preferred
Shares, so long as the applicable rate for Preferred Shares is to be based on the results of an
auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The auction agent may terminate the auction agency agreement upon notice to the Fund no
earlier than 45&nbsp;days after the delivery of such notice. If the auction agent should resign, the
Fund will use its best efforts to enter into an agreement with a successor auction agent containing
substantially the same terms and conditions as the auction agency agreement. The Fund may remove
the auction agent provided that, prior to such removal, the Fund has entered into such an agreement
with a successor auction agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Broker-Dealer Agreements</I>. Each auction requires the participation of one or more
Broker-Dealers. The auction agent will enter into agreements with several Broker-Dealers selected
by the Fund, which provide for the participation of those Broker-Dealers in auctions for Preferred
Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The auction agent will pay to each Broker-Dealer after each auction from funds provided by the
Fund, a service charge at the annual rate of 1/4 of 1% of the liquidation preference ($25,000 per
share) of the Preferred Shares held by that Broker-Dealer&#146;s customer upon settlement in an auction.
The Fund may request that the auction agent terminate one or more Broker-Dealer agreements at any
time upon five days&#146; notice, provided that at least one Broker-Dealer agreement is in effect after
termination of the agreement.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to the submission deadline on each auction date for the Preferred Shares, each customer
of a Broker-Dealer who is listed on the records of that Broker-Dealer (or, if applicable, the
auction agent) as a
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-15<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">beneficial owner of Preferred Shares may submit the following types of orders with respect to
shares of such series of Preferred Shares to that Broker-Dealer:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Hold Order&#151;indicating its desire to hold Preferred Shares without regard to the
applicable rate for the next dividend period.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bid&#151;indicating its desire to sell shares of such series at $25,000 per share if
the applicable rate for shares of such series for the next dividend period is less than
the rate or spread specified in the bid.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sell Order&#151;indicating its desire to sell shares of such series at $25,000 per
share without regard to the applicable rate for shares of such series for the next
dividend period.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A beneficial owner of Preferred Shares may submit different types of orders to its
Broker-Dealer with respect to Preferred Shares then held by the beneficial owner. A beneficial
owner that submits a bid to its Broker-Dealer having a rate higher than the maximum rate on the
auction date will be treated as having submitted a sell order to its Broker-Dealer. A beneficial
owner that fails to submit an order to its BrokerDealer will ordinarily be deemed to have submitted
a hold order to its Broker-Dealer. However, if a beneficial owner fails to submit an order for
some or all of its shares to its Broker-Dealer for an auction relating to a dividend period of more
than 91&nbsp;days, such beneficial owner will be deemed to have submitted a sell order for such shares
to its Broker-Dealer. A sell order constitutes an irrevocable offer to sell the Preferred Shares
subject to the sell order. A beneficial owner that offers to become the beneficial owner of
additional Preferred Shares is, for the purposes of such offer, a potential holder as discussed
below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A potential holder is either a customer of a Broker-Dealer that is not a beneficial owner of
Preferred Shares but that wishes to purchase shares of such series or that is a beneficial owner of
shares of such series that wishes to purchase additional shares of such series. A potential holder
may submit bids to its Broker-Dealer in which it offers to purchase shares of such series at
$25,000 per share if the applicable rate for the next dividend period is not less than the
specified rate in such bid. A bid placed by a potential holder specifying a rate higher than the
maximum rate for shares of such series on the auction date will not be accepted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Broker-Dealers in turn will submit the orders of their respective customers who are
beneficial owners and potential holders to the auction agent. They will designate themselves
(unless otherwise permitted by the Fund) as existing holders of shares subject to orders submitted
or deemed submitted to them by beneficial owners. They will designate themselves as potential
holders of shares subject to orders submitted to them by potential beneficial owners. However,
neither the Fund nor the auction agent will be responsible for a Broker-Dealer&#146;s failure to comply
with these procedures. Any order placed with the auction agent by a Broker-Dealer as or on behalf
of an existing holder or a potential holder will be treated the same way as an order placed with a
Broker-Dealer by a beneficial owner or potential holder. Similarly, any failure by a Broker-Dealer
to submit to the auction agent an order for any Preferred Shares held by it or customers who are
beneficial owners will be treated as a beneficial owner&#146;s failure to submit to its Broker-Dealer an
order in respect of Preferred Shares held by it. A Broker-Dealer may also submit orders to the
auction agent for its own account as an existing holder or potential holder, provided it is not an
affiliate of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are sufficient clearing bids in an auction if the number of shares subject to bids
submitted or deemed submitted to the auction agent by Broker-Dealers for potential holders with
rates or spreads equal to or lower than the maximum rate is at least equal to the number of shares
of such series subject to sell orders and the number of shares of such series subject to bids
specifying rates or spreads higher than the maximum rate for such series submitted or deemed
submitted to the auction agent by Broker-Dealers
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-16<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">for existing holders of such series. If there are sufficient clearing bids, the applicable
rate for shares of such series for the next succeeding dividend period thereof will be the lowest
rate specified in the submitted bids which, taking into account such rate and all lower rates bid
by Broker-Dealers as or on behalf of existing holders and potential holders, would result in
existing holders and potential holders owning the shares of such series available for purchase in
the auction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If there are not sufficient clearing bids for such series, the applicable rate for the next
dividend period will be the maximum rate on the auction date. However, if the Fund has declared a
special dividend period and there are not sufficient clearing bids, the election of a special
dividend period will not be effective and the applicable rate for the next dividend period will be
the same as during the current dividend period. If there are not sufficient clearing bids,
beneficial owners of Preferred Shares that have submitted or are deemed to have submitted sell
orders may not be able to sell in the auction all shares subject to such sell orders. If all of
the outstanding Preferred Shares are the subject of submitted hold orders, then the dividend period
following the auction will automatically be the same length as the preceding dividend period and
the applicable rate for the next dividend period will be the all hold rate. The all hold rate is
80% of the applicable Reference Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The auction procedures include a pro rata allocation of shares for purchase and sale which may
result in an existing holder continuing to hold or selling, or a potential holder purchasing, a
number of Preferred Shares that is different than the number of shares specified in its order. To
the extent the allocation procedures have that result, Broker-Dealers that have designated
themselves as existing holders or potential holders in respect of customer orders will be required
to make appropriate pro rata allocations among their respective customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement of purchases and sales will be made on the next business day (which is also a
dividend payment date) after the auction date through DTC. Purchasers will make payment through
their agent members in same-day funds to DTC against delivery to their respective agent members.
DTC will make payment to the sellers&#146; agent members in accordance with DTC&#146;s normal procedures,
which now provide for payment against delivery by their agent members in same-day funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
auctions for Series &#95;&#95;&#95; Preferred Shares will normally be held every &#091;seven&#093; days. Each
subsequent dividend period will normally begin on the following business day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an auction date is not a business day because the New York Stock Exchange is closed for
business for more than three consecutive business days due to an act of God, natural disaster, act
of war, civil or military disturbance, act of terrorism, sabotage, riots or a loss or malfunction
of utilities or communications services, or the auction agent is not able to conduct an auction in
accordance with the auction procedures for any reason, then the applicable rate for the next
dividend period will be the applicable rate determined on the previous auction date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a dividend payment date is not a business day because the New York Stock Exchange is closed
for business for more than three consecutive business days due to an act of God, natural disaster,
act of war, civil or military disturbance, act of terrorism, sabotage, riots or a loss or
malfunction of utilities or communications services, or the dividend payable on such date cannot be
paid for any such reason, then:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the dividend payment date for the affected dividend period will be the next business
day on which the Fund and its paying agent, if any, can pay the dividend;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the affected dividend period will end on the day it otherwise would have ended; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the next dividend period will begin and end on the dates on which it otherwise would
have begun and ended.</TD>
</TR>

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

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


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



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a simplified example of how a typical auction works. Assume that the Fund
has 1,000 outstanding Preferred Shares and three existing holders. The three existing holders and
three potential holders submit orders through Broker-Dealers at the auction:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Existing Holder A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Owns 500 shares, wants to
sell all 500 shares if
auction rate is less than
4.1%
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bid order of 4.1% rate for 500 shares</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Existing Holder B
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Owns 300 shares, wants to hold
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Hold order&#151;will take the auction rate</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Existing Holder C
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Owns 200 shares, wants to
sell all 200 shares if
auction rate is less than
3.9%
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bid order of 3.9% rate for 200 shares</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Potential Holder D
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wants to buy 200 shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Places order to buy at or above 4.0%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Potential Holder E
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wants to buy 300 shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Places order to buy at or above 3.9%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Potential Holder F
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wants to buy 200 shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Places order to buy at or above 4.1%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The lowest dividend rate that will result in all 1,000 Preferred Shares continuing to be held
is 4.0% (the offer by D). Therefore, the dividend rate will be 4.0%. Existing holders B and C
will continue to own their shares. Existing holder A will sell its shares because A&#146;s dividend
rate bid was higher than the dividend rate. Potential holder D will buy 200 shares and potential
holder E will buy 300 shares because their bid rates were at or below the dividend rate. Potential
holder F will not buy any shares because its bid rate was above the dividend rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Secondary Market Trading and Transfer of Preferred Shares.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The underwriters are not required to make a market in the Preferred Shares. The
Broker-Dealers (including the underwriters) may maintain a secondary trading market for outside of
auctions, but they are not required to do so. There can be no assurance that a secondary trading
market for Preferred Shares will develop or, if it does develop, that it will provide owners with
liquidity of investment. Preferred Shares will not be registered on any stock exchange or on the
Nasdaq market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors who purchase Preferred Shares in an auction for a special dividend period should
note that because the dividend rate on such shares will be fixed for the length of that dividend
period, the value of such shares may fluctuate in response to the changes in interest rates, and
may be more or less than their original cost if sold on the open market in advance of the next
auction thereof, depending on market conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A beneficial owner or an existing holder may sell, transfer or otherwise dispose of Preferred
Shares only in whole shares and only:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pursuant to a bid or sell order placed with the auction agent in accordance with the
auction procedures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to a Broker-Dealer; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to such other persons as may be permitted by the Fund; provided, however, that
(x)&nbsp;if you hold your Preferred Shares in the name of a Broker-Dealer, a sale or
transfer of your Preferred Shares to that Broker-Dealer, or to another customer of that
Broker-Dealer, will not be considered a sale or transfer for purposes of the foregoing
if that Broker-Dealer remains the existing holder of the Preferred Shares immediately
after the transaction and (y)&nbsp;in the case of all transfers, other than through an
auction, the Broker-Dealer (or other person, if the Fund permits) receiving the
transfer will advise the auction agent of the transfer.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->S-18<!-- /Folio -->
</DIV>

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


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



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further description of the auction procedures can be found in the Statement.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Auction Risk. </I>You may not be able to sell your Preferred Shares at an auction if the auction
fails; that is, if there are more Preferred Shares offered for sale than there are buyers for those
shares. Also, if you place a bid order to retain Preferred Shares at an auction only at a
specified rate, and that specific rate exceeds the rate set at the auction, you will not retain
your Preferred Shares. If you submit a hold order for Preferred Shares (orders to retain Preferred
Shares without specifying a minimum rate) and the auction sets a below-market rate, you may receive
a below-market rate of return on your Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If there are more Preferred Shares offered for sale than there are buyers for those Preferred
Shares in any auction, the auction will fail and you may not be able to sell some or all of your
Preferred Shares at that time. The relative buying and selling interest of market participants in
your Preferred Shares and in the auction rate securities market as a whole will vary over time, and
such variations may be affected by, among other things, news relating to the Fund, the
attractiveness of alternative investments, the perceived risk of owning the security (whether
related to credit, liquidity or any other risk), the tax treatment accorded the instruments, the
accounting treatment accorded Preferred Shares, including recent clarifications of U.S. generally
accepted accounting principles relating to the treatment of auction rate securities, reactions to
regulatory actions or press reports, financial reporting cycles and market sentiment generally.
Shifts of demand in response to any one or simultaneous particular events cannot be predicted and
may be short-lived or exist for longer periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Broker-Dealer may submit orders in auctions for its own account. Any Broker-Dealer
submitting an order for its own account in any auction will have an advantage over other bidders in
that it would have knowledge of other orders placed through it in that auction (but it would not
have knowledge of orders submitted by other Broker-Dealers, if any). As a result of the
Broker-Dealer bidding, the auction clearing rate may be higher or lower than the rate that would
have prevailed if the Broker-Dealer had not bid. A Broker-Dealer may also bid in order to prevent
what would otherwise be a failed auction, or an auction clearing at a rate that the Broker-Dealer
believes does not reflect the market for such securities at the time of the auction.
Broker-Dealers may, but are not obligated to, advise holders of the Preferred Shares that the rate
that will apply in an &#147;all hold&#148; auction is often a lower rate than would apply if holders submit
bids, and such advice, if given, may facilitate the submission of bids by existing holders that
would avoid the occurrence of an &#147;all hold&#148; auction. A Broker-Dealer may, but is not obligated to,
encourage additional or revised investor bidding in order to prevent an &#147;all hold&#148; auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, the dividend periods for the Preferred Shares may be changed by the Fund, subject to
certain conditions with notice to the holders of Preferred Shares, which could also affect the
liquidity of your investment. See &#147;Description of Preferred Shares&#148; and &#147;The Auction&#151;Auction
Procedures.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;The underwriter has advised the Fund that the underwriter and various other Broker-Dealers
and other firms that participate in the auction rate securities market received letters from the
staff of the Commission in the spring of 2004. The letters requested that each of these firms
voluntarily conduct an investigation regarding its respective practices and procedures in that
market. Pursuant to these requests, the underwriter conducted its own voluntary review and
reported its findings to the Commission staff. At the Commission staff&#146;s request, the underwriter
is engaging in discussions with the Commission staff concerning its inquiry. Neither the
underwriter nor the Fund can predict the ultimate outcome of the inquiry or how that outcome will
affect the market for auction rate securities or the auctions.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Secondary Market Risk</I>. If you try to sell your Preferred Shares between auctions, you may not
be able to sell any or all of your shares, or you may not be able to sell them for $25,000 per
share or $25,000 per share plus accumulated dividends. If the Fund has designated a special
dividend period (a
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">dividend period other than &#091;7&#093; days), changes in interest rates could affect the price you
would receive if you sold your shares in the secondary market. Broker-Dealers that maintain a
secondary trading market for Preferred Shares are not required to maintain that market, and the
Fund is not required to redeem shares either if an auction or an attempted secondary market sale
fails because of a lack of buyers. Preferred Shares are not listed on a stock exchange or quoted
on the Nasdaq stock market. You may transfer shares outside of auctions only to or through a
Broker-Dealer that has entered into an agreement with the Fund&#146;s auction agent, The Bank of New
York, and the Fund or such other persons as the Fund permits. If you sell your Preferred Shares to
a broker-dealer between auctions, you may receive less than the price you paid for them, especially
if market interest rates have risen since the last auction. Accumulated Preferred Shares
dividends, however, should at least partially compensate for the increased market interest rates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ratings and Asset Coverage Risk. </I>Although it is expected that Fitch will assign a rating of
&#147;AAA&#148; to the Preferred Shares and S&#038;P will assign a rating of &#147;AAA&#148; to the Preferred Shares, such
ratings do not eliminate or necessarily mitigate the risks of investing in Preferred Shares. Fitch
or S&#038;P could downgrade its rating of the Preferred Shares or withdraw its rating of the Preferred
Shares at any time, which may make your shares less liquid at an auction or in the secondary
market. If Fitch or S&#038;P downgrades the Preferred Shares, the Fund may alter its portfolio or
redeem Preferred Shares in an effort to improve the rating, although there is no assurance that it
will be able to do so to the extent necessary to restore the prior rating. If the Fund fails to
satisfy the asset coverage ratios discussed under &#147;Description of Preferred Shares&#151;Rating Agency
Guidelines,&#148; the Fund will be required to redeem a sufficient number of Preferred Shares in order
to return to compliance with the asset coverage ratios. The Fund may be required to redeem
Preferred Shares at a time when it is not advantageous for the Fund to make such redemption or to
liquidate portfolio securities in order to have available cash for such redemption. The Fund may
voluntarily redeem Preferred Shares under certain circumstances in order to meet asset maintenance
tests. Although a sale of substantially all the assets of the Fund or the merger of the Fund into
another entity would require the approval of the holders of the Preferred Shares voting as a
separate class as discussed under &#147;Description of the Preferred Shares&#151;Voting Rights,&#148; a sale of
substantially all of the assets of the Fund or the merger of the Fund with or into another entity
would not be treated as a liquidation of the Fund nor require that the Fund redeem the Preferred
Shares, in whole or in part, provided that the Fund continued to comply with the asset coverage
ratios discussed under &#147;Description of Preferred Shares&#151;Rating Agency Guidelines.&#148; See
&#147;Description of Preferred Shares&#151;Rating Agency Guidelines&#148; for a description of the asset
maintenance tests the Fund must meet.
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="130"></A>
</DIV>

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#091;TO BE ADDED BY UNDERWRITERS AT TIME OF OFFERING&#093;</B>

</DIV>
<DIV align="left">
<A name="131"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is subject to the informational requirements of the Securities Exchange Act of 1934
and the 1940 Act and is required to file reports, proxy statements and other information with the
Securities and Exchange Commission. These documents can be inspected and copied for a fee at the
SEC&#146;s public reference room, Washington, D.C. 20549-0102, and at the SEC&#146;s Chicago Regional Office,
Suite&nbsp;1400, Northwestern Atrium Center, 500 West Madison Street, Chicago, Illinois 60661-2511.
Reports, proxy statements, and other information about the Fund can be inspected at the offices of
the New York Stock Exchange, 20 Broad Street, New York, New York 10005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement and the accompanying prospectus do not contain all of the
information in the Fund&#146;s registration statement, including amendments, exhibits, and schedules.
Statements in this prospectus supplement and the accompanying prospectus about the contents of any
contract or other document are not necessarily complete and in each instance reference is made to
the copy of the contract or other document filed as an exhibit to the registration statement, each
such statement being qualified in all respects by this reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional information about the Fund and Preferred Shares can be found in the Fund&#146;s
registration statement (including amendments, exhibits, and schedules) on Form N-2 filed with the
SEC. The SEC maintains a web site (http://www.sec.gov) that contains the Fund&#146;s registration
statement, other documents incorporated by reference, and other information the Fund has filed
electronically with the Commission, including proxy statements and reports filed under the
Securities Exchange Act of 1934.
</DIV>
<DIV align="left">
<A name="132"></A>
</DIV>

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


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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, serves as counsel to the Fund and to
 the
non-interested Trustees. Vedder Price P.C. (&#147;Vedder Price&#148;), Chicago,
Illinois, which is serving as special counsel to the Fund in connection with the offering, will
pass on the legality of the shares offered hereby. Vedder Price is also counsel to Calamos.
Certain matters will be passed upon for the underwriter by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, &#091;city&#093;, &#091;state&#093;. Vedder
Price and <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> may rely on the opinion of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, Delaware for
certain matters of Delaware law.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="133"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;UNAUDITED&#093; FINANCIAL STATEMENTS AS OF </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, 200__</B>
</DIV>


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

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




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Calamos Global Total Return Fund</B>

</DIV>

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

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#95;&#95;&#95;
Shares, Series &#95;&#95;&#95;</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

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

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#95;&#95;&#95;, 20&#95;&#95;&#95;</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#091;</B><FONT style="font-variant: SMALL-CAPS"><B>Underwriters&#093;</B></FONT>

</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV></DIV>



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



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



<P style="padding: 11px; border: 3px double #000000; font-size: 10pt; color: #FF0000">The information in this prospectus supplement, which relates to an effective Registration Statement
under the Securities Act of 1933, is not complete and may be changed. We may not sell these
securities until we deliver a final prospectus supplement. This prospectus supplement and the
attached prospectus do not constitute an offer to sell these securities or a solicitation of an
offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SUBJECT TO COMPLETION, DATED <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;__, 2007</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">FORM OF PROSPECTUS SUPPLEMENT<BR>
(To prospectus dated &#95;&#95;&#95;, 2007)

</DIV>

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

<DIV align="center" style="font-size: 18pt"><B>CALAMOS GLOBAL TOTAL RETURN FUND</B></DIV>


<DIV align="center" style="font-size: 12pt"><B>Auction Rate Senior Notes (&#147;Calamos Notes&#148;)</B></DIV>


<DIV align="center" style="font-size: 12pt"><B>$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Series &#95;&#95;&#95;, Due &#95;&#95;&#95;, 20&#95;&#95;&#95;</B></DIV>


<DIV align="center" style="font-size: 12pt"><B>$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Denominations</B></DIV>







<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Global Total Return Fund (the &#147;Fund,&#148; &#147;we,&#148; &#147;us&#148; or &#147;our&#148;) is a diversified,
closed-end management investment company. Our investment objective is to provide total return
through a combination of capital appreciation and current income.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering an aggregate principal amount of $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Series &#95;&#95;&#95;Calamos Notes in this
prospectus supplement. This prospectus supplement is not complete and should be read in
conjunction with our prospectus dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;(the &#147;prospectus&#148;), which accompanies this
prospectus supplement. This prospectus supplement does not include all information that you should
consider before purchasing any Calamos Notes. You should read this prospectus supplement and our
prospectus prior to purchasing any Calamos Notes.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notes offered in this prospectus supplement are referred to as &#147;Calamos Notes.&#148; Individual
series of Calamos Notes are referred to as a &#147;series.&#148; Except as otherwise described in this
prospectus supplement, the terms of this series and all other series are the same. Capitalized
terms used but not defined in this prospectus supplement shall have the meanings given to such
terms in Appendix &#95;&#95;&#95;to the Statement of Additional Information, which is available from us upon
request.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Calamos Notes will be issued without coupons in denominations of $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and any
integral multiple thereof. The principal amount of the Series &#95;&#95;&#95;Calamos Notes will be due and
payable on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;(the &#147;Stated Maturity&#148;). There is no sinking fund with respect to the
Calamos Notes. The Calamos Notes will be our unsecured obligations and, upon our liquidation,
dissolution or winding up, will rank: (1)&nbsp;senior to all of our outstanding common stock and any
outstanding preferred stock; (2)&nbsp;on a parity with any of our unsecured creditors and any unsecured
senior securities representing our indebtedness, including other series of Calamos Notes; and
(3)&nbsp;junior to any of our secured creditors. We may redeem the Calamos Notes prior to their Stated
Maturity in certain circumstances described in this prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of the Calamos Notes will be entitled to receive cash interest payments at an annual
rate that may vary for each rate period. The initial rate period for the Series &#95;&#95;&#95;Calamos Notes
is from the issue date through <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;. The interest rate for the initial rate period from
and including the issue date through <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;, will be &#95;&#95;&#95;% per year for the Series &#95;&#95;&#95;
Calamos Notes. For each subsequent rate period, the interest rate will be determined by an auction
conducted in accordance with the procedures described in this prospectus supplement. Generally,
following the initial rate period, each rate period will be &#95;&#95;&#95;(&#95;&#95;&#95;) days for the Series &#95;&#95;&#95;
Calamos Notes.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Calamos Notes will not be listed on any exchange or automated quotation system.
Generally, you may only buy and sell Calamos Notes through an order placed at an auction with or
through a broker-dealer that has entered into an agreement with the auction agent or in a secondary
market that those broker-dealers may maintain. These broker-dealers are not required to maintain a
market in the Calamos Notes, and a secondary market, if one develops, may not provide you with
liquidity. See &#147;The Auction&#151;Certain Considerations Affecting Auction Rate Securities&#151;Existing
Holder&#146;s Ability to Resell Auction Rate Securities May&nbsp;Be Limited.&#148;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 18pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in Calamos Notes involves certain risks. See &#147;Risk Factors&#148; beginning on page&nbsp;&#95;&#95;&#95;of
the accompanying prospectus and &#147;The Auction&#151;Auction Risk&#148; beginning on page&nbsp;&#95;&#95;&#95;of this
prospectus supplement.</B>
</DIV>

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount of _________ Notes</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Public offering price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales load</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds to us (before expenses)<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Does not include offering expenses payable by us, estimated to be $&#95;&#95;&#95;.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The underwriters expect to deliver the Series &#95;&#95;&#95;Calamos Notes in book-entry form, through the
facilities of The Depository Trust Company, to broker-dealers on or about &#95;&#95;&#95;, 20&#95;&#95;&#95;.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt">&#091;Underwriter(s)&#093;
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 0pt">&#95;&#95;&#95;&#95;&#95;&#95;, 200&#95;&#95;&#95;

</DIV>

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

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The offering is conditioned upon the Series &#95;&#95;&#95;Calamos Notes receiving a rating of &#147;&#95;&#95;&#95;&#148; from
Fitch Ratings and &#147;&#95;&#95;&#95;&#148; from S&#038;P.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement has been filed with the Securities and Exchange Commission (the
&#147;SEC&#148;). Additional copies of this prospectus supplement, the prospectus, the Statement of
Additional Information dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, as supplemented from time to time, or the Fund&#146;s annual or
semi-annual reports are available by calling (800)&nbsp;582-6959 or by writing to the Fund, or you may
obtain copies (and other information regarding us) from the SEC&#146;s web site (http://www.sec.gov).
The Fund&#146;s annual and semi-annual reports are also available on the Fund&#146;s website at
www.calamos.com, which provides a link to the SEC&#146;s website where the Fund&#146;s Statement of
Additional Information may be obtained. You also may e-mail requests for these documents to the
SEC at publicinfo@sec.gov or make a request in writing to the SEC&#146;s Public Reference Section,
Washington, D.C. 20549-0102.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement, which describes the specific terms of this offering, also adds to
and updates information contained in the accompanying prospectus and the documents incorporated by
reference in the prospectus. The prospectus gives more general information, some of which may not
apply to this offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the description of this offering varies between this prospectus supplement and the
accompanying prospectus, you should rely on the information contained in this prospectus
supplement; provided that if any statement in one of these documents is inconsistent with a
statement in another document having a later date, the statement in the document having the later
date modifies or supersedes the earlier statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Calamos Notes do not represent a deposit or obligation of, and are not guaranteed or
endorsed by, any bank or other insured depository institution, and are not federally insured by the
Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.
</DIV>


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

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




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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#176">PROSPECTUS SUPPLEMENT SUMMARY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">S-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#177">USE OF PROCEEDS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">S-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#178">CAPITALIZATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">S-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#179">ASSET COVERAGE REQUIREMENTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">S-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#180">DESCRIPTION OF CALAMOS NOTES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">S-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#181">THE AUCTION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">S-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#182">UNDERWRITING</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">S-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#183">WHERE YOU CAN FIND MORE INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">S-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#184">LEGAL MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">S-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#185">&#091;UNAUDITED&#093; FINANCIAL STATEMENTS AS OF <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 200__</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">F-</TD>
    <TD>&nbsp;</TD>
</TR>


<TR style="font-size: 18pt">
<TD>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD  ALIGN="CENTER"><DIV style="margin-left:15px; text-indent:-15px"><B>Prospectus</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prospectus Summary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Summary of Fund Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Highlights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market and Net Asset Value Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Use of Proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment Objective and Principal Investment Strategies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leverage</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest Rate Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk Factors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Management of the Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Closed-End Fund Structure</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certain Federal Income Tax Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Asset Value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends and Distributions; Automatic Dividend Reinvestment Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Description of Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rating Agency Guidelines</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certain Provisions of the Agreement and Declaration of Trust and Bylaws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plan of Distribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Custodian, Transfer Agent, Dividend Disbursing Agent and Registrar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Available Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Table of Contents of the Statement of Additional Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely on the information contained in or incorporated by reference in this
prospectus supplement in making an investment decision. Neither we nor the underwriters have
authorized anyone to provide you with different or inconsistent information. If anyone provides
you with different or inconsistent information, you should not rely on it. We are not, and the
underwriters are not, making an offer to sell these notes in any jurisdiction where the offer or
sale is not permitted. You should assume that the information in this prospectus supplement is
accurate only as of the date of this prospectus supplement, and that our business, financial
condition and prospects may have changed since this date. We will amend or supplement this
prospectus supplement to reflect material changes to the information contained in this prospectus
supplement to the extent required by applicable law.
</DIV>

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

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently known risk factors that could cause actual results to differ materially from our
expectations include, but are not limited to, the factors described in the &#147;Risk Factors&#148; section
of the prospectus accompanying this prospectus supplement as well as in &#147;Auction Risk&#148; and
&#147;Existing Holder&#146;s Ability to Resell Auction Rate Securities May&nbsp;Be Limited&#148; in &#147;The Auction&#148;
section of this prospectus supplement. We urge you to review carefully those sections for a more
detailed discussion of the risks of an investment in the Calamos Notes.
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left">
<A name="176"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>This summary contains basic information about us but does not contain all of the information
that is important to your investment decision. You should read this summary together with the more
detailed information contained elsewhere in this prospectus supplement and accompanying prospectus
and in the statement of additional information, especially the information set forth under the
heading &#147;Risk Factors&#148; beginning on page&nbsp;&#95;&#95;&#95;of the accompanying prospectus.</B>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Global Total Return Fund is a diversified, closed-end management investment company.
Throughout the prospectus, we refer to Calamos Global Total Return Fund as the &#147;Fund&#148; or as &#147;we,&#148;
&#147;us,&#148; or &#147;our.&#148; See &#147;The Fund.&#148; The Fund&#146;s common shares are traded on the New York Stock
Exchange under the symbol &#147;CGO.&#148; As of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007, the Fund had <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> common shares
outstanding and net assets of $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. The Fund&#146;s principal offices are located at 2020 Calamos
Court, Naperville, Illinois 60563. We have a fiscal year ending October&nbsp;31st.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investment objective is to provide total return through a combination of capital
appreciation and current income. There can be no assurance that we will achieve our investment
objective. See &#147;The Fund&#148; in the accompanying prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We commenced operations in October&nbsp;2005 following our initial public offering. As of the date
of this prospectus, we have $59&nbsp;million of Auction Rate Cumulative Preferred Shares (&#147;Preferred
Shares&#148;) outstanding.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Advisors LLC (&#147;Calamos&#148;) is the Fund&#146;s investment adviser. Calamos is responsible on
a day-to-day basis for investment of the Fund&#146;s portfolio in accordance with its investment
objective and policies. Calamos makes all investment decisions for the Fund and places purchase
and sale orders for the Fund&#146;s portfolio securities. As of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007, Calamos managed
approximately $&nbsp;billion in assets of individuals and institutions. Calamos is a wholly owned
subsidiary of Calamos Holdings LLC (&#147;Holdings&#148;) and an indirect subsidiary of Calamos Asset
Management, Inc., a publicly traded holding company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund pays Calamos an annual fee, payable monthly, for its investment management services
equal to &#95;&#95;&#95;% of the Fund&#146;s average weekly managed assets. See &#147;Management of the Fund&#148; in the
accompanying prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal business address of the Adviser is 2020 Calamos Court, Naperville, Illinois
60563.
</DIV>

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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Calamos Notes offered by the Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> aggregate principal
amount of Series &#95;&#95;&#95;Calamos Notes.
Series &#95;&#95;&#95;Calamos Notes will be sold
in denominations of $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and
any integral multiple thereof. The
Series &#95;&#95;&#95;Calamos Notes are being
offered by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, as underwriters. See
&#147;Underwriting.&#148;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>



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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Use of proceeds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund estimates the net proceeds
of the offering of Series &#95;&#95;&#95;Calamos
Notes, after payment of sales load
and offering expenses, will be
approximately $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. The Fund
will invest the net proceeds of the
offering in accordance with the
Fund&#146;s investment objective and
policies as stated below. It is
presently anticipated that the Fund
will invest substantially all of the
net proceeds in securities that meet
its investment objective and policies
within three months after completion
of this offering. Pending such
investment, the Fund anticipates that
all or a portion of the proceeds will
be invested in U.S. government
securities or high-grade, short-term
money market instruments. If
necessary, the Fund may also
purchase, as temporary investments,
securities of other open- or
closed-end investment companies that
invest primarily in the types of
securities in which the Fund may
invest directly. See &#147;Investment
Objectives and Principal Investment
Strategies&#148; in the accompanying
prospectus.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Auction Agent
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Auction Agent&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Broker Dealer(s)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;Broker-Dealer(s)&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Risk factors
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See &#147;Risk Factors&#148; and other
information included in the
accompanying prospectus, as well as
&#147;Risk-Auction Risk&#148;, &#147;Risks-Secondary
Market Trading and Transfer of
Calamos Notes&#148; and &#147;Risks-Ratings and
Asset Coverage Risk&#148; under &#147;The
Auction&#148; in this prospectus
supplement, for a discussion of
factors you should carefully consider
before deciding to invest in the
Calamos Notes.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->S-2<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="177"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund estimates the net proceeds of the offering of Calamos Notes, after payment of sales
load and offering expenses, will be approximately $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. The Fund will invest the net
proceeds of the offering in accordance with the Fund&#146;s investment objective and policies. It is
presently anticipated that the Fund will invest substantially all of the net proceeds in securities
that meet its investment objective and policies within three months after completion of this
offering. Pending such investment, the Fund anticipates that all or a portion of the proceeds will
be invested in U.S. government securities or high-grade, short-term money market instruments. If
necessary, the Fund may also purchase, as temporary investments, securities of other open- or
closed-end investment companies that invest primarily in the types of securities in which the Fund
may invest directly. See &#147;Investment Objectives and Principal Investment Strategies&#148; in the
accompanying prospectus.
</DIV>
<DIV align="left">
<A name="178"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the capitalization of the Fund as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007, and as
adjusted, to give effect to the issuance of all the Calamos Notes offered hereby (including
estimated offering expenses and sales load of $&#95;&#95;&#95;). The sales load and offering expenses of the
Calamos Notes will be effectively borne by common shareholders.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>As Adjusted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Actual</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Calamos Notes</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Long-Term
Debt:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Calamos
Notes, denominations of $25,000 or any multiple thereof</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Preferred
Shares:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Preferred Shares, no par value per share, $25,000 stated
value per share, at liquidation value; unlimited shares
authorized (no shares issued; no shares issued; and
_____ shares issued, respectively)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Common
Shareholders&#146; Equity:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>






<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common shares, no par value per share, unlimited shares
authorized, _____ shares outstanding*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Undistributed net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated net realized gain (loss)&nbsp;on investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net unrealized appreciation (depreciation)&nbsp;on investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net
Assets applicable to common shareholders</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>None of these outstanding shares are held by or for the account of the Fund.</TD>
</TR>

</TABLE>


<DIV align="left">
<A name="179"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may be subject to certain restrictions on investments imposed by guidelines of one or
more rating agencies that may issue ratings for the preferred shares or debt instruments issued by
the Fund. These guidelines may impose asset coverage or portfolio composition requirements that
are more stringent than those imposed by the 1940 Act. See &#147;The Auction&#150;Rating and Asset Coverage
Risk&#148; below. Certain types of borrowings may result in the Fund being subject to covenants in
credit agreements, including those relating to asset coverage, borrowing base and portfolio
composition requirements and additional covenants. The Fund may also be required to pledge its
assets to the lenders in connection with certain types of borrowing. Calamos does not anticipate
that these covenants or restrictions will adversely affect its ability to manage the Fund&#146;s
portfolio in accordance with the Fund&#146;s investment objective and policies. Due to these covenants
or restrictions, the Fund may be forced to liquidate investments at times and at prices that are
not favorable to the Fund, or the Fund may be forced to forgo investments that Calamos otherwise
views as favorable.
</DIV>

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

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="180"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Notes of each series will rank on a parity with any other series of Calamos Notes as
to the payment of interest and distribution of assets upon liquidation. All Calamos Notes rank
senior to our common and preferred shares as to the payment of interest and distribution of assets
upon liquidation. Under the 1940 Act, we may only issue one class of senior securities
representing indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Series &#95;&#95;&#95;Calamos Notes will be issued pursuant to the Original Indenture and a
Supplemental Indenture dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, &#95;&#95;&#95;(referred to herein collectively with the
Original Indenture as the &#147;Indenture&#148;). The following summaries of certain significant provisions
of the Indenture are not complete and are qualified in their entirety by the provisions of the
Indenture, a more detailed summary of which is contained in Appendix &#95;&#95;&#95;to the statement of
additional information, which is on file with the SEC. Whenever defined terms are used, but not
defined in this prospectus supplement, the terms have the meaning given to them in Appendix &#95;&#95;&#95;to
the statement of additional information.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has authorized us to issue the Series &#95;&#95;&#95;Calamos Notes representing
indebtedness pursuant to the terms of the Indenture. Currently, the Indenture provides for the
issuance of up to $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> aggregate principal amount of Series &#95;&#95;&#95;Calamos Notes. The principal
amount of the Series &#95;&#95;&#95;Calamos Notes is due and payable on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;. The Series &#95;&#95;&#95;Calamos
Notes, when issued and sold pursuant to the terms of the Indenture, will be issued in fully
registered form without coupons and in denominations of $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and any integral multiple
thereof, unless otherwise provided in the Indenture. The Series &#95;&#95;&#95;Calamos Notes will be unsecured
obligations of ours and, upon our liquidation, dissolution or winding up, will rank: (1)&nbsp;senior to
our outstanding common stock and any outstanding preferred stock, including the Preferred Shares;
(2)&nbsp;on a parity with any of our unsecured creditors, including any other series of Calamos Notes;
and (3)&nbsp;junior to any of our secured creditors. The Calamos Notes are subject to optional and
mandatory redemption as described below under &#147;&#151;Redemption,&#148; and acceleration of maturity, as
described in the accompanying prospectus under &#147;Description of Securities&#151;Debt Securities&#151;Events of
Default and Acceleration of Maturity of Debt Securities; Remedies.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While serving as the Auction Agent in connection with the Auction Procedures described below,
the Auction Agent generally will serve merely as our agent, acting in accordance with our
instructions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the right (to the extent permitted by applicable law) to purchase or otherwise acquire
any Calamos Notes outside of an auction, so long as: (1)&nbsp;we are current in the payment of interest
on such Calamos Notes and on any other series of Calamos Notes, (2)&nbsp;there is no arrearage in the
mandatory or optional redemption price respecting any Calamos Notes for which a Notice of
Redemption has been given, and (3)&nbsp;we are in compliance with the 1940 Act Calamos Notes Asset
Coverage requirements and other applicable asset requirements. See &#147;&#151;Redemption&#148; below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Calamos Notes have no voting rights, except to the extent required by law or as otherwise
provided in the Indenture relating to the acceleration of maturity upon the occurrence and
continuance of an event of default.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Calamos Notes represent an unsecured obligation of ours to pay interest and principal,
when due. We cannot assure you that we will have sufficient funds or that we will be able to
arrange for additional financing to pay interest on the Calamos Notes when due or to repay the
Calamos Notes at the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Stated Maturity. Our failure to pay interest on the Calamos Notes when due or to repay the
Calamos Notes upon the Stated Maturity would, subject to the cure provisions under the Indenture,
constitute an event of default under the Indenture and could cause a default under other agreements
that we may enter into from time to time. There is no sinking fund with respect to the Calamos
Notes, and at the Stated Maturity, the entire outstanding principal amount of the Calamos Notes
will become due and payable.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The nominee of the Securities Depository is expected to be the sole record Holder of the
Calamos Notes. Accordingly, each purchaser of Calamos Notes must rely on (1)&nbsp;the procedures of the
Securities Depository and, if such purchaser is not a member of the Securities Depository, such
purchaser&#146;s Agent Member, to receive interest payments and notices and (2)&nbsp;the records of the
Securities Depository and, if such purchaser is not a member of the Securities Depository, such
purchaser&#146;s Agent Member, to evidence its ownership of the Calamos Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchasers of Calamos Notes will not receive certificates representing their ownership
interest in such securities. DTC initially will act as Securities Depository for the Agent Members
with respect to the Calamos Notes.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>General</I>. Calamos Notes will bear interest at the Applicable Rate determined as set forth
below under &#147;&#151;Determination of Interest Rate.&#148; Interest on the Calamos Notes shall be payable when
due as described below. If we do not pay interest when due, it will trigger an event of default
under the Indenture (subject to the cure provisions), and we will be restricted from declaring
dividends and making other distributions with respect to our common stock and preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the Business Day next preceding each Interest Payment Date, we are required to deposit with
the Paying Agent sufficient funds for the payment of interest. We do not intend to establish any
reserves for the payment of interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All moneys paid to the Paying Agent for the payment of interest shall be held in trust for the
payment of such interest to the Holder. Interest will be paid by the Paying Agent to the Holder as
its name appears on our securities ledger or securities records, which Holder is expected to be the
nominee of the Securities Depository. The Securities Depository will credit the accounts of the
Agent Members of the Beneficial Owners in accordance with the Securities Depository&#146;s normal
procedures. The Securities Depository&#146;s current procedures provide for it to distribute interest
in same-day funds to Agent Members who are, in turn, expected to distribute such interest to the
persons for whom they are acting as agents. The Agent Member of a Beneficial Owner will be
responsible for holding or disbursing such payments on the applicable Interest Payment Date to such
Beneficial Owner in accordance with the instructions of such Beneficial Owner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest in arrears for any past Rate Period may be subject to a Default Rate of interest
(described below) and may be paid at any time, without reference to any regular Interest Payment
Date, to the Holder as its name appears on our securities ledger or securities records on such
date, not exceeding fifteen (15)&nbsp;days preceding the payment date thereof, as may be fixed by the
Board of Directors. Any interest payment shall first be credited against the earliest accrued but
unpaid interest. No interest will be payable in respect of any payment or payments which may be in
arrears. See &#147;&#151;Default Period&#148; below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of interest payable on each Interest Payment Date (or in respect of interest on
another date in connection with a redemption during such Rate Period) shall be computed by
multiplying the
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Applicable Rate (or the Default Rate) for such Rate Period (or a portion thereof) by a
fraction, the numerator of which will be the number of days in such Rate Period (or portion
thereof) that such Calamos Notes were outstanding and for which the Applicable Rate or the Default
Rate was applicable and the denominator of which will be 360, multiplying the amount so obtained by
the applicable principal amount, and rounding the amount so obtained to the nearest cent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Determination of Interest Rate</I>. The interest rate for the initial Rate Period for Series &#95;&#95;&#95;
Calamos Notes (i.e., the period from and including the Original Issue Date to and including the
initial Auction Date) and the initial Auction Date are set forth on the cover page&nbsp;of this
prospectus supplement. After the initial Rate Period, subject to certain exceptions, the Series &#95;&#95;&#95;
Calamos Notes will bear interest at the Applicable Rate that the Auction Agent advises us has
resulted from an Auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The initial Rate Period for the Series &#95;&#95;&#95;Calamos Notes will be &#95;&#95;&#95;(&#95;&#95;&#95;) days. Rate Periods
after the initial Rate Period shall either be Standard Rate Periods or, subject to certain
conditions and with notice to the Holder, Special Rate Periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Special Rate Period will not be effective unless, among other things, Sufficient Clearing
Bids exist at the Auction in respect of such Special Rate Period (that is, in general, the
aggregate amount of a series of Calamos Notes subject to Buy Orders by Potential Holders is at
least equal to the aggregate amount of that series of Calamos Notes subject to Sell Orders by
Existing Holders).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest will accrue at the Applicable Rate from the Original Issue Date and shall be payable
on each Interest Payment Date thereafter. For Rate Periods of less than 30&nbsp;days, Interest Payment
Dates shall occur on the first Business Day following such Rate Period and, if greater than 30
days, then on a monthly basis on the first Business Day of each month within such Rate Period, not
including the initial Rate Period, and on the Business Day following the last day of such Rate
Period. Interest will be paid through the Securities Depository on each Interest Payment Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except during a Default Period as described below, the Applicable Rate resulting from an
Auction will not be greater than the Maximum Rate, which is equal to the Applicable Percentage of
the Reference Rate, subject to upward but not downward adjustment in the discretion of the Board of
Directors after consultation with the Broker-Dealers. The Applicable Percentage will be determined
based on the lower of the credit ratings assigned on that date to a series of Calamos Notes by
&#91;Rating
Agency&#93; and &#91;Rating
Agency&#93;, as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD align="center" valign="top"><DIV style="margin-left:15px; text-indent:-15px"><B>&#91;Rating
Agency&#93;&#146;s Credit <BR>
Rating</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#91;Rating
Agency&#93;&#146;s Credit<BR>
Rating</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Applicable<BR>
Percentage</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Reference Rate is the greater of (1)&nbsp;the applicable AA Composite Commercial Paper Rate
(for a Rate Period of fewer than 184&nbsp;days) or the applicable Treasury Index Rate (for a Rate Period
of 184&nbsp;days or more), or (2)&nbsp;the applicable LIBOR. For Standard Rate Periods or less only, the
Applicable Rate resulting from an Auction will not be less than the Minimum Rate, which is 70% of
the applicable AA Composite Commercial Paper Rate. No Minimum Rate is specified for Auctions in
respect to Rate Periods of more than the Standard Rate Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Maximum Rate for a series of Calamos Notes will apply automatically following an Auction
for the Calamos Notes in which Sufficient Clearing Bids have not been made (other than because all
Calamos Notes were subject to Submitted Hold Orders). If an Auction for any subsequent Rate Period
is
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">not held for any reason, including because there is no Auction Agent or Broker-Dealer, then
the Interest Rate on a series of Calamos Notes for any such Rate Period shall be the Maximum Rate
(except for circumstances in which the Interest Rate is the Default Rate, as described below).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The All Hold Rate will apply automatically following an Auction in which all of the
outstanding Calamos Notes of a series are subject to (or are deemed to be subject to) Submitted
Hold Orders. The All Hold Rate is 80% of the applicable AA Composite Commercial Paper Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to each Auction, Broker-Dealers will notify Holders and the Trustee of the term of the
next succeeding Rate Period as soon as practicable after the Broker-Dealers have been so advised by
us. After each Auction, on the Auction Date, Broker-Dealers will notify Holders of the Applicable
Rate for the next succeeding Rate Period and of the Auction Date of the next succeeding Auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Notification of Rate Period</I>. We will designate the duration of subsequent Rate Periods for
each series of the Calamos Notes; provided, however, that no such designation is necessary for a
Standard Rate Period and, provided further, that any designation of a Special Rate Period shall be
effective only if (1)&nbsp;notice thereof shall have been given as provided herein, (2)&nbsp;any failure to
pay in a timely manner to the Trustee the full amount of any interest on, or the redemption price
of, a series of Calamos Notes shall have been cured as provided above, (3)&nbsp;Sufficient Clearing Bids
shall have existed in an Auction held on the Auction Date immediately preceding the first day of
such proposed Special Rate Period, (4)&nbsp;if we shall have mailed a Notice of Redemption with respect
to any Calamos Notes, the redemption price with respect to such Calamos Notes shall have been
deposited with the Paying Agent, and (5)&nbsp;we have confirmed that as of the Auction Date next
preceding the first day of such Special Rate Period, we have Eligible Assets with an aggregate
Discounted Value at least equal to the Calamos Notes Basic Maintenance Amount, and we have
consulted with the Broker-Dealers and have provided notice of such designation and otherwise
complied with the Rating Agency Guidelines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Designation of a Special Rate Period</I>. If we propose to designate any Special Rate Period, not
fewer than seven (7) (or two (2)&nbsp;Business Days in the event the duration of the Rate Period prior
to such Special Rate Period is fewer than eight (8)&nbsp;days) nor more than thirty (30)&nbsp;Business Days
prior to the first day of such Special Rate Period, notice shall be (1)&nbsp;made by press release and
(2)&nbsp;communicated by us by telephonic or other means to the Trustee and confirmed in writing
promptly thereafter. Each such notice shall state (A)&nbsp;that we propose to exercise our option to
designate a succeeding Special Rate Period, specifying the first and last days thereof and (B)&nbsp;that
we will by 3:00&nbsp;p.m., New York City time, on the second Business Day next preceding the first day
of such Special Rate Period, notify the Auction Agent and the Trustee, who will promptly notify the
Broker-Dealers, of either (x)&nbsp;our determination, subject to certain conditions, to proceed with
such Special Rate Period, subject to the terms of any Specific Redemption Provisions, or (y)&nbsp;our
determination not to proceed with such Special Rate Period, in which latter event the succeeding
Rate Period shall be a Standard Rate Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No later than 3:00&nbsp;p.m., New York City time, on the second Business Day next preceding the
first day of any proposed Special Rate Period, we will deliver to the Trustee and the Auction
Agent, who will promptly deliver to the Broker-Dealers and Existing Holders, either:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a notice stating (A)&nbsp;that we have determined to designate the next succeeding Rate
Period as a Special Rate Period, specifying the first and last days thereof and (B)&nbsp;the
terms of any Specific Redemption Provisions; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a notice stating that we have determined not to exercise our option to designate a
Special Rate Period.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-7<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we fail to deliver either such notice with respect to any designation of any proposed
Special Rate Period to the Auction Agent and the Auction Agent is unable to make the confirmation
described above by 3:00&nbsp;p.m., New York City time, on the second Business Day next preceding the
first day of such proposed Special Rate Period, we shall be deemed to have delivered a notice to
the Auction Agent with respect to such Rate Period to the effect set forth in clause (2)&nbsp;above,
thereby resulting in a Standard Rate Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Default Period</I>. Subject to cure provisions, a Default Period with respect to a particular
series of Calamos Notes will commence on any date on which, when required to do so, we fail to
deposit irrevocably in trust in same-day funds, with the Paying Agent by 12:00 noon, New York City
time,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the full amount of any accrued interest on that series payable on the Interest
Payment Date (an &#147;Interest Default&#148;), or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the full amount of any redemption price (the &#147;Redemption Price&#148;) payable on the
date fixed for redemption (the &#147;Redemption Date&#148;) (a &#147;Redemption Default&#148; and together with
an Interest Default, hereinafter referred to as &#147;Default&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to cure provisions, a Default Period with respect to an Interest Default or a
Redemption Default shall end on the Business Day on which, by 12:00 noon, New York City time, all
unpaid interest and any unpaid Redemption Price, respectively, shall have been deposited
irrevocably in trust in same-day funds with the Paying Agent. In the case of an Interest Default,
the Applicable Rate for each Rate Period commencing during a Default Period will be equal to the
Default Rate, and each subsequent Rate Period commencing after the beginning of a Default Period
shall be a Standard Rate Period; provided, however, that the commencement of a Default Period will
not by itself cause the commencement of a new Rate Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Auction shall be held during a Default Period with respect to an Interest Default
applicable to that series of Calamos Notes. No Default Period with respect to an Interest Default
or Redemption Default shall be deemed to commence if the amount of any interest or any Redemption
Price due (if such default is not solely due to our willful failure) is deposited irrevocably in
trust, in same-day funds with the Paying Agent by 12:00 noon, New York City time within three
Business Days after the applicable Interest Payment Date or Redemption Date, together with an
amount equal to the Default Rate applied to the amount of such non-payment based on the actual
number of days comprising such period divided by 360 for each series. The Default Rate shall be
equal to the Reference Rate multiplied by three.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Optional Redemption</I>. To the extent permitted under the 1940 Act and Delaware law, we may, at
our option, redeem Calamos Notes having a Rate Period of one year or less, in whole or in part, out
of funds legally available therefor, on any Interest Payment Date, upon not less than 15&nbsp;days&#146; and
not more than 40&nbsp;days&#146; prior notice. This optional redemption is not available during the initial
Rate Period or during other limited circumstances. The optional redemption price shall be equal to
the aggregate principal amount of the Calamos Notes to be redeemed, plus an amount equal to accrued
but unpaid interest to the date fixed for redemption. Calamos Notes having a Rate Period of more
than one year are redeemable at our option, in whole or in part, out of funds legally available
therefor, prior to the end of the relevant Rate Period, upon not less than 15&nbsp;days&#146;, and not more
than 40&nbsp;days&#146;, prior notice, subject to any Specific Redemption Provisions, which may include the
payment of redemption premiums in the sole discretion of the Board of Directors. We shall not
effect any optional redemption unless after giving effect thereto (1)&nbsp;we have available on such
date fixed for the redemption certain Deposit Securities with maturity or tender dates not later
than the day preceding the applicable redemption date and having a
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">value not less than the amount (including any applicable premium) due to Holders of a series
of Calamos Notes by reason of the redemption of a series of Calamos Notes and (2)&nbsp;we would have
Eligible Assets with an aggregate Discounted Value at least equal to the Calamos Notes Basic
Maintenance Amount immediately subsequent to such redemption. Although we ordinarily will not
redeem the Calamos Notes prior to their Stated Maturity, we may voluntarily redeem Calamos Notes
if, for example, the Board of Directors determines that we could obtain more favorable interest
rates from an alternative source of financing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mandatory Redemption</I>. If we fail to maintain Eligible Assets with an aggregate Discounted
Value at least equal to the Calamos Notes Basic Maintenance Amount as of any Valuation Date or,
fail to satisfy the 1940 Act Calamos Notes Asset Coverage as of the last Business Day of any month,
and such failure is not cured within ten Business Days following such Valuation Date, in the case
of a failure to maintain the Calamos Notes Basic Maintenance Amount, or on the last Business Day of
the following month, in the case of a failure to maintain the 1940 Act Calamos Notes Asset Coverage
as of such last Business Day (each an &#147;Asset Coverage Cure Date&#148;), the Calamos Notes will be
subject to mandatory redemption out of funds legally available therefor. See &#147;Rating Agency
Guidelines&#148; in the accompanying prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal amount of Calamos Notes to be redeemed under these circumstances will be equal
to the lesser of (1)&nbsp;the minimum principal amount of Calamos Notes the redemption of which, if
deemed to have occurred immediately prior to the opening of business on the relevant Asset Coverage
Cure Date, would result in our having Eligible Assets with an aggregated Discounted Value at least
equal to the Calamos Notes Basic Maintenance Amount or sufficient to satisfy the 1940 Act Calamos
Notes Asset Coverage, as the case may be, in either case as of the relevant Asset Coverage Cure
Date (provided that, if there is no such minimum principal amount of Calamos Notes the redemption
of which would have such result, all Calamos Notes then outstanding will be redeemed), and (2)&nbsp;the
maximum principal amount of Calamos Notes that can be redeemed out of funds expected to be
available therefor on the Mandatory Redemption Date (as defined below) at the Mandatory Redemption
Price (as defined below).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any redemption of less than all of the outstanding Calamos Notes of a series will be made from
Calamos Notes designated by us. We shall designate Calamos Notes to be redeemed on a pro rata
basis among the Holders in proportion to the principal amount of Calamos Notes they hold, by lot or
such other method as we shall deem equitable. No optional or mandatory redemption of less than all
outstanding Calamos Notes of a series will be made unless the aggregate principal amount of Calamos
Notes to be redeemed is equal to $&#95;&#95;&#95;or integral multiples thereof. Any redemption of less than
all Calamos Notes outstanding will be made in such a manner that all Calamos Notes outstanding
after such redemption are in authorized denominations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to effect such a mandatory redemption not later than 40&nbsp;days after the Asset
Coverage Cure Date, as the case may be (the &#147;Mandatory Redemption Date&#148;), except that if we do not
have funds legally available for the redemption of, or are not otherwise legally permitted to
redeem, all of the outstanding Calamos Notes of a series that are subject to mandatory redemption,
or we otherwise are unable to effect such redemption on or prior to such Mandatory Redemption Date,
we will redeem those Calamos Notes on the earliest practicable date on which we will have such
funds available, upon notice to record owners of Calamos Notes and the Paying Agent. Our ability
to make a mandatory redemption may be limited by the provisions of the 1940 Act or <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> law.
The redemption price per Calamos Note in the event of any mandatory redemption will be the
principal amount, plus an amount equal to accrued but unpaid interest to the date fixed for
redemption, plus (in the case of a Rate Period of more than one year) a redemption premium, if any,
determined by the Board of Directors in its sole discretion after consultation with the
Broker-Dealers and set forth in any applicable Specific Redemption Provisions (the &#147;Mandatory
Redemption Price&#148;).
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-9<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Redemption Procedure</I>. Pursuant to Rule&nbsp;23c-2 under the 1940 Act, we will file a notice of our
intention to redeem with the SEC so as to provide at least the minimum notice required by such Rule
or any successor provision (notice currently must be filed with the SEC generally at least 30&nbsp;days
prior to the redemption date). We shall deliver a notice of redemption to the Auction Agent and
the Trustee containing the information described below one Business Day prior to the giving of
notice to Holders in the case of an optional redemption and on or prior to the 30th day preceding
the Mandatory Redemption Date in the case of a mandatory redemption. The Trustee will use its
reasonable efforts to provide notice to each Holder of Calamos Notes called for redemption by
electronic means not later than the close of business on the Business Day immediately following the
Business Day on which the Trustee determines the principal amount of Calamos Notes to be redeemed
(or, during a Default Period with respect to such Calamos Notes, not later than the close of
business on the Business Day immediately following the day on which the Trustee receives notice of
redemption from us). Such notice will be confirmed promptly by the Trustee in writing not later
than the close of business on the third Business Day preceding the redemption date by providing the
notice to each Holder of record of Calamos Notes called for redemption, the Paying Agent (if
different from the Trustee) and the Securities Depository (&#147;Notice of Redemption&#148;). The Notice of
Redemption will be addressed to the registered owners of the Calamos Notes at their addresses
appearing on our books or share records. Such notice will set forth (1)&nbsp;the redemption date,
(2)&nbsp;the principal amount and identity of Calamos Notes to be redeemed, (3)&nbsp;the redemption price
(specifying the amount of accrued interest to be included therein and the amount of the redemption
premium, if any), (4)&nbsp;that interest on the Calamos Notes to be redeemed will cease to accrue on
such redemption date, and (5)&nbsp;the 1940 Act provision under which redemption shall be made. No
defect in the Notice of Redemption or in the transmittal or mailing thereof will affect the
validity of the redemption proceedings, except as required by applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If less than all of the outstanding Calamos Notes of a series are redeemed on any date, the
amount per Holder to be redeemed on such date will be selected by us on a pro rata basis in
proportion to the principal amount of Calamos Notes held by such Holder, by lot or by such other
method as is determined by us to be fair and equitable, subject to the terms of any Specific
Redemption Provisions and subject to maintaining authorized denominations as described above.
Calamos Notes may be subject to mandatory redemption as described herein notwithstanding the terms
of any Specific Redemption Provisions. The Auction Agent will give notice to the Securities
Depository, whose nominee will be the record Holder of all of the Calamos Notes, and the Securities
Depository will determine the Calamos Notes to be redeemed from the account of the Agent Member of
each Beneficial Owner. Each Agent Member will determine the principal amount of Calamos Notes to
be redeemed from the account of each Beneficial Owner for which it acts as agent. An Agent Member
may select for redemption Calamos Notes from the accounts of some Beneficial Owners without
selecting for redemption any Calamos Notes from the accounts of other Beneficial Owners. In this
case, in selecting the Calamos Notes to be redeemed, the Agent Member will select by lot or by
other fair and equitable method. Notwithstanding the foregoing, if neither the Securities
Depository nor its nominee is the record Holder of all of the Calamos Notes, the particular
principal amount to be redeemed shall be selected by us by lot, on a pro rata basis between each
series or by such other method as we shall deem fair and equitable, as contemplated above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Notice of Redemption has been given, then upon the deposit of funds with the Paying Agent
sufficient to effect such redemption, interest on such Calamos Notes will cease to accrue and such
Calamos Notes will no longer be deemed to be outstanding for any purpose and all rights of the
holders of the Calamos Notes so called for redemption will cease and terminate, except the right of
the holders of such Calamos Notes to receive the redemption price, but without any interest or
additional amount. We shall be entitled to receive from the Paying Agent, promptly after the date
fixed for redemption, any cash deposited with the Paying Agent in excess of (1)&nbsp;the aggregate
redemption price of the Calamos Notes called for redemption on such date and (2)&nbsp;such other
amounts, if any, to which owners of Calamos Notes called for redemption may be entitled. We will
be entitled to receive, from time to time after the date
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">fixed for redemption, from the Paying Agent the interest, if any, earned on such funds
deposited with the Paying Agent and the owners of Calamos Notes so redeemed will have no claim to
any such interest. Any funds so deposited which are unclaimed two years after such redemption date
will be paid, to the extent permitted by law, by the Paying Agent to us upon our request. After
such payment, Holders of Calamos Notes called for redemption may look only to us for payment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as any Calamos Notes are held of record by the nominee of the Securities Depository,
the redemption price for such Calamos Notes will be paid on the redemption date to the nominee of
the Securities Depository. The Securities Depository&#146;s normal procedures provide for it to
distribute the amount of the redemption price to Agent Members who, in turn, are expected to
distribute such funds to the persons for whom they are acting as agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the provisions for redemption described above, no Calamos Notes may be
redeemed unless all interest in arrears on the Outstanding Calamos Notes, and any of our
indebtedness ranking on a parity with the Calamos Notes, have been or are being contemporaneously
paid or set aside for payment, except in connection with our liquidation, in which case all Calamos
Notes and all indebtedness ranking on a parity with the Calamos Notes must receive proportionate
amounts. At any time we may purchase or acquire all the Outstanding Calamos Notes pursuant to the
successful completion of an otherwise lawful purchase or exchange offer made on the same terms to,
and accepted by, Holders of all Outstanding Calamos Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for the provisions described above, nothing contained in the Indenture limits any legal
right of ours to purchase or otherwise acquire Calamos Notes outside of an Auction at any price,
whether higher or lower than the price that would be paid in connection with an optional or
mandatory redemption, so long as, at the time of any such purchase, there is no arrearage in the
payment of interest on or the mandatory or optional redemption price with respect to, any Calamos
Notes for which Notice of Redemption has been given, and we are in compliance with the 1940 Act
Calamos Notes Asset Coverage and have Eligible Assets with an aggregate Discounted Value at least
equal to the Calamos Notes Basic Maintenance Amount after giving effect to such purchase or
acquisition on the date thereof. If less than all outstanding Calamos Notes are redeemed or
otherwise acquired by us, we shall give notice of such transaction to the Auction Agent, in
accordance with the procedures agreed upon by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Payment of Proceeds Upon Dissolution, Etc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of (a)&nbsp;any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection therewith, relative
to us or to our creditors, as such, or to our assets, or (b)&nbsp;our liquidation, dissolution or other
winding up, whether voluntary or involuntary and whether or not involving insolvency or bankruptcy,
or (c)&nbsp;our assignment for the benefit of creditors or any other marshalling of assets and
liabilities, then (after any payments with respect to our secured creditor outstanding at such
time) and in any such event the holders of Calamos Notes shall be entitled to receive payment in
full of all amounts due or to become due on or in respect of all Calamos Notes (including any
interest accruing thereon after the commencement of any such case or proceeding), or provision
shall be made for such payment in cash or cash equivalents or otherwise in a manner satisfactory to
the holders of the Calamos Notes, before the holders of any of our common or preferred stock are
entitled to receive any payment on account of any redemption proceeds, liquidation preference or
dividends from such shares, and to that end the holders of Calamos Notes shall be entitled to
receive, for application to the payment thereof, any payment or distribution of any kind or
character, whether in cash, property or securities, including any such payment or distribution
which may be payable or deliverable by reason of the payment of any of our other indebtedness being
subordinated to the
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">payment of the Calamos Notes, which may be payable or deliverable in respect of the Calamos
Notes in any such case, proceeding, dissolution, liquidation or other winding up event.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsecured creditors of ours may include, without limitation, service providers including the
Adviser, Custodian, Auction Agent, Broker-Dealers and Trustee, pursuant to the terms of various
contracts with us. Secured creditors of ours may include without limitation parties entering into
any interest rate swap, floor or cap transactions, or other similar transactions with us that
create liens, pledges, charges, security interests, security agreements or other encumbrances on
our assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our consolidation, reorganization or merger with or into any other company, or a sale, lease
or exchange of all or substantially all of our assets of in consideration for the issuance of
equity securities of another company shall not be deemed to be a liquidation, dissolution or
winding up of the Fund.
</DIV>
<DIV align="left">
<A name="181"></A>
</DIV>

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


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Auction Agency Agreement</I>. The Auction Agency Agreement between us and the Auction Agent
(currently, The Bank of New York) (the &#147;Auction Agency Agreement&#148;) provides, among other things,
that the Auction Agent will follow the Auction Procedures for purposes of determining the
Applicable Rate for the Series &#95;&#95;&#95;Calamos Notes so long as the Applicable Rate for the Series &#95;&#95;&#95;
Calamos Notes is to be based on the results of an Auction. The Auction Agent acts as a
non-fiduciary agent for us in connection with Auctions. In the absence of bad faith or gross
negligence on its part, the Auction Agent will not be liable for any action taken, suffered, or
omitted or for any error of judgment made by it in the performance of its duties under the Auction
Agency Agreement and will not be liable for any error of judgment made in good faith unless the
Auction Agent will have been grossly negligent in ascertaining the pertinent facts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Auction Agent may terminate the Auction Agency Agreement upon notice to us on a date no
earlier than 60&nbsp;days after the notice. If the Auction Agent should resign, we will use our best
efforts to enter into an agreement with a successor Auction Agent containing substantially the same
terms and conditions as the Auction Agency Agreement. We may remove the Auction Agent provided
that prior to such removal we shall have entered into such an agreement with a successor Auction
Agent.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Beneficial Owners</I>. Prior to the Submission Deadline on each Auction Date for a series of
Calamos Notes, each customer of a Broker-Dealer who is listed on the records of that Broker-Dealer
(or, if applicable, the Auction Agent) as a holder of Calamos Notes of such series (a &#147;Beneficial
Owner&#148;) may submit orders (&#147;Orders&#148;) with respect to Calamos Notes of such series to that
Broker-Dealer as follows:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Hold Order &#150; indicating its desire to hold Calamos Notes of such series without
regard to the Applicable Rate for Calamos Notes of such series for the next Rate Period
thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bid &#150; indicating its desire to sell the principal amount of Outstanding Calamos
Notes, if any, of such series held by such Beneficial Owner which such Beneficial Owner
offers to sell if the Applicable Rate for Calamos Notes of such series for the next
succeeding Rate Period of Calamos Notes of such series shall be less than the rate per
annum specified by such Beneficial Owner (also known as a hold at rate order).</TD>
</TR>

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


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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sell Order &#150; indicating its desire to sell the principal amount of Outstanding
Calamos Notes, if any, of such series held by such Beneficial Owner which such
Beneficial Owner offers to sell without regard to the Applicable Rate for Calamos Notes
of such series for the next succeeding Rate Period of Calamos Notes of such series.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Orders submitted (or the failure to do so) by Beneficial Owners under certain circumstances
will have the effects described below. A Beneficial Owner of Calamos Notes of such series that
submits a Bid with respect to Calamos Notes of such series to its Broker-Dealer having a rate
higher than the Maximum Rate for Calamos Notes of such series on the Auction Date therefore will be
treated as having submitted a Sell Order with respect to such Calamos Notes. A Beneficial Owner of
Calamos Notes of such series that fails to submit an Order with respect to such Calamos Notes to
its Broker-Dealer will be deemed to have submitted a Hold Order with respect to such Calamos Notes
of such series; provided, however, that if a Beneficial Owner of Series &#95;&#95;&#95;Calamos Notes fails to
submit an Order with respect to Series &#95;&#95;&#95;Calamos Notes to its Broker-Dealer for an Auction
relating to a Special Rate Period of more than &#95;&#95;&#95;(&#95;&#95;&#95;) days, such Beneficial Owner will be
deemed to have submitted a Sell Order with respect to such Calamos Notes. A Sell Order shall
constitute an irrevocable offer to sell the Calamos Notes subject thereto. A Beneficial Owner that
offers to become the Beneficial Owner of additional Calamos Notes is, for purposes of such offer, a
Potential Beneficial Owner as discussed below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Potential Beneficial Owners</I>. A customer of a Broker-Dealer that is not a Beneficial Owner of
a series of Calamos Notes but that wishes to purchase Calamos Notes of such series, or that is a
Beneficial Owner of Calamos Notes of such series that wishes to purchase additional Calamos Notes
of such series (in each case, a &#147;Potential Beneficial Owner&#148;), may submit Bids to its Broker-Dealer
in which it offers to purchase such principal amount of Outstanding Calamos Notes of such series
specified in such Bid if the Applicable Rate for Calamos Notes of such series determined on such
Auction Date shall be higher than the rate specified in such Bid. A Bid placed by a Potential
Beneficial Owner of Calamos Notes of such series specifying a rate higher than the Maximum Rate for
Calamos Notes of such series on the Auction Date therefor will not be accepted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The Auction Process</I>. Each Broker-Dealer shall submit in writing, which shall include a
writing delivered via e mail or other electronic means, to the Auction Agent, prior to the
Submission Deadline on each Auction Date, all Orders for Calamos Notes of a series subject to an
Auction on such Auction Date obtained by such Broker-Dealer, designating itself (unless otherwise
permitted by us) as an Existing Holder in respect of Calamos Notes subject to Orders submitted or
deemed submitted to it by Beneficial Owners and as a Potential Holder in respect of Calamos Notes
subject to Orders submitted to it by Potential Beneficial Owners. However, neither we nor the
Auction Agent will be responsible for a Broker-Dealer&#146;s failure to comply with the foregoing. Any
Order placed with the Auction Agent by a Broker-Dealer as or on behalf of an Existing Holder or a
Potential Holder will be treated in the same manner as an Order placed with a Broker-Dealer by a
Beneficial Owner or Potential Beneficial Owner. Similarly, any failure by a Broker-Dealer to submit
to the Auction Agent an Order in respect of Calamos Notes held by it or customers who are
Beneficial Owners will be treated in the same manner as a Beneficial Owner&#146;s failure to submit to
its Broker-Dealer an Order in respect of Calamos Notes held by it. A Broker-Dealer may also submit
Orders to the Auction Agent for its own account as an Existing Holder or Potential Holder, provided
it is not an affiliate of ours.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Sufficient Clearing Bids for a series of Calamos Notes exist (that is, the aggregate
principal amount of Outstanding Calamos Notes of such series subject to Submitted Bids of Potential
Holders specifying one or more rates between the Minimum Rate (for Standard Rate Periods or less,
only) and the Maximum Rate (for all Rate Periods) for Calamos Notes of such series exceeds or is
equal to the sum of the aggregate principal amount of Outstanding Calamos Notes of such series
subject to Submitted Sell Orders), the Applicable Rate for Calamos Notes of such series for the
next succeeding Rate Period thereof
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">will be the lowest rate specified in the Submitted Bids which, taking into account such rate
and all lower rates bid by Broker-Dealers as or on behalf of Existing Holders and Potential
Holders, would result in Existing Holders and Potential Holders owning the aggregate principal
amount of Calamos Notes of such series available for purchase in the Auction (such rate, the
&#147;Winning Bid Rate&#148;). If Sufficient Clearing Bids for a series of Calamos Notes do not exist (other
than because all of the Outstanding Calamos Notes of such series are subject to Submitted Hold
Orders), then the Applicable Rate for all Calamos Notes of such series for the next succeeding Rate
Period thereof will be equal to the Maximum Rate for Calamos Notes of such series. In such event,
Holders of Calamos Notes of such series that have submitted or are deemed to have submitted Sell
Orders may not be able to sell in such Auction all aggregate principal amount of Calamos Notes of
such series subject to such Sell Orders. In any particular Auction, if all outstanding Calamos
Notes of a series are the subject of Submitted Hold Orders, the Applicable Rate for such series of
Calamos Notes for the next succeeding Auction Period will be the All Hold Rate (such a situation is
called an &#147;All Hold Auction&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Auction Procedures include a pro rata allocation of Calamos Notes for purchase and sale,
which may result in an Existing Holder continuing to hold or selling, or a Potential Holder
purchasing, a number of Calamos Notes that is less than the number of Calamos Notes specified in
its Order. To the extent the allocation procedures have that result, Broker-Dealers that have
designated themselves as Existing Holders or Potential Holders in respect of customer Orders will
be required to make appropriate pro rata allocations among their respective customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement of purchases and sales will be made on the next Business Day (also an Interest
Payment Date) after the Auction Date through the Securities Depository. Purchasers will make
payment through their Agent Members in same-day funds to the Securities Depository against delivery
to their respective Agent Members. The Securities Depository will make payment to the sellers&#146;
Agent Members in accordance with the Securities Depository&#146;s normal procedures, which now provide
for payment against delivery by their Agent Members in same-day funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Certain Considerations Affecting Auction Rate Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Role of Broker-Dealer</I>. &#091;Broker-Dealer&#093; (the &#147;Broker-Dealer&#148;) has been appointed by the
issuers or obligors of various auction rate securities to serve as a dealer in the auctions for
those securities and is paid by the issuers or obligors for its services. &#091;Broker-Dealer&#093; receives
broker-dealer fees from such issuers or obligors at an agreed upon annual rate that is applied to
the principal amount of securities sold or successfully placed through them in such auctions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Broker-Dealer is designated in the Broker-Dealer Agreement as the Broker-Dealer to contact
Existing Holders and Potential Holders and solicit Bids for the Calamos Notes. The Broker-Dealer
will receive Broker-Dealer Fees from us with respect to the Calamos Notes sold or successfully
placed through it in Auctions. The Broker-Dealer may share a portion of such fees with other
dealers that submit Orders through it that are filled in the Auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Bidding by Broker-Dealer</I>. The Broker-Dealer is permitted, but not obligated, to submit Orders
in Auctions for its own account either as a buyer or seller and routinely does so in the auction
rate securities market in its sole discretion. If the Broker-Dealer submits an Order for its own
account, it would have an advantage over other Potential Beneficial Owners because the
Broker-Dealer would have knowledge of the other Orders placed through it in that Auction and thus,
could determine the rate and size of its Order so as to increase the likelihood that (i)&nbsp;its Order
will be accepted in the Auction and (ii)&nbsp;the Auction will clear at a particular rate. For this
reason, and because the Broker Dealer is appointed and paid by us to serve as a Broker-Dealer in
the Auction, the Broker-Dealer&#146;s interests in serving as Broker-Dealer in an Auction may differ
from those of Existing Holders and Potential Holders who
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">participate in Auctions. See &#147;Role of Broker-Dealer.&#148; The Broker Dealer would not have
knowledge of Orders submitted to the Auction Agent by any other firm that is, or may in the future
be, appointed to accept Orders pursuant to a Broker Dealer Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where the Broker-Dealer is the only Broker-Dealer appointed by us to serve as Broker-Dealer in
the Auction, and as long as that remains the case, it will be the only Broker-Dealer that submits
Orders to the Auction Agent in that Auction. As a result, in such circumstances, the Broker-Dealer
may discern the clearing rate before the Orders are submitted to the Auction Agent and set the
clearing rate with its Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Broker-Dealer may place one or more Bids in an Auction for its own account to acquire
securities for its inventory, to prevent an Auction Failure or to prevent Auctions from clearing at
a rate that the Broker-Dealer believes does not reflect the market for the Calamos Notes. The
Broker-Dealer may place such Bids even after obtaining knowledge of some or all of the other Orders
submitted through it. When bidding in an Auction for its own account, the Broker-Dealer also may
Bid inside or outside the range of rates that it posts in its Price Talk (as defined herein). See
&#147;&#151;Price Talk.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Broker-Dealer also may encourage bidding by others in Auctions, including to prevent an
Auction Failure or to prevent an Auction from clearing at a rate that the Broker-Dealer believes
does not reflect the market for the Calamos Notes. The Broker-Dealer may encourage such Bids even
after obtaining knowledge of some or all of the other Orders submitted through it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bids by the Broker-Dealer or by those it may encourage to place Bids are likely to affect
(i)&nbsp;the Applicable Rate&#151;including preventing the Applicable Rate from being set at the Maximum Rate
or otherwise causing Potential Beneficial Owners to receive a lower rate than they might have
received had the Broker-Dealer not Bid (or not encouraged others to Bid) and (ii)&nbsp;the allocation of
the Calamos Notes being auctioned, including displacing some Potential Beneficial Owners who may
have their Bids rejected or receive fewer Calamos Notes than they would have received if the
Broker-Dealer had not Bid (or encouraged others to Bid). Because of these practices, the fact that
an Auction clears successfully does not mean that an investment in the Calamos Notes involves no
significant liquidity or credit risk. The Broker-Dealer is not obligated to continue to place such
Bids (or to continue to encourage other Bidders to do so) in any particular Auction to prevent an
Auction Failure or an Auction from clearing at a rate the Broker-Dealer believes does not reflect
the market for the Calamos Notes. Investors should not assume that the Broker-Dealer will place
Bids or encourage others to do so or that Auction Failures will not occur. Investors should also
be aware that Bids by the Broker-Dealer (or by those it may encourage to place Bids) may cause
lower Applicable Rates to occur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The statements herein regarding Bidding by a Broker-Dealer apply only to a Broker-Dealer&#146;s
auction desk and any other business units of the Broker-Dealer that are not separated from the
auction desk by an information barrier designed to limit inappropriate dissemination of bidding
information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In any particular Auction, if all outstanding Calamos Notes of a series are the subject of
Submitted Hold Orders, the Applicable Rate for the next succeeding Auction Period will be the All
Hold Rate (such a situation is called an &#147;All Hold Auction&#148;). If the Broker-Dealer holds any
Calamos Notes of a series for its own account on an Auction Date, it is the Broker-Dealer&#146;s
practice to submit a Sell Order into the Auction with respect to such Calamos Notes, which would
prevent that Auction from being an All Hold Auction. The Broker-Dealer may, but is not obligated
to, submit Bids for its own account in that same Auction, as set forth above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Price Talk</I>. Before the start of an Auction, the Broker-Dealer, in its discretion, may make
available to its customers who are Existing Holders and Potential Holders the Broker-Dealer&#146;s good
faith judgment of the range of likely clearing rates for the Auction based on market and other
information.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This is known as &#147;Price Talk.&#148; Price Talk is not a guaranty that the Applicable Rate
established through the Auction will be within the Price Talk, and Existing Holders and Potential
Holders are free to use it or ignore it. The Broker-Dealer occasionally may update and change the
Price Talk based on changes in our credit quality or macroeconomic factors that are likely to
result in a change in interest rate levels, such as an announcement by the Federal Reserve Board of
a change in the Federal Funds rate or an announcement by the Bureau of Labor Statistics of
unemployment numbers. Potential Holders should confirm with the Broker-Dealer the manner by which
the Broker-Dealer will communicate Price Talk and any changes to Price Talk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>&#147;All-or-Nothing&#148; Bids</I>. The Broker-Dealer will not accept &#147;all-or-nothing&#148; Bids (<I>i.e.</I>, Bids
whereby the bidder proposes to reject an allocation smaller than the entire quantity Bid) or any
other type of Bid that allows the bidder to avoid Auction Procedures that require the pro rata
allocation of Calamos Notes of a series where there are not sufficient Sell Orders to fill all Bids
at the Winning Bid Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No Assurances Regarding Auction Outcomes</I>. The Broker-Dealer provides no assurance as to the
outcome of any Auction. The Broker-Dealer also does not provide any assurance that any Bid will be
successful, in whole or in part, or that the Auction will clear at a rate that a bidder considers
acceptable. Bids may be only partially filled, or not filled at all, and the Applicable Rate on
any Calamos Notes purchased or retained in the Auction may be lower than the market rate for
similar investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Broker-Dealer will not agree before an Auction to buy Calamos Notes of any series from, or
sell Calamos Notes of any series to, a customer after the Auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Deadlines</I>. Each particular Auction has a formal deadline by which all Bids must be submitted
by the Broker-Dealer to the Auction Agent. This deadline is called the &#147;Submission Deadline.&#148; To
provide sufficient time to process and submit customer Bids to the Auction Agent before the
Submission Deadline, the Broker-Dealer imposes an earlier deadline, called the &#147;Internal Submission
Deadline,&#148; by which bidders must submit Bids to the Broker-Dealer. The Internal Submission
Deadline is subject to change by the Broker-Dealer. Potential Owners should consult with the
Broker-Dealer as to its Internal Submission Deadline. The Broker-Dealer may allow for correction
of clerical errors after the Internal Submission Deadline and prior to the Submission Deadline.
The Broker-Dealer may submit Bids for its own account at any time until the Submission Deadline.
The Auction Procedures provide that for a period of up to one hour after the Auction Agent
completes the dissemination of the results of an Auction, new Orders can be submitted to the
Auction Agent if such Orders were received by the Broker-Dealer or generated by the Broker-Dealer
for its own account prior to the Submission Deadline and the failure to submit such Orders prior to
the Submission Deadline was the result of force majeure, a technological failure or a clerical
error. In addition a Broker-Dealer may modify or withdraw an Order submitted to the Auction Agent
prior the Submission Deadline if the Broker-Dealer determines that such Order contained a clerical
error. In the event of such a submission, modification or withdrawal the Auction Agent will rerun
the Auction, if necessary, taking into account such submission, modification or withdrawal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Existing Holder&#146;s Ability to Resell Auction Rate Securities May&nbsp;Be Limited</I>. An Existing
Holder may sell, transfer or dispose of a Calamos Note of a series (i)&nbsp;in an Auction, only pursuant
to a Bid or Sell Order in accordance with the Auction Procedures, or (ii)&nbsp;outside an Auction, only
to or through a Broker-Dealer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Existing Holders will be able to sell all of the Calamos Notes of a series that are the
subject of their Submitted Sell Orders only if there are bidders willing to purchase all those
Calamos Notes in the Auction. If Sufficient Clearing Bids have not been made, Existing Holders
that have submitted Sell Orders will not be able to sell in the Auction all, and may not be able to
sell any, of the Calamos Notes of such series subject to such Submitted Sell Orders. As discussed
above (see &#147;Bidding by Broker-Dealer&#148;),
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Broker-Dealer may submit a Bid in an Auction to avoid an Auction Failure, but it is not
obligated to do so. There may not always be enough bidders to prevent an Auction Failure in the
absence of bidding by Broker-Dealer in the Auction for its own account or encouraging others to
Bid. Therefore, Auction Failures are possible, especially if our credit were to deteriorate, if a
market disruption were to occur or if, for any reason, the Broker-Dealer were unable or unwilling
to Bid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Between Auctions, there can be no assurance that a secondary market for the Calamos Notes of
any series will develop or, if it does develop, that it will provide Existing Holders the ability
to resell the Calamos Notes of such series on the terms or at the times desired by an Existing
Holder. The Broker-Dealer, in its own discretion, may decide to buy or sell the Calamos Notes of a
series in the secondary market for its own account from or to investors at any time and at any
price, including at prices equivalent to, below, or above par for the Calamos Notes of such series.
However, the Broker-Dealer is not obligated to make a market in the Calamos Notes of a series and
may discontinue trading in the Calamos Notes of such series without notice for any reason at any
time. Existing Holders who resell between Auctions may receive an amount less than par, depending
on market conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Existing Holder purchased a Calamos Note through a dealer which is not the Broker-Dealer
for the securities, such Existing Holder&#146;s ability to sell its security may be affected by the
continued ability of its dealer to transact trades for the Calamos Notes through the Broker-Dealer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ability to resell the Calamos Notes of any series will depend on various factors affecting
the market for the Calamos Notes, including news relating to us, the attractiveness of alternative
investments, investor demand for short term securities, the perceived risk of owning the Calamos
Notes (whether related to credit, liquidity or any other risk), the tax or accounting treatment
accorded the Calamos Notes (including U.S. generally accepted accounting principles as they apply
to the accounting treatment of auction rate securities), reactions of market participants to
regulatory actions (such as those described in &#147;Securities and Exchange Commission Settlements&#148;
below) or press reports, financial reporting cycles and market conditions generally. Demand for
the Calamos Notes may change without warning, and declines in demand may be short-lived or continue
for longer periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Resignation of the Broker-Dealer Could Impact the Ability to Hold Auctions</I>. The Broker-Dealer
Agreement provides that the Broker-Dealer thereunder may resign upon five days&#146; notice and does not
require, as a condition to the effectiveness of such resignation, that a replacement Broker-Dealer
be in place. For any Auction Period during which there is no duly appointed Broker-Dealer, it will
not be possible to hold Auctions for the Calamos Notes, with the result that the dividend rate on
the Calamos Notes will be determined as described in the supplemental indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Securities and Exchange Commission Settlements</I>. On May&nbsp;31, 2006, the U.S. Securities and
Exchange Commission (the &#147;SEC&#148;) announced that it had settled its investigation of fifteen firms,
including &#091;Broker-Dealer&#093;, that participate in the auction rate securities market regarding their
respective practices and procedures in this market. The SEC alleged in the settlement that the
firms had managed auctions for auction rate securities in which they participated in ways that were
not adequately disclosed or that did not conform to disclosed auction procedures. As part of the
settlement, &#091;Broker-Dealer&#093; agreed to pay a civil penalty. In addition, &#091;Broker-Dealer&#093;, without
admitting or denying the SEC&#146;s allegations, agreed to provide to customers written descriptions of
its material auction practices and procedures, and to implement procedures reasonably designed to
detect and prevent any failures by &#091;Broker-Dealer&#093; to conduct the auction process in accordance
with disclosed procedures. No assurance can be provided as to how the settlement may affect the
market for auction rate securities or the Calamos Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition on January&nbsp;9, 2007, the SEC announced that it had settled its investigation of
three banks, including &#091;Auction Agent&#093; (the &#147;Settling Auction Agents&#148;), that participate as auction
agents in the
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">auction rate securities market, regarding their respective practices and procedures in this
market. The SEC alleged in the settlement that the Settling Auction Agents allowed broker-dealers
in auctions to submit bids or revise bids after the submission deadlines and allowed broker-dealers
to intervene in auctions in ways that affected the rates paid on the auction rate securities. As
part of the settlement, the Settling Auction Agents agreed to pay civil penalties. In addition,
each Settling Auction Agent, without admitting or denying the SEC&#146;s allegations, agreed to provide
to broker-dealers and issuers written descriptions of its material auction practices and procedures
and to implement procedures reasonably designed to detect and prevent any failures by that Settling
Auction Agent to conduct the auction process in accordance with disclosed procedures. No assurance
can be offered as to how the settlement may affect the market for auction rate securities or the
Calamos Notes.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Auction Risk</I>. You may not be able to sell your Calamos Notes at an Auction if the Auction
fails; that is, if there are more Calamos Notes offered for sale than there are buyers for those
Calamos Notes. Also, if you place hold orders (orders to retain Calamos Notes) at an Auction only
at a specified rate, and that bid rate exceeds the rate set at the Auction, you will not retain
your Calamos Notes. Finally, if you buy Calamos Notes or elect to retain Calamos Notes without
specifying a rate below which you would not wish to buy or continue to hold those Calamos Notes,
and the Auction sets a below-market rate, you may receive a lower rate of return on your Calamos
Notes than the market rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Secondary Market Risk</I>. If you try to sell your Calamos Notes between auctions, you may not be
able to sell any or all of your shares, or you may not be able to sell them for $25,000 per share.
Broker-Dealers that maintain a secondary trading market for Calamos Notes are not required to
maintain that market, and the Fund is not required to redeem shares either if an auction or an
attempted secondary market sale fails because of a lack of buyers. Calamos Notes are not listed on
a stock exchange or quoted on the Nasdaq stock market. You may transfer shares outside of auctions
only to or through a Broker-Dealer that has entered into an agreement with the Fund&#146;s auction
agent, The Bank of New York, and the Fund or such other persons as the Fund permits. If you sell
your Calamos Notes to a broker-dealer between auctions, you may receive less than the price you
paid for them, especially if market interest rates have risen since the last auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ratings and Asset Coverage Risk</I>. Although it is expected that Fitch will assign a rating of
&#147;&#95;&#95;&#95;&#148; to the Calamos Notes and S&#038;P will assign a rating of &#147;&#95;&#95;&#95;&#148; to the Calamos Notes, such
ratings do not eliminate or necessarily mitigate the risks of investing in Calamos Notes. Fitch or
S&#038;P could downgrade its rating of the Calamos Notes or withdraw its rating of the Calamos Notes at
any time, which may make your shares less liquid at an auction or in the secondary market. If
Fitch or S&#038;P downgrades the Calamos Notes, the Fund may alter its portfolio or redeem Calamos Notes
in an effort to improve the rating, although there is no assurance that it will be able to do so to
the extent necessary to restore the prior rating. If the Fund fails to satisfy the asset coverage
ratios discussed under &#147;Description of Calamos Notes&#151;Rating Agency Guidelines,&#148; the Fund will be
required to redeem a sufficient number of Calamos Notes in order to return to compliance with the
asset coverage ratios. The Fund may be required to redeem Calamos Notes at a time when it is not
advantageous for the Fund to make such redemption or to liquidate portfolio securities in order to
have available cash for such redemption. The Fund may voluntarily redeem Calamos Notes under
certain circumstances in order to meet asset maintenance tests. Although a sale of substantially
all the assets of the Fund or the merger of the Fund into another entity would require the approval
of the holders of the Calamos Notes voting as a separate class as discussed under &#147;Description of
the Calamos Notes&#151;Voting Rights,&#148; a sale of substantially all of the assets of the Fund or the
merger of the Fund with or into another entity would not be treated as a liquidation of the Fund
nor require that the Fund redeem the Calamos Notes, in whole or in part, provided that the Fund
continued to comply with the asset coverage ratios discussed under &#147;Description of Calamos Notes&#151;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Rating Agency Guidelines.&#148; See &#147;Description of Calamos Notes&#151;Rating Agency Guidelines&#148; for a
description of the asset maintenance tests the Fund must meet.
</DIV>



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

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



<DIV align="left">
<A name="182"></A>
</DIV>

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#091;TO BE ADDED BY UNDERWRITERS AT TIME OF OFFERING&#093;</B>

</DIV>
<DIV align="left">
<A name="183"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to the informational requirements of the Securities Exchange Act of 1934, as
amended (the &#147;1934 Act&#148;) and the 1940 Act and are required to file reports, including annual and
semi-annual reports, proxy statements and other information with the SEC. We voluntarily file
quarterly shareholder reports. Our most recent shareholder report filed with the SEC is for the
period ended <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 200&#95;&#95;&#95;. These documents are available on the SEC&#146;s EDGAR system and can be
inspected and copied for a fee at the SEC&#146;s public reference room, Washington, D.C. 20549-0102.
Additional information about the operation of the public reference room facilities may be obtained
by calling the SEC at (202)&nbsp;551-8090.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement and the accompanying prospectus do not contain all of the
information in our registration statement, including amendments, exhibits, and schedules.
Statements in this prospectus supplement and the accompanying prospectus about the contents of any
contract or other document are not necessarily complete and in each instance reference is made to
the copy of the contract or other document filed as an exhibit to the registration statement, each
such statement being qualified in all respects by this reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional information about us can be found in our Registration Statement (including
amendments, exhibits, and schedules) on Form N-2 filed with the SEC. The SEC maintains a web site
(http://www.sec.gov) that contains our Registration Statement, other documents incorporated by
reference, and other information we have filed electronically with the SEC, including proxy
statements and reports filed under the Exchange Act.
</DIV>
<DIV align="left">
<A name="184"></A>
</DIV>

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


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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (&#147;&#95;&#95;&#95;&#148;), <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
serves as counsel to the Fund and to the non-interested Trustees.
Vedder Price P.C. (&#147;Vedder
Price&#148;), Chicago, Illinois, which is serving as our
special counsel in connection with the offerings described in the
prospectus and in this prospectus supplement. Vedder Price is also
counsel to Calamos. Certain legal matters in connection with the securities offered hereby will be passed
upon for us by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. Vedder Price may rely on the opinion of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
on certain matters of Delaware law. Certain matters will be passed on for the underwriter by
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
&#91;city&#93;, &#91;state&#93;.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="185"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;UNAUDITED&#093; FINANCIAL STATEMENTS AS OF ________, 200__</B>
</DIV>



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

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




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Calamos
Global Total Return Fund</B></div>
<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Auction Rate Senior Notes (&#147;Calamos Notes&#148;)</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Series &#95;&#95;&#95;Due </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, 20&#95;&#95;&#95;</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 9pt"><B>PROSPECTUS SUPPLEMENT</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B>, 20&#95;&#95;&#95;</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>&#091;Underwriter&#093;</B></FONT>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>

</DIV>


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



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

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

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SUBJECT
TO COMPLETION, DATED FEBRUARY&nbsp;22, 2008
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>THE INFORMATION IN THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT<br> COMPLETE AND MAY BE CHANGED. WE
MAY NOT SELL THESE SECURITIES UNTIL<br> THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND
EXCHANGE<br> COMMISSION (&#147;SEC&#148;) IS EFFECTIVE. THIS STATEMENT OF ADDITIONAL<br> INFORMATION IS NOT AN OFFER
TO SELL THESE SECURITIES AND IT IS NOT<br> SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY STATE
WHERE THE<br> OFFER OR SALE IS NOT PERMITTED.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CALAMOS GLOBAL TOTAL RETURN FUND</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>STATEMENT OF ADDITIONAL INFORMATION</B>

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Global Total Return Fund (the &#147;Fund&#148;) is a diversified, closed-end management
investment company. This Statement of Additional Information relates to the offering, on an
immediate, continuous or delayed basis, of up to $75,000,000 aggregate initial offering price
of common shares, preferred shares (&#147;Preferred Shares&#148;), and debt securities in
one or more
offerings. This Statement of Additional Information does not constitute a prospectus, but should
be read in conjunction with the prospectus relating thereto dated
February&nbsp;&#95;&#95;&#95;&#95;, 2008 and any
related prospectus supplement. This Statement of Additional Information does not include all
information that a prospective investor should consider before purchasing any of the Fund&#146;s
securities, and investors should obtain and read the prospectus and any related prospectus
supplement prior to purchasing such securities. A copy of the prospectus and any related prospectus
supplement may be obtained without charge by calling 1-800-582-6959. You may also obtain a copy of
the prospectus and any related prospectus supplement on the Securities and Exchange Commission&#146;s
web site (http://www.sec.gov). Capitalized terms used but not defined in this Statement of
Additional Information have the same meanings ascribed to them in the prospectus and any related
prospectus supplement.
<DIV align="left"><FONT size="1">

</FONT></DIV>
</DIV>

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

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

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#134">Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#135">Investment Objective and Policies</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#136">Investment Restrictions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#137">Management of the Fund</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#138">Portfolio Transactions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#139">Net Asset Value</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#140">Repurchase of Common Shares</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#141">Federal Income Tax Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#142">Custodian, Transfer Agent, Dividend Disbursing Agent and Registrar</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#143">Independent Registered Public Accounting Firm</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#144">Additional Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#145">Additional Information Concerning the Agreement and Declaration of Trust</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Statements and Report of Independent Auditors/Accountants</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#146">Appendix&nbsp;A &#150; Form of Calamos Global Total Return Fund Amended and Restated
Statement of Preferences of Auction Rate Cumulative Preferred Shares
(&#147;Preferred Shares&#148;)</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#147">Appendix&nbsp;B &#150; Summary of Certain Provisions of the Indenture and Form of
Supplemental Indenture</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">B-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#148">Appendix&nbsp;B-I &#150; Auction Procedures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">B-I-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#149">Appendix&nbsp;C &#150; Description of Ratings</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">C-1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

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

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt">This Statement of
Additional Information is dated February&nbsp;&#95;&#95;&#95;&#95;, 2008.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="134"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will invest the net proceeds of the offering in accordance with the Fund&#146;s investment
objective and policies as stated below and in the prospectus. It is presently anticipated that the
Fund will invest substantially all of the net proceeds in securities that meet the investment
objective and policies within three months after completion of the offering. Pending such
investment, we anticipate that we will invest the proceeds in
securities issued by the U.S. government or its agencies or
instrumentalities or in high quality, short-term or long-term debt
obligations. If necessary, the Fund may also purchase, as temporary
investments, securities of other open- or closed-end investment companies that invest primarily in
the types of securities in which the Fund may invest directly.
</DIV>
<DIV align="left">
<A name="135"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The prospectus presents the investment objective and the principal investment strategies and
risks of the Fund. This section supplements the disclosure in the Fund&#146;s prospectus and provides
additional information on the Fund&#146;s investment policies or restrictions. Restrictions or policies
stated as a maximum percentage of the Fund&#146;s assets are only applied immediately after a portfolio
investment to which the policy or restriction is applicable (other than the limitations on
borrowing). Accordingly, any later increase or decrease resulting from a change in values, managed
assets or other circumstances will not be considered in determining whether the investment complies
with the Fund&#146;s restrictions and policies.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under normal circumstances, the Fund will invest primarily in a portfolio of common and
preferred stocks, convertible securities and income producing securities such as investment grade
and below investment grade (high yield/high risk) debt securities. The Fund, under normal
circumstances, will invest at least 50% of its managed assets in equity securities (including
securities that are convertible into equity securities). The Fund may invest up to 100% of its
managed assets in securities of foreign issuers, including debt and equity securities of corporate
issuers and debt securities of government issuers, in developed and emerging markets. Under normal
circumstances, the Fund will invest at least 30% of its managed assets in securities of foreign
issuers. The Fund will invest in the securities of issuers of several different countries
throughout the world, in addition to the United States. &#147;Managed assets&#148; means the total assets of
the Fund (including any assets attributable to any leverage that may be outstanding) minus the sum
of accrued liabilities (other than debt representing financial leverage). For this purpose, the
liquidation preference on any preferred shares will not constitute a liability.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest up to 100% of its managed assets in securities of foreign issuers in
developed and emerging markets, including debt and equity securities of corporate issuers and debt
securities of government issuers. Under normal circumstances, the Fund will invest at least 30% of
its managed assets in securities of foreign issuers; however, the Fund anticipates that ordinarily
Calamos&#146; investment process will result in the Fund investing at least 40% of its managed assets in
securities of foreign issuers. The Fund will invest in the securities of issuers of several
different countries throughout the world, in addition to the United States. A foreign issuer is a
foreign government or a company organized under the laws of a foreign country. For these purposes,
foreign securities includes American Depositary Receipts (&#147;ADRs&#148;) or securities guaranteed by a
United States person, and foreign securities in the form of European Depositary Receipts (&#147;EDRs&#148;),
Global Depositary Receipts (&#147;GDRs&#148;) or other securities representing underlying shares of foreign
issuers. Positions in those securities are not
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">necessarily denominated in the same currency as the common stocks into which they may be
converted. ADRs are receipts typically issued by an American bank or trust company evidencing
ownership of the underlying securities. EDRs are European receipts listed on the Luxembourg Stock
Exchange evidencing a similar arrangement. GDRs are U.S. dollar-denominated receipts evidencing
ownership of foreign securities. Generally, ADRs, in registered form, are designed for the U.S.
securities markets and EDRs and GDRs, in bearer form, are designed for use in foreign securities
markets. The Fund may invest in sponsored or unsponsored ADRs. In the case of an unsponsored ADR,
the Fund is likely to bear its proportionate share of the expenses of the depository and it may
have greater difficulty in receiving shareholder communications than it would have with a sponsored
ADR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent positions in portfolio securities are denominated in foreign currencies, the
Fund&#146;s investment performance is affected by the strength or weakness of the U.S. dollar against
those currencies. For example, if the dollar falls in value relative to the Japanese yen, the
dollar value of a Japanese stock held in the portfolio will rise even though the price of the stock
remains unchanged. Conversely, if the dollar rises in value relative to the yen, the dollar value
of the Japanese stock will fall. (See discussion of transaction hedging and portfolio hedging
below under &#147;Currency Exchange Transactions.&#148;)
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors should understand and consider carefully the risks involved in foreign investing.
Investing in foreign securities, which are generally denominated in foreign currencies, and
utilization of forward foreign currency exchange contracts involve certain considerations
comprising both risks and opportunities not typically associated with investing in U.S. securities.
These considerations include: fluctuations in exchange rates of foreign currencies; possible
imposition of exchange control regulation or currency restrictions that would prevent cash from
being brought back to the United States; less public information with respect to issuers of
securities; less governmental supervision of stock exchanges, securities brokers, and issuers of
securities; lack of uniform accounting, auditing and financial reporting standards; lack of uniform
settlement periods and trading practices; less liquidity and frequently greater price volatility in
foreign markets than in the United States; possible imposition of non-U.S. withholding or other taxes; and sometimes less
advantageous legal, operational and financial protections applicable to foreign sub-custodial
arrangements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the Fund intends to invest in companies and government securities of countries having
stable political environments, there is the possibility of expropriation or confiscatory taxation,
seizure or nationalization of foreign bank deposits or other assets, establishment of exchange
controls, the adoption of foreign government restrictions, or other adverse political, social or
diplomatic developments that could affect investment in these nations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in the securities of issuers located in emerging market countries. The
securities markets of emerging countries are substantially smaller, less developed, less liquid and
more volatile than the securities markets of the U.S. and other more developed countries.
Disclosure and regulatory standards in many respects are less stringent than in the U.S. and other
major markets. There also may be a lower level of monitoring and regulation of emerging markets
and the activities of investors in such markets, and enforcement of existing regulations has been
extremely limited. Economies in individual emerging markets may differ favorably or unfavorably
from the U.S. economy in such respects as growth of gross domestic product, rates of inflation,
currency depreciation, capital reinvestment, resource self-sufficiency and balance of payments
positions. Many emerging market countries have experienced high rates of inflation for many years,
which has had and may continue to have very negative effects on the economies and securities
markets of those countries.
</DIV>

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</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency exchange transactions may be conducted either on a spot (i.e., cash) basis at the
spot rate for purchasing or selling currency prevailing in the foreign exchange market or through
forward currency exchange contracts (&#147;forward contracts&#148;). Forward contracts are contractual
agreements to purchase or sell a specified currency at a specified future date (or within a
specified time period) and price set at the time of the contract. Forward contracts are usually
entered into with banks, foreign exchange dealers and broker-dealers, are not exchange traded, and
are usually for less than one year, but may be renewed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward currency exchange transactions may involve currencies of the different countries in
which the Fund may invest and serve as hedges against possible variations in the exchange rate
between these currencies and the U.S. dollar. Currency exchange transactions are limited to
transaction hedging and portfolio hedging involving either specific transactions or portfolio
positions, except to the extent described below under &#147;Synthetic Foreign Money Market Positions.&#148;
Transaction hedging is the purchase or sale of forward contracts with respect to specific
receivables or payables of the Fund accruing in connection with the purchase and sale of its
portfolio securities or the receipt of dividends or interest thereon. Portfolio hedging is the use
of forward contracts with respect to portfolio security positions denominated or quoted in a
particular foreign currency. Portfolio hedging allows the Fund to limit or reduce its exposure in
a foreign currency by entering into a forward contract to sell such foreign currency (or another
foreign currency that acts as a proxy for that currency) at a future date for a price payable in
U.S. dollars so that the value of the foreign denominated portfolio securities can be approximately
matched by a foreign denominated liability. The Fund may not engage in portfolio hedging with
respect to the currency of a particular country to an extent greater than the aggregate market
value (at the time of making such sale) of the securities held in its portfolio denominated or
quoted in that particular currency, except that the Fund may hedge all or part of its foreign
currency exposure through the use of a basket of currencies or a proxy currency where such
currencies or currency act as an effective proxy for other currencies. In such a case, the Fund
may enter into a forward contract where the amount of the foreign currency to be sold exceeds the
value of the securities denominated in such currency. The use of this basket hedging technique may
be more efficient and economical than entering into separate forward contracts for each currency
held in the Fund. The Fund may not engage in &#147;speculative&#148; currency exchange transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund enters into a forward contract, the Fund&#146;s custodian will segregate liquid assets
of the Fund having a value equal to the Fund&#146;s commitment under such forward contract. At the
maturity of the forward contract to deliver a particular currency, the Fund may either sell the
portfolio security related to the contract and make delivery of the currency, or it may retain the
security and either acquire the currency on the spot market or terminate its contractual obligation
to deliver the currency by purchasing an offsetting contract with the same currency trader
obligating it to purchase on the same maturity date the same amount of the currency. It is
impossible to forecast with absolute precision the market value of portfolio securities at the
expiration of a forward contract. Accordingly, it may be necessary for the Fund to purchase
additional currency on the spot market (and bear the expense of such purchase) if the market value
of the security is less than the amount of currency the Fund is obligated to deliver and if a
decision is made to sell the security and make delivery of the currency. Conversely, it may be
necessary to sell on the spot market some of the currency received upon the sale of the portfolio
security if its market value exceeds the amount of currency the Fund is obligated to deliver.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund retains the portfolio security and engages in an offsetting transaction, the Fund
will incur a gain or a loss to the extent that there has been movement in forward contract prices.
If the Fund engages in an offsetting transaction, it may subsequently enter into a new forward
contract to sell the
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">currency. Should forward prices decline during the period between the Fund&#146;s entering into a
forward contract for the sale of a currency and the date it enters into an offsetting contract for
the purchase of the currency, the Fund will realize a gain to the extent the price of the currency
it has agreed to sell exceeds the price of the currency it has agreed to purchase. Should forward
prices increase, the Fund will suffer a loss to the extent the price of the currency it has agreed
to purchase exceeds the price of the currency it has agreed to sell. A default on the contract
would deprive the Fund of unrealized profits or force the Fund to cover its commitments for
purchase or sale of currency, if any, at the current market price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedging against a decline in the value of a currency does not eliminate fluctuations in the
value of a portfolio security traded in that currency or prevent a loss if the value of the
security declines. Hedging transactions also preclude the opportunity for gain if the value of the
hedged currency should rise. Moreover, it may not be possible for the Fund to hedge against a
devaluation that is so generally anticipated that the Fund is not able to contract to sell the
currency at a price above the devaluation level it anticipates. The cost to the Fund of engaging
in currency exchange transactions varies with such factors as the currency involved, the length of
the contract period, and prevailing market conditions.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities include common and preferred stocks, warrants, rights, and depository
receipts. Under normal circumstances, the Fund will invest at least 50% of its managed assets in
equity securities (including securities that are convertible into equity securities). An
investment in the equity securities of a company represents a proportionate ownership interest in
that company. Therefore, the Fund participates in the financial success or failure of any company
in which it has an equity interest. Equity investments are subject to greater fluctuations in
market value than other asset classes as a result of such factors as a company&#146;s business
performance, investor perceptions, stock market trends and general economic conditions. Equity
securities are subordinated to bonds and other debt instruments in a company&#146;s capital structure in
terms of priority to corporate income and liquidation payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stocks involve credit risk, which is the risk that a preferred stock in the Fund&#146;s
portfolio will decline in price or fail to make dividend payments when due because the issuer of
the security experiences a decline in its financial status. In addition to credit risk,
investments in preferred stocks involve certain other risks. Certain preferred stocks contain
provisions that allow an issuer under certain circumstances to skip distributions (in the case of
&#147;non-cumulative&#148; preferred stocks) or defer distributions (in the case of &#147;cumulative&#148; preferred
stocks). If the Fund owns a preferred stock that is deferring its distributions, the Fund may be
required to report income for federal income tax purposes while it is not receiving income from
that stock. The Fund must distribute, at least annually, all or substantially all of its net
investment income, including income from such deferred distributions, to shareholders to avoid
federal income and excise taxes. See &#147;U.S. Federal Income Tax Matters.&#148; Therefore, if the Fund
owns a preferred stock that is deferring its distributions, the Fund may have to dispose of
portfolio securities under disadvantageous circumstances to generate cash, or may have to leverage
itself by borrowing the cash, to satisfy distribution requirements. In certain varying
circumstances, an issuer may redeem its preferred stock prior to a specified date in the event of
certain tax or legal changes or at the issuer&#146;s call. In the event of a redemption, the Fund may
not be able to reinvest the proceeds at comparable rates of return. Preferred stocks typically do
not provide any voting rights, except in cases when dividends are in arrears for a specified number
of periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities of small and medium-sized companies historically have been subject to
greater investment risk than those of large companies. The risks generally associated with small
and medium-sized companies include more limited product lines, markets and financial resources,
lack of management depth or experience, dependency on key personnel and vulnerability to adverse
market and economic
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">developments. Accordingly, the prices of small and medium-sized company equity securities
tend to be more volatile than prices of large company stocks. Further, the prices of small and
medium-sized company equity securities are often adversely affected by limited trading volumes and
the lack of publicly available information.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In pursuing its investment objective, the Fund may invest in convertible and non-convertible
debt securities, including lower-rated securities (i.e., securities rated BB or lower by Standard &#038;
Poor&#146;s Corporation, a division of The McGraw-Hill Companies (&#147;S&#038;P&#148;), or Ba or lower by Moody&#146;s
Investor Services, Inc. (&#147;Moody&#146;s&#148;)) and securities that are not rated but are considered by
Calamos to be of similar quality. There are no restrictions as to the ratings of debt securities
acquired by the Fund or the portion of the Fund&#146;s assets that may be invested in debt securities in
a particular ratings category.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities rated BBB or Baa are considered to be medium grade and to have speculative
characteristics. Lower-rated debt securities are predominantly speculative with respect to the
issuer&#146;s capacity to pay interest and repay principal. Investment in medium- or lower-quality debt
securities involves greater investment risk, including the possibility of issuer default or
bankruptcy. An economic downturn could severely disrupt the market for such securities and
adversely affect the value of such securities. In addition, lower-quality bonds are less sensitive
to interest rate changes than higher-quality instruments and generally are more sensitive to
adverse economic changes or individual corporate developments. During a period of adverse economic
changes, including a period of rising interest rates, issuers of such bonds may experience
difficulty in servicing their principal and interest payment obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Achievement by the Fund of its investment objective will be more dependent on Calamos&#146; credit
analysis than would be the case if the Fund were investing in higher-quality debt securities.
Because the ratings of rating services (which evaluate the safety of principal and interest
payments, not market risks) are used only as preliminary indicators of investment quality, Calamos
employs its own credit research and analysis. These analyses may take into consideration such
quantitative factors as an issuer&#146;s present and potential liquidity, profitability, internal
capability to generate funds, debt/equity ratio and debt servicing capabilities, and such
qualitative factors as an assessment of management, industry characteristics, accounting
methodology, and foreign business exposure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medium- and lower-quality debt securities may be less marketable than higher-quality debt
securities because the market for them is less broad. The market for unrated debt securities is
even narrower. During periods of thin trading in these markets, the spread between bid and asked
prices is likely to increase significantly, and the Fund may have greater difficulty selling its
portfolio securities. The market value of these securities and their liquidity may be affected by
adverse publicity and investor perceptions.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The high yield securities in which the Fund may invest are rated below investment grade (i.e.,
rated Ba or lower by Moody&#146;s or BB or lower by Standard&nbsp;&#038; Poor&#146;s) or are unrated but determined by
Calamos to be of comparable quality. Non-convertible debt securities rated below investment grade
or comparable unrated securities are commonly referred to as &#147;junk bonds&#148; and are considered
speculative with respect to the issuer&#146;s capacity to pay interest and repay principal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Below investment grade non-convertible debt securities or comparable unrated securities are
susceptible to default or decline in market value due to adverse economic and business
developments.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The market values for high yield securities tend to be very volatile, and these securities are
less liquid than investment grade debt securities. For these reasons, your investment in the Fund
is subject to the following specific risks:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increased price sensitivity to changing interest rates and to a deteriorating
economic environment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>greater risk of loss due to default or declining credit quality;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse company specific events are more likely to render the issuer unable to make
interest and/or principal payments; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a negative perception of the high yield market develops, the price and liquidity
of high yield securities may be depressed. This negative perception could last for a
significant period of time.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities rated below investment grade are speculative with respect to the capacity to pay
interest and repay principal in accordance with the terms of such securities. A rating of C from
Moody&#146;s means that the issue so rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing. Standard&nbsp;&#038; Poor&#146;s assigns a rating of C to issues that are
currently highly vulnerable to nonpayment, and the C rating may be used to cover a situation where
a bankruptcy petition has been filed or similar action taken, but payments on the obligation are
being continued (a C rating is also assigned to a preferred stock issue in arrears on dividends or
sinking fund payments, but that is currently paying). See Appendix&nbsp;C to this Statement of
Additional Information for a description of Moody&#146;s and Standard&nbsp;&#038; Poor&#146;s ratings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adverse changes in economic conditions are more likely to lead to a weakened capacity of a
high yield issuer to make principal payments and interest payments than an investment grade issuer.
The principal amount of high yield securities outstanding has proliferated in the past decade as
an increasing number of issuers have used high yield securities for corporate financing. An
economic downturn could severely affect the ability of highly leveraged issuers to service their
debt obligations or to repay their obligations upon maturity. Similarly, down-turns in
profitability in specific industries could adversely affect the ability of high yield issuers in
that industry to meet their obligations. The market values of lower quality debt securities tend
to reflect individual developments of the issuer to a greater extent than do higher quality
securities, which react primarily to fluctuations in the general level of interest rates. Factors
having an adverse impact on the market value of lower quality securities may have an adverse effect
on the Fund&#146;s net asset value and the market value of its common shares. In addition, the Fund may
incur additional expenses to the extent it is required to seek recovery upon a default in payment
of principal or interest on its portfolio holdings. In certain circumstances, the Fund may be
required to foreclose on an issuer&#146;s assets and take possession of its property or operations. In
such circumstances, the Fund would incur additional costs in disposing of such assets and potential
liabilities from operating any business acquired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The secondary market for high yield securities may not be as liquid as the secondary market
for more highly rated securities, a factor which may have an adverse effect on the Fund&#146;s ability
to dispose of a particular security when necessary to meet its liquidity needs. There are fewer
dealers in the market for high yield securities than investment grade obligations. The prices
quoted by different dealers may vary significantly and the spread between the bid and asked price
is generally much larger than higher quality instruments. Under adverse market or economic
conditions, the secondary market for high yield securities could contract further, independent of
any specific adverse changes in the condition of a
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">particular issuer, and these instruments may become illiquid. As a result, the Fund could
find it more difficult to sell these securities or may be able to sell the securities only at
prices lower than if such securities were widely traded. Prices realized upon the sale of such
lower rated or unrated securities, under these circumstances, may be less than the prices used in
calculating the Fund&#146;s net asset value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because investors generally perceive that there are greater risks associated with lower
quality debt securities of the type in which the Fund may invest a portion of its assets, the
yields and prices of such securities may tend to fluctuate more than those for higher rated
securities. In the lower quality segments of the debt securities market, changes in perceptions of
issuers&#146; creditworthiness tend to occur more frequently and in a more pronounced manner than do
changes in higher quality segments of the debt securities market, resulting in greater yield and
price volatility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund invests in high yield securities that are rated C or below, the Fund will incur
significant risk in addition to the risks associated with investments in high yield securities and
corporate loans. Distressed securities frequently do not produce income while they are
outstanding. The Fund may purchase distressed securities that are in default or the issuers of
which are in bankruptcy. The Fund may be required to bear certain extraordinary expenses in order
to protect and recover its investment.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may, but currently does not intend to, invest up to 5% of its total assets in
distressed securities, including corporate loans, which are the subject of bankruptcy proceedings
or otherwise in default as to the repayment of principal and/or payment of interest at the time of
acquisition by the Fund or are rated in the lower rating categories (Ca or lower by Moody&#146;s or CC
or lower by Standard&nbsp;&#038; Poor&#146;s) or which are unrated investments considered by Calamos to be of
comparable quality. Investment in distressed securities is speculative and involves significant
risk. Distressed securities frequently do not produce income while they are outstanding and may
require the Fund to bear certain extraordinary expenses in order to protect and recover its
investment. Therefore, to the extent the Fund seeks capital appreciation through investment in
distressed securities, the Fund&#146;s ability to achieve current income for its shareholders may be
diminished. The Fund also will be subject to significant uncertainty as to when and in what manner
and for what value the obligations evidenced by the distressed securities will eventually be
satisfied (e.g., through a liquidation of the obligor&#146;s assets, an exchange offer or plan of
reorganization involving the distressed securities or a payment of some amount in satisfaction of
the obligation). In addition, even if an exchange offer is made or a plan of reorganization is
adopted with respect to distressed securities held by the Fund, there can be no assurance that the
securities or other assets received by the Fund in connection with such exchange offer or plan of
reorganization will not have a lower value or income potential than may have been anticipated when
the investment was made. Moreover, any securities received by the Fund upon completion of an
exchange offer or plan of reorganization may be restricted as to resale. As a result of the Fund&#146;s
participation in negotiations with respect to any exchange offer or plan of reorganization with
respect to an issuer of distressed securities, the Fund may be restricted from disposing of such
securities.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest up to 5% of its total assets in loan participations and other direct
claims against a borrower. The corporate loans in which the Fund may invest primarily consist of
direct obligations of a borrower and may include debtor in possession financings pursuant to
Chapter&nbsp;11 of the U.S. Bankruptcy Code, obligations of a borrower issued in connection with a
restructuring pursuant to Chapter&nbsp;11 of the U.S. Bankruptcy Code, leveraged buy-out loans,
leveraged recapitalization loans, receivables purchase facilities, and privately placed notes. The
Fund may invest in a corporate loan at origination as a co-lender or by acquiring in the secondary
market participations in, assignments of or
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">novations of a corporate loan. By purchasing a participation, the Fund acquires some or all
of the interest of a bank or other lending institution in a loan to a corporate or government
borrower. The participations typically will result in the Fund having a contractual relationship
only with the lender not the borrower. The Fund will have the right to receive payments of
principal, interest and any fees to which it is entitled only from the lender selling the
participation and only upon receipt by the lender of the payments from the borrower. Many such
loans are secured, although some may be unsecured. Such loans may be in default at the time of
purchase. Loans that are fully secured offer the Fund more protection than an unsecured loan in
the event of non-payment of scheduled interest or principal. However, there is no assurance that
the liquidation of collateral from a secured loan would satisfy the corporate borrower&#146;s
obligation, or that the collateral can be liquidated. Direct debt instruments may involve a risk
of loss in case of default or insolvency of the borrower and may offer less legal protection to the
Fund in the event of fraud or misrepresentation. In addition, loan participations involve a risk
of insolvency of the lending bank or other financial intermediary. The markets in loans are not
regulated by federal securities laws or the Securities and Exchange Commission (&#147;SEC&#148; or the
&#147;Commission&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As in the case of other high yield investments, such corporate loans may be rated in the lower
rating categories of the established rating services (Ba or lower by Moody&#146;s or BB or lower by
Standard&nbsp;&#038; Poor&#146;s), or may be unrated investments considered by Calamos to be of comparable
quality. As in the case of other high yield investments, such corporate loans can be expected to
provide higher yields than lower yielding, higher rated fixed income securities, but may be subject
to greater risk of loss of principal and income. There are, however, some significant differences
between corporate loans and high yield bonds. Corporate loan obligations are frequently secured by
pledges of liens and security interests in the assets of the borrower, and the holders of corporate
loans are frequently the beneficiaries of debt service subordination provisions imposed on the
borrower&#146;s bondholders. These arrangements are designed to give corporate loan investors
preferential treatment over high yield investors in the event of a deterioration in the credit
quality of the issuer. Even when these arrangements exist, however, there can be no assurance that
the borrowers of the corporate loans will repay principal and/or pay interest in full. Corporate
loans generally bear interest at rates set at a margin above a generally recognized base lending
rate that may fluctuate on a day-to-day basis, in the case of the prime rate of a U.S. bank, or
which may be adjusted on set dates, typically 30&nbsp;days but generally not more than one year, in the
case of the London Interbank Offered Rate. Consequently, the value of corporate loans held by the
Fund may be expected to fluctuate significantly less than the value of other fixed rate high yield
instruments as a result of changes in the interest rate environment. On the other hand, the
secondary dealer market for certain corporate loans may not be as well developed as the secondary
dealer market for high yield bonds, and therefore presents increased market risk relating to
liquidity and pricing concerns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Synthetic Foreign Money Market Positions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in money market instruments denominated in foreign currencies. In
addition to, or in lieu of, such direct investment, the Fund may construct a synthetic foreign
money market position by (a)&nbsp;purchasing a money market instrument denominated in one currency,
generally U.S. dollars, and (b)&nbsp;concurrently entering into a forward contract to deliver a
corresponding amount of that currency in exchange for a different currency on a future date and at
a specified rate of exchange. For example, a synthetic money market position in Japanese yen could
be constructed by purchasing a U.S. dollar money market instrument, and entering concurrently into
a forward contract to deliver a corresponding amount of U.S. dollars in exchange for Japanese yen
on a specified date and at a specified rate of exchange. Because of the availability of a variety
of highly liquid short-term U.S. dollar money market instruments, a synthetic money market position
utilizing such U.S. dollar instruments may offer greater liquidity than direct investment in
foreign currency and a concurrent construction of a synthetic position in such foreign currency, in
terms of both income yield and gain or loss from changes in currency
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">exchange rates, in general should be similar, but would not be identical because the
components of the alternative investments would not be identical. The Fund
currently does not intend to invest a significant amount of
its assets in synthetic foreign money market positions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Debt Obligations of Non-U.S. Governments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An investment in debt obligations of non-U.S. governments and their political subdivisions
(sovereign debt) involves special risks that are not present in corporate debt obligations. The
non-U.S. issuer of the sovereign debt or the non-U.S. governmental authorities that control the
repayment of the debt may be unable or unwilling to repay principal or interest when due, and the
Fund may have limited recourse in the event of a default. During periods of economic uncertainty,
the market prices of sovereign debt may be more volatile than prices of debt obligations of U.S.
issuers. In the past, certain non-U.S. countries have encountered difficulties in servicing their
debt obligations, withheld payments of principal and interest and declared moratoria on the payment
of principal and interest on their sovereign debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A sovereign debtor&#146;s willingness or ability to repay principal and pay interest in a timely
manner may be affected by, among other factors, its cash flow situation, the extent of its foreign
currency reserves, the availability of sufficient non-U.S. currency, the relative size of the debt
service burden, the sovereign debtor&#146;s policy toward its principal international lenders and local
political constraints. Sovereign debtors may also be dependent on expected disbursements from
non-U.S. governments, multilateral agencies and other entities to reduce principal and interest
arrearages on their debt. The failure of a sovereign debtor to implement economic reforms, achieve
specified levels of economic performance or repay principal or interest when due may result in the
cancellation of third-party commitments to lend funds to the sovereign debtor, which may further
impair such debtor&#146;s ability or willingness to service its debts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Eurodollar Instruments And Samurai And Yankee Bonds</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in Eurodollar instruments and Samurai and Yankee bonds. Eurodollar
instruments are bonds of corporate and government issuers that pay interest and principal in U.S.
dollars but are issued in markets outside the United States, primarily in Europe. Samurai bonds
are yen-denominated bonds sold in Japan by non-Japanese issuers. Yankee bonds are U.S.
dollar-denominated bonds typically issued in the U.S. by non-U.S. governments and their agencies
and non-U.S. banks and corporations. The Fund may also invest in Eurodollar Certificates of
Deposit (&#147;ECDs&#148;), Eurodollar Time Deposits (&#147;ETDs&#148;) and Yankee Certificates of Deposit (&#147;Yankee
CDs&#148;). ECDs are U.S. dollar-denominated certificates of deposit issued by non-U.S. branches of
domestic banks; ETDs are U.S. dollar-denominated deposits in a non-U.S. branch of a U.S. bank or in
a non-U.S. bank; and Yankee CDs are U.S. dollar-denominated certificates of deposit issued by a
U.S. branch of a non-U.S. bank and held in the U.S. These investments involve risks that are
different from investments in securities issued by U.S. issuers, including potential unfavorable
political and economic developments, non-U.S. withholding or other taxes, seizure of non-U.S.
deposits, currency controls, interest limitations or other governmental restrictions which might
affect payment of principal or interest.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible securities include any corporate debt security or preferred stock that may be
converted into underlying shares of common stock. The common stock underlying convertible
securities may be issued by a different entity than the issuer of the convertible securities.
Convertible securities entitle the holder to receive interest payments paid on corporate debt
securities or the dividend preference on a preferred stock until such time as the convertible
security matures or is redeemed or until the holder elects to exercise the conversion privilege.
As a result of the conversion feature, however, the interest rate or dividend preference on a
convertible security is generally less than would be the case if the
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">securities were issued in non-convertible form. The value of convertible securities is
influenced by both the yield of non-convertible securities of comparable issuers and by the value
of the underlying common stock. The value of a convertible security viewed without regard to its
conversion feature (i.e., strictly on the basis of its yield) is sometimes referred to as its
&#147;investment value.&#148; The investment value of the convertible security typically will fluctuate
inversely with changes in prevailing interest rates. However, at the same time, the convertible
security will be influenced by its &#147;conversion value,&#148; which is the market value of the underlying
common stock that would be obtained if the convertible security were converted. Conversion value
fluctuates directly with the price of the underlying common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, because of a low price of the common stock, the conversion value is substantially below
the investment value of the convertible security, the price of the convertible security is governed
principally by its investment value. If the conversion value of a convertible security increases
to a point that approximates or exceeds its investment value, the value of the security will be
principally influenced by its conversion value. A convertible security will sell at a premium over
its conversion value to the extent investors place value on the right to acquire the underlying
common stock while holding a fixed income security. Holders of convertible securities have a claim
on the assets of the issuer prior to the common stockholders, but may be subordinated to holders of
similar non-convertible securities of the same issuer.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Advisors, LLC (&#147;Calamos&#148;) may create a &#147;synthetic&#148; convertible security by combining
fixed income securities with the right to acquire equity securities. More flexibility is possible
in the assembly of a synthetic convertible security than in the purchase of a convertible security.
Although synthetic convertible securities may be selected where the two components are issued by a
single issuer, thus making the synthetic convertible security similar to the true convertible
security, the character of a synthetic convertible security allows the combination of components
representing distinct issuers, when Calamos believes that such a combination would better promote
the Fund&#146;s investment objective. A synthetic convertible security also is a more flexible
investment in that its two components may be purchased separately. For example, the Fund may
purchase a warrant for inclusion in a synthetic convertible security but temporarily hold
short-term investments while postponing the purchase of a corresponding bond pending development of
more favorable market conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A holder of a synthetic convertible security faces the risk of a decline in the price of the
security or the level of the index involved in the convertible component, causing a decline in the
value of the call option or warrant purchased to create the synthetic convertible security. Should
the price of the stock fall below the exercise price and remain there throughout the exercise
period, the entire amount paid for the call option or warrant would be lost. Because a synthetic
convertible security includes the fixed-income component as well, the holder of a synthetic
convertible security also faces the risk that interest rates will rise, causing a decline in the
value of the fixed-income instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may also purchase synthetic convertible securities manufactured by other parties,
including convertible structured notes. Convertible structured notes are fixed income debentures
linked to equity, and are typically issued by investment banks. Convertible structured notes have
the attributes of a convertible security; however, the investment bank that issued the convertible
note assumes the credit risk associated with the investment, rather than the issuer of the
underlying common stock into which the note is convertible.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may lend its portfolio securities to broker-dealers and banks. Any such loan must be
continuously secured by collateral in cash or cash equivalents maintained on a current basis in an
amount
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">at least equal to the market value of the securities loaned by the Fund. The Fund would
continue to receive the equivalent of the interest or dividends paid by the issuer on the
securities loaned, and would also receive an additional return that may be in the form of a fixed
fee or a percentage of the collateral. The Fund may pay reasonable fees to persons unaffiliated
with the Fund for services in arranging these loans. The Fund would have the right to call the
loan and obtain the securities loaned at any time on notice of not more than five business days.
The Fund would not have the right to vote the securities during the existence of the loan but would
call the loan to permit voting of the securities, if, in Calamos&#146; judgment, a material event
requiring a shareholder vote would otherwise occur before the loan was repaid. In the event of
bankruptcy or other default of the borrower, the Fund could experience both delays in liquidating
the loan collateral or recovering the loaned securities and losses, including (a)&nbsp;possible decline
in the value of the collateral or in the value of the securities loaned during the period while the
Fund seeks to enforce its rights thereto, (b)&nbsp;possible subnormal levels of income and lack of
access to income during this period, and (c)&nbsp;expenses of enforcing its rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Options on Securities, Indexes and Currencies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may seek to generate income from option premiums by writing (selling)&nbsp;options (with
an aggregate notional value of up to 33% of the value of the Fund&#146;s managed assets). The Fund may
write (sell)&nbsp;call options (i)&nbsp;on a portion of the equity securities (including securities that are
convertible into equity securities) in the Fund&#146;s portfolio and (ii)&nbsp;on broad-based securities
indices (such as the S&#038;P 500 or MSCI EAFE) or certain ETFs (exchange traded funds) that trade like
common stocks but seek to replicate such market indices. The Fund may also write (sell)&nbsp;both put
and call options on certain of the equity securities (including securities that are convertible
into equity securities) in the Fund&#146;s portfolio where the Fund will own an equity security and
simultaneously, write call options and write put options on that security. This strategy may
produce a considerably higher return than solely writing call options, but involves a higher degree
of risk and potential volatility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos may also utilize covered put option collars, in which the Fund purchases a put option
and simultaneously sells a put option on the same security at a different strike price. The put
option collars in which the Fund will invest are sometimes referred to as debit spreads and credit
spreads (including strike spreads and time spreads). When the Fund engages in debit spreads the
Fund will pay a higher premium for the put option it purchases than it receives for the put option
it writes. In so doing, the Fund hopes to realize current gains from favorable market price
movements in relation to the exercise price of the option it holds. The Fund&#146;s maximum potential
profit would be equal to the difference between the two exercise prices, less the net premium paid.
When the Fund engages in credit spreads the Fund will receive more in premiums for the option it
writes than it will pay for the option it purchases. In so doing, the Fund hopes to realize
current gains in the form of premiums. The Fund&#146;s maximum potential profit would be equal to the
net premium received for the spread. The Fund&#146;s maximum potential loss would be limited to the
difference between the two exercise prices, less the net premium received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, to seek to offset some of the risk of a large potential decline in the event the
overall stock market has a sizeable short-term or intermediate-term decline, the Fund may also, to
a limited extent (with an aggregate notional value of not more than 5% of the value of the Fund&#146;s
managed assets) purchase put options on broad-based securities indices (such as the S&#038;P&nbsp;500 or MSCI
EAFE) or certain ETFs (exchange traded funds) that trade like common stocks but seek to replicate
such market indices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may also purchase and sell put options and call options on foreign currencies. The
Fund may purchase agreements, sometimes called cash puts, that may accompany the purchase of a new
issue of bonds from a dealer.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A put option gives the purchaser of the option, upon payment of a premium, the right to sell,
and the writer the obligation to buy, the underlying security, commodity, index, currency or other
instrument at the exercise price. For instance, the Fund&#146;s purchase of a put option on a security
might be designed to protect its holdings in the underlying instrument (or, in some cases, a
similar instrument) against a substantial decline in the market value by giving the Fund the right
to sell such instrument at the option exercise price. A call option, upon payment of a premium,
gives the purchaser of the option the right to buy, and the seller the obligation to sell, the
underlying instrument at the exercise price. The Fund&#146;s purchase of a call option on a security,
financial future, index, currency or other instrument might be intended to protect the Fund against
an increase in the price of the underlying instrument that it intends to purchase in the future by
fixing the price at which it may purchase such instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain options, known as &#147;American style&#148; options, may be exercised at any time
during the term of the option. Other options, known as &#147;European style&#148; options, may be exercised only on the expiration date of the option. The Fund expects that substantially
all of the options written by the Fund will be American style options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is authorized to purchase and sell exchange listed options and over-the-counter
options (&#147;OTC options&#148;). Exchange listed options are issued by a regulated intermediary such as
the Options Clearing Corporation (&#147;OCC&#148;), which guarantees the performance of the obligations of
the parties to such options. In addition, the Fund may purchase instruments structured by
broker-dealers or investment banks that package or possess economic characteristics of options.
The discussion below uses the OCC as an example, but is also applicable to other financial
intermediaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With certain exceptions, OCC issued and exchange listed options generally settle by physical
delivery of the underlying security or currency, although in the future cash settlement may become
available. Index options and Eurodollar instruments are cash settled for the net amount, if any,
by which the option is &#147;in-the-money&#148; (i.e., where the value of the underlying instrument exceeds,
in the case of a call option, or is less than, in the case of a put option, the exercise price of
the option) at the time the option is exercised. Frequently, rather than taking or making delivery
of the underlying instrument through the process of exercising the option, listed options are
closed by entering into offsetting purchase or sale transactions that do not result in ownership of
the new option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTC options are purchased from or sold to securities dealers, financial institutions or other
parties (&#147;Counterparties&#148;) through direct bilateral agreement with the Counterparty. In contrast
to exchange listed options, which generally have standardized terms and performance mechanics, all
the terms of an OTC option, including such terms as method of settlement, term, exercise price,
premium, guarantees and security, are set by negotiation of the parties. The Fund may sell OTC
options (other than OTC currency options) that are subject to a buy-back provision permitting the
Fund to require the Counterparty to sell the option back to the Fund at a formula price within
seven days. The Fund expects generally to enter into OTC options that have cash settlement
provisions, although it is not required to do so. The staff of the SEC currently takes the
position that OTC options purchased by a fund, and portfolio securities &#147;covering&#148; the amount of a
fund&#146;s obligation pursuant to an OTC option sold by it (or the amount of assets equal to the
formula price for the repurchase of the option, if any, less the amount by which the option is in
the money) are illiquid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund may also purchase and sell options on securities indices and
other financial indices, which may include purchasing and selling
options on stocks, indices, rates, credit spreads or currencies.
Options on securities indices and other financial indices are similar to options on a security or
other instrument except that, rather than settling by physical delivery of the underlying
instrument, they settle by cash settlement, i.e., an option or an index gives the holder the right
to receive, upon exercise of the option, an amount of cash if the closing level of the index upon
which the option is based exceeds, in the case of a call, or is less than, in the case of a put,
the exercise price of the option (except if, in the case of an OTC option, physical delivery is
specified). This amount of cash is equal to the excess of the closing price of the index over the
exercise price of the option, which also may be multiplied by a formula value. The seller of the
option is obligated, in return for the premium received, to make delivery of this amount. The gain
or loss on an option on an index depends on price movements in the instruments making upon
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the market, market segment industry or other composite on which the underlying index is based,
rather than price movements in individual securities, as is the case with respect to options on
securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will write call options and put options only if they are &#147;covered.&#148; For example, a
call option written by the Fund will require the Fund to hold the securities subject to the call
(or securities convertible into the needed securities without additional consideration) or to
segregate cash or liquid assets sufficient to purchase and deliver the securities if the call is
exercised. A call option sold by the Fund on an index will require the Fund to own portfolio
securities which correlate with the index or to segregate cash or liquid assets equal to the excess
of the index value over the exercise price on a current basis. A put option written by the Fund
requires the Fund to segregate cash or liquid assets equal to the exercise price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTC options entered into by the Fund and OCC issued and exchange listed index options will
generally provide for cash settlement. As a result, when the Fund sells these instruments it will
only segregate an amount of cash or liquid assets equal to its accrued net obligations, as there is
no requirement for payment or delivery of amounts in excess of the net amount. These amounts will
equal 100% of the exercise price in the case of a non cash-settled put, the same as an OCC
guaranteed listed option sold by the Fund, or the in-the-money amount plus any sell-back formula
amount in the case of a cash-settled put or call. In addition, when the Fund sells a call option
on an index at a time when the in-the-money amount exceeds the exercise price, the Fund will
segregate, until the option expires or is closed out, cash or cash equivalents equal in value to
such excess. OCC issued and exchange listed options sold by the Fund other than those above
generally settle with physical delivery, or with an election of either physical delivery or cash
settlement and the Fund will segregate an amount of cash or liquid assets equal to the full value
of the option. OTC options settling with physical delivery, or with an election of either physical
delivery or cash settlement, will be treated the same as other options settling with physical
delivery.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an option written by the Fund expires, the Fund will generally realize a short-term capital
gain equal to the premium received at the time the option was written. If an option purchased by
the Fund expires, the Fund realizes a capital loss equal to the premium paid, which may be
short-term or long-term depending on the Fund&#146;s holding period for the option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to the earlier of exercise or expiration, an option may be closed out by an offsetting
purchase or sale of an option of the same series (type, exchange, underlying security or index,
exercise price and expiration). There can be no assurance, however, that a closing purchase or
sale transaction can be effected when the Fund desires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will realize a short-term capital gain from a closing purchase transaction if the
cost of the closing option is less than the premium received from writing the option, or, if it is
more, the Fund will generally realize a short-term capital loss. If the premium received from a
closing sale transaction is more than the premium paid to purchase the option, the Fund will
realize a capital gain or, if it is less, the Fund will realize a capital loss, which in each case
may be long-term or short-term depending on the Fund&#146;s holding period for the option. The
principal factors affecting the market value of a put or a call option include supply and demand,
interest rates, the current market price of the underlying security or index in relation to the
exercise price of the option, the volatility of the underlying security or index, and the time
remaining until the expiration date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A put or call option purchased by the Fund is an asset of the Fund, valued initially at the
premium paid for the option. The premium received for an option written by the Fund is recorded as
a deferred credit. The value of an option purchased or written is marked-to-market daily and is
valued at the closing
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">price on the exchange on which it is traded or, if not traded on an exchange or no closing
price is available, at the mean between the last bid and asked prices.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are several risks associated with transactions in options. For example, there are
significant differences between the securities markets, the currency markets and the options
markets that could result in an imperfect correlation among these markets, causing a given
transaction not to achieve its objectives. A decision as to whether, when and how to use options
involves the exercise of skill and judgment, and even a well-conceived transaction may be
unsuccessful to some degree because of market behavior or unexpected events. The ability of the
Fund to utilize options successfully will depend on Calamos&#146; ability to predict pertinent market
investments which cannot be assured.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s ability to close out its position as a purchaser or seller of an OCC or exchange
listed put or call option is dependent, in part, upon the liquidity of the option market. Among
the possible reasons for the absence of a liquid option market on an exchange are:
(i)&nbsp;insufficient trading interest in certain options; (ii)&nbsp;restrictions on transactions imposed by
an exchange; (iii)&nbsp;trading halts, suspensions or other restrictions imposed with respect to
particular classes or series of options or underlying securities including reaching daily price
limits; (iv)&nbsp;interruption of the normal operations of the OCC or an exchange; (v)&nbsp;inadequacy of the
facilities of an exchange or OCC to handle current trading volume; or (vi)&nbsp;a decision by one or
more exchanges to discontinue the trading of options (or a particular class or series of options),
in which event the relevant market for that option on that exchange would cease to exist, although
outstanding options on that exchange would generally continue to be exercisable in accordance with
their terms. If the Fund were unable to close out an option that it has purchased on a security,
it would have to exercise the option in order to realize any profit or the option would expire and
become worthless. If the Fund were unable to close out a covered call option that it had written
on a security, it would not be able to sell the underlying security until the option expired. As
the writer of a covered call option on a security, the Fund foregoes, during the option&#146;s life, the
opportunity to profit from increases in the market value of the security covering the call option
above the sum of the premium and the exercise price of the call. As the writer of a covered call
option on a foreign currency, the Fund foregoes, during the option&#146;s life, the opportunity to
profit from currency appreciation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The hours of trading for listed options may not coincide with the hours during which the
underlying financial instruments are traded. To the extent that the option markets close before
the markets for the underlying financial instruments, significant price and rate movements can take
place in the underlying markets that cannot be reflected in the option markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the parties provide for it, there is no central clearing or guaranty function in an OTC
option. As a result, if the Counterparty (as described above under &#147;Options on Securities, Indexes
and Currencies&#148;) fails to make or take delivery of the security, currency or other instrument
underlying an OTC option it has entered into with the Fund or fails to make a cash settlement
payment due in accordance with the terms of that option, the Fund will lose any premium it paid for
the option as well as any anticipated benefit of the transaction. Accordingly, Calamos must assess
the creditworthiness of each such Counterparty or any guarantor or credit enhancement of the
Counterparty&#146;s credit to determine the likelihood that the terms of the OTC option will be
satisfied. The Fund will engage in OTC option transactions only with U.S. government securities
dealers recognized by the Federal Reserve Bank of New York as &#147;primary dealers&#148; or broker/dealers,
domestic or foreign banks or other financial institutions which have received (or the guarantors of
the obligation of which have received) a short-term credit rating of A-1 from S&#038;P or P-1 from
Moody&#146;s or an equivalent rating from any nationally recognized statistical
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">rating organization (&#147;NRSRO&#148;) or, in the case of OTC currency transactions, are determined to
be of equivalent credit quality by Calamos.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may purchase and sell call options on securities indices and currencies. All calls
sold by the Fund must be &#147;covered.&#148; Even though the Fund will receive the option premium to help
protect it against loss, a call sold by the Fund exposes the Fund during the term of the option to
possible loss of opportunity to realize appreciation in the market price of the underlying security
or instrument and may require the Fund to hold a security or instrument which it might otherwise
have sold. As described more fully in the accompanying prospectus, this results in the potential
for net asset value erosion. The Fund may purchase and sell put options on securities indices and
currencies. In selling put options, there is a risk that the Fund may be required to buy the
underlying security at a disadvantageous price above the market price.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may use interest rate futures contracts, index futures contracts and foreign currency
futures contracts. An interest rate, index or foreign currency futures contract provides for the
future sale by one party and purchase by another party of a specified quantity of a financial
instrument or the cash value of an index<SUP style="font-size: 85%; vertical-align: text-top">1</SUP> at a specified price and time. A public
market exists in futures contracts covering a number of indexes (including, but not limited to: the
Standard&nbsp;&#038; Poor&#146;s 500 Index, the Russell 2000 Index, the Value Line Composite Index, and the New
York Stock Exchange Composite Index) as well as financial instruments (including, but not limited
to: U.S. Treasury bonds, U.S. Treasury notes, Eurodollar certificates of deposit and foreign
currencies). Other index and financial instrument futures contracts are available and it is
expected that additional futures contracts will be developed and traded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may purchase and write call and put futures options. Futures options possess many of
the same characteristics as options on securities, indexes and foreign currencies (discussed
above). A futures option gives the holder the right, in return for the premium paid, to assume a
long position (call)&nbsp;or short position (put)&nbsp;in a futures contract at a specified exercise price at
any time during the period of the option. Upon exercise of a call option, the holder acquires a
long position in the futures contract and the writer is assigned the opposite short position. In
the case of a put option, the opposite is true. The Fund might, for example, use futures contracts
to hedge against or gain exposure to fluctuations in the general level of stock prices, anticipated
changes in interest rates or currency fluctuations that might adversely affect either the value of
the Fund&#146;s securities or the price of the securities that the Fund intends to purchase. Although
other techniques could be used to reduce or increase the Fund&#146;s exposure to stock price, interest
rate and currency fluctuations, the Fund may be able to achieve its desired exposure more
effectively and perhaps at a lower cost by using futures contracts and futures options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will only enter into futures contracts and futures options that are standardized and
traded on an exchange, board of trade or similar entity, or quoted on an automated quotation
system.
</DIV>

 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
success of any futures transaction depends on Calamos correctly predicting
changes in the level and direction of stock prices, interest rates, currency exchange rates and
other factors.
</DIV>


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

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

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>A futures contract on an index is an agreement pursuant
to which two parties agree to take or make delivery of an amount of cash equal
to the difference between the value of the index at the close of the last
trading day of the contract and the price at which the index contract was
originally written. Although the value of a securities index is a function of
the value of certain specified securities, no physical delivery of those
securities is made.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->S-15<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">Should those predictions be incorrect, the Fund&#146;s return might have been better had the
transaction not been attempted; however, in the absence of the ability to use futures contracts,
Calamos might have taken portfolio actions in anticipation of the same market
movements with similar investment results, but, presumably, at greater transaction costs. When a
purchase or sale of a futures contract is made by the Fund, the Fund is required to deposit with
its custodian (or broker, if legally permitted) a specified amount of cash or U.S. government
securities or other securities acceptable to the broker (&#147;initial margin&#148;). The margin required
for a futures contract is set by the exchange on which the contract is traded and may be modified
during the term of the contract, although the Fund&#146;s broker may require margin deposits in excess
of the minimum required by the exchange. The initial margin is in the nature of a performance bond
or good faith deposit on the futures contract, which is returned to the Fund upon termination of
the contract, assuming all contractual obligations have been satisfied. The Fund expects to earn
interest income on its initial margin deposits. A futures contract held by the Fund is valued
daily at the official settlement price of the exchange on which it is traded. Each day the Fund
pays or receives cash, called &#147;variation margin,&#148; equal to the daily change in value of the futures
contract. This process is known as &#147;marking-to-market.&#148; Variation margin paid or received by the
Fund does not represent a borrowing or loan by the Fund but is instead settlement between the Fund
and the broker of the amount one would owe the other if the futures contract had expired at the
close of the previous day. In computing net asset value, the Fund will mark-to-market its open
futures positions.
</DIV>
 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is also required to deposit and maintain margin with respect to put and call options
on futures contracts written by it. Such margin deposits will vary depending on the nature of the
underlying futures contract (and the related initial margin requirements), the current market value
of the option and other futures positions held by the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although some futures contracts call for making or taking delivery of the underlying
securities, usually these obligations are closed out prior to delivery by offsetting purchases or
sales of matching futures contracts (same exchange, underlying security or index, and delivery
month). If an offsetting purchase price is less than the original sale price, the Fund engaging in
the transaction realizes a capital gain, or if it is more, the Fund realizes a capital loss.
Conversely, if an offsetting sale price is more than the original purchase price, the Fund engaging
in the transaction realizes a capital gain, or if it is less, the Fund realizes a capital loss.
The transaction costs must also be included in these calculations.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are several risks associated with the use of futures contracts and futures options. A
purchase or sale of a futures contract may result in losses in excess of the amount invested in the
futures contract. In trying to increase or reduce market exposure, there can be no guarantee that
there will be a correlation between price movements in the futures contract and in the portfolio
exposure sought. In addition, there are significant differences between the securities and futures
markets that could result in an imperfect correlation between the markets, causing a given
transaction not to achieve its objectives. The degree of imperfection of correlation depends on
circumstances such as: variations in speculative market demand for futures, futures options and the
related securities, including technical influences in futures and futures options trading and
differences between the securities markets and the securities underlying the standard contracts
available for trading. For example, in the case of index futures contracts, the composition of the
index, including the issuers and the weighing of each issue, may differ from the composition of the
Fund&#146;s portfolio, and, in the case of interest rate futures contracts, the interest rate levels,
maturities and creditworthiness of the issues underlying the futures contract may differ from the
financial instruments held in the Fund&#146;s portfolio. A decision as to whether, when and how to use
futures contracts involves the exercise of skill and judgment, and even a well-conceived
transaction may be unsuccessful to some degree because of market behavior or unexpected stock price
or interest rate trends.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-16<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures exchanges may limit the amount of fluctuation permitted in certain futures contract
prices during a single trading day. The daily limit establishes the maximum amount that the price
of a futures contract may vary either up or down from the previous day&#146;s settlement price at the
end of the current trading session. Once the daily limit has been reached in a futures contract
subject to the limit, no more trades may be made on that day at a price beyond that limit. The
daily limit governs only price movements during a particular trading day and therefore does not
limit potential losses because the limit may work to prevent the liquidation of unfavorable
positions. For example, futures prices have occasionally moved to the daily limit for several
consecutive trading days with little or no trading, thereby preventing prompt liquidation of
positions and subjecting some holders of futures contracts to substantial losses. Stock index
futures contracts are not normally subject to such daily price change limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no assurance that a liquid market will exist at a time when the Fund seeks to
close out a futures or futures option position. The Fund would be exposed to possible loss on the
position during the interval of inability to close, and would continue to be required to meet
margin requirements until the position is closed. In addition, many of the contracts discussed
above are relatively new instruments without a significant trading history. As a result, there can
be no assurance that an active secondary market will develop or continue to exist.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If other options, futures contracts or futures options of types other than those described
herein are traded in the future, the Fund may also use those investment vehicles, provided the
Board of Trustees determines that their use is consistent with the Fund&#146;s investment objective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When purchasing a futures contract or writing a put option on a futures contract, the Fund
must maintain with its custodian (or broker, if legally permitted) cash or cash equivalents
(including any margin) equal to the market value of such contract. When writing a call option on a
futures contract, the Fund similarly will maintain with its custodian cash or cash equivalents
(including any margin) equal to the amount by which such option is in-the-money until the option
expires or is closed by the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may not maintain open short positions in futures contracts, call options written on
futures contracts or call options written on indexes if, in the aggregate, the market value of all
such open positions exceeds the current value of the securities in its portfolio, plus or minus
unrealized gains and losses on the open positions, adjusted for the historical relative volatility
of the relationship between the portfolio and the positions. For this purpose, to the extent the
Fund has written call options on specific securities in its portfolio, the value of those
securities will be deducted from the current market value of the securities portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has claimed an exclusion from registration as a commodity pool under the Commodity
Exchange Act (&#147;CEA&#148;) and, therefore, the Fund and its officers and trustees are not subject to the
registration requirements of the CEA. The Fund reserves the right to engage in transactions
involving futures and options thereon to the extent allowed by Commodity Futures Trading Commission
regulations in effect from time to time and in accordance with the Fund&#146;s policies.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Warrants</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in warrants. A warrant is a right to purchase common stock at a specific
price (usually at a premium above the market value of the underlying common stock at time of
issuance) during a specified period of time. A warrant may have a life ranging from less than a
year to twenty years or longer, but a warrant becomes worthless unless it is exercised or sold
before expiration. In addition, if the market price of the common stock does not exceed the
warrant&#146;s exercise price during the life of the
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">warrant, the warrant will expire worthless. Warrants have no voting rights, pay no dividends
and have no rights with respect to the assets of the corporation issuing them. The percentage
increase or decrease in the value of a warrant may be greater than the percentage increase or
decrease in the value of the underlying common stock.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the Fund does not purchase securities with a view to rapid turnover, there are no
limitations on the length of time that portfolio securities must be held. Portfolio turnover can
occur for a number of reasons, including calls for redemption, general conditions in the securities
markets, more favorable investment opportunities in other securities, or other factors relating to
the desirability of holding or changing a portfolio investment. The portfolio turnover rates may
vary greatly from year to year. A high rate of portfolio turnover in the Fund would result in
increased transaction expense. High portfolio turnover may also result in the realization of
capital gains or losses and, to the extent net short-term capital gains are realized, any
distributions resulting from such gains will be taxed at ordinary income tax rates for federal
income tax purposes.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may from time to time sell securities short to enhance income and protect against
market risk by hedging a portion of the equity risk inherent in the Fund&#146;s portfolio. A short sale
is effected when Calamos believes that the price of a security will decline, and involves the sale
of securities that the Fund does not own, in the hope of purchasing the same securities at a later
date at a lower price. There can be no assurance that the Fund will be able to close out a short
position (i.e., purchase the same securities) at any particular time or at an acceptable or
advantageous price. To make delivery to the buyer, the Fund must borrow the securities from a
broker-dealer through which the short sale is executed, and the broker-dealer delivers the
securities, on behalf of the Fund, to the buyer. The broker-dealer is entitled to retain the
proceeds from the short sale until the Fund delivers to it the securities sold short. In addition,
the Fund is required to pay to the broker-dealer the amount of any dividends or interest paid on
the securities sold short.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To secure its obligation to deliver to the broker-dealer the securities sold short, the Fund
must segregate an amount of cash or liquid securities with its custodian equal to any excess of the
current market value of the securities sold short over any cash or liquid securities deposited as
collateral with the broker in connection with the short sale (not including the proceeds of the
short sale). As a result of that requirement, the Fund will not gain any leverage merely by
selling short, except to the extent that it earns interest or other income or gains on the
segregated cash or liquid securities while also being subject to the possibility of gain or loss
from the securities sold short.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is said to have a short position in the securities sold until it delivers to the
broker-dealer the securities sold, at which time the Fund receives the proceeds of the short sale.
The Fund will normally close out a short position by purchasing on the open market and delivering
to the broker-dealer an equal amount of the securities sold short.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will realize a gain if the price of the securities declines between the date of the
short sale and the date on which the Fund purchases securities to replace the borrowed securities.
On the other hand, the Fund will incur a loss if the price of the securities increases between
those dates. The amount of any gain will be decreased and the amount of any loss increased by any
premium or interest that the Fund may be required to pay in connection with the short sale. It
should be noted that possible losses from short sales differ from those that could arise from a
cash investment in a security in that losses from a
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-18<!-- /Folio -->
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">short sale may be limitless, while the losses from a cash investment in a security cannot
exceed the total amount of the investment in the security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is also a risk that securities borrowed by the Fund and delivered to the buyer of the
securities sold short will need to be returned to the broker-dealer on short notice. If the
request for the return of securities occurs at a time when other short sellers of the security are
receiving similar requests, a &#147;short squeeze&#148; can occur, meaning that the Fund might be compelled,
at the most disadvantageous time, to replace the borrowed securities with securities purchased on
the open market, possibly at prices significantly in excess of the proceeds received earlier.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rule&nbsp;10a-1 under the Securities Exchange Act of 1934 provides that exchange-traded securities
can be sold short only at a price that is higher than the last trade or the same as the last trade
price if that price is higher than the price of the previous reported trade. The requirements of
Rule&nbsp;10a-1 can delay, or in some cases prevent, execution of short sales, resulting in opportunity
costs and increased exposure to market action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may also make short sales &#147;against the box,&#148; meaning that at all times when a short
position is open the Fund owns an equal amount of such securities or securities convertible into or
exchangeable, without payment of further consideration, for securities of the same issue as, and in
an amount equal to, the securities sold short. Short sales &#147;against the box&#148; result in a
&#147;constructive sale&#148; and require the Fund to recognize any taxable gain unless an exception to the
constructive sale rule applies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will not make a short sale of securities (other than a short sale &#147;against the box&#148;),
if more than 20% of its net assets would be deposited with brokers as collateral or allocated to
segregated accounts in connection with all outstanding short sales (other than short sales &#147;against
the box&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to enabling the Fund to hedge against market risk, short sales may afford the Fund
an opportunity to earn additional current income to the extent it is able to enter into
arrangements with broker-dealers through which the short sales are executed to receive income with
respect to the proceeds of the short sales during the period the Fund&#146;s short positions remain
open. The Fund believes that some broker-dealers may be willing to enter into such arrangements,
but there is no assurance that they will be able to enter into such arrangements to the desired
degree.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Swaps, Caps, Floors and Collars</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may enter into interest rate, currency, index, credit default and other swaps and the
purchase or sale of related caps, floors and collars. The Fund expects to enter into these
transactions primarily as a hedge to preserve a return or spread on a particular investment or
portion of its portfolio, to protect against currency fluctuations, as a duration management
technique or to protect against any increase in the price of securities the Fund anticipates
purchasing at a later date. The Fund will not sell interest rate caps or floors where it does not
own securities or other instruments providing the income stream the Fund may be obligated to pay.
Interest rate swaps involve the exchange by the Fund with another party of their respective
commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate
payments with respect to a notional amount of principal. A currency swap is an agreement to
exchange cash flows on a notional amount of two or more currencies based on the relative value
differential among them and an index swap is an agreement to swap cash flows on a notional amount
based on changes in the values of the reference indices. The purchase of a cap entitles the
purchaser to receive payments on a notional principal amount from the party selling such cap to the
extent that a specified index exceeds a predetermined interest rate or amount. The purchase of a
floor entitles the purchaser to receive payments on a notional principal amount from the party
selling such floor to the extent that a specified index falls below a predetermined interest rate
or amount. A collar is a
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">combination of a cap and a floor that preserves a certain return within a predetermined range
of interest rates or values.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will usually enter into swaps or caps on a net basis, that is, the two payment
streams will be netted out in a cash settlement on the payment date or dates specified in the
instrument, with the Fund receiving or paying, as the case may be, only the net amount of the two
payments. The Fund intends to maintain in a segregated account with its custodian cash or liquid
securities having a value at least equal to the Fund&#146;s net payment obligations under any swap
transaction, marked-to-market daily. Inasmuch as the Fund will segregate assets (or enter into
offsetting positions) to cover its obligations under swaps, Calamos and the Fund believe such
obligations do not constitute senior securities under the Investment Company Act of 1940 (the &#147;1940
Act&#148;) and, accordingly, will not treat them as being subject to its borrowing restrictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will not enter into any swap, cap, floor or collar transaction unless, at the time of
entering into such transaction, the Fund believes that the Counterparty has the financial resources
to honor its obligation under the transaction. Further, Calamos will continually monitor the
financial stability of a Counterparty to a swap or cap transaction in an effort to proactively
protect the Fund&#146;s investments. The use of swaps and caps is a highly specialized activity that
involves investment techniques and risks different from those associated with ordinary portfolio
security transactions. The Fund&#146;s use of swaps or caps could enhance or harm the overall
performance on the common shares. To the extent there is a decline in interest rates, the value of
the interest rate swap or cap could decline, and could result in a decline in the net asset value
of the common shares. In addition, if short-term interest rates are lower than the Fund&#146;s fixed
rate of payment on the interest rate swap, the swap will reduce common share net earnings. If, on
the other hand, short-term interest rates are higher than the fixed rate of payment on the interest
rate swap, the swap will enhance common share net earnings. Buying caps could enhance the
performance of the common shares by providing a maximum leverage expense. Buying caps could also
decrease the net earnings of the common shares in the event that the premium paid by the Fund to
the Counterparty exceeds the additional amount the Fund would have been required to pay had it not
entered into the cap agreement. The Fund has no current intention of selling swaps or caps.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Swaps and caps do not involve the delivery of securities or other underlying assets or
principal. Accordingly, the risk of loss with respect to swaps is limited to the net amount of
payments that the Fund is contractually obligated to make. If the Counterparty defaults, the Fund
would not be able to use the anticipated net receipts under the swap or cap to offset the payments
required of the Fund. Depending on whether the Fund would be entitled to receive net payments from
the Counterparty on the swap or cap, such a default could negatively impact the performance of the
common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, at the time the swap or cap transaction reaches its scheduled termination date,
there is a risk that the Fund would not be able to obtain a replacement transaction or that the
terms of the replacement would not be as favorable as on the expiring transaction. If this occurs,
it could have a negative impact on the performance of the Fund&#146;s common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may choose or be required to redeem some or all of the preferred shares or prepay any
borrowings. Such redemption or prepayment would likely result in the Fund seeking to terminate
early all or a portion of any swap or cap transaction. Such early termination of a swap could
result in termination payment by or to the Fund. An early termination of a cap could result in a
termination payment to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The swap market has grown substantially in recent years with a large number of banks and
investment banking firms acting both as principals and as agents utilizing standardized swap
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">documentation. As a result, the swap market has become relatively liquid, however, some swaps
may be considered illiquid. The markets for some types of caps, floors and collars are less
liquid.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in interests in entities organized and operated for the purpose of
restructuring the investment characteristics of certain other investments. This type of
restructuring involves the deposit with or purchase by an entity, such as a corporation or trust,
of specified instruments and the issuance by that entity of one or more classes of securities
(&#147;structured products&#148;) backed by, or representing interests in, the underlying instruments. The
term &#147;structured products&#148; as used herein excludes synthetic convertibles and interest rate
transactions. The cash flow on the underlying instruments may be apportioned among the newly
issued structured products to create securities with different investment characteristics such as
varying maturities, payment priorities and interest rate provisions, and the extent of the payments
made with respect to structured products is dependent on the extent of the cash flow on the
underlying instruments. The Fund may invest in structured products, which represent derived
investment positions based on relationships among different markets or asset classes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may also invest in other types of structured products, including, among others,
baskets of credit default swaps referencing a portfolio of high-yield securities. A structured
product may be considered to be leveraged to the extent its interest rate varies by a magnitude
that exceeds the magnitude of the change in the index rate. Because they are linked to their
underlying markets or securities, investments in structured products generally are subject to
greater volatility than an investment directly in the underlying market or security. Total return
on the structured product is derived by linking return to one or more characteristics of the
underlying instrument. Because certain structured products of the type in which the Fund may
invest may involve no credit enhancement, the credit risk of those structured products generally
would be equivalent to that of the underlying instruments. The Fund may invest in a class of
structured products that is either subordinated or unsubordinated to the right of payment of
another class. Subordinated structured products typically have higher yields and present greater
risks than unsubordinated structured products. Although the Fund&#146;s purchase of subordinated
structured products would have similar economic effect to that of borrowing against the underlying
securities, the purchase will not be deemed to be leverage for purposes of the Fund&#146;s limitations
related to borrowing and leverage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain issuers of structured products may be deemed to be &#147;investment companies&#148; as defined
in the 1940 Act. As a result, the Fund&#146;s investments in these structured products may be limited
by the restrictions contained in the 1940 Act. Structured products are typically sold in private
placement transactions, and there currently may be no active trading market for structured
products. As a result, certain structured products in which the Fund invests may be deemed
illiquid. The Fund currently does not intend to invest a significant amount of its assets in structured products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>&#147;When-Issued&#148; and Delayed Delivery Securities and Reverse Repurchase Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may purchase securities on a when-issued or delayed-delivery basis. Although the
payment and interest terms of these securities are established at the time the Fund enters into the
commitment, the securities may be delivered and paid for a month or more after the date of
purchase, when their value may have changed. The Fund makes such commitments only with the
intention of actually acquiring the securities, but may sell the securities before settlement date
if Calamos deems it advisable for investment reasons. The Fund may utilize spot and forward
foreign currency exchange transactions to reduce the risk inherent in fluctuations in the exchange
rate between one currency and another when securities are purchased or sold on a when-issued or
delayed-delivery basis.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-21<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may enter into reverse repurchase agreements with banks and securities dealers. A
reverse repurchase agreement is a repurchase agreement in which the Fund is the seller of, rather
than the investor in, securities and agrees to repurchase them at an agreed-upon time and price.
Use of a reverse repurchase agreement may be preferable to a regular sale and later repurchase of
securities because it avoids certain market risks and transaction costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the time when the Fund enters into a binding obligation to purchase securities on a
when-issued basis or enters into a reverse repurchase agreement, liquid securities (cash, U.S.
Government securities or other &#147;high-grade&#148; debt obligations) of the Fund having a value at least
as great as the purchase price of the securities to be purchased will be segregated on the books of
the Fund and held by the custodian throughout the period of the obligation. The use of these
investment strategies may increase net asset value fluctuation.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest up to 15% of its managed assets in securities that, at the time of
investment, are illiquid (determined using the Commission&#146;s standard applicable to investment
companies, i.e., securities that cannot be disposed of within 7&nbsp;days in the ordinary course of
business at approximately the value at which the Fund has valued the securities). The Fund may
invest without limitation in securities that have not been registered for public sale, but that are
eligible for purchase and sale by certain qualified institutional buyers. Calamos, under the
supervision of the Board of Trustees, will determine whether securities purchased under Rule&nbsp;144A
are illiquid (that is, not readily marketable) and thus subject to the Fund&#146;s limit on investing no
more than 15% of its managed assets in illiquid securities. Investments in Rule&nbsp;144A Securities
could have the effect of increasing the amount of the Fund&#146;s assets invested in illiquid securities
if qualified institutional buyers are unwilling to purchase these Rule&nbsp;144A Securities. Illiquid
securities may be difficult to dispose of at a fair price at the times when the Fund believes it is
desirable to do so. The market price of illiquid securities generally is more volatile than that
of more liquid securities, which may adversely affect the price that the Fund pays for or recovers
upon the sale of illiquid securities. Illiquid securities are also more difficult to value and
Calamos&#146; judgment may play a greater role in the valuation process. Investment of the Fund&#146;s
assets in illiquid securities may restrict the Fund&#146;s ability to take advantage of market
opportunities. The risks associated with illiquid securities may be particularly acute in
situations in which the Fund&#146;s operations require cash and could result in the Fund borrowing to
meet its short-term needs or incurring losses on the sale of illiquid securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in bonds, corporate loans, convertible securities, preferred stocks and
other securities that lack a secondary trading market or are otherwise considered illiquid.
Liquidity of a security relates to the ability to easily dispose of the security and the price to
be obtained upon disposition of the security, which may be less than would be obtained for a
comparable more liquid security. Such investments may affect the Fund&#146;s ability to realize the net
asset value in the event of a voluntary or involuntary liquidation of its assets.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may make temporary investments without limitation when Calamos determines that a
defensive position is warranted. Such investments may be in money market instruments, consisting
of obligations of, or guaranteed as to principal and interest by, the U.S. Government or its
agencies or instrumentalities; certificates of deposit, bankers&#146; acceptances and other obligations
of domestic banks having total assets of at least $500&nbsp;million and that are regulated by the U.S.
Government, its agencies or instrumentalities; commercial paper rated in the highest category by a
recognized rating agency; and repurchase agreements.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-22<!-- /Folio -->
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of its strategy for the temporary investment of cash, the Fund may enter into
&#147;repurchase agreements&#148; with member banks of the Federal Reserve System or primary dealers (as
designated by the Federal Reserve Bank of New York) in such securities. A repurchase agreement
arises when the Fund purchases a security and simultaneously agrees to resell it to the vendor at
an agreed upon future date. The resale price is greater than the purchase price, reflecting an
agreed upon market rate of return that is effective for the period of time the Fund holds the
security and that is not related to the coupon rate on the purchased security. Such agreements
generally have maturities of no more than seven days and could be used to permit the Fund to earn
interest on assets awaiting long-term investment. The Fund requires continuous maintenance by the
custodian for the Fund&#146;s account in the Federal Reserve/Treasury Book Entry System of collateral in
an amount equal to, or in excess of, the market value of the securities that are the subject of a
repurchase agreement. Repurchase agreements maturing in more than seven days are considered
illiquid securities. In the event of a bankruptcy or other default of a seller of a repurchase
agreement, the Fund could experience both delays in liquidating the underlying security and losses,
including: (a)&nbsp;possible decline in the value of the underlying security during the period while the
Fund seeks to enforce its rights thereto; (b)&nbsp;possible subnormal levels of income and lack of
access to income during this period; and (c)&nbsp;expenses of enforcing its rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Real Estate Investment Funds (&#147;REITs&#148;) and Associated Risk Factors</B>
</DIV>

 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REITs are pooled investment vehicles which invest primarily in income producing real estate or
real estate related loans or interests. REITs are generally classified as equity REITs, mortgage
REITs or a combination of equity and mortgage REITs. Equity REITs invest the majority of their
assets directly in real property and derive income primarily from the collection of rents. Equity
REITs can also realize capital gains by selling properties that have appreciated in value.
Mortgage REITs invest the majority of their assets in real estate mortgages and derive income from
the collection of interest payments. REITs are not subject to federal
income tax on income and gains distributed to shareholders
provided they comply with the applicable requirements of the Code. The Fund will indirectly bear
its proportionate share of any management and other expenses paid by REITs in which it invests in
addition to the expenses paid by the Fund. Debt securities issued by REITs are, for the most part,
general and unsecured obligations and are subject to risks associated with REITs.
</DIV>
 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investing in REITs involves certain unique risks in addition to those risks associated with
investing in the real estate industry in general. An equity REIT may be affected by changes in the
value of the underlying properties owned by the REIT. A mortgage REIT may be affected by changes
in interest rates and the ability of the issuers of its portfolio mortgages to repay their
obligations. REITs are dependent upon the skills of their managers and are not diversified. REITs
are generally dependent upon maintaining cash flows to repay borrowings and to make distributions
to shareholders and are subject to the risk of default by lessees or borrowers. REITs whose
underlying assets are concentrated in properties used by a particular industry, such as health
care, are also subject to risks associated with such industry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REITs (especially mortgage REITs) are also subject to interest rate risks. When interest
rates decline, the value of a REIT&#146;s investment in fixed rate obligations can be expected to rise.
Conversely, when interest rates rise, the value of a REIT&#146;s investment in fixed rate obligations
can be expected to decline. If the REIT invests in adjustable rate mortgage loans the interest
rates on which are reset periodically, yields on a REIT&#146;s investments in such loans will gradually
align themselves to reflect changes in market interest rates. This causes the value of such
investments to fluctuate less dramatically in response to interest rate fluctuations than would
investments in fixed rate obligations.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-23<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REITs may have limited financial resources, may trade less frequently and in a limited volume
and may be subject to more abrupt or erratic price movements than larger company securities.
Historically REITs have been more volatile in price than the larger capitalization stocks included
in Standard&nbsp;&#038; Poor&#146;s 500 Stock Index.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in the securities of other investment companies to the extent that such
investments are consistent with the Fund&#146;s investment objective and policies and permissible under
the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;). Under the 1940 Act, the Fund may
not acquire the securities of other domestic or non-U.S. investment companies if, as a result,
(i)&nbsp;more than 10% of the Fund&#146;s total assets would be invested in securities of other investment
companies, (ii)&nbsp;such purchase would result in more than 3% of the total outstanding voting
securities of any one investment company being held by the Fund, or (iii)&nbsp;more than 5% of the
Fund&#146;s total assets would be invested in any one investment company. These limitations do not
apply to the purchase of shares of money market funds or any investment company in connection with
a merger, consolidation, reorganization or acquisition of substantially all the assets of another
investment company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund, as a holder of the securities of other investment companies, will bear its pro rata
portion of the other investment companies&#146; expenses, including advisory fees. These expenses are
in addition to the direct expenses of the Fund&#146;s own operations.
</DIV>
<DIV align="left">
<A name="136"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following are the Fund&#146;s fundamental investment restrictions. These restrictions may not
be changed without the approval of the holders of a majority of the Fund&#146;s outstanding voting
securities (which for this purpose and under the 1940 Act means the lesser of (i)&nbsp;67% of the common
shares represented at a meeting at which more than 50% of the outstanding common shares are
represented or (ii)&nbsp;more than 50% of the outstanding common shares). As long as preferred shares
are outstanding, the investment restrictions cannot be changed without the approval of a majority
of the outstanding common and preferred shares, voting together as a class, and the approval of a
majority of the outstanding preferred shares, voting separately by class.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may not:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Issue senior securities, except as permitted by the 1940 Act
and the rules and interpretive positions of the Commission thereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Borrow money, except as permitted by the 1940 Act and the rules
and interpretive positions of the Commission thereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Invest in real estate, except that the Fund may invest in
securities of issuers that invest in real estate or interests therein,
securities that are secured by real estate or interests therein, securities of
real estate investment funds and mortgage-backed securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Make loans, except by the purchase of debt obligations, by
entering into repurchase agreements or through the lending of portfolio
securities and as otherwise permitted by the 1940 Act and the rules and
interpretive positions of the Commission thereunder.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-24<!-- /Folio -->
</DIV>

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

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Invest in physical commodities or contracts relating to
physical commodities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Act as an underwriter, except as it may be deemed to be an
underwriter in a sale of securities held in its portfolio.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Make any investment inconsistent with the Fund&#146;s classification
as a diversified investment company under the 1940 Act and the rules and
interpretive positions of the Commission thereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Concentrate its investments in securities of companies in any
particular industry as defined in the 1940 Act and the rules and interpretive
positions of the SEC thereunder.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other investment policies of the Fund are considered non-fundamental and may be changed by
the Board of Trustees without prior approval of the Fund&#146;s outstanding voting shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently under the 1940 Act, the Fund is not permitted to issue preferred shares unless
immediately after such issuance the net asset value of the Fund&#146;s portfolio is at least 200% of the
liquidation value of the outstanding preferred shares (i.e., such liquidation value may not exceed
50% of the value of the Fund&#146;s total assets). In addition, currently under the 1940 Act, the Fund
is not permitted to declare any cash dividend or other distribution on its common shares unless, at
the time of such declaration, the net asset value of the Fund&#146;s portfolio (determined after
deducting the amount of such dividend or distribution) is at least 200% of such liquidation value
plus any senior securities representing indebtedness. Currently under the 1940 Act, the Fund is
not permitted to incur indebtedness unless immediately after such borrowing the Fund has asset
coverage of at least 300% of the aggregate outstanding principal balance of indebtedness (i.e.,
such indebtedness may not exceed 33 1/3% of the value of the Fund&#146;s total assets). Additionally,
currently under the 1940 Act, the Fund may not declare any dividend or other distribution upon any
class of its shares, or purchase any such shares, unless the aggregate indebtedness of the Fund
has, at the time of the declaration of any such dividend or distribution or at the time of any such
purchase, an asset coverage of at least 300% after deducting the amount of such dividend,
distribution, or purchase price, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently under the 1940 Act, the Fund is not permitted to lend money or property to any
person, directly or indirectly, if such person controls or is under common control with the Fund,
except for a loan from the Fund to a company which owns all of the outstanding securities of the
Fund, except directors&#146; qualifying shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, under interpretive positions of the SEC, the Fund may not have on loan at any time
securities representing more than one third of its total assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently under the 1940 Act, a &#147;senior security&#148; does not include any promissory note or
evidence of indebtedness where such loan is for temporary purposes only and in an amount not
exceeding 5% of the value of the total assets of the issuer at the time the loan is made. A loan
is presumed to be for temporary purposes if it is repaid within sixty days and is not extended or
renewed.
</DIV>
 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, the Fund would be deemed to &#147;concentrate&#148; in a particular industry if it invested
25% or more of its total assets in that industry.
</DIV>
 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently under the 1940 Act, a &#147;diversified company&#148; means a management company which meets
the following requirements: at least 75% of the value of its total assets is represented by cash
and cash items (including receivables), government securities, securities of other investment
companies, and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-25<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>




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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">other securities for the purposes of this calculation limited in respect of any one issuer to
an amount not greater in value than 5% of the value of the total assets of such management company
and not more than 10% of the outstanding voting securities of such issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the 1940 Act, the Fund may invest up to 10% of its total assets in the aggregate in
shares of other investment companies and up to 5% of its total assets in any one investment
company, provided the investment does not represent more than 3% of the voting stock of the
acquired investment company at the time such shares are purchased. These limitations, however, do
not apply to the purchase of shares of money market funds. As a shareholder in any investment
company, the Fund will bear its ratable share of that investment company&#146;s expenses, and would
remain subject to payment of the Fund&#146;s advisory fees and other expenses with respect to assets so
invested. Holders of common shares would therefore be subject to duplicative expenses to the
extent the Fund invests in other investment companies. In addition, the securities of other
investment companies may also be leveraged and will therefore be subject to the same leverage risks
described herein and in the prospectus. As described in the prospectus in the section entitled
&#147;Risks,&#148; the net asset value and market value of leveraged shares will be more volatile and the
yield to shareholders will tend to fluctuate more than the yield generated by unleveraged shares.
</DIV>
 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, to comply with federal income tax requirements for qualification as a regulated
investment company, the Fund&#146;s investments will be limited by both an income and an asset test.
See &#147;Federal Income Tax Matters.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a non-fundamental policy, the Fund may not issue preferred shares, borrow money or issue
debt securities in an aggregate amount exceeding 38% of the Fund&#146;s total assets.
</DIV>
<DIV align="left">
<A name="137"></A>
</DIV>

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


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund&#146;s Board of Trustees provides broad oversight over the Fund&#146;s affairs. The officers
of the Fund are responsible for the Fund&#146;s operations. The Fund&#146;s Trustees and officers are listed
below, together with their age, positions held with the Fund, term of office and length of service
and principal occupations during the past five years. Asterisks indicates those Trustees who are
interested persons of the Fund within the meaning of the 1940 Act, and they are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are referred to as
Independent Trustees. Each of the Trustees serves as a Trustee of other investment companies
(17&nbsp;U. S. registered investment portfolios) for which Calamos serves as investment adviser
(collectively, the &#147;Calamos Funds&#148;). The address for all Independent and Interested Trustees and
all officers of the Fund is 2020&nbsp;Calamos Court, Naperville, Illinois 60563.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Trustees Who Are Interested Persons of the Fund:</B>
</DIV>

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

</FONT></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position(s) with</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Portfolios</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s) and Other</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name and Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Overseen</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Directorships</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John&nbsp;P. Calamos, Sr., 67*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>Trustee and
President
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman, CEO, and Co-Chief
Investment Officer, Calamos
Asset Management, Inc. (&#147;CAM&#148;),
Calamos Holdings LLC (&#147;CHLLC&#148;)
and Calamos Advisors LLC and its
predecessor (&#147;Calamos
Advisors&#148;), and President and
Co-Chief Investment Officer,
Calamos Financial Services LLC
and its predecessor (&#147;CFS&#148;);
Director, CAM</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-26<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Trustees Who Are Not Interested Persons of the Fund:</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position(s) with</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Portfolios</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s) and Other</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name and Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Overseen</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Directorships</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Joe&nbsp;F.
Hanauer, 70
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Trustee<BR>
(since inception)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Private investor; Director, MAF
Bancorp (bank holding company);
Chairman and Director, Move,
Inc. (internet provider of real
estate information and
products); Director, Combined
Investments, L.P. (investment
management)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Weston&nbsp;W. Marsh, 57
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Trustee<BR>
(since inception)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Of Counsel, Partner, Freeborn&nbsp;&#038; Peters (law firm)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">John&nbsp;E. Neal, 57
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Trustee<BR>
(since inception)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Private investor; Managing
Director, Banc One Capital
Markets, Inc. (investment
banking) (2000-2004); Director,
Focused Health Services (private
disease management company),
Equity Residential
(publicly-owned REIT), Ranir LLC
(oral products company) and CBA
Commercial (commercial mortgage
securitization company);
Partner, Private Perfumery LLC
(private label perfume company)
and Linden LLC (health care
private equity)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">William&nbsp;R. Rybak, 56
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Trustee<BR>
(since inception)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Private investor; formerly
Executive Vice President and
Chief Financial Officer, Van
Kampen Investments, Inc. and
subsidiaries (investment
manager); Director, Howe Barnes
Hoefer Arnett, Inc. (investment
services firm) and
PrivateBancorp, Inc. (bank
holding company); Trustee, JNL
Series&nbsp;Trust, JNL Investors
Series&nbsp;Trust, JNL Variable Fund
LLC and JNLNY Variable Fund&nbsp;I
LLC**</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stephen&nbsp;B. Timbers, 63
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Trustee<BR>
(since inception)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Private investor; formerly Vice
Chairman, Northern Trust
Corporation (bank holding
company); formerly President and
Chief Executive Officer,
Northern Trust Investments, N.
A. (investment manager);
formerly President, Northern
Trust Global Investments, a
division of Northern Trust
Corporation and Executive Vice
President, The Northern Trust
Corporation; formerly, Director,
Northern Trust Securities, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">David&nbsp;D. Tripple, 63
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Trustee<BR>
(since 2006)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Private investor; Trustee,
Century Shares Trust and Century
Small Cap Select Fund***</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


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

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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp; Calamos is an &#147;interested person&#148; of the Trust as defined in the 1940 Act because he is
an affiliate of Calamos Advisors and Calamos Financial Services LLC.</TD>
</TR>

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Overseeing 94 portfolios in fund complex.<BR></TD>
</TR>
<TR><TD><FONT size="1">

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

<TR valign="top">
    <TD nowrap align="left">***</TD>
    <TD>&nbsp;</TD>
    <TD>Overseeing two portfolios in fund complex.</TD>
</TR>

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

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

    <TD colspan="2">The address of the Trustees is 2020&nbsp;Calamos Court, Naperville, Illinois 60563.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->S-27<!-- /Folio -->
</DIV>

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


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Officers</I>. The preceding table gives information about Mr.&nbsp;John Calamos, who is president of
the Fund. The following table sets forth each other officer&#146;s name and age as of the date of this
statement of additional information, position with the Fund and date first appointed to that
position, and principal occupation(s) during the past five years. Each officer serves until his or
her successor is chosen and qualified or until his or her resignation or removal by the board of
trustees.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="24%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s) and</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name and Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Position(s) with Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Other&nbsp;Directorships</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->


<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Nimish&nbsp;S. Bhatt, 44
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Vice President and Chief Financial Officer<BR>
(since 2008)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice President and
Director of Operations, CAM,
CHLLC, Calamos Advisors and
CFS (since 2004); Treasurer of the Fund (2005-2008); Senior
Vice President, Alternative
Investments and Tax
Services, The BISYS Group,
Inc., prior thereto</TD>
</TR>


<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Nick&nbsp;P. Calamos, 46
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Vice President (since inception)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Executive Vice
President and Co-Chief
Investment Officer, CAM,
CHLLC, Calamos Advisors and
CFS</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Patrick&nbsp;H.
Dudasik, 52
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Vice President (since inception)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President,
Chief Financial Officer,
Chief Operating Officer and
Treasurer, CAM and CHLLC
(since 2004), Calamos
Advisors and CFS (2001-2005)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cheryl
L. Hampton, 38
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Treasurer (since 2007)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Calamos Advisors (since March 2007); Tax Director, PricewaterhouseCoopers LLP
(1999 &#150; 2007)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stathy
Darcy, 41
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Secretary (since 2007)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Associate Counsel,
Calamos Advisors (since 2006); prior
thereto, Partner, Chapman and Cutler LLP
(law firm)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mark&nbsp;J. Mickey, 56
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Chief Compliance Officer<BR>
(since inception)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Compliance Officer,
Calamos Funds (since 2005)
and Chief Compliance
Officer, Calamos Advisors
(2005-2006); Director of
Risk Assessment and Internal
Audit, Calamos Advisors
(2003-2005); President, Mark
Mickey Consulting
(2002-2003)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

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

</FONT></DIV>

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

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97"></TD>
</TR>

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

    <TD colspan="2">The address of each officer is 2020 Calamos Court, Naperville, Illinois 60563.</TD>
</TR>

</TABLE>

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Board of Trustees consists of seven members. In accordance with the Fund&#146;s
Agreement and Declaration of Trust, the Board of Trustees is divided into three classes of
approximately equal size. The terms of the trustees of the different classes are staggered. The
terms of John P. Calamos, Weston W. Marsh and William R. Rybak will expire at the annual meeting of
shareholders in 2008. The terms of Joe F. Hanauer, John E. Neal and David D. Tripple will expire
at the annual meeting of shareholders in 2009. The term of Stephen B. Timbers will expire at the
annual meeting of shareholders in 2010. Messrs.&nbsp;Rybak and Timbers are the Trustees who represent
the holders of preferred shares. Such classification of the Trustees may prevent the replacement
of a majority of the Trustees for up to a two year period. Each of the Fund&#146;s officers serves
until his or her successor is chosen and qualified or until his or her resignation or removal by
the Board of Trustees.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Committees of the Board of Trustees</I>. The Fund&#146;s Board of Trustees currently has four standing
committees:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Executive Committee</U>. Messrs.&nbsp;John Calamos and Stephen&nbsp;B. Timbers are members of the
Executive Committee, which has authority during intervals between meetings of the Board of Trustees
to exercise the powers of the Board, with certain exceptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Audit Committee</U>. Stephen&nbsp;B. Timbers, Joe&nbsp;F. Hanauer, John&nbsp;E. Neal, William&nbsp;R. Rybak,
Weston&nbsp;W. Marsh and David&nbsp;D. Tripple, each a non-interested Trustee, serve on the Audit Committee.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-28<!-- /Folio -->
</DIV>

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


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Audit Committee approves the selection of the independent auditors to the Trustees,
approves services to be rendered by the auditors, monitors the auditors&#146; performance, reviews the
results of the Fund&#146;s audit, determines whether to recommend to the Board that the Fund&#146;s audited
financial statements be included in the Fund&#146;s annual report and responds to other matters deemed
appropriate by the Board of Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governance Committee</U>. Stephen&nbsp;B. Timbers, Joe&nbsp;F. Hanauer, John&nbsp;E. Neal, William&nbsp;R.
Rybak, Weston&nbsp;W. Marsh and David&nbsp;D. Tripple, each a non-interested Trustee, serve on the Governance
Committee. The Governance Committee oversees the independence and effective functioning of the
Board of Trustees and endeavors to be informed about good practices for fund boards. The members
of the Governance Committee make recommendations to the Board of Trustees regarding candidates for
election as non interested Trustees. The Governance Committee will consider shareholder recommendations regarding potential
candidates for nomination as Trustees properly submitted to the Governance Committee for its
consideration. A Fund shareholder who wishes to nominate a candidate to the Fund&#146;s Board of
Trustees must submit any such recommendation in writing via regular mail to the attention of the
Fund&#146;s Secretary, at the address of the Fund&#146;s principal executive offices. The shareholder
recommendation must include:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number and class of all Fund shares owned beneficially and of record by the
nominating shareholder at the time the recommendation is submitted and the dates on which such shares
were acquired, specifying the number of shares owned beneficially;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a full listing of the proposed candidate&#146;s education, experience (including knowledge of the investment company industry, experience as a director or senior officer of public or
private
companies, and directorships on other boards of other registered investment companies),
current employment, date of birth, business and residence address, and the names and
addresses of at least three professional references;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>information as to whether the candidate is, has been or may be an &#147;interested
person&#148; (as such term is defined in the 1940 Act) of the Fund, Calamos or any of its affiliates, and, if believed
not to be or have been an &#147;interested person,&#148; information regarding the candidate that will be
sufficient for the Committee to make such determination;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the written and signed consent of the candidate to be named as a nominee and to serve as a Trustee of the Fund, if elected;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a description of all arrangements or understandings between the nominating shareholder, the candidate and/or any other person or persons (including their names) pursuant to which
the shareholder recommendation is being made, and if none, so specify;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the class or series and number of all shares of the Fund owned of record or
beneficially by the candidate, as reported by the candidate; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such other information that would be helpful to the Governance Committee in evaluating the candidate.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Governance Committee may require the nominating shareholder to furnish other information
it may reasonably require or deem necessary to verify any information furnished pursuant to the
procedures delineated above or to determine the qualifications and eligibility of the candidate
proposed by the nominating shareholder to serve as a Trustee. If the nominating shareholder fails
to provide such additional information in writing within seven days of receipt of a written request
from the Governance Committee, the recommendation of such candidate as a nominee will be deemed not
properly submitted for consideration, and the Governance Committee is not required to consider such
candidate. During periods when the Governance Committee is not actively recruiting new Trustees,
shareholder recommendations will be kept on file until active recruitment is under way. After
consideration of a shareholder recommendation, the Governance Committee may dispose of the
shareholder recommendation.
</DIV>



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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Dividend Committee</U>. Mr.&nbsp;Calamos serves as the sole member of the dividend committee.
The dividend committee is authorized to declare distributions on the Fund&#146;s shares including, but
not limited to, regular dividends, special dividends and short- and long-term capital gains
distributions.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Valuation Committee</U>. David&nbsp;D. Tripple, Stephen&nbsp;B. Timbers and Weston&nbsp;W. Marsh, each a
non-interested Trustee, serve on the Valuation Committee. The Valuation Committee oversees the
implementation of the valuation procedures adopted by the Board of Trustees. The members of the
Valuation Committee make recommendations to the Board of Trustees regarding valuation matters
relating to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the above committees, there is a Board of Trustees directed pricing committee
comprised of officers of the Fund and employees of Calamos.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table identifies the number of meetings the Board of Trustees and each committee held during the fiscal year ended October 31, 2007.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="center"><B>Number of Meetings During Fiscal</b></TD>
</TR>


<TR style="font-size: 8pt">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="center"><b>Year Ended October 31, 2007</b></TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
<TD>Board of Trustees</TD>
<TD>&nbsp;</TD>
<TD align="center">6</TD>

</TR>
<TR valign="bottom">
<TD>Executive Committee</TD>
<TD>&nbsp;</TD>
<TD align="center">0</TD>
</tr>
<TR valign="bottom" style="background: #cceeff">
<TD>Audit Committee</TD>
<TD>&nbsp;</TD>
<TD align="center">5</TD>
</tr>

<TR valign="bottom">
<TD>Governance Committee</TD>
<TD>&nbsp;</TD>
<TD align="center">2</TD>
</tr>

<TR valign="bottom" style="background: #cceeff">
<TD>Dividend Committee</TD>
<TD>&nbsp;</TD>
<TD align="center">0</TD>
</tr>


<TR>
<TD>Valuation Committee</TD>
<TD>&nbsp;</TD>
<TD align="center">3</TD>
</tr>



<tr style="font-size: 0pt">
<td>                                                        </td>
</tr>




</TABLE>
</DIV>


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

</FONT></DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Agreement and Declaration of Trust provides that the Fund will indemnify the
Trustees and officers against liabilities and expenses incurred in connection with any claim in
which they may be involved because of their offices with the Fund, unless it is determined in the
manner specified in the Agreement and Declaration of Trust that they have not acted in good faith
in the reasonable belief that their actions were in the best interests of the Fund or that such
indemnification would relieve any officer or Trustee of any liability to the Fund or its
shareholders by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of
his or her duties.
</DIV>
 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compensation of Officers and Trustees</I>. The Fund pays no salaries or compensation to any of
its officers or to the Trustees who are affiliated persons of Calamos. The following table sets
forth certain information with respect to the compensation paid to each Trustee by the Fund and the
Calamos Fund Complex as a group. Compensation from the Fund is for the current calendar year and
is estimated. Total compensation from the Calamos Fund Complex as a group is for the &#091;calendar
year ended December&nbsp;31, 2007&#093;.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="59%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Estimated Aggregate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total Compensation From</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name of Trustee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Compensation From Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Calamos Fund Complex</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP><B>*</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John&nbsp;P. Calamos Sr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joe&nbsp;F. Hanauer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,284&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">131,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weston&nbsp;W. Marsh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,552&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">146,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John&nbsp;E. Neal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,695&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">154,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William&nbsp;R. Rybak</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,517&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">144,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steve&nbsp;B. Timbers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,265&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">186,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">David&nbsp;D. Tripple</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,731&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">156,000</TD>
    <TD>&nbsp;</TD>
</TR><tr style="font-size: 6pt">
<td>                                                        </td></tr>

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



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

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

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes fees that may have been deferred during the year pursuant to a deferred
compensation plan with Calamos Investment Trust. Deferred amounts are treated as though such
amounts have been invested and reinvested in shares of one or more of the portfolios of the
Calamos Investment Trust selected by the Trustee.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->S-29<!-- /Folio -->
</DIV>

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


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





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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>The Calamos Fund Complex consists of seven investment companies and each applicable series
thereunder including the Fund, Calamos Investment Trust, Calamos Advisors Trust, Calamos
Convertible Opportunities and Income Fund, Calamos Convertible and High Income Fund, Calamos
Strategic Total Return Fund and Calamos Global Dynamic Income Fund.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has adopted a deferred compensation plan (the &#147;Plan&#148;). Under the Plan, a Trustee who
is not an &#147;interested person&#148; of Calamos and who has elected to participate in the Plan
(&#147;participating Trustees&#148;) may defer receipt of all or a portion of his compensation from Fund in
order to defer payment of income taxes or for other reasons. The deferred compensation payable to
the participating Trustee is credited to Trustee&#146;s deferral account as of the business day such
compensation would have been paid to the Trustee. The value of a Trustee&#146;s deferred compensation
account at any time is equal to what would be the value if the amounts credited to the account had
instead been invested in shares of one or more of the portfolios of Calamos Investment Trust as
designated by the Trustee. Thus, the value of the account increases with contributions to the
account or with increases in the value of the measuring shares, and the value of the account
decreases with withdrawals from the account or with declines in the value of the measuring shares.
If a participating trustee retires, the Trustee may elect to receive payments under the plan in a
lump sum or in equal installments over a period of five years. If a participating Trustee dies,
any amount payable under the Plan will be paid to the Trustee&#146;s beneficiaries.
</DIV>

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ownership of Shares of the Fund and Other Calamos Funds</I>. The following table indicates the
value of shares that each Trustee beneficially owns in the Fund and the Calamos Fund Complex in the
aggregate. The value of shares of the Calamos Funds is determined on the basis of the net asset
value of the class of shares held as of December&nbsp;31, 2007. The value of the shares held, are
stated in ranges in accordance with the requirements of the Commission. The table reflects the
Trustee&#146;s beneficial ownership of shares of the Calamos Fund Complex. Beneficial ownership is
determined in accordance with the rules of the SEC.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

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

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>

    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>

    <TD width="5%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aggregate Dollar Range of Equity</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities in all Registered</B></TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Dollar Range of Equity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Investment Companies in the</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name of Trustee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Securities&nbsp;in the Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Calamos Funds</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interested Trustees:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John&nbsp;P. Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-Interested Trustees:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joe&nbsp;F. Hanauer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">None</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weston&nbsp;W. Marsh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">None</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John&nbsp;E. Neal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William&nbsp;R. Rybak</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">None</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stephen&nbsp;B. Timbers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">David&nbsp;D. Tripple</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">$50,001 &#150; $100,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Over $100,000</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Code of Ethics</I>. The Fund and Calamos have adopted a code of ethics under Rule&nbsp;17j-1 of the
1940 Act which is applicable to officers, directors/Trustees and designated employees of Calamos
and CFS. Employees of Calamos and CFS are permitted to make personal securities transactions,
including transactions in securities that the Fund may purchase, sell or hold, subject to
requirements and restrictions set forth in the code of ethics of Calamos and CFS. The code of
ethics contains provisions and requirements designed to identify and address certain conflicts of
interest between personal investment activities of Calamos and CFS employees and the interests of
investment advisory clients such as the Fund. Among other things, the code of ethics prohibits
certain types of transactions absent prior approval, imposes time periods during which personal
transactions may not be made in certain securities, and requires the submission of duplicate broker
confirmations and statements and quarterly reporting of
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">securities transactions. Additional restrictions apply to portfolio managers, traders,
research analysts and others involved in the investment advisory process. Exceptions to these and
other provisions of the code of ethics may be granted in particular circumstances after review by
appropriate personnel. Text only versions of the code of ethics can be viewed online or downloaded
from the EDGAR Database on the SEC&#146;s internet web site at <U>www.sec.gov</U>. You may review and
copy the code of ethics by visiting the SEC&#146;s Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be
obtained by calling the SEC at 202-551-8090. In addition, copies of the code of ethics may be obtained, after mailing the
appropriate duplicating fee, by writing to the SEC&#146;s Public Reference Section, Washington,
DC 20549-0102 or by e-mail request at <U>publicinfo@sec.gov.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Proxy Voting Procedures</I>. The Fund has delegated proxy voting responsibilities to Calamos,
subject to the Board of Trustees&#146; general oversight. The Fund expects Calamos to vote proxies
related to the Fund&#146;s portfolio securities for which the Fund has voting authority consistent with
the Fund&#146;s best economic interests. Calamos has adopted its own Proxy Voting Policies and
Procedures (&#147;Policies&#148;). The Policies address, among other things, conflicts of interest that may
arise between the interests of the Fund, and the interests of the adviser and its affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the Policies used by Calamos in voting proxies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To assist it in voting proxies, Calamos has established a Committee comprised of members of
its Portfolio Management and Research Departments. The Committee and/or its members will vote
proxies using the following guidelines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, if Calamos believes that a company&#146;s management and board have interests
sufficiently aligned with the Fund&#146;s interest, Calamos will vote in favor of proposals recommended
by a company&#146;s board. More specifically, Calamos seeks to ensure that the board of directors of a
company is sufficiently aligned with security holders&#146; interests and provides proper oversight of
the company&#146;s management. In many cases this may be best accomplished by having a majority of
independent board members. Although Calamos will examine board member elections on a case-by-case
basis, it will generally vote for the election of directors that would result in a board comprised
of a majority of independent directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because of the enormous variety and complexity of transactions that are presented to
shareholders, such as mergers, acquisitions, reincorporations, adoptions of anti-takeover measures
(including adoption of a shareholder rights plan, requiring supermajority voting on particular
issues, adoption of fair price provisions, issuance of blank check preferred stocks and the
creation of a separate class of stock with unequal voting rights), changes to capital structures
(including authorizing additional shares, repurchasing stock or approving a stock split), executive
compensation and option plans, that occur in a variety of industries, companies and market cycles,
it is extremely difficult to foresee exactly what would be in the best interests of the Fund in all
circumstances. Moreover, voting on such proposals involves considerations unique to each
transaction. Accordingly, Calamos will vote on a case-by-case basis on proposals presenting these
transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, Calamos has established procedures to help resolve conflicts of interests that might
arise when voting proxies for the Fund. These procedures provide that the Committee, along with
Calamos&#146; Legal and Compliance Departments, will examine conflicts of interests with the Fund of
which Calamos is aware and seek to resolve such conflicts in the best interests of the Fund,
irrespective of any such conflict. If a member of the Committee has a personal conflict of
interest, that member will refrain from voting and the remainder of the Committee will determine
how to vote the proxy solely on the investment
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">merits of any proposal. The Committee will then memorialize the conflict and the procedures
used to address the conflict.
</DIV>

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is required to file with the SEC its complete proxy voting record for the
twelve-month period ending June&nbsp;30, by no later than August&nbsp;31 of each year. The Fund&#146;s proxy
voting record for the most recent twelve-month period ending June&nbsp;30 is available by August&nbsp;31 of
each year (1)&nbsp;on the SEC&#146;s website at www.sec.gov and (2)&nbsp;without charge, upon request, by calling
800-582-6959.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may obtain a copy a Calamos&#146; Policies by calling 800.582.6959, by visiting the Fund&#146;s
website at www.calamos.com, by writing Calamos at: Calamos Investments, Attn: Client Services,
2020&nbsp;Calamos Court, Naperville, IL 60563, and on the SEC&#146;s website at <U>www.sec.gov</U>.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the overall authority of the board of trustees, Calamos provides the Fund with
investment research, advice and supervision and furnishes continuously an investment program for
the Fund. In addition, Calamos furnishes for use of the Fund such office space and facilities as
the Fund may require for its reasonable needs and supervises the business and affairs of the Fund
and provides the following other services on behalf of the Fund and not provided by persons not a
party to the investment management agreement: (i)&nbsp;preparing or assisting in the preparation of
reports to and meeting materials for the Trustees; (ii)&nbsp;supervising, negotiating contractual
arrangements with, to the extent appropriate, and monitoring the performance of, accounting agents,
custodians, depositories, transfer agents and pricing agents, accountants, attorneys, printers,
underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be
necessary or desirable to Fund operations; (iii)&nbsp;assisting in the preparation and making of filings
with the SEC and other regulatory and self-regulatory organizations, including, but not
limited to, preliminary and definitive proxy materials, amendments to the Fund&#146;s registration
statement on Form N-2 and semi-annual reports on Form N-SAR and Form N-CSR; (iv)&nbsp;overseeing the
tabulation of proxies by the Fund&#146;s transfer agent; (v)&nbsp;assisting in the preparation and filing of
the Fund&#146;s federal, state and local tax returns; (vi)&nbsp;assisting in the preparation and filing of
the Fund&#146;s federal excise tax return pursuant to Section&nbsp;4982 of the Code; (vii)&nbsp;providing
assistance with investor and public relations matters; (viii)&nbsp;monitoring the valuation of portfolio
securities and the calculation of net asset value; (ix)&nbsp;monitoring the registration of shares of
beneficial interest of the Fund under applicable federal and state securities laws; (x)&nbsp;maintaining
or causing to be maintained for the Fund all books, records and reports and any other information
required under the 1940 Act, to the extent that such books, records and reports and other
information are not maintained by the Fund&#146;s custodian or other agents of the Fund; (xi)&nbsp;assisting
in establishing the accounting policies of the Fund; (xii)&nbsp;assisting in the resolution of
accounting issues that may arise with respect to the Fund&#146;s operations and consulting with the
Fund&#146;s independent accountants, legal counsel and the Fund&#146;s other agents as necessary in
connection therewith; (xiii)&nbsp;reviewing the Fund&#146;s bills; (xiv)&nbsp;assisting the Fund in determining
the amount of dividends and distributions available to be paid by the Fund to its shareholders,
preparing and arranging for the printing of dividend notices to shareholders, and providing the
transfer and dividend paying agent, the custodian, and the accounting agent with such information
as is required for such parties to effect the payment of dividends and distributions; and
(xv)&nbsp;otherwise assisting the Fund as it may reasonably request in the conduct of the Fund&#146;s
business, subject to the direction and control of the Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the investment management agreement, the Fund pays to Calamos a fee based on the average
weekly managed assets that is computed weekly and paid on a monthly basis. The fee paid by the
Fund is at the annual rate of 1.00% of managed assets. Because the management fees paid to
Calamos is based upon a percentage of the Fund&#146;s managed assets, fees paid to Calamos are higher
when the Fund is leveraged; thus, Calamos will have an incentive to use leverage. Calamos intends
to use leverage only when it believes it will serve the best interests of the Fund&#146;s shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of its investment management agreement with the Fund, except for the services
and facilities provided by Calamos as set forth therein, the Fund shall assume and pay all expenses
for all other Fund operations and activities and shall reimburse Calamos for any such expenses
incurred by
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-32<!-- /Folio -->
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos. The expenses borne by the Fund shall include, without limitation: (a)&nbsp;organization
expenses of the Fund (including out-of-pocket expenses, but not including Calamos&#146; overhead or
employee costs); (b)&nbsp;fees payable to Calamos; (c)&nbsp;legal expenses; (d)&nbsp;auditing and accounting
expenses; (e)&nbsp;maintenance of books and records that are required to be maintained by the Fund&#146;s
custodian or other agents of the Fund; (f)&nbsp;telephone, telex, facsimile, postage and other
communications expenses; (g)&nbsp;taxes and governmental fees; (h)&nbsp;fees, dues and expenses incurred by
the Fund in connection with membership in investment company trade organizations and the expense of
attendance at professional meetings of such organizations; (i)&nbsp;fees and expenses of accounting
agents, custodians, subcustodians, transfer agents, dividend disbursing agents and registrars;
(j)&nbsp;payment for portfolio pricing or valuation services to pricing agents, accountants, bankers and
other specialists, if any; (k)&nbsp;expenses of preparing share certificates; (l)&nbsp;expenses in connection
with the issuance, offering, distribution, sale, redemption or repurchase of securities issued by
the Fund; (m)&nbsp;expenses relating to investor and public relations provided by parties other than
Calamos; (n)&nbsp;expenses and fees of registering or qualifying shares of beneficial interest of the
Fund for sale; (o)&nbsp;interest charges, bond premiums and other insurance expenses; (p)&nbsp;freight,
insurance and other charges in connection with the shipment of the Fund&#146;s portfolio securities;
(q)&nbsp;the compensation and all expenses (specifically including travel expenses relating to Fund
business)&nbsp;of Trustees, officers and employees of the Fund who are not affiliated persons of
Calamos; (r)&nbsp;brokerage commissions or other costs of acquiring or disposing of any portfolio
securities of the Fund; (s)&nbsp;expenses of printing and distributing reports, notices and dividends to
shareholders; (t)&nbsp;expenses of preparing and setting in type, printing and mailing prospectuses and
statements of additional information of the Fund and supplements thereto; (u)&nbsp;costs of stationery;
(v)&nbsp;any litigation expenses; (w)&nbsp;indemnification of Trustees and officers of the Fund; (x)&nbsp;costs of
shareholders&#146; and other meetings; (y)&nbsp;interest on borrowed money, if any; and (z)&nbsp;the fees and
other expenses of listing the Fund&#146;s shares on the New York Stock Exchange or any other national
stock exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the fiscal years ended October 31,
2005, October 31, 2006, October 31, 2007, the Fund paid $15,685, $1,715,361,
and $2,016,530, respectively, in advisory  fees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
investment management agreement had an initial term ending August&nbsp;1, 2006 and continues in
effect from year to year thereafter so long as such continuation is approved at least annually by
(1)&nbsp;the board of trustees or the vote of a majority of the outstanding voting securities (as
defined in the 1940 Act) of the Fund, and (2)&nbsp;a majority of the trustees who are not interested
persons of any party to the investment management agreement, cast in person at a meeting called for
the purpose of voting on such approval. The investment management agreement may be terminated at
any time, without penalty, by either the Fund or Calamos upon 60&nbsp;days&#146; written notice, and is
automatically terminated in the event of its assignment as defined in the 1940 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A discussion regarding the basis for the Board of Trustees&#146; decision to approve the renewal of
the Investment Management Agreement is available in the Fund&#146;s Annual Report to shareholders for
the fiscal year ended October&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The use of the name &#147;Calamos&#148; in the name of the Fund is pursuant to licenses granted by
Calamos, and the Fund has agreed to change the names to remove those references if Calamos ceases
to act as investment adviser to the Fund.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos employs a team approach to portfolio management, with teams comprised generally of the
Co-Chief Investment Officers (the &#147;Co-CIOs&#148;), senior strategy analysts, intermediate analysts and
junior analysts. The Co-CIOs, directors and senior strategy analysts are supported by and
lead a team of investment professionals whose valuable contributions create a synergy of expertise
that can be
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">applied across many different investment strategies. John&nbsp;P. Calamos, Sr., Co-CIO of Calamos,
generally focuses on the top-down approach of diversification by industry sector and macro-level
investment themes, Nick&nbsp;P. Calamos, Co-CIO of Calamos, also focuses on the top-down approach of
diversification by industry sector and macro-level investment themes and, in addition, focuses on
the bottom-up approach and corresponding research and analysis. John&nbsp;P. Calamos,&nbsp;Jr., John
Hillenbrand, Steve&nbsp;Klouda, Jeff Scudieri and Jon Vacko are each senior strategy analysts, and
Matthew Toms is Director of Fixed Income. The Co-CIOs, directors and senior strategy analysts are
referred to collectively as &#147;Team Leaders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Team Leaders also have responsibility for the day-to-day management of accounts other than
the Fund. Information regarding these other accounts is set forth below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Team Leaders are responsible for managing the Fund and other accounts, including
separate accounts and unregistered funds.
</DIV>
<DIV align="center">





<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<tr><td>                                                       </td></tr>
<TR style="font-size: 8pt" valign="bottom">

<TD nowrap align="center" colspan="25" style="border-bottom: 1px solid #000000"><B>Number of Other Accounts Managed and Assets by Account Type as of October&nbsp;31, 2007*</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Registered Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Other Pooled Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Portfolio Manager</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Companies</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Vehicles</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Other Accounts</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Assets</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John P. Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">35,149,492,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">297,610,723</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">11,308,779,683</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nick P. Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">35,149,492,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">297,610,723</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">11,308,779,683</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John P. Calamos, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">34,678,281,091</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">297,610,723</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">11,308,779,683</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John Hillenbrand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">33,129,883,529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">242,155,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">11,308,779,683</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steve Klouda</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">33,129,883,529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">242,155,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">11,308,779,683</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jeff Scudieri</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">33,129,883,529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">242,155,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">11,308,779,683</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jon Vacko</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">33,129,883,529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">242,155,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">11,308,779,683</TD>
    <TD>&nbsp;</TD>
</TR>

<tr><td>                                                        </td></tr>
<tr><td>                                                       </td></tr>

<tr><td>&nbsp;</td></tr>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="25" style="border-bottom: 1px solid #000000"><B>Number of Accounts Managed and Assets for Which Advisory Fee is Performance Based as of October&nbsp;31, 2007*</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Registered Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Other Pooled Investment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Portfolio Manager</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Companies</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Vehicles</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Other Accounts</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Assets</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Accounts</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Assets</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John P. Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">565,845,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">148,730,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nick P. Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">565,845,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">148,730,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John P. Calamos, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">565,845,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">148,730,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John Hillenbrand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">565,845,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">93,275,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steve Klouda</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">565,845,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">93,275,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jeff Scudieri</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">565,845,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"></TD>
    <TD align="right">93,275,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jon Vacko</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">565,845,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">93,275,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<tr><td>                                                        </td></tr>
<!-- End Table Body -->
</TABLE>
</DIV>


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

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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Each Team Leader may invest for his own benefit in securities held in brokerage and mutual
fund accounts. The information shown in the table does not include information about those
accounts where the Team Leader or members of his family have beneficial or pecuniary interest
because no advisory relationship exists with Calamos or any of its affiliates.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Matthew Toms joined Calamos in March&nbsp;2007 and information regarding the number of accounts
managed by Mr.&nbsp;Toms is not yet available.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than potential conflicts between investment strategies, the side-by-side management of
both the Fund and other accounts may raise potential conflicts of interest due to the interest held
by Calamos in an account and certain trading practices used by the portfolio managers (e.g.,
cross-trades between the Fund and another account and allocation aggregated trades). Calamos has
developed policies and procedures reasonably designed to mitigate those conflicts. For example,
Calamos will only place cross-trades in securities held by the Fund in accordance with the rules
promulgated under the 1940 Act and has adopted policies designed to ensure the fair allocation of
securities purchased on an aggregated basis.
</DIV>

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

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The allocation methodology employed by Calamos varies depending on the type of securities
sought to be bought or sold and the type of client or group of clients. Generally, however, orders
are placed first for those clients that have given Calamos brokerage discretion (including the
ability to step out a portion of trades), and then to clients that have directed Calamos to execute
trades through a specific broker. However, if the directed broker allows Calamos to execute with
other brokerage firms, which then book the transaction directly with the directed broker, the order
will be placed as if the client had given Calamos full brokerage discretion. Calamos and its
affiliates frequently use a &#147;rotational&#148; method of placing and aggregating client orders and will
build and fill a position for a designated client or group of clients before placing orders for
other clients. A client account may not receive an allocation of an order
if: (a)&nbsp;the client
would receive an unmarketable amount of securities based on account size; (b)&nbsp;the client has
precluded Calamos from using a particular broker; (c)&nbsp;the cash balance in the client account will
be insufficient to pay for the securities allocated to it at settlement; (d)&nbsp;current portfolio
attributes make an allocation inappropriate; and (e)&nbsp;account specific guidelines, objectives and
other account specific factors make an allocation inappropriate. Allocation methodology may be
modified when strict adherence to the usual allocation is impractical or leads to inefficient or
undesirable results. Calamos head trader must approve each instance that the usual allocation
methodology is not followed and provide a reasonable basis for such instances and all modifications
must be reported in writing to the Director of Compliance on a monthly basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Team Leaders advise certain accounts under a performance fee arrangement. A performance
fee arrangement may create an incentive for a Team Leader to make investments that are riskier or
more speculative than would be the case in the absence of performance fees. A performance fee
arrangement may result in increased compensation to the Team Leaders from such accounts due to
under-realized appreciation as well as realized gains in the client&#146;s account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of October&nbsp;31, 2007, Team Leaders John&nbsp;P. Calamos, Sr., Nick&nbsp;P. Calamos and John&nbsp;P.
Calamos,&nbsp;Jr. receive all of their compensation from Calamos Asset Management, Inc. Each has
entered into employment agreements that provide for compensation in the form of an annual base
salary and a discretionary target bonus, each payable in cash. Their discretionary target bonus is
set at a percentage of the respective base salary, ranging from 300% to 600%, with a maximum annual
bonus opportunity of 150% of the target bonus. For example, the discretionary target bonus for a Team Leader who earns $100,000 would range from $300,000 to $600,000 and the Team Leader&#146;s maximum annual bonus opportunity would range from $450,000 to $900,000. Also, due to the ownership and executive management
positions with Calamos and its parent company, additional multiple corporate objectives are
utilized to determine the discretionary target bonus for John&nbsp;P. Calamos, Sr., Nick&nbsp;P. Calamos and
John&nbsp;P. Calamos,&nbsp;Jr. For 2007, the additional corporate objectives were: marketing effectiveness,
as measured by redemption rate compared to an absolute target; advisory fee revenues, measured by
growth in revenues; operating efficiencies, as measured by operating margin percentage compared to
a ranking of the top operating margins of companies in the industry; and stock price performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of October&nbsp;31, 2007, John Hillenbrand, Steve Klouda, Jeff Scudieri and Jon Vacko, and, as
of March&nbsp;2007, Matthew Toms, receive all of their compensation from Calamos. They each receive
compensation in the form of an annual base salary and a discretionary target bonus, each payable in
cash. Their discretionary target bonus is set at a percentage of the respective base salary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amounts paid to all Team Leaders and the criteria utilized to determine the amounts are
benchmarked against industry specific data provided by third party analytical agencies. The Team
Leaders&#146; compensation structure does not differentiate between the funds and other accounts managed
by the Team Leaders, and is determined on an overall basis, taking into consideration the
performance of the various strategies managed by the Team Leaders. Portfolio performance, as
measured by risk-adjusted portfolio performance, is utilized to determine the discretionary target
bonus, as well as overall performance of Calamos.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->S-35<!-- /Folio -->
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Team Leaders are eligible to receive annual equity awards under a long-term incentive
compensation program. With respect to John&nbsp;P. Calamos, Sr., Nick&nbsp;P. Calamos and John&nbsp;P.
Calamos,&nbsp;Jr., the target annual equity awards are set at a percentage of base salary. With respect
to John Hillenbrand, Steve Klouda, Jeff Scudieri, Matthew Toms and Jon Vacko, the target annual
equity awards are each set at a percentage of the respective base salaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historically, the annual equity awards granted under the long-term incentive compensation
program have been comprised of stock options and restricted stock units. The stock options and
restricted stock units issued to date have vested annually in one-third installments beginning in
the fourth year after the grant date and each award has been subject to accelerated vesting under
certain conditions. Unless terminated early, the stock options have a ten-year term.
</DIV>

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At October&nbsp;31, 2007, each portfolio manager beneficially owned (as determined pursuant to
Rule&nbsp;16a-1a(a)(2) under the 1934 Act) shares of the Fund having value within the indicated dollar
ranges.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>




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

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="74%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fund</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John&nbsp;P. Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">Over $100,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nick&nbsp;P. Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">None</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John&nbsp;P. Calamos,&nbsp;Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">None</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">John Hillenbrand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">None</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steve Klouda</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">None</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jeff Scudieri</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">None</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Matthew Toms</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">None</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jon Vacko</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">None</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the arrangements with State Street Bank and Trust Company (&#147;State Street&#148;) to provide
fund accounting services, State Street provides certain administrative and accounting services
including providing daily reconciliation of cash, trades and positions; maintaining general ledger
and capital stock accounts; preparing daily trial balance; calculating net asset value; providing
selected general ledger reports; preferred share compliance; calculating total returns; and
providing monthly distribution analysis to the Fund and such other funds advised by Calamos that
may be part of those arrangements (the Fund and such other funds are collectively referred to as
the &#147;Calamos Funds&#148;). For the services rendered to the Calamos Funds, State Street receives fees
based on the combined managed assets of the Calamos Funds (&#147;Combined Assets&#148;). State Street
receives a fee at the annual rate of 0.009% for the first $5.0&nbsp;billion of Combined Assets, 0.0075%
for the next $5.0&nbsp;billion of Combined Assets, 0.005% for the next $5.0&nbsp;billion of Combined Assets
and 0.0035% for the Combined Assets in excess of $15.0&nbsp;billion. Each fund of the Calamos Funds
pays its pro-rata share of the fees payable to State Street described below based on relative
managed assets of each fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos, and not State Street, will provide the following financial accounting services to
Calamos Funds: management of expenses and expense payment processing; monitor the calculation of
expense accrual amounts for any fund and make any necessary modifications; coordinate any expense
reimbursement calculations and payment; calculate yields on the funds in accordance with rules and
regulations of the SEC; calculate net investment income dividends and capital gains
distributions; calculate, track and report tax adjustments on all assets of each fund, including
but not limited to contingent debt and preferred trust obligations; prepare excise tax and fiscal
year distributions schedules; prepare tax information required for financial statement footnotes;
prepare state and federal income tax returns; prepare specialized calculations of amortization on
convertible securities; prepare year-end dividend disclosure information; calculate trustee
deferred compensation plan accruals and valuations;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and prepare Form&nbsp;1099 information statements for Board members and service providers. For
providing those financial accounting services, Calamos will receive a fee payable monthly at the
annual rate of 0.0175% on the first $1&nbsp;billion of the average daily net assets of the Calamos
Funds; 0.0150% on the next $1&nbsp;billion of the average daily net assets of the Calamos Funds; and
0.0110% on the average daily net assets of the Calamos Funds above $2&nbsp;billion (&#147;financial
accounting service fee&#148;). Each fund of the Calamos Funds will pay its pro-rata share of the
financial accounting service fee payable to Calamos based on relative managed assets of each fund.
</DIV>

<DIV align="left">
<A name="138"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio transactions on behalf of the Fund effected on stock exchanges involve the payment
of negotiated brokerage commissions. There is generally no stated commission in the case of
securities traded in the over-the-counter markets, but the price paid by the Fund usually includes
an undisclosed dealer commission or mark-up. In underwritten offerings, the price paid by the Fund
includes a disclosed, fixed commission or discount retained by the underwriter or dealer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In executing portfolio transactions, Calamos uses its best efforts to obtain for the Fund the
most favorable combination of price and execution available. In seeking the most favorable
combination of price and execution, Calamos considers all factors it deems relevant, including
price, the size of the transaction, the nature of the market for the security, the amount of
commission, the timing of the transaction taking into account market prices and trends, the
execution capability of the broker-dealer and the quality of service rendered by the broker-dealer
in other transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustees have determined that portfolio transactions for the Fund may be executed through
CFS, an affiliate of Calamos, if, in the judgment of Calamos,
the use of CFS is likely to result in prices and execution at least as favorable to the Funds as
those available from other qualified brokers and if, in such transactions, CFS charges the Fund
commission rates consistent with those charged by CFS to comparable unaffiliated customers in
similar transactions. The Board of Trustees, including a majority of the Trustees who are not
&#147;interested&#148; trustees, has adopted procedures that are reasonably designed to provide that any
commissions, fees or other remuneration paid to CFS are consistent with the foregoing standard.
The Fund will not effect principal transactions with CFS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consistent with the Rules of Fair Practice of the National Association of Securities Dealers,
Inc. and subject to seeking the most favorable combination of net price and execution available
and such other policies as the Trustees may determine, Calamos may consider sales of shares of the
Fund as a factor in the selection of broker-dealers to execute portfolio transactions for that
Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In allocating the Fund&#146;s portfolio brokerage transactions to unaffiliated broker-dealers,
Calamos may take into consideration the research, analytical, statistical and other information and
services provided by the broker-dealer, such as general economic reports and information, reports
or analyses of particular companies or industry groups, market timing and technical information,
and the availability of the brokerage firm&#146;s analysts for consultation. Although Calamos believes
these services have substantial value, they are considered supplemental to Calamos&#146; own efforts in
the performance of its duties under the management agreement. As permitted by Section&nbsp;28(e) of the
Securities Exchange Act of 1934 (&#147;1934 Act&#148;), Calamos may cause the Fund to pay a broker-dealer
that provides brokerage and research services an amount of commission for effecting a securities
transaction for the Fund in excess of the commission that another broker-dealer would have charged
for effecting that transaction if the amount is believed by Calamos to be reasonable in relation to
the value of the overall quality of the brokerage and research services provided. Other clients of
Calamos may indirectly benefit from the provision of these
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">services to Calamos, and the Fund may indirectly benefit from services provided to Calamos as
a result of transactions for other clients.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund paid $0, $0, and $0 in aggregate brokerage commissions for the fiscal years ended October&nbsp;31,
2005, October 31, 2006, and October&nbsp;31, 2007, including $0, $0, and $0 to CFS,
which represented 0%, 0% and 0% of the Fund&#146;s aggregate brokerage fees paid for
the respective fiscal year, and 0%, 0%, and 0% of the Fund&#146;s aggregate dollar amount of transactions involving brokerage
commissions for the respective fiscal year.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our annual portfolio turnover rate may vary greatly from year to year. Although we cannot
accurately predict our annual portfolio turnover rate, it is not expected to exceed 100% under
normal circumstances. For the fiscal years ended October 31, 2005,
October 31, 2006, and October 31, 2007 the portfolio turnover rate
was 0%, 32%, and 85%, respectively.
However, portfolio turnover rate is not considered a limiting factor in the execution of investment
decisions for us. A higher turnover rate results in correspondingly greater brokerage commissions
and other transactional expenses that are borne by us. High portfolio
turnover also may result in the realization of capital gains or losses and, to the extent net short-term
capital gains are realized, any distributions resulting from such gains will be considered ordinary income for
federal income tax purposes.  See &#147;Federal Income Tax Matters.&#148;
</DIV>

<DIV align="left">
<A name="139"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net asset value per share is determined as of the close of regular session trading on the New
York Stock Exchange (usually 4:00&nbsp;p.m., Eastern time), on the last business day in each week. Net
asset value is calculated by dividing the value of all of the securities and other assets of the
Fund, less its liabilities (including accrued expenses and indebtedness) and the aggregate
liquidation value of any outstanding preferred shares, by the total number of common shares
outstanding. Currently, the net asset values of shares of publicly traded closed-end investment
companies investing in debt securities are published in Barron&#146;s, the Monday edition of The Wall
Street Journal and the Monday and Saturday editions of The New York Times.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The values of the securities in the Fund are based on market prices from the primary market in
which they are traded. As a general rule, equity securities listed on a U.S. securities exchange
are valued at the last current reported sale price as of the time of valuation. Securities quoted
on the NASDAQ National Market System are valued at the NASDAQ Official Closing Price (the &#147;NOCP&#148;),
as determined by NASDAQ, or lacking an NOCP, at the last current reported sale price as of the time
of valuation. Bonds and other fixed-income securities that are traded over the counter and on an
exchange will be valued according to the broadest and most representative market, and it is
expected this will ordinarily be the over-the-counter market. The foreign securities held by the
Fund are traded on exchanges throughout the world. Trading on these foreign securities exchanges
is completed at various times throughout the day and often does not coincide with the close of
trading on the New York Stock Exchange. The value of foreign securities is determined at the close
of trading of the exchange on which the securities are traded or at the close of trading on the New
York Stock Exchange, whichever is earlier. If market prices are not readily available or the
Fund&#146;s valuation methods do not produce a value reflective of the fair value of the security,
securities and other assets are priced at a fair value as determined by the Board of Trustees or a
committee thereof, subject to the Board of Trustees&#146; responsibility for any such valuation.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="140"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is a closed-end investment company and as such its shareholders will not have the
right to cause the Fund to redeem their shares. Instead, the Fund&#146;s common shares trade in the
open market at a price that is a function of several factors, including dividend levels (which are
in turn affected by expenses), net asset value, call protection, dividend stability, relative
demand for and supply of such shares in the market, general market and economic conditions and
other factors. Because shares of a closed-end investment company may frequently trade at prices
lower than net asset value, the Fund&#146;s Board of Trustees may consider action that might be taken to
reduce or eliminate any material discount from net asset value in respect of common shares, which
may include the repurchase of such shares in the open market or in private transactions, the making
of a tender offer for such shares, or the conversion of the Fund to an open-end investment company.
The Board of Trustees may decide not to take any of these actions. In addition, there can be no
assurance that share repurchases or tender offers, if undertaken, will reduce market discount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, at any time when the Fund&#146;s preferred shares are outstanding,
the Fund may not purchase, redeem or otherwise acquire any of its common shares unless (1)&nbsp;all
accumulated preferred shares dividends have been paid and (2)&nbsp;at the time of such purchase,
redemption or acquisition, the net asset value of the Fund&#146;s portfolio (determined after deducting
the acquisition price of the common shares) is at least 200% of the liquidation value of the
outstanding preferred shares (expected to equal the original purchase price per share plus any
accrued and unpaid dividends thereon). Any service fees incurred in connection with any tender
offer made by the Fund will be borne by the Fund and will not reduce the stated consideration to be
paid to tendering shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to its investment restrictions, the Fund may borrow to finance the repurchase of
shares or to make a tender offer. Interest on any borrowings to finance share repurchase
transactions or the accumulation of cash by the Fund in anticipation of share repurchases or
tenders will reduce the Fund&#146;s net income. Any share repurchase, tender offer or borrowing that
might be approved by the Fund&#146;s Board of Trustees would have to
comply with the 1934 Act, the
1940 Act and the rules and regulations thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the decision to take action in response to a discount from net asset value will be
made by the Board of Trustees at the time it considers such issue, it is not currently anticipated
that the Board of Trustees would authorize repurchases of common shares or a tender offer for such
shares if: (1)&nbsp;such transactions, if consummated, would (a)&nbsp;result in the delisting of the common
shares from the New York Stock Exchange, or (b)&nbsp;impair the Fund&#146;s status as a regulated investment
company under the Code (which would make the Fund a taxable entity, causing the Fund&#146;s income to be
taxed at the corporate level in addition to the taxation of shareholders who receive dividends from
the Fund) or as a registered closed-end investment company under the 1940 Act; (2)&nbsp;the Fund would
not be able to liquidate portfolio securities in an orderly manner and consistent with the Fund&#146;s
investment objective and policies in order to repurchase shares; or (3)&nbsp;there is, in the board&#146;s
judgment, any (a)&nbsp;material legal action or proceeding instituted or threatened challenging such
transactions or otherwise materially adversely affecting the Fund, (b)&nbsp;general suspension of or
limitation on prices for trading securities on the New York Stock Exchange, (c)&nbsp;declaration of a
banking moratorium by federal or state authorities or any suspension of payment by United States or
New York banks, (d)&nbsp;material limitation affecting the Fund or the issuers of its portfolio
securities by federal or state authorities on the extension of credit by lending institutions or on
the exchange of foreign currency, (e)&nbsp;commencement of war, armed hostilities or other international
or national calamity directly or indirectly involving the United States, or (f)&nbsp;other event or
condition which would have a material adverse effect (including any adverse tax effect) on the Fund
or its shareholders if shares were repurchased.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The repurchase by the Fund of its shares at prices below net asset value will result in an
increase in the net asset value of those shares that remain outstanding. However, there can be no
assurance that share repurchases or tender offers at or below net asset value will result in the
Fund&#146;s shares trading at a price equal to their net asset value. Nevertheless, the fact that the
Fund&#146;s shares may be the subject of repurchase or tender offers from time to time, or that the Fund
may be converted to an open-end investment company, may reduce any spread between market price and
net asset value that might otherwise exist.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, a purchase by the Fund of its common shares will decrease the Fund&#146;s total
managed assets which would likely have the effect of increasing the Fund&#146;s expense ratio. Any
purchase by the Fund of its common shares at a time when preferred shares are outstanding will
increase the leverage applicable to the outstanding common shares then remaining.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before deciding whether to take any action if the common shares trade below net asset value,
the Fund&#146;s Board of Trustees would likely consider all relevant factors, including the extent and
duration of the discount, the liquidity of the Fund&#146;s portfolio, the impact of any action that
might be taken on the Fund or its shareholders and market considerations. Based on these
considerations, even if the Fund&#146;s shares should trade at a discount, the Board of Trustees may
determine that, in the interest of the Fund and its shareholders, no action should be taken.
</DIV>

<DIV align="left">
<A name="141"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary discussion of certain U.S. federal income tax consequences that may
be relevant to a shareholder that acquires, holds and/or disposes of the Fund&#146;s securities. This
discussion only addresses certain U.S. federal income tax consequences to U.S. shareholders who hold their
shares as capital assets and does not address all of the U.S. federal income tax consequences that
may be relevant to particular shareholders in light of their individual circumstances. This
discussion also does not address the tax consequences to shareholders who are subject to special
rules, including, without limitation, financial institutions,
regulated investment companies, insurance companies, brokers and dealers in
securities or foreign currencies, certain securities traders, foreign holders, persons who hold their shares as or in a hedge
against currency risk, a constructive sale, or conversion transaction, holders who are subject to
the alternative minimum tax, or tax-exempt or tax-deferred plans, accounts, or entities. In
addition, the discussion does not address any state, local, or foreign tax consequences. The
discussion reflects applicable tax laws of the United States as of the date of this Statement of
Additional Information, which tax laws may be changed or subject to new interpretations by the
courts or the Internal Revenue Service (&#147;IRS&#148;) retroactively or prospectively. No attempt is made
to present a detailed explanation of all U.S. federal income tax concerns affecting the Fund and
its shareholders, and the discussion set forth herein does not constitute tax advice. INVESTORS
ARE URGED TO CONSULT THEIR OWN TAX ADVISERS TO DETERMINE THE SPECIFIC TAX CONSEQUENCES TO THEM OF
INVESTING IN THE FUND, INCLUDING THE APPLICABLE FEDERAL, STATE, LOCAL AND FOREIGN TAX CONSEQUENCES
TO THEM AND THE EFFECT OF POSSIBLE CHANGES IN TAX LAWS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to U.S. Treasury Department Circular 230, we are informing you that (1) this discussion is not intended to be used, was not written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties under the U.S. federal tax laws, (2) this discussion was written by us in connection with the registration of our securities and our promotion or marketing, and (3) each taxpayer should seek advice based on his, her or its particular circumstances from an independent tax advisor.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has elected to be treated, and intends to qualify each year, as a &#147;regulated
investment company&#148; under Subchapter M of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;), so that it will not pay U.S. federal income tax on investment company taxable income
(determined without regard to the deduction for dividends paid) and net capital gains timely
distributed to shareholders. If the Fund qualifies as a regulated investment company and
distributes to its shareholders at least 90% of the sum of (i)&nbsp;its &#147;investment company taxable
income&#148; as that term is defined in the Code (which includes, among
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">other things, dividends, taxable interest, and the excess of any net short-term capital gains
over net long-term capital losses, less certain deductible expenses) without regard to the
deduction for dividends paid and (ii)&nbsp;the excess of its gross tax-exempt interest, if any, over
certain disallowed deductions, the Fund will be relieved of U.S. federal income tax on any income
of the Fund, including long-term capital gains, distributed to shareholders. However, if the Fund
retains any investment company taxable income or &#147;net capital gain&#148; (i.e., the excess of net
long-term capital gain over the sum of net short-term capital loss and any capital loss
carryforward), it will be subject to U.S. federal income tax at regular corporate rates on the
amount retained. The Fund intends to distribute at least annually, all or substantially all of its
investment company taxable income, net tax-exempt interest, if any, and net capital gain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If for any taxable year the Fund does not qualify as a regulated investment company for U.S.
federal income tax purposes, it would be treated in the same manner as a regular corporation
subject to U.S. federal income tax and distributions to its shareholders would not be deductible by
the Fund in computing its taxable income. In such event, the Fund&#146;s distributions, to the extent
derived from the Fund&#146;s current or accumulated earnings and profits, would generally constitute
ordinary dividends, which would generally be eligible for the dividends received deduction
available to corporate shareholders under Section&nbsp;243 of the Code, and noncorporate shareholders of
the Fund would generally be able to treat such distributions as &#147;qualified dividend income&#148;
eligible for reduced rates of federal income taxation in taxable years beginning on or before
December&nbsp;31, 2010 under Section&nbsp;1(h)(11) of the Code, as described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Code, the Fund will be subject to a nondeductible 4% federal excise tax on its
undistributed ordinary income for a calendar year and its capital gains for the one-year period
generally ending on October&nbsp;31 of such calendar year if it fails to meet certain distribution
requirements with respect to that year. The Fund intends to make distributions in a timely manner
and in an amount sufficient to avoid such tax and accordingly does not expect to be subject to this
excise tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to qualify as a regulated investment company under Subchapter M of the Code, the Fund
must, among other things, derive at least 90% of its gross income for each taxable year from
(i)&nbsp;dividends, interest, payments with respect to securities loans, gains from the sale or other
disposition of stock, securities or foreign currencies, or other income (including gains from
options, futures and forward contracts) derived with respect to its business of investing in such
stock, securities or currencies and (ii)&nbsp;net income derived from interests in certain publicly
traded partnerships that derive less than 90% of their gross income from the items described in (i)
above (each, a &#147;Qualified Publicly Traded Partnership&#148;) (the &#147;90% income test&#148;). For purposes of
the 90% income test, the character of income earned by certain entities in which the Fund invests
that are not treated as corporations (e.g., partnerships other than Qualified Publicly Traded
Partnerships) for U.S. federal income tax purposes will generally pass through to the Fund.
Consequently, the Fund may be required to limit its equity
investments in certain such entities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the 90% income test, the Fund must also diversify its holdings (the &#147;asset
test&#148;) so that, at the end of each quarter of its taxable year (i)&nbsp;at least 50% of the market value
of the Fund&#146;s total assets is represented by cash and cash items, U.S. government securities,
securities of other regulated investment companies and other securities, with such other securities
of any one issuer limited for the purposes of this calculation to an amount not greater in value
than 5% of the value of the Fund&#146;s total assets and to not more than 10% of the outstanding voting
securities of such issuer, and (ii)&nbsp;not more than 25% of the value of its total assets is invested
in the securities (other than U.S. government securities or securities of other regulated
investment companies) of any one issuer or of two or more issuers controlled by the Fund and
engaged in the same, similar or related trades or businesses or in the securities of one or more
Qualified Publicly Traded Partnerships.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange gains and losses realized by the Fund in connection with certain transactions
involving foreign currency-denominated debt securities, certain options and futures contracts
relating to foreign currency, foreign currency forward contracts, foreign currencies, or payables
or receivables denominated in a foreign currency are subject to Section&nbsp;988 of the Code, which
generally causes such gains and losses to be treated as ordinary income and losses and may affect
the amount, timing and character of distributions to shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund acquires any equity interest (generally including not only stock but also an
option to acquire stock such as is inherent in a convertible bond) in certain foreign corporations
that receive at least 75% of their annual gross income from passive sources (such as interest,
dividends, certain rents and royalties, or capital gains) or that hold at least 50% of their assets
in investments held for the production of such passive income (&#147;passive foreign investment
companies&#148;), the Fund could be subject to U.S. federal income tax and additional interest charges
on &#147;excess distributions&#148; received from such companies or on gain from the sale of equity interests
in such companies, even if all income or gain actually received by the Fund is timely distributed
to its shareholders. These investments could also result in the
treatment as ordinary income of associated gains on a sale of the
investment. The Fund would not be able to pass through to its shareholders any
credit or deduction for such tax. Tax elections may generally be available that would ameliorate
these adverse tax consequences, but any such election could require the Fund to recognize taxable
income or gain (which would be subject to the distribution requirements described above) without
the concurrent receipt of cash. The Fund may limit and/or manage its holdings in passive foreign
investment companies to limit its U.S. federal income tax liability or maximize its return from
these investments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund invests in certain pay-in-kind securities, zero coupon securities, deferred
interest securities or, in general, any other securities with original issue discount (or with
market discount if the Fund elects to include market discount in income currently), the Fund must
accrue income on such investments for each taxable year, which generally will be prior to the
receipt of the corresponding cash payments. However, the Fund must distribute, at least annually,
all or substantially all of its investment company taxable income, including such accrued income,
to shareholders to avoid U.S. federal income and excise taxes. Therefore, the Fund may have to
dispose of its portfolio securities under disadvantageous circumstances to generate cash, or may
have to leverage itself by borrowing the cash, to satisfy distribution requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may acquire market discount bonds.  A market discount bond is a security acquired in the secondary market at a price below its redemption value (or its adjusted issue price if it is also an original issue discount bond).  If the Fund invests in a market discount bond, it will be required to treat any gain recognized on the disposition of such market discount bond as ordinary income
(instead of capital gain) to the extent of the accrued market discount, unless the Fund
elects to include the market discount in income as it accrues as discussed above.
Such market discount will not constitute qualified dividend income.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in debt obligations that are in the lowest rating categories or are
unrated, including debt obligations of issuers not currently paying interest or who are in default.
Investments in debt obligations that are at risk of or in default present special tax issues for
the Fund. The U.S. federal income tax laws are not entirely clear about issues such as when the
Fund may cease to accrue interest, original issue discount or market discount, when and to what
extent deductions may be taken for bad debts or worthless securities and how payments received on
obligations in default should be allocated between principal and income. These and other related
issues will be addressed by the Fund when, as and if it invests in such securities, in order to
seek to ensure that it distributes sufficient income to preserve its status as a regulated
investment company and does not become subject to U.S. federal income or excise taxes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may engage in various transactions utilizing options, futures contracts, forward
contracts, hedge instruments, straddles, swaps and other similar transactions. Such transactions
may be subject to special provisions of the Code that, among other things, affect the character of
any income realized by the Fund from such investments, accelerate recognition of income to the
Fund, defer Fund losses, affect the holding period of the Fund&#146;s securities, affect whether
distributions will be eligible for the dividends received deduction or be treated as qualified
dividend income and affect the determination
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of whether capital gain and loss is characterized as long-term or short-term capital gain or
loss. These rules could therefore affect the character, amount and timing of distributions to
shareholders. These provisions may also require the Fund to &#147;mark-to-market&#148; certain types of the
positions in its portfolio (i.e., treat them as if they were closed out), which may cause the Fund
to recognize income without receiving cash with which to make distributions in amounts necessary to
satisfy the distribution requirements for avoiding U.S. federal income and excise taxes. The Fund
will monitor its transactions and will make the appropriate entries in its books and records when
it acquires an option, futures contract, forward contract, hedge instrument, swap or other similar
investment, and if the Fund deems it advisable, will make appropriate elections in order to
mitigate the effect of these rules, prevent disqualification of the Fund as a regulated investment
company and minimize the imposition of U.S. federal income and excise taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s transactions in broad based equity index futures contracts, exchange traded options
on such indices and certain other futures contracts are generally considered &#147;Section&nbsp;1256
contracts&#148; for federal income tax purposes. Any unrealized gains or losses on such Section&nbsp;1256
contracts are treated as though they were realized at the end of each taxable year. The resulting
gain or loss is treated as sixty percent long-term capital gain or loss and forty percent
short-term capital gain or loss. Gain or loss recognized on actual sales of Section&nbsp;1256 contracts
is treated in the same manner. As noted below, distributions of net short-term capital gain are
taxable to shareholders as ordinary income while distributions of net long-term capital gain are
taxable to shareholders as long-term capital gain, regardless of how long the shareholder has held
shares of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s entry into a short sale transaction, an option or certain other contracts could be
treated as the constructive sale of an appreciated financial position, causing the Fund to realize
gain, but not loss, on the position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest in REITs that hold residual interests in real estate mortgage investment
conduits (&#147;REMICs&#148;). Under a notice issued by the IRS, a portion of the Fund&#146;s income from a REIT
that is attributable to the REIT&#146;s residual interest in a REMIC (referred to in the Code as an
&#147;excess inclusion&#148;) will be subject to U.S. federal income tax in all events. This notice also
provides that excess inclusion income of a regulated investment company, such as the Fund, will be
allocated to shareholders of the regulated investment company in proportion to the dividends
received by such shareholders, with the same consequences as if the shareholders held the related
REMIC residual interest directly. In general, excess inclusion income allocated to shareholders
(i)&nbsp;cannot be offset by net operating losses (subject to a limited exception for certain thrift
institutions), (ii)&nbsp;will constitute unrelated business taxable income to entities (including a
qualified pension plan, an individual retirement account, a 401(k) plan, a Keogh plan or other
tax-exempt entity) subject to federal income tax on unrelated business income, thereby potentially
requiring such an entity that is allocated excess inclusion income, and otherwise might not be
required to file a federal income tax return, to file a tax return and pay tax on such income, and
(iii)&nbsp;in the case of a foreign shareholder, will not qualify for any reduction in U.S. federal
withholding tax. In addition, if at any time during any taxable year a &#147;disqualified organization&#148;
(as defined in the Code) is a record holder of a share in a regulated investment company, then the
regulated investment company will be subject to a tax equal to that portion of its excess inclusion
income for the taxable year that is allocable to the disqualified organization, multiplied by the
highest federal income tax rate imposed on corporations. The Fund does not intend to invest in
REITs in which a substantial portion of the assets will consist of residual interests in REMICs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may be subject to withholding and other taxes imposed by foreign countries, including
taxes on interest, dividends and capital gains with respect to its investments in those countries,
which would, if imposed, reduce the yield on or return from those investments. Tax treaties
between certain
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">countries and the U.S. may reduce or eliminate such taxes in
some cases.
If, however, more than 50% of the value of the Fund&#146;s total assets at the close of any taxable year consists of
stock or securities in foreign corporations, and the Fund distributes at least 90% of its investment company taxable
income and net tax exempt interest, the Fund may file an election with the IRS pursuant to which shareholders of the
Fund will be required to (i) include in gross income (in addition to taxable dividends actually received) their pro
rata share of foreign income taxes paid by the Fund even though not actually received, (ii) treat their respective
pro rata share as foreign income taxes paid by them, and (iii) deduct such pro rata share in computing their U.S.
federal taxable income, or, alternatively, use it as a foreign tax credit, subject to applicable limitations,
against their U.S. federal income tax liability.  Tax-exempt shareholders will not ordinarily benefit from this
election relating to foreign taxes.  Each year, the Fund will notify each shareholder of the amount of (i) the
shareholder&#146;s pro rata share of foreign income taxes paid by the Fund, if any, and (ii) the portion of the
Fund&#146;s dividends which represents income from foreign countries, if the Fund qualifies to pass along such credit.</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Common Share Distributions</I>. Unless a shareholder is ineligible to participate or elects
otherwise, all distributions on common shares will be automatically reinvested in additional common shares of the
Fund pursuant to the Automatic Dividend Reinvestment Plan (the
&#147;Dividend Reinvestment Plan&#148;). For U.S. federal income tax
purposes, dividends are generally taxable whether a shareholder takes them in cash or they are
reinvested pursuant to the Dividend Reinvestment Plan in additional shares of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions of investment company taxable income (determined without regard to the deduction
for dividends paid), which includes dividends, taxable interest, net
short-term capital gain in
excess of net long-term capital loss and certain net foreign exchange gains, are, except as
discussed below, taxable as ordinary income to the extent of the Fund&#146;s current and accumulated
earnings and profits. A portion of such dividends may qualify for the dividends received deduction
available to corporations under Section&nbsp;243 of the Code and the reduced rate of taxation under Section&nbsp;1(h)(11)
of the Code that applies to qualified dividend income received by noncorporate shareholders. For taxable
years beginning on or before December&nbsp;31, 2010, qualified dividend income
received by noncorporate shareholders is taxed at rates equivalent to
long-term capital gain tax
rates, which currently reach a maximum of 15%. Qualified dividend income generally includes
dividends from domestic corporations and dividends from foreign corporations that meet certain
specified criteria, although dividends paid by REITs will not
generally be eligible for treatment as
qualified dividend income. The Fund generally can pass the tax treatment of qualified dividend
income it receives through to Fund shareholders. For the Fund to receive qualified dividend income,
the Fund must meet certain holding period and other requirements with respect to the stock on which
the otherwise qualified dividend is paid. In addition, the Fund cannot be obligated to make
payments (pursuant to a short sale or otherwise) with respect to substantially similar or related
property. The same provisions, including the holding period requirements, apply to each
shareholder&#146;s investment in the Fund for the dividends received by the shareholder to be eligible
for such treatment. The provisions of the Code applicable to qualified dividend income and the 15%
maximum individual tax rate on long-term capital gains are currently
effective for taxable years beginning on or before December 31, 2010.
Thereafter, unless Congress enacts legislation providing otherwise, qualified dividend income will no longer be taxed at the rates applicable to long-term
capital gains, but rather will be taxed at ordinary federal income tax rates, which reach a current
maximum rate of 35%. Distributions of net
capital gain, if any, are taxable as long term capital gains for U.S. federal income tax purposes
without regard to the length of time the shareholder has held shares of the Fund. A distribution of
an amount in excess of the Fund&#146;s current and accumulated earnings and profits, if any, will be
treated by a shareholder as a tax-free return of capital which is applied against and reduces the
shareholder&#146;s basis in his or her shares. To the extent that the amount of any such distribution
exceeds the shareholder&#146;s basis in his or her shares, the excess will be treated by the shareholder
as gain from the sale or exchange of shares. The U.S. federal income tax status of all
distributions will be designated by the Fund and reported to the shareholders annually.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund retains any net capital gain, the Fund may designate the retained amount as
undistributed capital gains in a notice to shareholders who, if subject to U.S. federal income tax
on long-term capital gains, (i)&nbsp;will be required to include in
income, as long-term capital gain,
their proportionate share of such undistributed amount, and (ii)&nbsp;will be entitled to credit their
proportionate share of the federal income tax paid by the Fund on the undistributed amount against
their U.S. federal income tax liabilities, if any, and to claim refunds to the extent the credit
exceeds such liabilities. For U.S. federal
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">income tax purposes, the tax basis of shares owned by a shareholder of the Fund will be
increased by the difference between the amount of undistributed net capital gain included in the
shareholder&#146;s gross income and the federal income tax deemed paid by the shareholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
a shareholder&#146;s distributions are automatically reinvested
pursuant to the Dividend Reinvestment Plan and the
plan agent invests the distribution in shares acquired on behalf of the shareholder in open-market
purchases, for U.S. federal income tax purposes, the shareholder will be treated as having received
a taxable distribution in the amount of the cash dividend that the shareholder would have received
if the shareholder had elected to receive cash. If a shareholder&#146;s distributions are automatically
reinvested pursuant to the Dividend Reinvestment Plan and the plan agent invests the distribution in newly issued shares
of the Fund, the shareholder will be treated as receiving a taxable distribution equal to the fair
market value of the shares the shareholder receives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the time of an investor&#146;s purchase of the Fund&#146;s shares, a portion of the purchase price
may be attributable to realized or unrealized appreciation in the Fund&#146;s portfolio or undistributed
taxable income of the Fund. Consequently, subsequent distributions by the Fund with respect to
these shares from such appreciation or income may be taxable to such investor even if the net asset
value of the investor&#146;s shares is, as a result of the distributions, reduced below the investor&#146;s
cost for such shares and the distributions economically represent a return of a portion of the
investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any dividend declared by the Fund in October, November or December with a record date in such
a month and paid during the following January will be treated for U.S. federal income tax purposes
as paid by the Fund and received by shareholders on December&nbsp;31 of the calendar year in which it is
declared.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Preferred Share Distributions</I>. Under present law and based in part on the fact that there is
no express or implied agreement between or among a broker-dealer or any other party, and the Fund
or any owners of preferred shares, that the broker-dealer or any other party will guarantee or
otherwise arrange to ensure that an owner of preferred shares will be able to sell his or her
shares, it is anticipated that the preferred shares will constitute stock of the Fund for federal
income tax purposes, and thus distributions with respect to the preferred shares (other than
distributions in redemption of the preferred shares subject to Section 302(b) of the Code) will
generally constitute dividends to the extent of the Fund&#146;s current or accumulated earnings and
profits, as calculated for U.S. federal income tax purposes. Except in the case of net capital
gain distributions, such dividends generally will be taxable at ordinary income tax rates to
holders of preferred shares but may qualify for the dividends received deduction available to
corporate shareholders under Section&nbsp;243 of the Code and the reduced rates of federal income
taxation that apply to qualified dividend income received by noncorporate shareholders under
Section&nbsp;1(h)(11) of the Code. Distributions designated by the Fund as net capital gain
distributions will be taxable as long-term capital gain regardless of the length of time a
shareholder has held shares of the Fund. Please see the discussion above on qualified dividend
income, dividends received deductions and net capital gain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The character of the Fund&#146;s income will not affect the amount of dividends to which the
holders of preferred shares are entitled to receive. Holders of preferred shares are entitled to
receive only the amount of dividends as determined by periodic auctions. For U.S. federal income
tax purposes, however, the IRS requires that a regulated investment company that has two or more
classes of shares allocate to each such class proportionate amounts of each type of its income
(such as ordinary income and net capital gain) for each tax year. Accordingly, the Fund intends to
designate distributions made with respect to the common shares and preferred shares as consisting
of particular types of income (e.g., net capital gain and ordinary income), in accordance with each
class&#146; proportionate share of the total dividends paid to both classes. Thus, each year the Fund
will designate dividends qualifying for the corporate dividends
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">received deduction, qualified dividend income, ordinary income and net capital gains in a
manner that allocates such income between the preferred shares and common shares in proportion to
the total dividends made to each class with respect to such taxable year, or otherwise as required
by applicable law. In addition, solely for the purpose of satisfying the 90% distribution requirement and the
distribution requirement for avoiding income taxes, certain distributions made after the close of a taxable year of
the Fund may be &#147;spilled back&#148; and treated as paid during such taxable year. In such case, shareholders will
be treated as having received such dividends in the taxable year in which the distribution was actually made.  The IRS
has ruled privately that dividends paid following the close of the taxable year that are treated for federal income tax
purposes as derived from income from the prior year will be treated as dividends &#147;paid&#148; in the prior year for
purposes of determining the proportionate share of a particular type of income for each class. Accordingly, the Fund intends
 to treat any such dividends that are paid following the close of a taxable year as &#147;paid&#148; in the prior year for
purposes of determining a class&#146; proportionate share of a particular type of income. However, the private ruling is
not binding on the IRS, and there can be no assurance that the IRS will respect such treatment. Each shareholder will be
notified of the allocation within 60&nbsp;days after the
end of the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the Fund is required to distribute annually at least 90% of its investment company
taxable income (determined without regard to the deduction for dividends paid), the Fund is not
required to distribute net capital gains to the shareholders. The Fund may retain and reinvest
such gains and pay federal income taxes on such gains (the &#147;net undistributed capital gain&#148;).
Please see the discussion above on undistributed capital gains. However, it is unclear whether a portion of the net undistributed capital gain would have to be
allocated to the preferred shares for U.S. federal income tax purposes. Until and unless the Fund
receives acceptable guidance from the IRS or an opinion of counsel as to the allocation of the net
undistributed capital gain between the common shares and the preferred shares, the Fund intends to
distribute its net capital gain for any year during which it has preferred shares outstanding. Such
distribution will affect the tax character but not the amount of dividends to which holders of
preferred shares are entitled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although dividends generally
will be treated as distributed when paid, dividends declared in October, November or December with a record date in such
months, and paid in January of the following year, will be treated as having been distributed by the Fund and received by
the shareholders on December 31 of the year in which the dividend was declared.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings and profits are generally treated, for federal income tax purposes, as first being
used to pay distributions on preferred shares, and then to the extent remaining, if any, to pay
distributions on the common shares. Distributions in excess of current and accumulated earnings
and profits of the Fund are treated first as return of capital to the extent of the shareholder&#146;s
basis in the shares and, after the adjusted basis is reduced to zero, will be treated as capital
gain to a shareholder who holds such shares as a capital asset.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund utilizes leverage through borrowings, or otherwise, asset coverage limitations
imposed by the 1940 Act as well as additional restrictions that may be imposed by certain lenders
on the payment of dividends or distributions potentially could limit or eliminate the Fund&#146;s
ability to make distributions on its common shares and/or preferred shares until the asset coverage
is restored. These limitations could prevent the Fund from distributing at least 90% of its
investment company taxable income as is required under the Code and therefore might jeopardize the
Fund&#146;s qualification as a regulated investment company and/or might subject the Fund to a
nondeductible 4% federal excise tax. Upon any failure to meet the asset coverage requirements
imposed by the 1940 Act, the Fund may, in its sole discretion and to the extent permitted under the
1940 Act, purchase or redeem preferred shares in order to maintain or restore the requisite asset
coverage and avoid the adverse consequences to the Fund and its shareholders of failing to meet the
distribution requirements. There can be no assurance, however, that any such action would achieve
these objectives. The Fund will endeavor to avoid restrictions on its ability to distribute
dividends.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Sales of Fund Shares</I>. Sales and other dispositions of the Fund&#146;s shares are taxable events
for shareholders that are subject to federal income tax. Selling shareholders will generally
recognize gain or loss in an amount equal to the difference between the amount received for such
shares and their adjusted
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">tax basis in the shares sold. If such shares are held as a capital asset at the time of sale,
the gain or loss will generally be a long-term capital gain or loss
if the shares have been held for more than one year and, if not held
for such period, a short-term capital gain or loss. Similarly, a redemption (including a
redemption by the Fund resulting from liquidation of the Fund), if any, of all of the shares
(common and preferred) actually and constructively held by a shareholder generally will give rise
to capital gain or loss under Section&nbsp;302(b) of the Code if the shareholder does not own (and is
not regarded under certain federal income tax law rules of constructive ownership as owning) any
common or preferred shares of the Fund and provided that the redemption proceeds do not represent
declared but unpaid dividends. Other redemptions may also give rise to capital gain or loss, if
several conditions imposed by Section&nbsp;302(b) of the Code are satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any loss realized by a shareholder upon the sale or other disposition of shares with a tax
holding period of six months or less will be treated as a long-term capital loss to the extent of
any amounts treated as distributions of long-term capital gain with respect to such shares. Losses
on sales or other dispositions of shares may be disallowed under &#147;wash sale&#148; rules in the event of
other investments in the Fund (including those made pursuant to reinvestment of dividends) or other
substantially identical stock or securities within a period of 61&nbsp;days beginning 30&nbsp;days before and
ending 30&nbsp;days after a sale or other disposition of shares. In such a case, the disallowed portion
of any loss generally would be included in the U.S. federal income tax basis of the shares
acquired. Shareholders should consult their own tax advisors regarding their individual
circumstances to determine whether any particular transaction in the Fund&#146;s shares is properly
treated as a sale for U.S. federal income tax purposes and the tax treatment of any gains or losses
recognized in such transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Federal Income Tax Withholding</I>. Federal law requires that the Fund withhold, as &#147;backup
withholding,&#148; 28% of reportable payments, including dividends, capital gain distributions and the
proceeds of sales or other dispositions of the Fund&#146;s shares paid to shareholders who have not
complied with IRS regulations. In order to avoid this withholding requirement, shareholders must
certify on their account applications, or on a separate IRS Form W-9, that the social security
number or other taxpayer identification number they provide is their correct number and that they
are not currently subject to backup withholding, or that they are exempt from backup withholding.
The Fund may nevertheless be required to backup withhold if it receives notice from the IRS or a
broker that the number provided is incorrect or backup withholding is
applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other Matters</I>. Treasury regulations provide that if a shareholder recognizes a loss with
respect to shares of $2&nbsp;million or more in a single taxable year (or $4&nbsp;million or more in any
combination of taxable years) for a shareholder who is an individual, S corporation or trust or $10
million or more for a corporate shareholder in any single taxable year (or $20&nbsp;million or more in
any combination of years), the shareholder must file with the IRS a disclosure statement on Form
8886. Direct shareholders of portfolio securities are in many cases excepted from this reporting
requirement, but under current guidance, shareholders of a regulated investment company are not
excepted. Future guidance may extend the current exception from this reporting requirement to
shareholders of most or all regulated investment companies. The fact that a loss is reportable
under these regulations does not affect the legal determination of whether the taxpayer&#146;s treatment
of the loss is proper. Shareholders should consult their tax advisors to determine the
applicability of these regulations in light of their individual circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The description of certain federal income tax provisions above relates only to U.S. federal
income tax consequences for shareholders who are U.S. persons (i.e., U.S. citizens or resident aliens or
U.S. corporations, partnerships, trusts or estates who are subject to U.S. federal income tax on a
net income basis). Investors other than U.S. persons, including non-resident alien individuals,
may be subject to different U.S. federal income tax treatment. With respect to such persons, the
Fund must generally withhold U.S. federal withholding tax at the rate of 30% (or, if the Fund
receives certain certifications
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">from such non-U.S. shareholder, such lower rate as prescribed by an applicable tax treaty) on
amounts treated as ordinary dividends from the Fund. However, effective for taxable years of the
Fund beginning before January&nbsp;1, 2008, the Fund will generally not be required to withhold tax on
any amounts paid to a non-U.S. person with respect to dividends attributable to &#147;qualified
short-term gain&#148; (i.e., the excess of net short-term capital gain over net long-term capital loss)
designated as such by the Fund and dividends attributable to certain U.S. source interest income
that would not be subject to federal withholding tax if earned directly by a non-U.S. person,
provided such amounts are properly designated by the Fund. SHAREHOLDERS SHOULD CONSULT THEIR OWN
TAX ADVISORS ON THESE MATTERS AND ON ANY SPECIFIC QUESTION OF U.S. FEDERAL, STATE, LOCAL, FOREIGN
AND OTHER APPLICABLE TAX LAWS BEFORE MAKING AN INVESTMENT IN THE FUND.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
present law, it is anticipated that our debt securities will constitute indebtedness
for federal income tax purposes, which the discussion below assumes. We intend to treat all
payments made with respect to the debt securities consistent with this characterization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments or accruals of interest on debt securities generally will be taxable to you as
ordinary interest income at the time such interest is received (actually or constructively) or
accrued, in accordance with your regular method of accounting for federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initially, your tax basis in debt securities acquired generally will be equal to your cost to
acquire such debt securities. This basis will increase by the amounts, if any, that you include in
income under the rules governing market discount, and will decrease by the amount of any amortized
premium on such debt securities, as discussed below. When you sell or exchange any of your debt
securities, or if any of your debt securities are redeemed, you generally will recognize gain or
loss equal to the difference between the amount you realize on the transaction (less any accrued
and unpaid interest, which will be subject to federal income tax as interest in the manner described above) and
your tax basis in the debt securities relinquished.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as discussed below with respect to market discount, the gain or loss that you recognize
on the sale, exchange or redemption of any of your debt securities generally will be capital gain
or loss. Such gain or loss will generally be long-term capital gain or loss if the disposed debt
securities were held for more than one year and will be short-term capital gain or loss if the
disposed debt securities were held for one year or less. Net long-term capital gain recognized by
a noncorporate U.S. holder generally will be subject to federal income tax at a lower rate
(currently a maximum rate of 15%, although this rate will increase to
20% for taxable years beginning after December 31, 2010) than net
short-term capital gain or ordinary income (currently a maximum rate of 35%). For corporate
holders, capital gain is generally taxed for federal income tax
purposes at the same rate as ordinary income, that is, currently at
a maximum rate of 35%. A holder&#146;s ability to deduct capital losses may be limited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you purchase debt securities at a cost greater than their stated principal amount, plus
accrued interest, you will be considered to have purchased the debt securities at a premium, and
you generally may elect to amortize this premium as an offset to interest income, using a constant
yield method, over the remaining term of the debt securities. If you make the election to amortize
the premium, it generally will apply to all debt instruments that you
hold at the beginning of the first taxable year to which the election
applies, as well as any debt instruments that you subsequently acquire. In addition, you may not
revoke the election without the consent of the IRS. If you elect to amortize the premium, you will
be required to reduce your tax basis in the debt securities by the amount of the premium amortized
during your holding period. If you do not elect to amortize premium, the amount of premium will be
included in your tax basis in the debt securities. Therefore, if you do not elect to amortize the
premium and you hold the debt securities to maturity, you generally will be required to treat the
premium as a capital loss when the debt securities are redeemed.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you purchase debt securities at a price that reflects a &#147;market discount,&#148; any principal
payments on, or any gain that you realize on the disposition of, the debt securities generally will
be treated as ordinary interest income to the extent of the market discount that accrued on the
debt securities during the time you held such debt securities. &#147;Market discount&#148; is defined under
the Code as, in general, the excess of the stated redemption price at maturity
over the purchase price of the debt security, except that if the market discount is less than 0.25%
of the stated redemption price at maturity multiplied by the number of complete years to maturity,
the market discount is considered to be zero. In addition, you may be required to defer the
deduction of all or a portion of any interest paid on any indebtedness that you incurred or
continued to purchase or carry the debt securities that were acquired at a market discount. In
general, market discount will be treated as accruing ratably over the term of the debt securities,
or, at your election, under a constant yield method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may elect to include market discount in gross income currently as it accrues (on either a
ratable or constant yield basis), in lieu of treating a portion of any gain realized on a sale of
the debt securities as ordinary income. If you elect to include market discount on a current
basis, the interest deduction deferral rule described above will not apply and you will increase
your basis in the debt security by the amount of market discount you include in gross income. If
you do make such an election, it will apply to all market discount debt instruments that you
acquire on or after the first day of the first taxable year to which the election applies. This
election may not be revoked without the consent of the IRS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Information Reporting and Backup Withholding</I>. In general, information reporting requirements
will apply to payments of principal, interest, and premium, if any, paid on debt securities and to
the proceeds of the sale of debt securities paid to U.S. holders other than certain exempt
recipients (such as certain corporations). Information reporting generally will apply to payments
of interest on the debt securities to non-U.S. Holders (as defined below) and the amount of tax, if
any, withheld with respect to such payments. Copies of the information returns reporting such
interest payments and any withholding may also be made available to the tax authorities in the
country in which the non-U.S. Holder resides under the provisions of an applicable income tax
treaty. In addition, for non-U.S. Holders, information reporting will apply to the proceeds of the
sale of debt securities within the United States or conducted through United States-related
financial intermediaries unless the certification requirements described below have been complied
with and the statement described below in &#147;Taxation of Non-U.S. Holders&#148; has been received (and the
payor does not have actual knowledge or reason to know that the holder is a United States person)
or the holder otherwise establishes an exemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may be required to withhold, for U.S. federal income tax purposes, a portion of all
payments (including redemption proceeds) payable to holders of debt securities who fail to provide
us with their correct taxpayer identification number, who fail to make required certifications or
who have been notified by the IRS that they are subject to backup withholding (or if we have been
so notified). Certain corporate and other shareholders specified in the Code and
the regulations thereunder are exempt from backup withholding. Backup withholding is not an
additional tax. Any amounts withheld may be credited against the holder&#146;s U.S. federal income tax
liability provided the appropriate information is furnished to the IRS. If you are a non-U.S.
Holder, you may have to comply with certification procedures to establish your non-U.S. status in
order to avoid backup withholding tax requirements. The certification procedures required to claim
the exemption from withholding tax on interest income described below will satisfy these
requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation of Non-U.S. Holders</I>. If you are a non-resident alien individual or a foreign
corporation (a &#147;non-U.S. Holder&#148;), the payment of interest on the debt securities generally will be
considered &#147;portfolio interest&#148; and thus generally will be exempt from United States federal
withholding tax. This
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">exemption will apply to you provided that (1)&nbsp;interest paid on the debt securities is not
effectively connected with your conduct of a trade or business in the United States, (2)&nbsp;you are
not a bank whose receipt of interest on the debt securities is described in Section&nbsp;881(c)(3)(A) of
the Internal Revenue Code, (3)&nbsp;you do not actually or constructively own 10&nbsp;percent or more of the
combined voting power of all classes of our stock entitled to vote, (4)&nbsp;you are not a controlled
foreign corporation that is related, directly or indirectly, to us through stock ownership, and
(5)&nbsp;you satisfy the certification requirements described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To satisfy the certification requirements, either (1)&nbsp;the holder of any debt securities must
certify, under penalties of perjury, that such holder is a non-U.S. person and must provide such
owner&#146;s name, address and taxpayer identification number, if any, on IRS Form W-8BEN, or (2)&nbsp;a
securities clearing organization, bank or other financial institution that holds customer
securities in the ordinary course of its trade or business and holds the debt securities on behalf
of the holder thereof must certify, under penalties of perjury, that it has received a valid and
properly executed IRS Form W-8BEN from the beneficial holder and comply with certain other
requirements. Special certification rules apply for debt securities held by a foreign partnership
and other intermediaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on debt securities received by a non-U.S. Holder that is not excluded from U.S.
federal withholding tax under the portfolio interest exemption as described above generally will be
subject to withholding at a 30% rate, except where (1) the interest is effectively connected with the conduct of a U.S.
trade or business, in which case the interest will be subject to U.S. income tax on a net basis as applicable to U.S.
holders generally or (2) a non-U.S. Holder can claim the benefits of an
applicable income tax treaty to reduce or eliminate such withholding
tax. To claim the benefit of an income tax treaty or to claim an exemption from withholding because the interest is
effectively connected with a U.S. trade or business, a non-U.S. Holder must timely provide the appropriate, properly
executed IRS forms.  These forms may be required to be periodically updated.  Also, a non-U.S. Holder who is claiming
the benefits of an income tax treaty may be required to obtain a U.S. taxpayer identification number and to provide
certain documentary evidence issued by foreign governmental authorities to prove residence in the foreign country.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any capital gain that a non-U.S. Holder realizes on a sale, exchange or other disposition of
debt securities generally will be exempt from U.S. federal income tax, including
withholding tax. This exemption will not apply to you if your gain is effectively connected with
your conduct of a trade or business in the U.S. or you are an individual holder and are present in
the U.S. for a period or periods aggregating 183&nbsp;days or more in the taxable year of the disposition and either your gain is
attributable to an office or other fixed place of business that you maintain in the U.S. or you
have a tax home in the United States.
</DIV>

<DIV align="left">
<A name="142"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s securities and cash are held under a custodian agreement with The Bank of New York,
One Wall Street, New York, New York 10286. The transfer agent, dividend disbursing agent and
registrar for the Fund&#146;s shares is also The Bank of New York.
</DIV>
<DIV align="left">
<A name="143"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deloitte
&#038; Touche LLP, 111 S. Wacker Drive, Chicago, Illinois 60606, serves as our independent registered public accounting firm. Deloitte
&#038; Touche LLP provides
audit and audit-related services, and consultation in
connection with the review of our filing with the SEC.
</DIV>
<DIV align="left">
<A name="144"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Registration Statement on Form N-2, including amendments thereto,
relating to the securities
offered hereby, has been filed by the Fund with the SEC, Washington, D.C. The prospectus,
prospectus supplement and this Statement of Additional Information do not contain all of the
information set forth in the Registration Statement, including any exhibits and schedules thereto.
For further information with
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">respect to
the Fund and the securities offered hereby, reference is made to the Registration
Statement. Statements contained in the prospectus, prospectus supplement and this Statement of
Additional Information as to the contents of any contract or other document referred to are not
necessarily complete and in each instance reference is made to the copy of such contract or other
document filed as an exhibit to the Registration Statement, each such statement being qualified in
all respects by such reference. A copy of the Registration Statement may be inspected without
charge at the SEC&#146;s principal office in Washington, D.C., and copies of all or any part thereof may
be obtained from the SEC upon the payment of certain fees prescribed by the SEC.
</DIV>

<DIV align="left">
<A name="145"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ADDITIONAL INFORMATION CONCERNING THE AGREEMENT<BR>
AND DECLARATION OF TRUST</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Agreement and Declaration of Trust provides that the Fund&#146;s Trustees shall have the
power to cause each shareholder to pay directly, in advance or arrears, for charges of the Fund&#146;s
custodian or transfer, shareholder servicing or similar agent, an amount fixed from time to time by
the Trustees, by setting off such charges due from such shareholder from declared but unpaid
dividends owed such shareholder and/or by reducing the number of shares in the account of such
shareholder by that number of full and/or fractional shares which represents the outstanding amount
of such charges due from such shareholder. The Fund has no present intention of relying on this
provision of the Agreement and Declaration of Trust and would only do so if consistent with the
1940 Act or the rules and regulations or interpretations of the SEC thereunder.
</DIV>


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

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

<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">
Report of Independent Registered Public Accounting Firm
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">
To the Board of Trustees and Shareholders of
<FONT STYLE="FONT-VARIANT: SMALL-CAPS">Calamos</FONT> Global Total Return Fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have audited the accompanying statement of assets and liabilities, including the schedule of
investments, of CALAMOS Global
Total Return Fund (the &#147;Fund&#148;) as of October&nbsp;31, 2007, and the related statement of operations for
the year then ended, the statements
of changes in net assets for each of the two years then ended, and the financial highlights for
each of the two years then ended
and for the period from October&nbsp;27, 2005 (commencement of operations) through October&nbsp;31, 2005.
These financial statements and
financial highlights are the responsibility of the Fund&#146;s management. Our responsibility is to
express an opinion on these financial
statements and financial highlights based on our audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States).
Those standards require that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements
and financial highlights are free of material misstatement. The Fund is not required to have, nor
were we engaged to perform, an
audit of its internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the
effectiveness of the Fund&#146;s internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. Our procedures
included confirmation of securities owned as of October&nbsp;31, 2007, by correspondence with the Fund&#146;s
custodian and brokers.
We believe that our audits provide a reasonable basis for our opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our opinion, the financial statements and financial highlights referred to above present fairly,
in all material respects, the financial
position of the Fund as of October&nbsp;31, 2007, the results of its operations for the year then ended,
the changes in its net assets for each
of the two years then ended, and the financial highlights for each of the two years then ended and
for the period from October&nbsp;27,
2005 (commencement of operations) through October&nbsp;31, 2005, in conformity with accounting
principles generally accepted in the
United States of America.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><IMG src="c19483a2c1948300.gif" alt="(DELOITTE &#038; TOUCHE LLP LOGO )"></div>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Chicago, Illinois<BR>
December&nbsp;14, 2007
</DIV>



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

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

<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Statement of Assets and Liabilities
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" colspan="4" style="border-bottom: 1px solid #000000"><B>October 31, 2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ASSETS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments, at value* (cost $185,586,321)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240,348,357</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments in affiliated fund (cost $1,952,459)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,952,459</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash with custodian (interest bearing)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,134</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued interest and dividends receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,012,157</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prepaid expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,635</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,669</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">244,340,411</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>LIABILITIES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Options written, at value (premium $2,344,844)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,130,475</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash collateral for securities on loan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,371,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Affiliates:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Investment advisory fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186,319</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Financial accounting fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,130</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Deferred compensation to Trustees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,669</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Trustee fees and officer compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">257</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,762</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,781,612</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PREFERRED SHARES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">$25,000 liquidation value per share applicable to 2,360 shares, including dividends payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,008,196</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">168,550,603</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>COMPOSITION OF NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock, no par value, unlimited shares authorized 8,006,981 shares issued and outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">113,591,761</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Undistributed net investment income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(206,348</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accumulated net realized gain (loss)&nbsp;on investments, written options, and foreign currency transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,166,189</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net unrealized appreciation (depreciation)&nbsp;on investments, written options, and foreign currency translations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,999,001</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">168,550,603</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net asset value per common share based on 8,006,981 shares issued and outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21.05</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">*Including securities on loan with a value of $13,457,659.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying Notes to Financial Statements.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-2<!-- /Folio -->
</DIV>

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

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

<DIV align="left">
<A name="106"></A>
</DIV>

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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" colspan="4" style="border-bottom: 1px solid #000000"><B>Year Ended October 31, 2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>INVESTMENT INCOME</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,068,902</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends (net of foreign taxes withheld of $92,485)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,959,321</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends from affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,656</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities lending income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,793</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,117,672</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>EXPENSES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment advisory fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,016,530</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial accounting fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,829</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Auction agent and rating agency fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">165,167</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit and legal fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,739</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Custodian fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,366</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing and mailing fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,526</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer agent fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,401</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Registration fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,386</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trustees&#146; fees and officer compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,851</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounting fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,587</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investor support services</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,717</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,182</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,460,281</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Less expense reductions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,309</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,451,972</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">NET INVESTMENT INCOME(LOSS)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,665,700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>REALIZED AND UNREALIZED GAIN(LOSS) FROM INVESTMENTS,
WRITTEN OPTIONS, AND FOREIGN CURRENCY</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net realized gain (loss)&nbsp;from:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,396,512</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Written options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,797,667</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Foreign currency transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,472</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Change in net unrealized appreciation/depreciation on:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,380,232</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Written options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,015,939</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Foreign currency translations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,564</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">NET REALIZED AND UNREALIZED GAIN (LOSS)&nbsp;FROM INVESTMENTS, WRITTEN OPTIONS, AND FOREIGN CURRENCY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,062,052</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">NET INCREASE (DECREASE)&nbsp;IN NET ASSETS RESULTING FROM OPERATIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,727,752</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,095,387</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21,448</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">NET INCREASE (DECREASE)&nbsp;IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">47,610,917</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying Notes to Financial Statements.
</DIV>



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

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

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

<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Statements of Changes in Net Assets
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">Year Ended October 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>OPERATIONS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net investment income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,665,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,878,195</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net realized gain (loss)&nbsp;from investments, written options, and foreign currency transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,648,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,569,858</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in net unrealized appreciation/depreciation on investments, written options, and foreign currency translations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,413,735</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,585,266</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distributions to preferred shareholders from:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,095,387</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,331,114</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21,448</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase (decrease)&nbsp;in net assets applicable to common shareholders resulting from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,610,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,702,205</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,697,994</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,173,457</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(950,430</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,532,399</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net decrease in net assets from distributions to common shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,648,424</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,705,856</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>CAPITAL SHARE TRANSACTIONS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Offering costs on preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(847,169</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase (decrease)&nbsp;in net assets from capital share transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(847,169</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TOTAL
INCREASE (DECREASE)&nbsp;IN NET ASSETS APPLICABLE TO COMMON <br>SHAREHOLDERS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,962,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,149,180</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,588,110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">114,438,930</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">End of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168,550,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,588,110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Undistributed net investment income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(206,348</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">481,284</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying Notes to Financial Statements.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-4<!-- /Folio -->
</DIV>




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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Notes to Financial Statements
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>NOTE 1 &#151; ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Organization. </B>CALAMOS Global Total Return Fund (the ''Fund&#146;&#146;) was organized as a Delaware statutory
trust on March&nbsp;30, 2004 and is registered under the Investment Company Act of 1940 (the &#147;1940 Act&#148;)
as a diversified, closed-end management investment company. The Fund commenced operations on
October&nbsp;27, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund&#146;s investment objective is to provide total return through a combination of capital
appreciation and current income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Portfolio Valuation. </B>Calamos Advisors LLC, the Fund&#146;s investment adviser (&#147;Calamos Advisors&#148;),
overseas the valuation of the Fund&#146;s portfolio securities in accordance with policies and
procedures on the valuation of securities adopted by and under the ultimate supervision of the
Board of Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Portfolio securities that are traded on U.S. securities exchanges, except option securities, are
valued at the last current reported sales price at the time as of which a Fund determines its net
asset value (&#147;NAV&#148;). Securities traded in the over-the-counter (''OTC&#146;&#146;) market and quoted on The
NASDAQ Stock Market are valued at the NASDAQ Official Closing Price (''NOCP&#146;&#146;), as determined by
NASDAQ, or lacking a NOCP, the last current reported sale price on NASDAQ at the time as of which a
Fund determines its NAV.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When a most recent last sale or closing price is not available, portfolio securities, other than
option securities, that are traded on a U.S. securities exchange and other securities traded in the
OTC market are valued at the mean between the most recent bid and asked quotations in accordance
with guidelines adopted by the Board of Trustees. Each option security traded on a U.S. securities
exchange is valued at the mid-point of the consolidated bid/ask quote for the option security, also
in accordance with guidelines adopted by the Board of Trustees. Each OTC option that is not traded
through the Options Clearing Corporation is valued based on a quotation provided by the
counterparty to such option under the ultimate supervision of the Board of Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Trading in securities on European and Far Eastern securities exchanges and OTC markets is typically
completed at various times before the close of business on each day on which the New York Stock
Exchange (&#147;NYSE&#148;) is open. Each security trading on these exchanges or OTC markets is evaluated
utilizing a systematic fair valuation model provided by an independent pricing service approved by
the Board of Trustees. The valuation of each security that meets certain criteria in relation to
the valuation model is systematically adjusted to reflect the impact of movement in the U.S. market
after the foreign markets close. Securities that do not meet the criteria, or that are principally
traded in other foreign markets, are valued as of the last current sale price at the time as of
which the Fund determines its NAV, or when reliable market prices or quotations are not readily
available, at the mean between the most recent bid and asked quotations as of the close of the
appropriate exchange or other designated time, in accordance with guidelines adopted by the Board
of Trustees. Trading of foreign securities may not take place on every NYSE business day. In
addition, trading may take place in various foreign markets on Saturdays or on other days when the
NYSE is not open and on which the Fund&#146;s NAV is not calculated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the pricing committee determines that the valuation of a security in accordance with the methods
described above is not reflective of a fair value for such security, the security, including any
thinly-traded security, below investment grade bond or synthetic convertible instrument, is valued
at a fair value by the pricing committee, under the ultimate supervision of the Board of Trustees,
following the guidelines and/or procedures adopted by the Board of Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund also may use fair value pricing, pursuant to guidelines adopted by the Board of Trustees and under the ultimate supervision of the Board of Trustees, if the value of a foreign
security it holds is materially affected by events occurring before the Fund&#146;s pricing time but
after the close of the primary markets or exchanges on which the security is traded. Those
procedures may utilize valuations furnished by pricing services approved by the Board of Trustees,
which may be based on market transactions for comparable securities and various relationships
between securities that are generally recognized by institutional traders, a computerized matrix
system, or appraisals derived from information concerning the securities or similar securities
received from recognized dealers in those securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When fair value pricing of securities is employed, the prices of securities used by the Fund to
calculate its NAV may differ from market quotations or official closing prices. In light of the
judgment involved in fair valuations, there can be no assurance that a fair value assigned to a
particular security is accurate.
</DIV>



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

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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Notes to Financial Statements
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Investment Transactions. </B>Short-term and long-term investment transactions are recorded on a trade
date basis as of October&nbsp;31, 2007. Net realized gains and losses from investment transactions are
reported on an identified cost basis. Interest income is recognized using the accrual method and
includes accretion of original issue and market discount and amortization of premium. Dividend
income is recognized on the ex-dividend date, except that certain dividends from foreign securities
are recorded as soon as the information becomes available.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Foreign Currency Translation. </B>Values of investments and other assets and liabilities denominated in
foreign currencies are translated into U.S. dollars using a rate quoted by a major bank or dealer
in the particular currency market, as reported by a recognized quotation dissemination service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund does not isolate that portion of the results of operations resulting from changes in
foreign exchange rates on investments from the fluctuations arising from changes in market prices
of securities held. Such fluctuations are included with the net realized and unrealized gain or
loss from investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Recorded net realized foreign currency gains or losses arise from disposition of foreign currency,
the difference in the foreign exchange rates between the trade and settlement dates on securities
transactions, and the difference between the amounts of dividends, interest and foreign withholding
taxes recorded on the ex-date or accrual date and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains and losses arise from changes (due
to the changes in the exchange rate) in the value of foreign currency and other assets and
liabilities denominated in foreign currencies held at period end.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Option Transactions. </B>For hedging and investment purposes, the Fund may purchase or write (sell)&nbsp;put
and call options. One of the risks associated with purchasing an option is that the Fund pays a
premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of
premium and change in market value should the counterparty not perform under the contract. Put and
call options purchased are accounted for in the same manner as portfolio securities. The cost of
securities acquired through the exercise of call options is increased by premiums paid. The
proceeds from securities sold through the exercise of put options are decreased by the premiums paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as
a liability and is subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the Fund on the expiration
date as realized gains from written options. The difference between the premium and the amount paid
on effecting a closing purchase transaction, including brokerage commissions, is also treated as a
realized gain, or, if the premium is less than the amount paid for the closing purchase
transaction, as a realized loss. If a written call option is exercised, the premium is added to the
proceeds from the sale of the underlying security or currency in determining whether the Fund has
realized a gain or loss. If a written put option is exercised, the premium reduces the cost basis
of the securities purchased by the Fund. The Fund as writer of an option bears the market risk of
an unfavorable change in the price of the security underlying the written option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Allocation of Expenses Among Funds. </B>Expenses directly attributable to the Fund are charged to the
Fund; certain other expenses of Calamos Investment Trust, Calamos Advisors Trust, Calamos
Convertible Opportunities and Income Fund, Calamos Convertible and High Income Fund, Calamos
Strategic Total Return Fund, Calamos Global Total Return Fund and Calamos Global Dynamic Income
Fund are allocated proportionately among each fund in relation to the net assets of each fund or on
another reasonable basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Use of Estimates. </B>The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying notes. Actual results may differ
from those estimates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Income Taxes. </B>No provision has been made for U.S. income taxes because the Fund&#146;s policy is to
continue to qualify as regulated investment company under the Internal Revenue Code of 1986, as
amended (the &#147;Code&#148;), and distribute to shareholders substantially all of its taxable income and
net realized gains.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-6<!-- /Folio -->
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Notes to Financial Statements
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dividends and distributions paid to shareholders are recorded on the ex-dividend date. The amount
of dividends and distributions from net investment income and net realized capital gains is
determined in accordance with federal income tax regulations, which may differ from U.S. generally
accepted accounting principles. To the extent these &#147;book/tax&#148; differences are permanent in nature,
such amounts are reclassified within the capital accounts based on their federal tax-basis
treatment. These differences are primarily due to differing treatments for foreign currency
transactions, contingent payment debt instruments and methods of amortizing and accreting on fixed
income securities. The financial statements are not adjusted for temporary differences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Indemnifications. </B>Under the Fund&#146;s organizational documents, the Fund is obligated to indemnify its
officers and trustees against certain liabilities incurred by them by reason of having been an
officer or trustee of the Fund. In addition, in the normal course of business, the Fund
may enter into contracts that provide general indemnifications to other parties. The Fund&#146;s maximum
exposure under these arrangements is unknown as this would involve future claims that may be made
against the Fund that have not yet occurred. Currently, the Fund&#146;s management expects the risk of
material loss in connection to a potential claim to be remote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>New Accounting Pronouncements. </B>On July&nbsp;13, 2006, the Financial Accounting Standards Board (FASB)
released FASB Interpretation No.&nbsp;48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN 48 provides guidance
for how uncertain tax positions should be recognized, measured, presented and disclosed in the
financial statements. FIN 48 requires the evaluation of tax positions taken in the course of
preparing the Fund&#146;s tax returns to determine whether the tax positions are &#147;more-likely-than-not&#148;
of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet
the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption
of FIN 48 is required for fiscal years beginning after December&nbsp;15, 2006 and is to be applied to
all open tax years as of the effective date. At this time, management is evaluating the
implications of FIN 48, and its impact on the financial statements has not yet been determined.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, in September&nbsp;2006, the Statement of Financial Accounting Standards No.&nbsp;157, <I>Fair Value
Measurements </I>(SFAS 157), was issued and is effective for fiscal years beginning after November&nbsp;15,
2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands
disclosures about fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund&#146;s financial statements, and their disclosures and its
impact has not yet been determined.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOTE 2 &#151; INVESTMENT ADVISOR AND TRANSACTIONS WITH AFFILIATES OR CERTAIN OTHER PARTIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to an investment advisory agreement with Calamos Advisors LLC (&#147;Calamos Advisors&#148;), the
Fund pays an annual fee, payable monthly, equal to 1.00% based on the average weekly managed
assets. Calamos Advisors has contractually agreed to waive a portion of its advisory fee charged to
the Fund on the Fund&#146;s investments in the Calamos Government Money Market Fund (&#147;GMMF,&#148; an
affiliated fund and a series of Calamos Investments Trust), equal to the advisory fee attributable
to the Fund&#146;s investment in GMMF, based on daily net assets. For the year ended October&nbsp;31, 2007,
the total advisory fee waived pursuant to such agreement was $2,477 and is included in the
statement of operations under the caption &#147;Less expense reduction&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to a financial accounting services agreement, the Fund also pays Calamos Advisors a fee
for financial accounting services payable monthly at the annual rate of 0.0175% on the first $1
billion of combined assets; 0.0150% on the next $1&nbsp;billion of combined assets and 0.0110% on
combined assets above $2&nbsp;billion (for purposes of this calculation &#147;combined assets&#148; means the sum
of the total average daily net assets of Calamos Investment Trust and Calamos Advisors Trust, and
the total average weekly managed assets of Calamos Convertible and High Income Fund, Calamos
Convertible Opportunities and Income Fund, Calamos Strategic Total Return Fund, Calamos Global
Total Return Fund and Calamos Global Dynamic Income Fund). &#147;Managed assets&#148; means the Fund&#146;s total
assets (including any assets attributable to any leverage that may be outstanding) minus total
liabilities (other than debt representing financial leverage). Financial accounting services
include, but are not limited to, the following: managing expenses and expenses payment processing;
monitoring the calculation of expense accrual amounts; calculating, tracking and reporting tax
adjustments on all assets; and monitoring trustee deferred compensation plan accruals and
valuations. The Fund pays its pro rata share of the financial accounting services fee to Calamos
Advisors based on the Fund&#146;s respective managed assets and/or net assets used in calculating the
fee.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-7<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Notes to Financial Statements
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund reimburses Calamos Advisors for a portion of compensation paid to the Fund&#146;s Chief
Compliance Officer. This compensation is reported as part of &#147;Trustees&#146; fee and officer
compensation&#148; expenses on the Statement of Operations. Included in the statement of operations under
the caption &#147;Less expense reduction&#148; are expense offsets of $5,832, arising from credits on cash
balances maintained on deposit with the Fund&#146;s custodian.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain officers and trustees of the Fund are also officers and directors of Calamos Financial
Services LLC (&#147;CFS&#148;) and Calamos Advisors. All such officers and affiliated trustees serve without
direct compensation from the Fund, except for the Chief Compliance Officer as described above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund has adopted a deferred compensation plan (the &#147;Plan). Under the Plan, a trustee who is not
an &#147;interested person&#148; (as defined in the 1940 Act) of the Fund and has elected to participate in
the Plan (a &#147;participating trustee&#148;) may defer receipt of all or a portion of his compensation from
the Fund. The deferred compensation payable to the participating trustee is credited to the
trustee&#146;s deferral account as of the business day such compensation would have been paid to the
participating trustee. The value of amount deferred for a participating trustee is determined by
reference to the change in value of Class&nbsp;I shares of one or more funds of Calamos Investment Trust
designated by the participant. The value of the account increases with contributions to the account
or with increases in the value of the measuring shares, and the value of the account decreases with
withdrawals from the account or with declines in the value of the measuring shares. Deferred
compensation investments of $17,669 is included in &#147;Other assets&#148; on the Statement of Assets and
Liabilities at October&nbsp;31, 2007. The Fund&#146;s obligation to make payments under the Plan is a general
obligation of the Fund and is included in &#147;Payable for deferred compensation to Trustees&#148; on the
Statement of Assets and Liabilities at October&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOTE 3 &#151; INVESTMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Purchases and sales of investments, other than short-term investments, for the year ended October
31, 2007 were as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">171,519,737</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Proceeds from sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">179,153,867</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following information is presented on a Federal income tax basis as of October&nbsp;31, 2007.
Differences between the cost basis under U.S. generally accepted accounting principals and federal
income tax purposes are primarily due to timing differences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The cost basis of investments for Federal income tax purposes at October&nbsp;31, 2007 was as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross basis of investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">187,685,356</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross unrealized appreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,484,707</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross unrealized depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,869,247</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net unrealized appreciation (depreciation)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,615,460</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOTE 4 &#151; INCOME TAXES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the year ended October&nbsp;31, 2007, the Fund recorded the following permanent reclassifications to
reflect tax character. Results of operations and net assets were not affected by these
reclassifications.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Undistributed net investment income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,440,049</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accumulated net realized gain/(loss) on investments, written options and foreign currency transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,440,049</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Distributions during the fiscal year ended October&nbsp;31, 2006 and October&nbsp;31, 2007 were characterized
for Federal income tax purposes as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Distributions paid from:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ordinary income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,287,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,980,754</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term capital gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,526,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-8<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Notes to Financial Statements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of October&nbsp;31, 2007, the components of accumulated earnings/(loss) on a tax basis were as
follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Undistributed ordinary income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Undistributed capital gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,129,096</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total undistributed earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,129,096</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accumulated capital and other losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net unrealized gains/(losses)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,852,425</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total accumulated earnings/(losses)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,981,521</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22,679</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113,591,761</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net assets applicable to common shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">168,550,603</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOTE 5
&#150; COMMON SHARES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are unlimited common shares of beneficial interest authorized and 8,006,981 shares
outstanding at October&nbsp;31, 2007. Calamos Advisors owned 7,915 of the outstanding shares at October
31, 2007. Transactions in common shares were as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>For the Year Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>For the Year Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>October 31, 2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>October 31, 2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beginning shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,006,981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,006,981</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shares issued through reinvestment of distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ending shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,006,981</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,006,981</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOTE 6
&#150; FORWARD FOREIGN CURRENCY CONTRACTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund may engage in portfolio hedging with respect to changes in currency exchange rates by
entering into foreign currency contracts to purchase or sell currencies. A forward foreign currency
contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated
forward rate. Risks associated with such contracts include, among other things, movement in the
value of the foreign currency relative to U.S. dollar and the ability of the counterparty to
perform. The net unrealized gain, if any, represents the credit risk to the Fund on a forward
foreign currency contract. The contracts are valued daily at forward foreign exchange rates and an
unrealized gain or loss is recorded. The Fund realizes a gain or loss when a position is closed or
upon settlement of the contracts. There were no open forward currency contracts at October&nbsp;31,
2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOTE 7 &#151; PREFERRED SHARES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are unlimited shares of Auction Rate Cumulative Preferred Shares (&#147;Preferred Shares&#148;)
authorized. The Preferred Shares have rights as determined by the Board of Trustees. The 2,360
shares of Preferred Shares outstanding consist of one series, 2,360 shares of T. The Preferred
Shares have a liquidation value of $25,000 per share plus any accumulated but unpaid dividends,
whether or not declared.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dividends on the Preferred Shares are cumulative at a rate typically reset every seven or
twenty-eight days based on the results of an auction. Dividend rates ranged from 4.90% to 6.25% for
the year ended October&nbsp;31, 2007. Under the 1940 Act, the Fund may not declare dividends or make
other distributions on its common shares or purchase any such shares if, at the time of the
declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred
Shares would be less than 200%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Preferred Shares are redeemable at the Fund&#146;s option, in whole or in part, on any dividend
payment date at $25,000 per share plus any accumulated but unpaid dividends. The Preferred Shares
are also subject to mandatory redemption at $25,000 per share plus any accumulated but unpaid
dividends, whether or not declared, if certain requirements relating to the composition of the
assets and liabilities of the Fund as set forth in the Statement of Preferences are not satisfied.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->F-9<!-- /Folio -->
</DIV>

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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Notes to Financial Statements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The holders of Preferred Shares have voting rights equal to the holders of common shares (one vote
per share) and will vote together with holders of common shares as a single class except on matters
affecting only the holders of Preferred Shares or only the holders of common shares, when the
respective classes vote alone.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOTE 8
&#150; WRITTEN OPTIONS TRANSACTIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund may engage in option transactions and in doing so achieve the similar objectives to what
it would achieve through the sale or purchase of individual securities. For the fiscal year ended
October, 31, 2007, the Fund had the following transactions in options written:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Premiums</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Contracts</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Received</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>

    <TD colspan="8" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options outstanding at October&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,441,680</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options written</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,960,197</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options closed</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22,598</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,669,986</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options expired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,252</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(387,047</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD colspan="8" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Options outstanding at October&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,344,844</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 0px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOTE 9
&#150; SECURITIES LENDING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the fiscal year ended October&nbsp;31, 2007, the Fund loaned one or more of its securities to
broker-dealers and banks. Any such loan must be continuously secured by collateral in cash or cash
equivalents maintained on a current basis in an amount at least equal to the market value of the
securities loaned by the Fund. The Fund continues to receive the equivalent of the interest or
dividends paid by the issuer on the securities loaned and also receives an additional return that
may be in the form of a fixed fee or a percentage of the collateral. The Fund may pay reasonable
fees to persons unaffiliated with the Fund for services in arranging these loans. The Fund has the
right to call the loan and obtain the securities loaned at any time on notice of not less than five
business days. The Fund does not have the right to vote the securities during the existence of the
loan but could call the loan in an attempt to permit voting of the securities in certain
circumstances. Upon return of the securities loaned, the cash or cash equivalent collateral will be
returned to the borrower. In the event of bankruptcy or other default of the borrower, the Fund
could experience both delays in liquidating the loan collateral or recovering the loaned securities
and losses, including (a)&nbsp;possible decline in the value of the collateral or in the value of the
securities loaned during the period while the Fund seeks to enforce its rights thereto, (b)
possible subnormal levels of income and lack of access to income during this period, and (c)&nbsp;the
expenses of enforcing its rights. The market value of the loaned securities is determined at the
close of business of the Fund and any additional required collateral is delivered to the Fund the
next day. In an effort to reduce these risks, the Fund&#146;s security lending agent monitors and
reports to Calamos Advisors on the creditworthiness of the firms to which the Fund lends
securities. At October&nbsp;31, 2007, the Fund had securities valued at $13,457,659 on loan to
broker-dealers and banks and $13,371,000 in cash or
cash equivalent collateral.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NOTE
10 &#150; SYNTHETIC CONVERTIBLE SECURITIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund
may establish a &#147;synthetic&#146;&#146; convertible instrument by combining separate securities that
possess the economic characteristics similar to a convertible security, i.e., fixed-income
securities (&#147;fixed-income component&#146;&#146;, which may be a convertible or non-convertible security) and
the right to acquire equity securities (&#147;convertible component&#146;&#146;). The fixed-income component is
achieved by investing in fixed income securities such as bonds, preferred stocks and money market
instruments. The convertible component is achieved by investing in warrants or options to buy
common stock at a certain exercise price, or options on a stock index. In establishing a synthetic
instrument, the Fund may pool a basket of fixed-income securities and a basket of warrants or
options that produce the economic characteristics similar to a convertible security. Within each
basket of fixed-income securities and warrants or options, different companies may issue the
fixed-income and convertible components, which may be purchased separately and at different times.
</DIV>




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

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

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Notes to Financial Statements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund may also purchase synthetic securities created by other parties, typically investment
banks, including convertible structured notes. Convertible structured notes are fixed-income
debentures linked to equity. Convertible structured notes have the attributes of a convertible
security; however, the investment bank that issued the convertible note assumes the credit risk
associated with the investment, rather than the issuer of the underlying common stock into which
the note is convertible. Purchasing synthetic convertible securities may offer more flexibility
than purchasing a convertible security.
</DIV>




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



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="109"></A>
</DIV>

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


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

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">October 27,</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2005*</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">For the</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">through</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">Year Ended October 31,</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">October 31,</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net asset value, beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">14.32</TD>
    <TD nowrap>(a)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income from investment operations:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.96</TD>
    <TD nowrap>**</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>(b)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net realized and unrealized gain (loss)&nbsp;from investments, written options
and foreign currency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distributions to preferred shareholders from:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income (common share equivalent basis)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.39</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.29</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital gains (common share equivalent basis)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&#151;</TD>
    <TD>b&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total from investment operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less distributions to common shareholders from:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.09</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.65</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.19</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital charge resulting from issuance of common and preferred shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.11</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net asset value, end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">21.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14.29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Market value, end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">19.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total investment return based on(c):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net asset value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">38.30</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20.77</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(0.24</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Market value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">33.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratios and supplemental data:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net assets applicable to common shareholders, end of period (000&#146;s omitted)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">168,551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">130,588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">114,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preferred shares, at redemption value ($25,000 per share liquidation
preference) (000&#146;s omitted)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">59,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">59,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratios to average net assets applicable to common shareholders:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net expenses(d)(e)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.72</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.70</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.33</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gross expenses(d)(e)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.72</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.70</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.37</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income (loss)(d)(e)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.37</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.57</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1.33</TD>
    <TD nowrap>)%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Preferred share distributions from net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.17</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.89</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net investment income (loss), net of preferred share distributions from net investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.20</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.68</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Portfolio turnover rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">85</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">32</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average commission rate paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.0377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.0258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asset coverage per preferred share, at end of period(f)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">96,423</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">80,358</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="13" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV style="margin-top: 3pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Commencement of operations.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Net investment income allocated based on average shares method.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(a)</TD>
    <TD>&nbsp;</TD>
    <TD>Net of sales load of $0.675 on initial shares issued and
beginning net asset value of $14.325. </TD>
</TR>


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

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

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

<TR valign="top">
    <TD nowrap align="left">(c)</TD>
    <TD>&nbsp;</TD>
    <TD>Total investment return is calculated assuming a purchase of common shares on the opening of
the first day and a sale on the closing of the last day of the period reported. Dividends and
distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained
under the Fund&#146;s dividend reinvestment plan. Total return is not annualized for periods less than
one year. Brokerage commissions are not reflected. NAV per share is determined by dividing the
value of the Fund&#146;s portfolio securities, cash and other assets, less all liabilities, by the total
number of common shares outstanding. The common share market price is the price the market is
willing to pay for shares of the Fund at a given time. Common share market price is influenced by a
range of factors, including supply and demand and market conditions.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(d)</TD>
    <TD>&nbsp;</TD>
    <TD>Annualized for periods less than one year.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(e)</TD>
    <TD>&nbsp;</TD>
    <TD>Does not reflect the effect of dividend payments to the shareholders of Preferred Shares.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(f)</TD>
    <TD>&nbsp;</TD>
    <TD>Calculated by subtracting the Fund&#146;s total liabilities (not including Preferred Shares)
from the Fund&#146;s total assets and dividing this by the number of Preferred Shares outstanding.</TD>
</TR>

</TABLE>
</DIV>



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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>OCTOBER 31, 2007</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>PRINCIPAL</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>AMOUNT</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>VALUE</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="11" valign="top" align="left"><B>CORPORATE BONDS (28.3%)</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Consumer Discretionary (14.1%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">$</TD>
    <TD valign="top" align="right">1,500,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Asbury Automotive Group, Inc.^<BR>
7.625%, 03/15/17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,410,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,060,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">DIRECTV Financing Company,
Inc.~<BR>
8.375%, 03/15/13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,163,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Expedia, Inc.~<BR>
7.456%, 08/15/18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,033,693</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,600,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Ford Motor Company~<BR>
9.875%, 08/10/11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,598,811</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">General Motors Corp.^<BR>
7.200%, 01/15/11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">960,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,875,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Goodyear Tire &#038; Rubber Company~<BR>
7.857%, 08/15/11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,950,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Hanes Brands, Inc.~&#135;<BR>
8.784%, 12/15/14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,020,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Idearc, Inc.~<BR>
8.000%, 11/15/16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,015,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">440,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Jarden Corp.~<BR>
7.500%, 05/01/17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">420,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Liberty Media Corp.~<BR>
8.250%, 02/01/30</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,976,040</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Mandalay Resort Group~<BR>
7.625%, 07/15/13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,995,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,325,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">NCL Holding, ASA~<BR>
10.625%, 07/15/14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,365,688</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Royal Caribbean Cruises, Ltd.~<BR>
7.500%, 10/15/27</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,900,012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Service Corp. International~<BR>
7.500%, 04/01/27</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,880,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,687,444</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Consumer Staples (2.1%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,500,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Del Monte Foods Company~<BR>
8.625%, 12/15/12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,537,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Pilgrim&#146;s Pride Corp.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,500,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">8.375%, 05/01/17^</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,518,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">500,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">7.625%, 05/01/15~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">505,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,561,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Energy (0.5%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">750,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Petr&#243;leo Brasileiro, SA~<BR>
8.375%, 12/10/18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">885,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Financials (0.8%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">500,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">E*TRADE Financial Corp.~<BR>
7.875%, 12/01/15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">460,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">920,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Leucadia National Corp.~<BR>
8.125%, 09/15/15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">932,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,392,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Health Care (1.7%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,800,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">HCA, Inc.*<BR>
9.250%, 11/15/16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,899,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Tenet Healthcare Corp.~<BR>
9.250%, 02/01/15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">885,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,784,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Industrials (1.0%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,800,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">H&#038;E Equipment Service, Inc.~<BR>
8.375%, 07/15/16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,755,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Information Technology (2.8%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">900,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Avago Technologies~<BR>
11.875%, 12/01/15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,012,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">iPayment, Inc.~<BR>
9.750%, 05/15/14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">965,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,700,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">SunGard Data Systems, Inc.~<BR>
9.125%, 08/15/13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,767,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,745,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Materials (2.6%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">900,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Ineos Group Holdings, PLC*<BR>
7.875%, 02/15/16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,205,917</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Mosaic Company~*<BR>
7.625%, 12/01/16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,165,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Polyone Corp.<BR>
8.875%, 05/01/12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,040,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,410,917</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Telecommunication Services (2.7%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,700,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Citizens Communications Company~<BR>
9.000%, 08/15/31</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,757,375</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Leap Wireless International, Inc.~<BR>
9.375%, 11/01/14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,995,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">750,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Windstream Corp.~<BR>
8.625%, 08/01/16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">806,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,558,625</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>TOTAL CORPORATE BONDS</B><BR>
(Cost $47,917,608)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,779,886</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="11" valign="top" align="left"><B>CONVERTIBLE BONDS (15.2%)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Consumer Discretionary (5.4%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Amazon.com, Inc.~<BR>
4.750%, 02/01/09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,192,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,500,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Ford Motor Company~<BR>
4.250%, 12/15/36</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,803,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,500,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">General Motors Corp.~<BR>
6.250% 07/15/33</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,542,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,500,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Intralot SA<BR>
2.250%, 12/20/13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,498,747</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">850,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Punch Taverns Redwood Jersey
Company Ltd.<BR>
5.000%, 12/14/10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,047,842</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,084,839</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Health Care (1.1%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,700,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Wyeth~&#135;<BR>
4.886%, 01/15/24</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,822,842</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying Notes to Schedule of Investments.
</DIV>



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

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

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Schedule of Investments
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OCTOBER 31, 2007</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>PRINCIPAL</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>AMOUNT</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="CENTER" colspan="2"><B>VALUE</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Industrials (2.7%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">$</TD>
    <TD valign="top" align="right">1,700,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">MTU Aero Engines Holdings, AG<BR>
2.750%, 02/01/12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,699,545</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,175,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Quanta Services, Inc.~*<BR>
3.750%, 04/30/26</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,863,844</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,563,389</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Information Technology (3.6%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">3,300,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Business Objects, SA<BR>
2.250%, 01/01/27</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,409,226</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">2,500,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Intel Corp.^~<BR>
2.950%, 12/15/35</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,681,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">900,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">VeriSign, Inc.~*<BR>
3.250%, 08/15/37</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,078,875</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,169,351</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Telecommunication Services (0.5%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">900,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">NII Holdings, Inc.*<BR>
3.125%, 06/15/12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">835,875</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Utilities (1.9%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,550,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">International Power, PLC<BR>
3.250%, 07/20/13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,139,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>TOTAL CONVERTIBLE BONDS</B><BR>
(Cost $22,679,858)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,615,496</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="11" valign="top" align="left"><B>SYNTHETIC CONVERTIBLE SECURITIES (5.1%)</B></TD>
</TR>
<TR valign="bottom">
    <TD colspan="11" valign="top" align="left"><B><I>Sovereign Bonds (3.4%)</I></B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Consumer Discretionary (3.4%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,800,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Deutschland Republic Treasury<BR>
4.500%, 07/04/09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,621,596</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,500,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">United Kingdom Treasury<BR>
5.750%, 12/07/09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,159,802</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">TOTAL SOVEREIGN BONDS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,781,398</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>CONTRACTS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>VALUE</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="6" valign="top" align="LEFT"><B><I>Options (1.7%)</I></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Consumer Discretionary (0.1%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">65</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Garmin, Ltd.#<BR>
Call, 01/17/09, Strike $100.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Industrials (0.2%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">90</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Alliant Techsystems, Inc.#<BR>
Call, 01/17/09, Strike $110.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,850</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">165</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Honeywell International, Inc.#<BR>
Call, 01/17/09, Strike $55.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">183,150</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">324,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Information Technology (1.4%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">100</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Apple, Inc.#<BR>
Call, 01/17/09, Strike $130.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">752,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">235</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Cisco Systems, Inc.#<BR>
Call, 01/17/09, Strike $30.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">166,263</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">35</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Google, Inc.#<BR>
Call, 01/17/09, Strike $520.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">828,625</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">90</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Research In Motion, Ltd.#<BR>
Call, 01/17/09, Strike $73.30</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">548,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,295,488</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">TOTAL OPTIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,815,138</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>TOTAL SYNTHETIC
CONVERTIBLE SECURITIES</B><BR>
(Cost $6,940,621)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,596,536</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>SHARES</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>VALUE</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="11" valign="top" align="left"><B>CONVERTIBLE PREFERRED STOCKS (8.1%)</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Financials (1.8%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">32,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">MetLife, Inc.~<BR>
6.375%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,072,640</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,100</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Swiss Re<BR>
6.000%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">997,264</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">20,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Washington Mutual, Inc.~<BR>
5.375%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">885,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,954,904</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Health Care (2.5%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">16,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Schering-Plough Corp.~<BR>
6.000%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,260,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Materials (3.8%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">34,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Cia Vale do Rio Doce~<BR>
5.500%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,489,480</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">450</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Givaudan SA<BR>
5.375%</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,972,851</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,462,331</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>TOTAL CONVERTIBLE
PREFERRED STOCKS</B><BR>
(Cost $13,230,138)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,677,235</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="11" valign="top" align="left"><B>COMMON STOCKS (77.5%)</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Consumer Discretionary (6.8%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">135,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Esprit Holdings, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,254,678</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">53,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Hennes &#038; Mauritz AB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,541,429</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">20,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Industria de Diseno Textil, SA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,495,374</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">20,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Nike, Inc.~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,325,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">10,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Volkswagen, AG</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,858,583</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,475,264</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Consumer Staples (11.7%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">100,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">British American Tobacco, PLC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,809,757</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">40,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Coca-Cola Company~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,470,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">44,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Heineken, NV</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,088,679</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">32,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">InBev, NV</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,028,713</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">7,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Nestle Holdings, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,233,173</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying Notes to Schedule of Investments.
</DIV>




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

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

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>OCTOBER 31, 2007</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>SHARES</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>VALUE</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">40,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Reynolds American, Inc.^</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,577,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">50,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Woolworths, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,567,083</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,775,005</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Energy (7.8%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">16,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Canadian Natural Resources, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,330,609</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">30,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Chevron Corp.~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,745,300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">30,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">ENI S.p.A.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,095,398</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">170,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Nippon Oil Corp.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,505,637</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">24,800</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">PetroChina Company, Ltd.^~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,512,480</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,189,424</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Financials (18.0%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">105,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Australian Stock Exchange, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,661,884</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">33,120</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">EFG Eurobank Ergasias</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,292,385</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">7,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Goldman Sachs Group, Inc.~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,735,440</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">380,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Henderson Group, PLC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,486,282</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">40,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">JPMorgan Chase &#038; Company~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,880,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">40,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Manulife Financial Corp.^</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,855,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">52,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Power Financial Corp.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,318,023</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">135,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">QBE Insurance Group, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,131,345</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">916,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Singapore Exchange, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,037,164</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,398,123</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Health Care (9.0%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">22,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Alcon, Inc.^~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,348,620</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">43,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Astellas Pharma, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,908,831</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">63,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">CSL, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,141,753</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">21,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Johnson &#038; Johnson~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,368,570</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">60,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Merck &#038; Company, Inc.~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,495,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">72,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Pfizer, Inc.~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,771,920</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">6,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Roche Holding, AG</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,024,819</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,060,113</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Industrials (1.4%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">40,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Leighton Holdings, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,341,717</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Information Technology (19.7%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">37,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Canon, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,872,178</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">90,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Infosys Technologies, Ltd.~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,584,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">68,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Microsoft Corp.~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,503,080</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">13,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Nintendo Company, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,256,023</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">225,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Nokia Corp.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,935,979</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">37,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">SAP, AG</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000,720</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">17,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">TDK Corp.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,395,183</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">185,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Toshiba Corp.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,566,632</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">240,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Vtech Holdings, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,049,380</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,163,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Telecommunication Services (3.1%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">38,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">America Movil, S.A. de C.V.~</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,484,820</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">400,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">BT Group, PLC#</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,718,892</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,203,712</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>TOTAL COMMON STOCKS</B><BR>
(Cost $80,851,087)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,607,133</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="11" valign="top" align="left"><B>WARRANTS (0.1%)</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Consumer Discretionary (0.1%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">36,362</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Expedia, Inc.#<BR>
05/07/12, Strike $24.46<BR>
(Cost $72,179)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">253,443</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>CONTRACTS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>VALUE</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="11" valign="top" align="left"><B>PUT OPTIONS (0.3%)</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Financials (0.3%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">SPDR Trust Series&nbsp;1#</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,235</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Put, 03/22/08, Strike $144.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">444,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">235</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Put, 11/17/07, Strike $138.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,763</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">230</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Put, 11/07/07, Strike $137.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,265</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>TOTAL OPTIONS</B><BR>
(Cost $523,830)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">447,628</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>SHARES</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>VALUE</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="11" valign="top" align="left"><B>INVESTMENT IN AFFILIATED FUND (1.2%)</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,952,459</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Calamos Government Money Market<BR>
Fund &#151; Class&nbsp;I Shares 3<BR>
4.711%<BR>
(Cost $1,952,459)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,952,459</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="11" valign="top" align="left"><B>INVESTMENTS OF CASH COLLATERAL FOR
SECURITIES ON LOAN (7.9%)</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">13,371,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Bank of New York Institutional<BR>
Cash Reserve Fund<BR>
current rate 5.158%<BR>
(Cost $13,371,000)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,371,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="7" valign="top" align="left"><DIV style="margin-left:15px; text-indent:-0px"><B>TOTAL INVESTMENTS (143.7%)</B><BR>
(Cost $187,538,780) </div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">242,300,816</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">PAYABLE UPON RETURN OF SECURITIES ON LOAN (-7.9%) </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(13,371,000</TD>
    <TD>)&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="7" valign="top" align="left">LIABILITIES, LESS OTHER ASSETS (-0.8%) </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(1,371,017</TD>
    <TD>)&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">PREFERRED SHARES AT REDEMPTION VALUE INCLUDING
DIVIDENDS PAYABLE (-35.0%)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(59,008,196</TD>
    <TD>)&nbsp;</TD>
</tr>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="7" valign="top" align="left"><B>NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS (100.0%) </B></TD>
    <TD>&nbsp;</TD>
    <TD>$&nbsp;</TD>
    <TD align="right">168,550,603</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying Notes to Schedule of Investments.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-15<!-- /Folio -->
</DIV>

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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Schedule of Investments
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OCTOBER 31, 2007</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>NUMBER OF</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="2"><B>CONTRACTS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>VALUE</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="11" valign="top" align="left"><B>WRITTEN OPTIONS (-1.9%)</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B><I>Financials (-1.9%)</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">iShares MSCI EAFE Index Fund#</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,500</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 12/22/07, Strike $85.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(517,500</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,360</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 12/22/07, Strike $83.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(666,400</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,350</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 12/22/07, Strike $84.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(567,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">1,200</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 03/22/08, Strike $85.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(552,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">540</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 12/22/07, Strike $80.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(399,600</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">SPDR Trust Series&nbsp;1#</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">400</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 12/22/07, Strike $158.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(102,000</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">250</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 11/17/07, Strike $159.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,750</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">115</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 03/22/08, Strike $152.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(113,850</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">100</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 12/22/07, Strike $157.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30,500</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">100</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 03/22/08, Strike $150.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(112,500</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">85</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">Call, 03/22/08, Strike $157.00</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(57,375</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>TOTAL WRITTEN OPTIONS</B><BR>
(Premium $2,344,844)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,130,475</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>NOTES TO SCHEDULE OF INVESTMENTS</B>

</DIV>


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

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

<TR valign="top">
    <TD align="left" colspan="3">Note: Value for Securities denominated in foreign
currencies is shown in U.S. dollars. The principal amount
for such securities are shown in the respective foreign
currency. The date shown on options represents the
expiration date of the option contract. The option
contract may be exercised at any date on or before the
date shown.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">^</TD>
    <TD>&nbsp;</TD>
    <TD>Security, or portion of security, is on loan.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">~</TD>
    <TD>&nbsp;</TD>
    <TD>Security, or portion of security, is held in a
segregated account as collateral for written options
aggregating a total market value of $86,650,848.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">&#135;</TD>
    <TD>&nbsp;</TD>
    <TD>Variable rate or step bond security. The rate
shown is the rate in effect at October&nbsp;31, 2007.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Securities issued and sold pursuant to a Rule&nbsp;144A
transaction are excepted from the registration
requirement of the Securities Act of 1933, as
amended. These securities may only be sold to
qualified institutional buyers (&#147;QIBs&#148;), such as the
Fund. Any resale of these securities must generally
be effected through a sale that is registered under
the Act or otherwise exempted or excepted from such
registration requirements. At October&nbsp;31, 2007 the
value of 144A securities that could not be exchanged
to the registered form is $6,348,792 or 3.8% of net
assets.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">#</TD>
    <TD>&nbsp;</TD>
    <TD>Non-income producing security.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Symbol">&#087;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Investment in an affiliated fund. During the period
from November&nbsp;1, 2006, through October&nbsp;31, 2007, the
fund had net purchases of $1,952,459, and received
$63,656 in dividend payments from the affiliated
fund. As of October&nbsp;31, 2006, the Fund had no
holdings of the affiliated fund.</TD>
</TR>

</TABLE>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying Notes to Financial Statements.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-16<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>OCTOBER 31, 2007</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>COUNTRY ALLOCATION AS OF OCTOBER 31, 2007</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Country</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% of Portfolio</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United States</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">38.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Japan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">United Kingdom</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Switzerland</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Finland</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Germany</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bermuda</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">India</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Greece</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sweden</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brazil</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Netherlands</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Belgium</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mexico</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">France</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liberia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Spain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Italy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cayman Islands</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Country allocations vary over time.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See accompanying Notes to Financial Statements.
</DIV>



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

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="146"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>APPENDIX&nbsp;A &#150;<BR>
FORM OF<BR>
CALAMOS GLOBAL TOTAL RETURN FUND<BR>
STATEMENT OF PREFERENCES OF<BR>
AUCTION RATE CUMULATIVE PREFERRED SHARES (&#147;PREFERRED SHARES&#148;)</B>

</DIV>

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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="94%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B></TD>
</TR>
<TR>
<td>&nbsp;</td>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#150">DESIGNATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#151">PART&nbsp;I: TERMS OF PREFERRED SHARES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#152">1. Number of Shares; Ranking</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#153">2. Dividends</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#154">3. Redemption</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#155">4. Designation of Dividend Period</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#156">5. Restrictions on Transfer</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#157">6. Voting Rights</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#158">7. Liquidation Rights</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#159">8. Auction Agent</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#160">9. 1940 Act Preferred Shares Asset Coverage</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#161">10. Preferred Shares Basic Maintenance Amount</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#162">11. Certain Other Restrictions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#163">12. Compliance Procedures for Asset Maintenance Tests</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#164">13. Notices</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#165">14. Waiver</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#166">15. Termination</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#167">16. Amendment</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#168">17. Definitions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#169">18. Interpretation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#170">PART&nbsp;II: AUCTION PROCEDURES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#171">1. Certain Definitions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#172">2. Orders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#173">3. Submission of Orders by Broker-Dealers to Auction Agent</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#174">4. Determination of Sufficient Clearing Bids, Winning Bid Rate and Applicable Rate</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#175">5. Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and Allocation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#186">6. Transfer of Preferred Shares</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-52</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos Global Total Return Fund, a Delaware statutory trust (the &#147;Trust&#148;), certifies that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First: Pursuant to authority expressly vested in the Board of Trustees of the Trust by
Article&nbsp;V of its Agreement and Declaration of Trust (which as hereafter amended, restated and
supplemented from time to time, is together with this Statement, the &#147;Declaration&#148;), the Board of
Trustees has duly authorized the creation and issuance of, &#95;&#95;&#95;shares of preferred shares (no par
value) and has further classified &#95;&#95;&#95;of such shares as &#147;Series&nbsp;&#95;&#95;&#95;Preferred Shares&#148;,
liquidation preference $25,000 per share, &#95;&#95;&#95;of such shares as &#147;Series&nbsp;&#95;&#95;&#95;Preferred Shares&#148;,
liquidation preference $25,000 per share and &#95;&#95;&#95;of such shares as &#147;Series &#95;&#95;&#95;Preferred Shares&#148;,
liquidation preference $25,000 per share (each a &#147;Series&#148; of Preferred Shares, and together, the
&#147;Preferred Shares&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Second: The preferences, voting powers, restrictions, limitations as to dividends,
qualifications, and terms and conditions of redemption, of the Preferred Shares are as follows:
</DIV>
<DIV align="left">
<A name="150"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series&nbsp;&#95;&#95;&#95;Preferred Shares: a Series of &#95;&#95;&#95;Preferred Shares, no par value, liquidation
preference $25,000 per share, is hereby designated &#147;Series&nbsp;&#95;&#95;&#95;Preferred Shares&#148; (&#147;Series&nbsp;&#95;&#95;&#95;
Preferred Shares&#148;). Each share of Series&nbsp;&#95;&#95;&#95;Preferred Shares shall have an initial dividend rate
per annum equal to &#95;&#95;&#95;% and an initial Dividend Payment Date of &#95;&#95;&#95;and have such other
preferences, rights, voting powers, restrictions, limitations as to dividends, qualifications and
terms and conditions of redemption, in addition to those required by applicable law, or as are set
forth in Part&nbsp;I and Part&nbsp;II of this Statement. The Series&nbsp;&#95;&#95;&#95;Preferred Shares shall constitute a
separate series of Preferred Shares of the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series &#95;&#95;&#95;Preferred Shares: a Series of &#95;&#95;&#95;Preferred Shares, no par value, liquidation
preference $25,000 per share, is hereby designated &#147;Series &#95;&#95;&#95;Preferred Shares&#148; (&#147;Series &#95;&#95;&#95;
Preferred Shares&#148;). Each share of Series &#95;&#95;&#95;Preferred Shares shall have an initial dividend rate
per annum equal to &#95;&#95;&#95;% and an initial Dividend Payment Date of &#95;&#95;&#95;and have such other
preferences, rights, voting powers, restrictions, limitations as to dividends, qualifications and
terms and conditions of redemption, in addition to those required by applicable law, or as are set
forth in Part&nbsp;I and Part&nbsp;II of this Statement. The Series &#95;&#95;&#95;Preferred Shares shall constitute a
separate Series of Preferred Shares of the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series &#95;&#95;&#95;Preferred Shares: a Series of &#95;&#95;&#95;Preferred Shares, no par value, liquidation
preference $25,000 per share, is hereby designated &#147;Series &#95;&#95;&#95;Preferred Shares&#148; (&#147;Series &#95;&#95;&#95;
Preferred Shares&#148;). Each share of Series &#95;&#95;&#95;Preferred Shares shall have an initial dividend rate
per annum equal to &#95;&#95;&#95;% and an initial Dividend Payment Date of &#95;&#95;&#95;and have such other
preferences, rights, voting powers, restrictions, limitations as to dividends, qualifications and
terms and conditions of redemption, in addition to those required by applicable law, or as are set
forth in Part&nbsp;I and Part&nbsp;II of this Statement. The Series &#95;&#95;&#95;Preferred Shares shall constitute a
separate Series of Preferred Shares of the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the provisions of Section&nbsp;11(b) of Part&nbsp;I hereof, the Board of Trustees of the
Trust may, in the future, reclassify additional shares of the Trust&#146;s unissued common shares as
preferred shares, with the same preferences, rights, voting powers, restrictions, limitations as to
dividends, qualifications and terms and conditions of redemption and other terms herein described,
except that the dividend rate for its initial Dividend Period, its initial Dividend Payment Date
and any other changes in the terms herein set forth shall be as set forth in this Statement with
respect to the additional shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in Part&nbsp;I and Part&nbsp;II of this Statement, capitalized terms shall have the meanings
provided in Section&nbsp;17 of Part&nbsp;I and Section&nbsp;1 of Part&nbsp;II of this Statement.
</DIV>

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

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="151"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART&nbsp;I:</B> Terms of Preferred Shares
</div>

<DIV align="left">
<A name="152"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Number of Shares; Ranking</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The initial number of authorized shares constituting the Series&nbsp;&#95;&#95;&#95;Preferred Shares is
&#95;&#95;&#95;shares, Series &#95;&#95;&#95;Preferred Shares is &#95;&#95;&#95;shares and Series &#95;&#95;&#95;Preferred Shares is &#95;&#95;&#95;
shares. No fractional shares of any Series shall be issued.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Shares of each Series that at any time have been redeemed or purchased by the Trust shall,
after such redemption or purchase, have the status of authorized but unissued preferred shares of
beneficial interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Shares of each Series shall rank on a parity with shares of any other Series of preferred
shares of the Trust (including any other Preferred Shares) as to the payment of dividends to which
such shares are entitled.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;No Holder of shares of any Series shall have, solely by reason of being such a holder, any
preemptive exchange, conversion or other right to acquire, purchase or subscribe for any shares of
any Series, Common Shares or other securities of the Trust which it may hereafter issue or sell.
The Preferred Shares shall not be subject to any sinking fund.
</DIV>

<DIV align="left">
<A name="153"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Dividends</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Holders of shares of each Series shall be entitled to receive, when, as and if
declared by the Board of Trustees, out of funds legally available therefor, cumulative cash
dividends on their shares at the Applicable Rate, determined as set forth in paragraph&nbsp;(c) of this
Section&nbsp;2, and no more, payable on the respective dates determined as set forth in paragraph&nbsp;(b) of
this Section&nbsp;2. Dividends on the Outstanding shares of each Series issued on the Date of Original
Issue shall accumulate from the Date of Original Issue.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i)&nbsp;Dividends shall be payable when, as and if declared by the Board of
Trustees following the initial Dividend Payment Date, subject to subparagraph&nbsp;(b)(ii) of
this Section&nbsp;2, on the shares of each Series, as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) with respect to any Dividend Period of one year or less, on the Business
Day following the last day of such Dividend Period; provided, however, if the
Dividend Period is more than 91&nbsp;days then on the 91<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 181<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>
and 271<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> days within such period, if applicable, and on the Business Day
following the last day of such Dividend Period; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) with respect to any Dividend Period of more than one year, on a quarterly
basis on each January&nbsp;1, April&nbsp;1, July&nbsp;1 and October&nbsp;1 within such Dividend Period
and on the Business Day following the last day of such Dividend Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a day for payment of dividends resulting from the application of
subparagraph&nbsp;(b) above is not a Business Day, then the Dividend Payment Date shall be the
first Business Day following such day for payment of dividends.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Trust shall pay to the Paying Agent not later than 12:00 noon, New York City
time, on each Dividend Payment Date for a Series, an aggregate amount of
immediately available funds equal to the dividends to be paid to all Holders of such
Series on
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">such Dividend Payment Date. The Trust shall not be required to establish any
reserves for the payment of dividends.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) All moneys paid to the Paying Agent for the payment of dividends shall be held in
trust for the payment of such dividends by the Paying Agent for the benefit of the Holders
specified in subparagraph&nbsp;(b)(v) of this Section&nbsp;2. Any moneys paid to the Paying Agent in
accordance with the foregoing but not applied by the Paying Agent to the payment of
dividends will, upon request and to the extent permitted by law, be repaid to the Trust at
the end of 90&nbsp;days from the date on which such moneys were to have been so applied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Each dividend on each Series shall be paid on the Dividend Payment Date therefor to
the Holders of that Series as their names appear on the share ledger or share records of the
Trust on the Business Day next preceding such Dividend Payment Date; provided, however, if
dividends are in arrears, they may be declared and paid at any time to Holders as their
names appear on the share ledger or share records of the Trust on such date not exceeding 15
days preceding the payment date thereof, as may be fixed by the Board of Trustees. No
interest will be payable in respect of any dividend payment or payments which may be in
arrears.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i)&nbsp;The dividend rate on Outstanding shares of each Series during the period
from and after the Date of Original Issue to and including the last day of the initial
Dividend Period therefor shall be equal to the rate set forth under &#147;Designation&#148; above.
For each subsequent Dividend Period for each Series, the dividend rate shall be equal to the
rate per annum that results from an Auction (but the rate set at the Auction will not exceed
the Maximum Rate); provided, however, that if an Auction for any subsequent Dividend Period
of a Series is not held for any reason or if Sufficient Clearing Orders have not been made
in an Auction (other than as a result of all shares of any Series being the subject of
Submitted Hold Orders and other than in an auction for a Special Dividend Period), then the
dividend rate on the shares of that Series&nbsp;for any such Dividend Period shall be the Maximum
Rate (except (i)&nbsp;during a Default Period when the dividend rate shall be the Default Rate,
as set forth in Section&nbsp;2(c)(ii) below or (ii)&nbsp;after a Default Period and prior to the
beginning of the next Dividend Period when the dividend rate shall be the Maximum Rate at
the close of business on the last day of such Default Period). If the Trust has declared a
Special Dividend Period and there are not Sufficient Clearing Orders, the dividend rate for
the next Dividend Period will be the same as during the current Dividend Period. If as a
result of an unforeseeable disruption of the financial markets, an Auction cannot be held,
the dividend rate for the subsequent Dividend Period will be the same as the dividend rate
for the current Dividend Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subject to the cure provisions in Section&nbsp;2(c)(iii) below, a &#147;Default Period&#148; with
respect to a particular Series will commence on any date the Trust fails to deposit
irrevocably in trust in same-day funds, with the Paying Agent by 12:00 noon, New York City
time, (A)&nbsp;the full amount of any declared dividend on that Series payable on the Dividend
Payment Date (a &#147;Dividend Default&#148;) or (B)&nbsp;the full amount of any redemption price (the
&#147;Redemption Price&#148;) payable on the date fixed for redemption (the &#147;Redemption Date&#148;) (a
&#147;Redemption Default&#148;) and together with a Dividend Default, hereinafter referred to as
&#147;Default&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the cure provisions of Section&nbsp;2(c)(iii) below, a Default Period with
respect to a Dividend Default or a Redemption Default shall end on the Business Day on
which, by 12:00 noon, New York City time, all unpaid dividends and any unpaid Redemption
Price shall
have been deposited irrevocably in trust in same-day funds with the Paying Agent. In
the case of a Dividend Default, the Applicable Rate for each Dividend Period commencing
during a Default
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Period will be equal to the Default Rate, and each subsequent Dividend
Period commencing after the beginning of a Default Period shall be a Standard Dividend
Period; provided, however, that the commencement of a Default Period will not by itself
cause the commencement of a new Dividend Period. No Auction shall be held during a Default
Period applicable to that Series.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Default Period with respect to a Dividend Default or Redemption Default shall
be deemed to commence if the amount of any dividend or any Redemption Price due (if such
default is not solely due to the willful failure of the Trust) is deposited irrevocably in
trust, in same-day funds with the Paying Agent by 12:00 noon, New York City time within
three Business Days after the applicable Dividend Payment Date or Redemption Date, together
with an amount equal to the Default Rate applied to the amount of such non-payment based on
the actual number of days comprising such period divided by 360 for each Series. The
Default Rate shall be equal to the Reference Rate multiplied by three (3).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The amount of dividends per share payable (if declared) on each Dividend Payment
Date of each Dividend Period of less than one (1)&nbsp;year (or in respect of dividends on
another date in connection with a redemption during such Dividend Period) shall be computed
by multiplying the Applicable Rate (or the Default Rate) for such Dividend Period (or a
portion thereof) by a fraction, the numerator of which will be the number of days in such
Dividend Period (or portion thereof) that such share was Outstanding and for which the
Applicable Rate or the Default Rate was applicable and the denominator of which will be 360
for each Series, multiplying the amount so obtained by $25,000, and rounding the amount so
obtained to the nearest cent. During any Dividend Period of one (1)&nbsp;year or more, the
amount of dividends per share payable on any Dividend Payment Date (or in respect of
dividends on another date in connection with a redemption during such Dividend Period) shall
be computed as described in the preceding sentence, except that it will be determined on the
basis of a year consisting of twelve 30-day months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Any dividend payment made on shares of any Series shall first be credited against the
earliest accumulated but unpaid dividends due with respect to that Series.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;For so long as the Preferred Shares are Outstanding, except as otherwise contemplated by
Part&nbsp;I of this Statement, the Trust will not declare, pay or set apart for payment any dividend or
other distribution (other than a dividend or distribution paid in shares of, or options, warrants
or rights to subscribe for or purchase, Common Shares or other shares ranking junior to the
Preferred Shares as to dividends or upon liquidation) with respect to Common Shares or any other
shares of beneficial interest of the Trust ranking junior to the Preferred Shares as to dividends
or upon liquidation, or call for redemption, redeem, purchase or otherwise acquire for
consideration any Common Shares or other shares of beneficial interest ranking junior to the
Preferred Shares (except by conversion into or exchange for shares of the Trust ranking junior to
the Preferred Shares as to dividends and upon liquidation), unless (i)&nbsp;immediately after such
transaction, the Trust would have Eligible Assets with an aggregate Discounted Value at least equal
to the Preferred Shares Basic Maintenance Amount and the 1940 Act Preferred Shares Asset Coverage
would be achieved, (ii)&nbsp;all cumulative and unpaid dividends due on or prior to the date of the
transaction have been declared and paid in full with respect to the Trust&#146;s preferred shares,
including the Preferred Shares, or shall have been declared and sufficient funds for the payment
thereof deposited with the Paying Agent, and (iii)&nbsp;the Trust has redeemed the full number of
preferred shares required to be redeemed by any provision for mandatory redemption including the
Preferred Shares required to be redeemed by any provision for mandatory redemption contained in
Section&nbsp;3(a)(ii) of Part&nbsp;I of this Statement.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;For so long as the Preferred Shares are Outstanding, except as set forth in the next
sentence, the Trust will not declare, pay or set apart for payment on any series of shares of
beneficial interest of the Trust ranking, as to the payment of dividends, on a parity with the
Preferred Shares for any period unless full cumulative dividends have been or contemporaneously are
declared and paid on each Series through their most recent Dividend Payment Date. When dividends
are not paid in full upon the Preferred Shares through their most recent Dividend Payment Dates or
upon any other series of shares of beneficial interest ranking on parity as to the payment of
dividends with Preferred Shares through their most recent respective Dividend Payment Dates, all
dividends declared upon the Preferred Shares and any other such series of shares of beneficial
interest ranking on parity as to the payment of dividends with the Preferred Shares shall be
declared pro rata so that the amount of dividends declared per share on the Preferred Shares and
such other series of shares of beneficial interest ranking on parity therewith shall in all cases
bear to each other the same ratio that accumulated dividends per share on the Preferred Shares and
such other series of shares of beneficial interest ranking on parity therewith bear to each other.
</DIV>

<DIV align="left">
<A name="154"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Redemption</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i)&nbsp;After the initial Dividend Period, subject to the provisions of this
Section&nbsp;3 and to the extent permitted under the 1940 Act and Delaware law, the Trust may, at
its option, redeem in whole or in part out of funds legally available therefor shares of any
Series herein designated as (A)&nbsp;having a Dividend Period of one year or less, on the
Business Day after the last day of such Dividend Period by delivering a notice of redemption
not less than 15 calendar days and not more than 40 calendar days prior to the Redemption
Date, at a redemption price per share equal to $25,000, plus an amount equal to accumulated
but unpaid dividends thereon (whether or not earned or declared) to the Redemption Date
(&#147;Redemption Price&#148;), or (B)&nbsp;having a Dividend Period of more than one year, on any Business
Day prior to the end of the relevant Dividend Period by delivering a notice of redemption
not less than 15 calendar days and not more than 40 calendar days prior to the Redemption
Date, at the Redemption Price, plus a redemption premium, if any, determined by the Board of
Trustees after consultation with the Broker-Dealers and set forth in any applicable Specific
Redemption Provisions at the time of the designation of such Dividend Period as set forth in
Section&nbsp;4 of Part&nbsp;I of this Statement; provided, however, that during a Dividend Period of
more than one year, no shares of any Series will be subject to optional redemption except in
accordance with any Specific Redemption Provisions approved by the Board of Trustees after
consultation with the Broker-Dealers at the time of the designation of such Dividend Period.
Notwithstanding the foregoing, the Trust shall not give a notice of or effect any
redemption pursuant to this Section&nbsp;3(a)(i) unless, on the date on which the Trust gives
such notice and on the Redemption Date, (a)&nbsp;the Trust has available Deposit Securities with
maturity or tender dates not later than the day preceding the applicable Redemption Date and
having a value not less than the amount (including any applicable premium) due to Holders of
each Series by reason of the redemption of each Series on the Redemption Date and (b)&nbsp;the
Trust would have Eligible Assets with an aggregate Discounted Value at least equal to the
Preferred Shares Basic Maintenance Amount immediately subsequent to such redemption, if such
redemption were to occur on such date, it being understood that the provisions of
paragraph&nbsp;(d) of this Section&nbsp;3 shall be applicable in such circumstances in the event the
Trust makes the deposit and gives a notice of redemption to the Auction Agent under
paragraph&nbsp;(b) of this Section&nbsp;3.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Trust fails as of any Valuation Date to meet the Preferred Shares Basic
Maintenance Amount Test or, as of the last Business Day of any month, the 1940 Act Preferred
Shares Asset Coverage, and such failure is not cured within ten Business Days
following the relevant Valuation Date, in the case of a
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">failure to meet the Preferred
Shares Basic Maintenance Amount Test, or the last Business Day of the following month in the
case of a failure to meet the 1940 Act Preferred Shares Asset Coverage (each an &#147;Asset
Coverage Cure Date&#148;), the Preferred Shares will be subject to mandatory redemption out of
funds legally available therefor. The number of Preferred Shares to be redeemed in such
circumstances will be equal to the lesser of (A)&nbsp;the minimum number of Preferred Shares the
redemption of which, if deemed to have occurred immediately prior to the opening of business
on the relevant Asset Coverage Cure Date, would result in the Trust meeting the Preferred
Shares Basic Maintenance Amount Test, and the 1940 Act Preferred Shares Asset Coverage, as
the case may be, in either case as of the relevant Asset Coverage Cure Date (provided that,
if there is no such minimum number of shares the redemption of which would have such result,
all Preferred Shares then Outstanding will be redeemed) and (B)&nbsp;the maximum number of
Preferred Shares that can be redeemed out of funds expected to be available therefor on the
Mandatory Redemption Date at the Mandatory Redemption Price set forth in
subparagraph&nbsp;(a)(iii) of this Section&nbsp;3.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In determining the Preferred Shares required to be redeemed in accordance with
the foregoing Section&nbsp;3(a)(ii), the Trust shall allocate the number of Preferred Shares
required to be redeemed to satisfy the Preferred Shares Basic Maintenance Amount Test or the
1940 Act Preferred Shares Asset Coverage, as the case may be, pro rata or among the Holders
of the Preferred Shares in proportion to the number of shares they hold and other preferred
shares subject to mandatory redemption provisions similar to those contained in this
Section&nbsp;3, subject to the further provisions of this subparagraph&nbsp;(iii). The Trust shall
effect any required mandatory redemption pursuant to: (A)&nbsp;the Preferred Shares Basic
Maintenance Amount Test, as described in subparagraph&nbsp;(a)(ii) of this Section&nbsp;3, no later
than 30&nbsp;days after the Trust last met the Preferred Shares Basic Maintenance Amount Test, or
(B)&nbsp;the 1940 Act Preferred Shares Asset Coverage, as described in subparagraph&nbsp;(a)(ii) of
this Section&nbsp;3, no later than 30&nbsp;days after the Asset Coverage Cure Date (the &#147;Mandatory
Redemption Date&#148;), except that if the Trust does not have funds legally available for the
redemption of, or is not otherwise legally permitted to redeem, the number of Preferred
Shares which would be required to be redeemed by the Trust under clause&nbsp;(A) of
subparagraph&nbsp;(a)(ii) of this Section&nbsp;3 if sufficient funds were available, together with
other preferred shares which are subject to mandatory redemption under provisions similar to
those contained in this Section&nbsp;3, or the Trust otherwise is unable to effect such
redemption on or prior to such Mandatory Redemption Date, the Trust shall redeem those
Preferred Shares, and other preferred shares which it was unable to redeem, on the earliest
practicable date on which the Trust will have such funds available, upon notice pursuant to
Section&nbsp;3(b) to record owners of Preferred Shares to be redeemed and the Paying Agent. The
Trust will deposit with the Paying Agent funds sufficient to redeem the specified number of
Preferred Shares with respect to a redemption required under subparagraph&nbsp;(a)(ii) of this
Section&nbsp;3, by 1:00 P.M., New York City time, of the Business Day immediately preceding the
Mandatory Redemption Date. If fewer than all of the Outstanding Preferred Shares are to be
redeemed pursuant to this Section&nbsp;3(a)(iii), the number of shares to be redeemed shall be
redeemed pro rata from the Holders of such shares in proportion to the number of the
Preferred Shares held by such Holders, by lot or by such other method as the Trust shall
deem fair and equitable, subject, however, to the terms of any applicable Specific
Redemption Provisions. &#147;Mandatory Redemption Price&#148; means the Redemption Price plus (in the
case of a Dividend Period of one year or more only) a redemption premium, if any, determined
by the Board of Trustees after consultation with the Broker-Dealers and set forth in any
applicable Specific Redemption Provisions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the event of a redemption pursuant to the foregoing Section&nbsp;3(a), the Trust will file a
notice of its intention to redeem with the Securities and Exchange Commission so as to provide at
least the minimum notice required under Rule&nbsp;23c-2 under the 1940 Act or any successor
provision. In addition, the Trust shall deliver a notice of redemption to the Auction Agent (the
&#147;Notice of
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Redemption&#148;) containing the information set forth below (i)&nbsp;in the case of an optional
redemption pursuant to Section&nbsp;3(a)(i) above, one Business Day prior to the giving of notice to the
Holders and (ii)&nbsp;in the case of a mandatory redemption pursuant to Section&nbsp;3(a)(ii) above, on or
prior to the 10th day preceding the Mandatory Redemption Date. Only with respect to shares held by
the Securities Depository, the Auction Agent will use its reasonable efforts to provide telephonic
notice to each Holder of shares of any Series called for redemption not later than the close of
business on the Business Day immediately following the day on which the Auction Agent determines
the shares to be redeemed (or, during a Default Period with respect to such shares, not later than
the close of business on the Business Day immediately following the day on which the Auction Agent
receives Notice of Redemption from the Trust). The Auction Agent shall confirm such telephonic
notice in writing not later than the close of business on the third Business Day preceding the date
fixed for redemption by providing the Notice of Redemption to each Holder of shares called for
redemption, the Paying Agent (if different from the Auction Agent) and the Securities Depository.
Notice of Redemption will be addressed to the registered owners of shares of any Series at their
addresses appearing on the share records of the Trust. Such Notice of Redemption will set forth
(i)&nbsp;the date fixed for redemption, (ii)&nbsp;the number and identity of shares of each Series&nbsp;to be
redeemed, (iii)&nbsp;the redemption price (specifying the amount of accumulated dividends to be included
therein), (iv)&nbsp;that dividends on the shares to be redeemed will cease to accumulate on such date
fixed for redemption, and (v)&nbsp;the provision under which redemption shall be made. No defect in the
Notice of Redemption or in the transmittal or mailing thereof will affect the validity of the
redemption proceedings, except as required by applicable law. If fewer than all shares held by any
Holder are to be redeemed, the Notice of Redemption mailed to such Holder shall also specify the
number of shares to be redeemed from such Holder. The Trust shall provide Fitch (if Fitch is then
rating the Preferred Shares) written notice of the Trust&#146;s intent to redeem shares pursuant to
Section 3(a) above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Notwithstanding the provisions of paragraph&nbsp;(a) of this Section&nbsp;3, no preferred shares,
including the Preferred Shares, may be redeemed at the option of the Trust unless all dividends in
arrears on the Outstanding Preferred Shares and any other preferred shares have been or are being
contemporaneously paid or set aside for payment; provided, however, that the foregoing shall not
prevent the purchase or acquisition of outstanding preferred shares pursuant to the successful
completion of an otherwise lawful purchase or exchange offer made on the same terms to holders of
all outstanding preferred shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Upon the deposit of funds sufficient to redeem shares of any Series with the Paying Agent
and the giving of the Notice of Redemption to the Auction Agent under paragraph&nbsp;(b) of this
Section&nbsp;3, dividends on such shares shall cease to accumulate and such shares shall no longer be
deemed to be Outstanding for any purpose (including, without limitation, for purposes of
calculating whether the Trust has met the Preferred Shares Basic Maintenance Amount Test or the
1940 Act Preferred Shares Asset Coverage), and all rights of the Holders of the shares so called
for redemption shall cease and terminate, except the right of such Holder to receive the Redemption
Price specified herein, but without any interest or other additional amount. Such Redemption Price
shall be paid by the Paying Agent to the nominee of the Securities Depository. The Trust shall be
entitled to receive from the Paying Agent, promptly after the date fixed for redemption, any cash
deposited with the Paying Agent in excess of (i)&nbsp;the aggregate Redemption Price of the shares of
any Series called for redemption on such date and (ii)&nbsp;such other amounts, if any, to which Holders
of shares of any Series called for redemption may be entitled. Any funds so deposited that are
unclaimed at the end of two years from such redemption date shall, to the extent permitted by law,
and upon request, be paid to the Trust, after which time the Holders of shares of each Series so
called for redemption may look only to the Trust for payment of the Redemption Price and all other
amounts, if any, to which they may be entitled; provided, however, that
the Paying Agent shall notify all Holders whose funds are unclaimed by placing a notice in The
Wall Street Journal concerning the availability of such funds once each week for three consecutive
weeks.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;To the extent that any redemption for which Notice of Redemption has been given is not
made by reason of the absence of legally available funds therefor, or is otherwise prohibited, such
redemption shall be made as soon as practicable to the extent such funds become legally available
or such redemption is no longer otherwise prohibited. Failure to redeem shares of any Series shall
be deemed to exist at any time after the date specified for redemption in a Notice of Redemption
when the Trust shall have failed, for any reason whatsoever, to deposit in trust with the Paying
Agent the Redemption Price with respect to any shares for which such Notice of Redemption has been
given. Notwithstanding the fact that the Trust may not have redeemed shares of each Series for
which a Notice of Redemption has been given, dividends may be declared and paid on shares of any
Series and shall include those shares of any Series for which Notice of Redemption has been given
but for which deposit of funds has not been made.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;All moneys paid to the Paying Agent for payment of the Redemption Price of shares of any
Series called for redemption shall be held in trust by the Paying Agent for the benefit of holders
of shares so to be redeemed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;So long as any shares of any Series are held of record by the nominee of the Securities
Depository, the redemption price for such shares will be paid on the date fixed for redemption to
the nominee of the Securities Depository for distribution to Agent Members for distribution to the
persons for whom they are acting as agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Except for the provisions described above, nothing contained in this Statement limits any
right of the Trust to purchase or otherwise acquire any shares of each Series outside of an Auction
at any price, whether higher or lower than the price that would be paid in connection with an
optional or mandatory redemption, so long as, at the time of any such purchase, there is no
arrearage in the payment of dividends on, or the mandatory or optional redemption price with
respect to, any shares of each Series&nbsp;for which Notice of Redemption has been given and the Trust
meets the 1940 Act Preferred Shares Asset Coverage and the Preferred Shares Basic Maintenance
Amount Test after giving effect to such purchase or acquisition on the date thereof. Any shares
which are purchased, redeemed or otherwise acquired by the Trust shall have no voting rights. If
fewer than all the Outstanding shares of any Series are redeemed or otherwise acquired by the
Trust, the Trust shall give notice of such transaction to the Auction Agent, in accordance with the
procedures agreed upon by the Board of Trustees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;In the case of any redemption pursuant to this Section&nbsp;3, only whole shares of each Series
shall be redeemed, and in the event that any provision of the Charter would require redemption of a
fractional share, the Auction Agent shall be authorized to round up so that only whole shares are
redeemed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Notwithstanding anything herein to the contrary, including, without limitation, Section&nbsp;6
of Part&nbsp;I of this Statement, the Board of Trustees, upon notification to each Rating Agency, may
authorize, create or issue other Series of preferred shares, including other Series of Preferred
Shares, series of preferred shares ranking on parity with the Preferred Shares with respect to the
payment of dividends or the distribution of assets upon dissolution, liquidation or winding up of
the affairs of the Trust, and senior securities representing indebtedness as defined in the 1940
Act, to the extent permitted by the 1940 Act, if upon issuance of any such series, either (A)&nbsp;the
net proceeds from the sale of such shares (or such portion thereof needed to redeem or repurchase
the Outstanding Preferred Shares) are deposited with the Paying Agent in accordance with
Section&nbsp;3(d) of Part&nbsp;I of this Statement, Notice of Redemption as contemplated by Section&nbsp;3(b) of
Part&nbsp;I of this Statement has been delivered prior thereto or is sent promptly thereafter, and such
proceeds are used to redeem all Outstanding Preferred Shares or
(B)&nbsp;the Trust would meet the 1940 Act Preferred Shares Asset Coverage, the Preferred Shares
Basic Maintenance Amount Test and the requirements of Section&nbsp;11 of Part&nbsp;I of this Statement.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="155"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Designation of Dividend Period</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The initial Dividend Period for each Series shall be the period from the Date of Original
Issue to the initial Dividend Payment Date set forth under &#147;Designation&#148; above. The Trust will
designate the duration of subsequent Dividend Periods of each Series; provided, however, that no
such designation is necessary for a Standard Dividend Period and, provided further, that any
designation of a Special Dividend Period shall be effective only if (i)&nbsp;notice thereof shall have
been given as provided herein, (ii)&nbsp;any failure to pay in a timely manner to the Auction Agent the
full amount of any dividend on, or the Redemption Price of, each Series shall have been cured as
provided above, (iii)&nbsp;Sufficient Clearing Orders shall have existed in an Auction held on the
Auction Date immediately preceding the first day of such proposed Special Dividend Period, and
(iv)&nbsp;if the Trust shall have mailed a Notice of Redemption with respect to any shares, the
Redemption Price with respect to such shares shall have been deposited with the Paying Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If the Trust proposes to designate any Special Dividend Period, not fewer than seven
Business Days (or two Business Days in the event the duration of the Dividend Period prior to such
Special Dividend Period is fewer than eight days) nor more than 30 Business Days prior to the first
day of such Special Dividend Period, notice shall be (i)&nbsp;made by press release and
(ii)&nbsp;communicated by the Trust by telephonic or other means to the Auction Agent and each
Broker-Dealer and confirmed in writing promptly thereafter. Each such notice shall state (A)&nbsp;that
the Trust proposes to exercise its option to designate a succeeding Special Dividend Period,
specifying the first and last days thereof and the Maximum Rate for such Special Dividend Period
and (B)&nbsp;that the Trust will by 3:00 P.M., New York City time, on the second Business Day next
preceding the first day of such Special Dividend Period, notify the Auction Agent, who will
promptly notify the Broker-Dealers, of either (x)&nbsp;its determination, subject to certain conditions,
to proceed with such Special Dividend Period, subject to the terms of any Specific Redemption
Provisions, or (y)&nbsp;its determination not to proceed with such Special Dividend Period, in which
latter event the succeeding Dividend Period shall be a Standard Dividend Period. No later than
3:00 P.M., New York City time, on the second Business Day next preceding the first day of any
proposed Special Dividend Period, the Trust shall deliver to the Auction Agent, who will promptly
deliver to the Broker-Dealers and Existing Holders, either:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a notice stating (A)&nbsp;that the Trust has determined to designate the next succeeding
Dividend Period as a Special Dividend Period, specifying the first and last days thereof and
(B)&nbsp;the terms of any Specific Redemption Provisions; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a notice stating that the Trust has determined not to exercise its option to
designate a Special Dividend Period.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the Trust fails to deliver either such notice with respect to any designation of any proposed
Special Dividend Period to the Auction Agent by 3:00 P.M., New York City time, on the second
Business Day next preceding the first day of such proposed Special Dividend Period, the Trust shall
be deemed to have delivered a notice to the Auction Agent with respect to such Dividend Period to
the effect set forth in clause&nbsp;(ii) above, thereby resulting in a Standard Dividend Period.
</DIV>

<DIV align="left">
<A name="156"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Restrictions on Transfer</U>.
Shares of each Series may be transferred only
(a)&nbsp;pursuant to an order placed in an Auction, (b)&nbsp;to or through a Broker-Dealer or (c)&nbsp;to the
Trust or any Affiliate. Notwithstanding the foregoing, a transfer other than pursuant to an
Auction will not be effective unless the selling Existing Holder or the Agent Member of such
Existing Holder, in the case of an Existing Holder whose shares are listed in its own name on the
books of the Auction Agent, or the
Broker-Dealer or Agent Member of such Broker-Dealer, in the case of a transfer between persons
holding shares of any Series through different Broker-Dealers, advises the Auction Agent of such
transfer. The certificates representing the shares of each Series issued to the Securities
Depository will bear legends with respect to
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the restrictions described above and stop-transfer
instructions will be issued to the Transfer Agent and/or Registrar.
</DIV>
<DIV align="left">
<A name="157"></A>
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as otherwise provided in the Declaration or as otherwise required by applicable
law, (i)&nbsp;each Holder of shares of any Series shall be entitled to one vote for each share of any
Series held on each matter on which the Holders of the Preferred Shares are entitled to vote, and
(ii)&nbsp;the holders of the outstanding preferred shares, including each Series, and holders of shares
of Common Shares shall vote together as a single class on all matters submitted to the
shareholders; provided, however, that, with respect to the election of trustees, the holders of the
outstanding preferred shares, including each Series, represented in person or by proxy at a meeting
for the election of trustees, shall be entitled, as a class, to the exclusion of the holders of all
other securities and classes of shares, including the Common Shares, to elect two trustees of the
Trust, each share of preferred, including each Series, entitling the holder thereof to one vote.
The identities of the nominees of such trusteeships may be fixed by the Board of Trustees. The
Board of Trustees will determine to which class or classes the trustees elected by the outstanding
preferred shares will be assigned and the holders of outstanding preferred shares shall only be
entitled to elect the trustees so designated as being elected by the holders of preferred shares
when their term shall have expired and such trustees appointed by the holders of preferred shares
will be allocated as evenly as possible among the classes of trustees. Subject to paragraph&nbsp;(b) of
this Section&nbsp;6, the holders of Outstanding shares of Common Shares and outstanding preferred
shares, including each Series, voting together as a single class, shall be entitled to elect the
balance of the trustees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If at any time dividends on the Preferred Shares shall be unpaid in an amount equal to two
full years&#146; dividends on the Preferred Shares (a &#147;Voting Period&#148;), the number of trustees
constituting the Board of Trustees shall be automatically increased by the smallest number of
additional trustees that, when added to the number of trustees then constituting the Board of
Trustees, shall (together with the two trustees elected by the holders of preferred shares,
including each Series, pursuant to paragraph&nbsp;(a) of this Section&nbsp;6) constitute a majority of such
increased number, and the holders of any shares of preferred shares, including each Series, shall
be entitled, voting as a single class on a one-vote-per-share basis (to the exclusion of the
holders of all other securities and classes of shares of the Trust), to elect the smallest number
of such additional trustees of the Trust that shall constitute a majority of the total number of
trustees of the Trust so increased. The Voting Period and the voting rights so created upon the
occurrence of the conditions set forth in this paragraph&nbsp;(b) of Section&nbsp;6 shall continue unless and
until all dividends in arrears on each Series shall have been paid or declared and sufficient cash
or specified securities are set apart for the payment of such dividends. Upon the termination of a
Voting Period, the voting rights described in this paragraph&nbsp;(b) of Section&nbsp;6 shall cease, subject
always, however, to the revesting of such voting rights in the holders of preferred shares,
including each Series, upon the further occurrence of any of the events described in this
paragraph&nbsp;(b) of Section&nbsp;6.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;As soon as practicable after the accrual of any right of the holders of preferred shares,
including each Series, to elect additional trustees as described in paragraph&nbsp;(b) of this
Section&nbsp;6, the Trust shall notify the Auction Agent, and the Auction Agent shall call a special
meeting of such holders, by mailing a notice of such special meeting to such holders, such meeting
to be held not less than ten nor more than 90&nbsp;days after the date of mailing of such notice. If
the Trust fails to send such notice to the Auction Agent or if the Auction Agent does not call such
a special meeting, it may be called by any such holder on like notice. The record date for
determining the holders entitled to notice of and to vote at
such special meeting shall be the close of business on the fifth Business Day preceding the
day on which such notice is mailed. At any such special meeting and at each meeting of holders of
preferred shares, including each Series, held during a Voting Period at which trustees are to be
elected, such holders, voting
</DIV>



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</DIV>



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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">together as a class (to the exclusion of the holders of all other securities and classes of shares
of the Trust), shall be entitled to elect the number of trustees prescribed in paragraph&nbsp;(b) of
this Section&nbsp;6 on a one-vote-per-share basis. At any such meeting or adjournment thereof in the
absence of a quorum, a majority of the holders of preferred shares, including Holders of the
Preferred Shares, present in person or by proxy shall have the power to adjourn the meeting without
notice, other than an announcement at the meeting, until a quorum is present.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;For purposes of determining any rights of the holders of the shares of preferred shares,
including each Series, to vote on any matter, whether such right is created by this Statement, by
statute or otherwise, if redemption of some or all of the preferred shares, including each Series,
is required, no holder of preferred shares, including each Series, shall be entitled to vote and no
preferred shares, including each Series, shall be deemed to be &#147;outstanding&#148; for the purpose of
voting or determining the number of shares required to constitute a quorum, if prior to or
concurrently with the time of determination, sufficient Deposit Securities for the redemption of
such shares have been deposited in the case of Preferred Shares in trust with the Paying Agent for
that purpose and the requisite Notice of Redemption with respect to such shares shall have been
given as provided in Section&nbsp;3(b) of Part&nbsp;I of this Statement and in the case of other preferred
shares, the Trust has otherwise met the conditions for redemption applicable to such shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The terms of office of all persons who are trustees of the Trust at the time of a special
meeting of Holders of the Preferred Shares and holders of other preferred shares to elect trustees
pursuant to paragraph&nbsp;(b) of this Section&nbsp;6 shall continue, notwithstanding the election at such
meeting by the holders of the number of trustees that they are entitled to elect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Simultaneously with the termination of a Voting Period, the terms of office of the
additional trustees elected by the Holders of the Preferred Shares and holders of other preferred
shares pursuant to paragraph&nbsp;(b) of this Section&nbsp;6 shall terminate, the remaining trustees shall
constitute the trustees of the Trust and the voting rights of such holders to elect additional
trustees pursuant to paragraph&nbsp;(b) of this Section&nbsp;6 shall cease, subject to the provisions of the
last sentence of paragraph&nbsp;(b) of this Section&nbsp;6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Unless otherwise required by law or in the Trust&#146;s Declaration, the Holders of Preferred
Shares shall not have any relative rights or preferences or other special rights other than those
specifically set forth herein. In the event that the Trust fails to pay any dividends on the
Preferred Shares or fails to redeem any Preferred Shares which it is required to redeem, or any
other event occurs which requires the mandatory redemption of Preferred Shares and the required
Notice of Redemption has not been given, other than the rights set forth in paragraph&nbsp;(a) of
Section&nbsp;3 of Part&nbsp;I of this Statement, the exclusive remedy of the Holders of Preferred Shares
shall be the right to vote for trustees pursuant to the provisions of paragraph&nbsp;(b) of this
Section&nbsp;6. In no event shall the Holders of Preferred Shares have any right to sue for, or bring a
proceeding with respect to, such dividends or redemptions or damages for the failure to receive the
same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;For so long as any preferred shares, including each Series, are outstanding, the Trust
will not, without the affirmative vote of the Holders of a majority of the outstanding preferred
shares, (i)&nbsp;institute any proceedings to be adjudicated bankrupt or insolvent, or consent to the
institution of bankruptcy or insolvency proceedings against it, or file a petition seeking or
consenting to reorganization or relief under any applicable federal or state law relating to
bankruptcy or insolvency, or consent to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of the Trust or a substantial part of its
property, or make any assignment for the benefit of creditors, or, except as may be required by
applicable law, admit in writing its inability to pay its debts generally as they become due or
take any corporate action in furtherance of any such action; (ii)&nbsp;create,
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">incur or suffer to exist, or agree to create, incur or suffer to exist, or consent to cause or
permit in the future (upon the happening of a contingency or otherwise) the creation, incurrence or
existence of any material lien, mortgage, pledge, charge, security interest, security agreement,
conditional sale or trust receipt or other material encumbrance of any kind upon any of the Trust&#146;s
assets as a whole, except (A)&nbsp;liens the validity of which are being contested in good faith by
appropriate proceedings, (B)&nbsp;liens for taxes that are not then due and payable or that can be paid
thereafter without penalty, (C)&nbsp;liens, pledges, charges, security interests, security agreements or
other encumbrances arising in connection with any indebtedness senior to the Preferred Shares, or
arising in connection with any futures contracts or options thereon, interest rate swap or cap
transactions, forward rate transactions, put or call options or other similar transactions,
(D)&nbsp;liens, pledges, charges, security interests, security agreements or other encumbrances arising
in connection with any indebtedness permitted under clause&nbsp;(iii) below and (E)&nbsp;liens to secure
payment for services rendered including, without limitation, services rendered by the Trust&#146;s
Paying Agent and the Auction Agent; or (iii)&nbsp;create, authorize, issue, incur or suffer to exist any
indebtedness for borrowed money or any direct or indirect guarantee of such indebtedness for
borrowed money or any direct or indirect guarantee of such indebtedness, except the Trust may
borrow as may be permitted by the Trust&#146;s investment restrictions; provided, however, that
transfers of assets by the Trust subject to an obligation to repurchase shall not be deemed to be
indebtedness for purposes of this provision to the extent that after any such transaction the Trust
has Eligible Assets with an aggregate Discounted Value at least equal to the Preferred Shares Basic
Maintenance Amount as of the immediately preceding Valuation Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The affirmative vote of the holders of a majority, as defined in the 1940 Act, of the
outstanding preferred shares, including each Series, voting as a separate class, shall be required
to approve any plan of reorganization (as such term is used in the 1940 Act) adversely affecting
such shares or any action requiring a vote of security holders of the Trust under Section&nbsp;13(a) of
the 1940 Act. In the event a vote of holders of preferred shares is required pursuant to the
provisions of Section&nbsp;13(a) of the 1940 Act, the Trust shall, not later than ten Business Days
prior to the date on which such vote is to be taken, notify each Rating Agency that such vote is to
be taken and the nature of the action with respect to which such vote is to be taken and shall, not
later than ten Business Days after the date on which such vote is taken, notify each Rating Agency
of the results of such vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;The affirmative vote of the Holders of a majority, as defined in the 1940 Act, of the
outstanding preferred shares of any series, voting separately from any other series, shall be
required with respect to any matter that materially and adversely affects the rights, preferences,
or powers of that series in a manner different from that of other series or classes of the Trust&#146;s
shares of beneficial interest. For purposes of the foregoing, no matter shall be deemed to
adversely affect any rights, preference or power unless such matter (i)&nbsp;alters or abolishes any
preferential right of such series; (ii)&nbsp;creates, alters or abolishes any right in respect of
redemption of such series; or (iii)&nbsp;creates or alters (other than to abolish) any restriction on
transfer applicable to such series. The vote of holders of any series described in this
Section&nbsp;(j) will in each case be in addition to a separate vote of the requisite percentage of
Common Shares and/or preferred shares necessary to authorize the action in question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;The Board of Trustees, without the vote or consent of any holder of preferred shares,
including each Series, or any other shareholder of the Trust, may from time to time add, amend,
alter or repeal any or all of the definitions contained herein, add, amend, alter or repeal
covenants and other obligations of the Trust, or confirm the applicability of covenants and other
obligations set forth herein, all in connection with obtaining or maintaining the rating of any
Rating Agency with respect to each Series, and any such addition, amendment, alteration or repeal
will not be deemed to affect the preferences, rights or powers of Preferred Shares or the Holders
thereof, provided that the Board of Trustees receives written confirmation from each relevant
Rating Agency (with such confirmation in no event being required to be obtained from a particular
Rating Agency with respect to definitions or other
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provisions relevant only to and adopted in connection with another Rating Agency&#146;s rating of
any Series) that any such amendment, alteration or repeal would not adversely affect the rating
then assigned by such Rating Agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, subject to compliance with applicable law, the Board of Trustees may amend the
definition of Maximum Rate to increase the percentage amount by which the Reference Rate is
multiplied to determine the Maximum Rate shown therein without the vote or consent of the holders
of preferred shares, including each Series, or any other shareholder of the Trust, but only with
confirmation from each Rating Agency, and after consultation with the Broker-Dealers, provided that
immediately following any such increase the Trust would meet the Preferred Shares Basic Maintenance
Amount test.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Trustees may amend the definition of Standard Dividend Period to change the
Dividend Period with respect to one or more Series without the vote or consent of the holders of
shares of preferred, including each series, or any other shareholder of the Trust, and any such
change will not be deemed to affect the preferences, rights or powers of Preferred Shares or the
Holders thereof.
</DIV>
<DIV align="left">
<A name="158"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Liquidation Rights</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In the event of any liquidation, dissolution or winding up of the affairs of the Trust,
whether voluntary or involuntary, the holders of preferred shares, including each Series, shall be
entitled to receive out of the assets of the Trust available for distribution to shareholders,
after claims of creditors but before distribution or payment shall be made in respect of the Common
Shares or to any other shares of beneficial interest of the Trust ranking junior to the preferred
shares, as to liquidation payments, a liquidation distribution in the amount of $25,000 per share
(the &#147;Liquidation Preference&#148;), plus an amount equal to all unpaid dividends accrued to and
including the date fixed for such distribution or payment (whether or not declared by the Board of
Trustees, but excluding interest thereon), but such Holders shall be entitled to no further
participation in any distribution or payment in connection with any such liquidation, dissolution
or winding up. Each Series shall rank on a parity with shares of any other series of preferred
shares of the Trust (including each Series) as to the distribution of assets upon dissolution,
liquidation or winding up of the affairs of the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If, upon any such liquidation, dissolution or winding up of the affairs of the Trust,
whether voluntary or involuntary, the assets of the Trust available for distribution among the
holders of all outstanding preferred shares, including each Series, shall be insufficient to permit
the payment in full to such holders of the amounts to which they are entitled, then such available
assets shall be distributed among the holders of all outstanding preferred shares, including each
Series, ratably in any such distribution of assets according to the respective amounts which would
be payable on all such shares if all amounts thereon were paid in full. Unless and until payment
in full has been made to the holders of all outstanding preferred shares, including each Series, of
the liquidation distributions to which they are entitled, no dividends or distributions will be
made to holders of Common Shares or any shares of beneficial interest of the Trust ranking junior
to the preferred shares as to liquidation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Neither the consolidation nor merger of the Trust with or into any other business entity,
nor the sale, lease, exchange or transfer by the Trust of all or substantially all of its property
and assets, shall be deemed to be a liquidation, dissolution or winding up of the Trust for
purposes of this Section&nbsp;7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;After the payment to Holders of Preferred Shares of the full preferential amounts provided
for in this Section&nbsp;7, the Holders of the Preferred Shares as such shall have no right or claim to
any of the remaining assets of the Trust.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;In the event the assets of the Trust or proceeds thereof available for distribution to the
Holders of Preferred Shares, upon dissolution, liquidation or winding up of the affairs of the
Trust, whether voluntary or involuntary, shall be insufficient to pay in full all amounts to which
such Holders are entitled pursuant to paragraph&nbsp;(a) of this Section&nbsp;7, no such distribution shall
be made on account of any shares of any other series of preferred shares unless proportionate
distributive amounts shall be paid on account of the Preferred Shares, ratably, in proportion to
the full distributable amounts to which holders of all preferred shares are entitled upon such
dissolution, liquidation or winding up.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Subject to the rights of the holders of other preferred shares or after payment shall have
been made in full to the Holders of Preferred Shares as provided in paragraph&nbsp;(a) of this
Section&nbsp;7, but not prior thereto, any other series or class of shares ranking junior to the
Preferred Shares with respect to the distribution of assets upon dissolution, liquidation or
winding up of the affairs of the Trust shall, subject to any respective terms and provisions (if
any) applying thereto, be entitled to receive any and all assets remaining to be paid or
distributed, and the Holders of the Preferred Shares shall not be entitled to share therein.
</DIV>
<DIV align="left">
<A name="159"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Auction Agent</U>.
For so long as any Preferred Shares are Outstanding, the Auction
Agent, duly appointed by the Trust to so act, shall be in each case a commercial bank, trust
company or other financial institution independent of the Trust and its Affiliates (which, however,
may engage or have engaged in business transactions with the Trust or its Affiliates) and at no
time shall the Trust or any of its Affiliates act as the Auction Agent in connection with the
Auction Procedures. If the Auction Agent resigns or for any reason its appointment is terminated
during any period that any shares of any Series are Outstanding, the Trust will use its best
efforts to enter into an agreement with a successor auction agent containing substantially the same
terms and conditions as the auction agency agreement. The Trust may remove the Auction Agent
provided that prior to such removal the Trust shall have entered into such an agreement with a
successor auction agent.
</DIV>
<DIV align="left">
<A name="160"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U>1940 Act Preferred Shares Asset Coverage</U>.
The Trust shall maintain, as of the last
Business Day of each month in which any Preferred Shares are Outstanding, the 1940 Act Preferred
Shares Asset Coverage; provided, however, that Section&nbsp;3(a)(ii) shall be the sole remedy in the
event the Trust fails to do so.
</DIV>
<DIV align="left">
<A name="161"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U>Preferred Shares Basic Maintenance Amount</U>.
So long as any Preferred Shares are
Outstanding and any Rating Agency so requires, the Trust shall maintain, as of each Valuation Date,
S&#038;P Eligible Assets and Fitch Eligible Assets, as applicable, having an aggregate Discounted Value
equal to or greater than the Preferred Shares Basic Maintenance Amount; provided, however, that
Section&nbsp;3(a)(ii) shall be the sole remedy in the event the Trust fails to do so.
</DIV>
<DIV align="left">
<A name="162"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U>Certain Other Restrictions</U>. So long as any Preferred Shares are Outstanding and
S&#038;P, Fitch or any Other Rating Agency that is rating such shares so requires, the Trust will not,
unless it has received written confirmation from S&#038;P (if S&#038;P is then rating the Preferred Shares),
Fitch (if Fitch is then rating the Preferred Shares) and (if applicable) such Other Rating Agency,
that any such action would not impair the rating then assigned by such Rating Agency to the
Preferred Shares, engage in any one or more of the following transactions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;issue any additional class or series of shares ranking prior to the Preferred Shares with
respect to the payment of dividends or the distribution of assets upon dissolution, liquidation or
winding up of the Trust;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;issue additional shares of any Series of Preferred Shares, including any Series previously
purchased or redeemed by the Trust;
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;issue senior securities representing indebtedness as defined under the 1940 Act;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;engage in any short sales of securities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;lend portfolio securities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;merge or consolidate into or with any other entity;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;borrow money except for the purpose of clearing transactions in portfolio securities
(which borrowings shall under any circumstances be limited to the lesser of $10&nbsp;million and an
amount equal to 5% of the Market Value of the Trust&#146;s total assets at the time of such borrowings
and which borrowings shall be repaid within 60&nbsp;days and not to be extended or renewed and shall not
cause the aggregate Discounted Value of the S&#038;P Eligible Assets or the Fitch Eligible Assets to be
less than the Preferred Shares Basic Maintenance Amount);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;engage in dollar rolls and reverse repurchase agreements if, at the time the Trust enters
into such agreements, such activity results in a failure to maintain the 1940 Act Preferred Shares
Asset Coverage or the Preferred Shares Basic Maintenance Amount, or if any such dollar rolls and
reverse repurchase agreements have a maturity of greater than 30&nbsp;days.
</DIV>
<DIV align="left">
<A name="163"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U>Compliance Procedures for Asset Maintenance Tests</U>.
For so long as any Preferred
Shares are Outstanding and any Rating Agency so requires:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As of each Valuation Date, the Trust shall determine (i)&nbsp;the Market Value of each Eligible
Asset owned by the Trust on that date, (ii)&nbsp;the Discounted Value of each such Eligible Asset,
(iii)&nbsp;whether the Preferred Shares Basic Maintenance Amount Test is met as of that date, (iv)&nbsp;the
value (as used in the 1940 Act) of the total assets of the Trust, less all liabilities, and
(v)&nbsp;whether the 1940 Act Preferred Shares Asset Coverage is met as of that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Upon any failure to meet the Preferred Shares Basic Maintenance Amount Test or 1940 Act
Preferred Shares Asset Coverage on any Valuation Date, the Trust may use reasonable commercial
efforts (including, without limitation, altering the composition of its portfolio, purchasing
Preferred Shares outside of an Auction or, in the event of a failure to file a certificate on a
timely basis, submitting the requisite certificate), to meet (or certify in the case of a failure
to file a certificate on a timely basis, as the case may be) the Preferred Shares Basic Maintenance
Amount Test or 1940 Act Preferred Shares Asset Coverage on or prior to the Asset Coverage Cure
Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Compliance with the Preferred Shares Basic Maintenance Amount and 1940 Act Preferred
Shares Asset Coverage tests shall be determined with reference to those Preferred Shares which are
deemed to be Outstanding hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the case of the asset coverage requirements for Fitch and S&#038;P, the auditors must
certify once per annum, or as requested by a Rating Agency, the asset coverage test on a date
randomly selected by the auditor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Trust shall deliver to the Auction Agent and each Rating Agency a certificate which
sets forth a determination of items (i)-(iii) of paragraph&nbsp;(a) of this Section&nbsp;12 (a &#147;Preferred
Shares Basic Maintenance Certificate&#148;) as of (A)&nbsp;within seven Business Days after the Date of
Original Issue, (B)&nbsp;the last Valuation Date of each month, (C)&nbsp;any date requested by any Rating
Agency, (D)&nbsp;a Business Day on or before any Asset Coverage Cure Date relating to the Trust&#146;s cure
of a failure to meet the Preferred Shares Basic Maintenance Amount Test, (E)&nbsp;any day that Common
Shares or Preferred Shares are redeemed, (F)&nbsp;any day Fitch Eligible Assets have an aggregate
Discounted Value less than or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-15<!-- /Folio -->
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">equal to 110% of the Preferred Shares Basic Maintenance Amount. Such Preferred Shares Basic
Maintenance Certificate shall be delivered in the case of clause&nbsp;(i)(A) on or before the seventh
Business Day after the Date of Original Issue and in the case of all other clauses above on or
before the seventh Business Day after the relevant Valuation Date or Asset Coverage Cure Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Trust shall deliver to the Auction Agent and each Rating Agency a certificate which
sets forth a determination of items (iv)&nbsp;and (v)&nbsp;of paragraph&nbsp;(a) of this Section&nbsp;12 (a &#147;1940 Act
Preferred Shares Asset Coverage Certificate&#148;) (i)&nbsp;as of the Date of Original Issue, and (ii)&nbsp;as of
(A)&nbsp;the last Valuation Date of each quarter thereafter, and (B)&nbsp;as of a Business Day on or before
any Asset Coverage Cure Date relating to the failure to meet the 1940 Act Preferred Shares Asset
Coverage. Such 1940 Act Preferred Shares Asset Coverage Certificate shall be delivered in the case
of clause&nbsp;(i) on or before the seventh Business Day after the Date of Original Issue and in the
case of clause&nbsp;(ii) on or before the seventh Business Day after the relevant Valuation Date or the
Asset Coverage Cure Date. The certificates required by paragraphs (d)&nbsp;and (e)&nbsp;of this Section&nbsp;12
may be combined into a single certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Within ten Business Days of the Date of Original Issue, the Trust shall deliver to the
Auction Agent and each Rating Agency a letter prepared by the Trust&#146;s independent auditors (an
&#147;Auditor&#146;s Certificate&#148;) regarding the accuracy of the calculations made by the Trust in the
Preferred Shares Basic Maintenance Certificate and the 1940 Act Preferred Shares Asset Coverage
Certificate required to be delivered by the Trust on or before the seventh Business Day after the
Date of Original Issue. Within ten Business Days after delivery of the Preferred Shares Basic
Maintenance Certificate and the 1940 Act Preferred Shares Asset Coverage Certificate relating to
the last Valuation Date of each fiscal year of the Trust, the Trust will deliver to the Auction
Agent and each Rating Agency an Auditor&#146;s Certificate regarding the accuracy of the calculations
made by the Trust in such Certificates. In addition, the Trust will deliver to the persons
specified in the preceding sentence an Auditor&#146;s Certificate regarding the accuracy of the
calculations made by the Trust on each Preferred Shares Basic Maintenance Certificate and 1940 Act
Preferred Shares Asset Coverage Certificate delivered in relation to an Asset Coverage Cure Date
within ten days after the relevant Asset Coverage Cure Date. If an Auditor&#146;s Certificate shows
that an error was made in any such report, the calculation or determination made by the Trust&#146;s
independent auditors will be conclusive and binding on the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The Auditor&#146;s Certificates referred to in paragraph&nbsp;(g) above will confirm, based upon the
independent auditor&#146;s review of portfolio data provided by the Trust, (i)&nbsp;the mathematical accuracy
of the calculations reflected in the related Preferred Shares Basic Maintenance Amount Certificates
and 1940 Act Preferred Shares Asset Coverage Certificates and (ii)&nbsp;that, based upon such
calculations, the Trust had, at such Valuation Date, met the Preferred Shares Basic Maintenance
Amount Test.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;In the event that a Preferred Shares Basic Maintenance Certificate or 1940 Act Preferred
Shares Asset Coverage Certificate with respect to an applicable Valuation Date is not delivered
within the time periods specified in this Section&nbsp;12, the Trust shall be deemed to have failed to
meet the Preferred Shares Basic Maintenance Amount Test or the 1940 Act Preferred Shares Asset
Coverage, as the case may be, on such Valuation Date for purposes of Section&nbsp;12(b) of Part&nbsp;I of
this Statement. In the event that a Preferred Shares Basic Maintenance Certificate, a 1940 Act
Preferred Shares Asset Coverage Certificate or an applicable Auditor&#146;s Certificate with respect to
an Asset Coverage Cure Date is not delivered within the time periods specified herein, the Trust
shall be deemed to have failed to meet the Preferred Shares Basic Maintenance Amount Test or the
1940 Preferred Shares Asset Coverage, as the case may be, as of the related Valuation Date.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-16<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="164"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U>Notices</U>.
All notices or communications hereunder, unless otherwise specified in
this Statement, shall be sufficiently given if in writing and delivered in person, by facsimile or
mailed by first-class mail, postage prepaid. Notices delivered pursuant to this Section&nbsp;13 shall
be deemed given on the earlier of the date received or the date five days after which such notice
is mailed, except as otherwise provided in this Statement or by the Delaware law for notices of
shareholders&#146; meetings.
</DIV>
<DIV align="left">
<A name="165"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U>Waiver</U>.
To the extent permitted by Delaware law, Holders of at least two-thirds
of the Outstanding Preferred Shares, acting collectively, or each Series, acting as a separate
series, may waive any provision hereof intended for their respective benefit in accordance with
such procedures as may from time to time be established by the Board of Trustees.
</DIV>
<DIV align="left">
<A name="166"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U>Termination</U>.
In the event that no Preferred Shares are Outstanding, all rights
and preferences of such shares established and designated hereunder shall cease and terminate, and
all obligations of the Trust under this Statement shall terminate.
</DIV>
<DIV align="left">
<A name="167"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U>Amendment</U>.
Subject to the provisions of this Statement, the Board of Trustees
may, by resolution duly adopted without shareholder approval (except as otherwise provided by this
Statement or required by applicable law), amend this Statement to reflect any amendments hereto
which the Board of Trustees is entitled to adopt pursuant to the terms of Section&nbsp;6(k) of Part&nbsp;I of
this Statement without shareholder approval. To the extent permitted by applicable law, the Board
of Trustees may interpret, amend or adjust the provisions of this Statement to resolve any
inconsistency or ambiguity or to remedy any patent defect.
</DIV>
<DIV align="left">
<A name="168"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;<U>Definitions</U>.
As used in Part&nbsp;I and Part&nbsp;II of this Statement, the following terms
shall have the following meanings (with terms defined in the singular having comparable meanings
when used in the plural and vice versa), unless the context otherwise requires:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Affiliate&#148; means any person actually known to the Auction Agent to be controlled by, in
control of or under common control with the Trust; provided, however, that no Broker-Dealer
controlled by, in control of or under common control with the Trust shall be deemed to be an
Affiliate nor shall any corporation or any Person controlled by, in control of or under common
control with such corporation, one of the directors or executive officers of which is a trustee of
the Trust be deemed to be an Affiliate solely because such director or executive officer is also a
trustee of the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Agent Member&#148; means a member of or a participant in the Securities Depository that will act
on behalf of a Bidder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;All Hold Rate&#148; means 80% of the Reference Rate
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Applicable Percentage&#148; means the percentage determined based on the higher of the credit
ratings assigned to the series of Preferred Shares on such date by Fitch and S&#038;P or equivalent
credit rating by any Other Rating Agency as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Credit Rating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Applicable Percentage</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AA- or higher</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A- to A&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BBB- to BBB&#043;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Below BBB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">275</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Applicable Percentage as so determined shall be further subject to upward but not downward
adjustment in the discretion of the Board of Trustees of the Trust after consultation with the
Broker-
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dealers, provided that immediately following any such increase the Trust would be in
compliance with the Preferred Shares Basic Maintenance Amount.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Applicable Rate&#148; means, with respect to each Series for each Dividend Period (i)&nbsp;if
Sufficient Clearing Orders exist for the Auction in respect thereof, the Winning Bid Rate, (ii)&nbsp;if
Sufficient Clearing Orders do not exist for the Auction in respect thereof, the Maximum Rate, and
(iii)&nbsp;in the case of any Dividend Period if all the shares of a Series are the subject of Submitted
Hold Orders for the Auction in respect thereof, the All Hold Rate corresponding to that Series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Asset Coverage Cure Date&#148; has the meaning set forth in Section&nbsp;3(a)(ii) of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Auction&#148; means each periodic operation of the Auction Procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Auction Agent&#148; means The Bank of New York unless and until another commercial bank, trust
company, or other financial institution appointed by a resolution of the Board of Trustees enters
into an agreement with the Trust to follow the Auction Procedures for the purpose of determining
the Applicable Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Auction Date&#148; means the first Business Day next preceding the first day of a Dividend Period
for each Series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Auction Procedures&#148; means the procedures for conducting Auctions as set forth in Part&nbsp;II of
this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Auditor&#146;s Certificate&#148; has the meaning set forth in Section&nbsp;12(g) of Part&nbsp;I of this
Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Beneficial Owner,&#148; with respect to shares of each Series, means a customer of a Broker-Dealer
who is listed on the records of that Broker-Dealer (or, if applicable, the Auction Agent) as a
holder of shares of such series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Bid&#148; has the meaning set forth in Section&nbsp;2(a)(ii) of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Bidder&#148; has the meaning set forth in Section&nbsp;2(a)(ii) of Part&nbsp;II of this Statement, provided,
however, that neither the Trust nor any Affiliate shall be permitted to be a Bidder in an Auction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Board of Trustees&#148; or &#147;Board&#148; means the Board of Trustees of the Trust or any duly authorized
committee thereof as permitted by applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Broker-Dealer&#148; means any broker-dealer or broker-dealers, or other entity permitted by law to
perform the functions required of a Broker-Dealer by the Auction Procedures, that has been selected
by the Trust and has entered into a Broker-Dealer Agreement that remains effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Broker-Dealer Agreement&#148; means an agreement between the Auction Agent and a Broker-Dealer,
pursuant to which such Broker-Dealer agrees to follow the Auction Procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Business Day&#148; means a day on which the New York Stock Exchange is open for trading and which
is not a Saturday, Sunday or other day on which banks in The City of New York, New York are
authorized or obligated by law to close.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Code&#148; means the Internal Revenue Code of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Commission&#148; means the Securities and Exchange Commission.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-18<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Common Shares&#148; means the shares of the Trust common shares of beneficial interest, no par
value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Date of Original Issue&#148; means the date on which a Series is originally issued by the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Default&#148; has the meaning set forth in Section&nbsp;2(c)(ii) of Part&nbsp;I of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Default Period&#148; has the meaning set forth in Sections&nbsp;2(c)(ii) or (iii)&nbsp;of Part&nbsp;I of this
Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Default Rate&#148; has the meaning set forth in Section&nbsp;2(c)(iii) of Part&nbsp;I of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Deposit Securities&#148; means cash and any obligations or securities, including Short Term Money
Market Instruments that are Eligible Assets, rated at least AAA or A-1 by S&#038;P, except that, for
purposes of optional redemption, such obligations or securities will be considered &#147;Deposit
Securities&#148; only if they also are rated at least P-1 by Moody&#146;s.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Discount Factor&#148; means the S&#038;P Discount Factor (if S&#038;P is then rating the Preferred Shares),
the Fitch Discount Factor (if Fitch is then rating the Preferred Shares) or the discount factor
established by any Other Rating Agency which is then rating the Preferred Shares and which so
requires, whichever is applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Discounted Value&#148; means the quotient of the Market Value of an Eligible Asset divided by the
applicable Discount Factor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Dividend Default&#148; has the meaning set forth in Section&nbsp;2(c)(iii) of Part&nbsp;I of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Dividend Payment Date&#148; with respect to the Preferred Shares means any date on which dividends
are payable pursuant to Section&nbsp;2(b) of Part&nbsp;I of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Dividend Period&#148; means, with respect to each Series, the initial period from the Date of
Original Issue to the initial Dividend Payment Date set forth under &#147;Designation&#148; above, and
thereafter, as to such Series, the period commencing on the Business Day following each Dividend
Period for such Series and ending on the calendar day immediately preceding the next Dividend
Payment Date for such Series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Eligible Assets&#148; means Fitch Eligible Assets (if Fitch is then rating the Preferred Shares),
S&#038;P Eligible Assets (if S&#038;P is then rating the Preferred Shares), and/or Other Rating Agency
Eligible Assets if any Other Rating Agency is then rating the Preferred Shares, whichever is
applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Existing Holder&#148; has the meaning set forth in Section&nbsp;1(d) of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Failure to Deposit&#148; with respect to shares of a series of Preferred Shares, means a failure
by the Trust to pay the Auction Agent, not later than 12:00 noon, New York City time, (A)&nbsp;on the
Business Day next preceding any Dividend Payment Date for shares of such series, in funds available
on such Dividend Payment Date in The City of New York, New York, the full amount of any dividend
(whether or not earned or declared) to be paid on such Dividend Payment Date on any share of such
series or (B)&nbsp;on the Business Day next preceding any redemption date in funds available on such
redemption date for shares of such series in The City of New York, New York, the Redemption Price
to be paid on such redemption date for any share of such series after notice of redemption is
mailed pursuant to paragraph (c)&nbsp;of Section&nbsp;3 of Part&nbsp;I of this Statement; <I>provided, however, </I>that
the foregoing clause (B)&nbsp;shall not apply to the Trust&#146;s failure to pay the Redemption Price in
respect of shares of Preferred Shares when the related Notice of Redemption provides that
redemption of such shares is subject to one or more conditions
</DIV>

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

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">precedent and any such condition precedent shall not have been satisfied at the time or times
and in the manner specified in such Notice of Redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fitch&#148; means Fitch Ratings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fitch Discount Factor&#148; means, for the purposes of determining the Discounted Value of any
Fitch Eligible Asset, the percentage determined as follows. The Fitch Discount Factor for any
Fitch Eligible Asset other than the securities set forth below will be the percentage provided in
writing by Fitch. Any documents provided to Fitch pursuant to this Statement shall be delivered to
Fitch electronically at the following email address: <u><I>funds.surveillance@fitchratings.com</I></u>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Corporate debt securities. The percentage determined by reference to the rating of
a corporate debt security in accordance with the table set forth below.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center" >&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center" ><B>Not Rated</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Term to Maturity of Corporate</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>or Below</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Debt Security Unrated</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>AAA</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>AA</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>BBB</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>BB</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>BB</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3&nbsp;years or less (but longer than 1&nbsp;year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">106.38</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">108.11</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109.89</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">129.87</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">151.52</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5&nbsp;years or less (but longer than 3&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151.52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;years or less (but longer than 5&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151.52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10&nbsp;years or less (but longer than 7&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151.52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15&nbsp;years or less (but longer than 10&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">139.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151.52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">More than 15&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">129.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151.52</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If a security is not rated by Fitch but is rated by two other Rating Agencies, then the lower
of the ratings on the security from the two other Rating Agencies will be used to determine
the Fitch Discount Factor (e.g., where the S&#038;P rating is A- and the Moody&#146;s rating is Baa1, a
Fitch rating of BBB&#043; will be used). If a security is not rated by Fitch but is rated by only
one other Rating Agency, then the rating on the security from the other Rating Agency will be
used to determine the Fitch Discount Factor (e.g., where the only rating on a security is an
S&#038;P rating of AAA, a Fitch rating of AAA will be used, and where the only rating on a security
is a Moody&#146;s rating of Ba3, a Fitch rating of BB- will be used). If a security is not rated
by any Rating Agency, the Trust will use the percentage set forth under &#147;Unrated&#148; in this
table.</TD>
</TR>

</TABLE>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Convertible securities. The Fitch Discount Factor applied to convertible
securities is (A)&nbsp;200% for investment grade convertibles and (B)&nbsp;222% for below investment
grade convertibles so long as such convertible securities have neither (x)&nbsp;conversion
premium greater than 100% nor (y)&nbsp;have a yield to maturity or yield to worst of &#062;15.00%
above the relevant Treasury curve.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fitch Discount Factor applied to convertible securities which have conversion
premiums of greater than 100% is (A)&nbsp;152% for investment grade convertibles and (B)&nbsp;179% for
below investment grade convertibles so long as such convertible securities do not have a
yield to maturity or yield to worst of &#062; 15.00% above the relevant Treasury curve.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fitch Discount Factor applied to convertible securities which have a yield to
maturity or yield to worst of &#062; 15.00% above the relevant Treasury curve is 370%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a security is not rated by Fitch but is rated by two other Rating Agencies, then the
lower of the ratings on the security from the two other Rating Agencies will be used to
determine the Fitch Discount Factor (e.g., where the S&#038;P rating is A- and the Moody&#146;s rating
is Baa1, a Fitch rating of BBB&#043; will be used). If a security is not rated by Fitch but is
rated by only one other Rating Agency, then the rating on the security from the other Rating
Agency will be used to determine the Fitch Discount Factor (e.g., where the only rating on a
security is an S&#038;P
</DIV>

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

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">rating of AAA, a Fitch rating of AAA will be used, and where the only rating on a
security is a Moody&#146;s rating of Ba3, a Fitch rating of BB- will be used). If a security is
not rated by any Rating Agency, the Trust will treat the security as if it were below
investment grade.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Preferred securities: The percentage determined by reference to the rating of a
preferred security in accordance with the table set forth below.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="center" ><B>Not Rated </B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>or Below</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Preferred Security</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">AAA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">AA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">A</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">BBB</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">BB</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">BB</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Taxable Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">130.58</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">133.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135.91</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">138.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">153.23</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">161.08</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend-Received Deduction
(DRD)&nbsp;Preferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">163.40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">163.40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">163.40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">163.40</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">201.21</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">201.21</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If a security is not rated by Fitch but is rated by two other Rating Agencies,
then the lower of the ratings on the security from the two other Rating Agencies will be
used to determine the Fitch Discount Factor (e.g., where the S&#038;P rating is A- and the
Moody&#146;s rating is Baa1, a Fitch rating of BBB&#043; will be used). If a security is not
rated by Fitch but is rated by only one other Rating Agency, then the rating on the
security from the other Rating Agency will be used to determine the Fitch Discount
Factor (e.g., where the only rating on a security is an S&#038;P rating of AAA, a Fitch
rating of AAA will be used, and where the only rating on a security is a Moody&#146;s rating
of Ba3, a Fitch rating of BB- will be used). If a security is not rated by any Rating
Agency, the Trust will use the percentage set forth under &#147;Unrated&#148; in this table.</TD>
</TR>

</TABLE>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) U.S. Government Securities and U.S. Treasury Strips:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Time Remaining to Maturity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Discount Factor</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2&nbsp;years or less (but longer than 1&nbsp;year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">103</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3&nbsp;years or less (but longer than 2&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">105</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4&nbsp;years or less (but longer than 3&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5&nbsp;years or less (but longer than 4&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;years or less (but longer than 5&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10&nbsp;years or less (but longer than 7&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">114</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15&nbsp;years or less (but longer than 10&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">122</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20&nbsp;years or less (but longer than 15&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">130</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">25&nbsp;years or less (but longer than 20&nbsp;years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">146</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Greater than 30&nbsp;years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Short-Term Investments and Cash: The Fitch Discount Factor applied to short-term
portfolio securities, including without limitation Debt Securities, Short Term Money Market
Instruments and municipal debt obligations, will be (A)&nbsp;100%, so long as such portfolio
securities mature or have a demand feature at par exercisable within the Fitch Exposure
Period; (B)&nbsp;115%, so long as such portfolio securities mature or have a demand feature at
par not exercisable within the Fitch Exposure Period; and (C)&nbsp;125%, so long as such
portfolio securities neither mature nor have a demand feature at par exercisable within the
Fitch Exposure Period. A Fitch Discount Factor of 100% will be applied to cash.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Rule&nbsp;144A Securities: The Fitch Discount Factor applied to Rule&nbsp;144A Securities
will be 110% of the Fitch Discount Factor which would apply were the securities registered
under the Securities Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Foreign Bonds: The Fitch Discount Factor (A)&nbsp;for a Foreign Bond the principal of
which (if not denominated in U.S. dollars) is subject to a currency hedging
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-21<!-- /Folio -->
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">transaction will be the Fitch Discount Factor that would otherwise apply to such
Foreign Bonds in accordance with this definition and (B)&nbsp;for (1)&nbsp;a Foreign Bond the
principal of which (if not denominated in U.S. dollars) is not subject to a currency hedging
transaction and (2)&nbsp;a bond issued in a currency other than U.S. dollars by a corporation,
limited liability company or limited partnership domiciled in, or the government or any
agency, instrumentality or political subdivision of, a nation other than an Approved Foreign
Nation, will be 370%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) U.S. Common Stock and warrants: The Fitch Discount Factor applied to common
stock will be:
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Large-cap stocks: 200%<BR>
Mid-cap stocks: 233%<BR>
Small-cap stocks: 286%<BR>
Others: 370%

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Fitch Eligible Assets&#151;common stocks&#148; for definitions of large-cap, mid-cap and
small-cap stocks.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Common Stock: The Fitch Discount Factor for foreign common stock of Developed
Countries is (A)&nbsp;210% for large-cap stocks; (B)&nbsp;244% for mid-cap stocks, (c)&nbsp;300% for
small-cap stocks; and (D)&nbsp;370% for other common stocks. The Fitch Discount Factor for
foreign common stock of Emerging Market Countries is 370% regardless of market
capitalization. Developed Countries include Australia, Austria, Belgium, Canada, Denmark,
Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New
Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
Emerging Market Countries are all foreign countries not defined in Developed Countries. See
&#147;Fitch Eligible Assets&#151;common stocks&#148; for definitions of large-cap, mid-cap and small-cap
stocks.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Futures and call options: For purposes of the Preferred Shares Basic Maintenance
Amount, futures held by the Fund shall not be included as Fitch Eligible Assets. However,
such assets shall be valued at market value by subtracting the good faith margin and the
maximum daily trading variance as of the Valuation Date. Options purchased by the Fund shall
not be included as Fitch Eligible Assets. For written covered call options (when the Fund
holds the underlying position), to determine the Fitch Eligible Asset, use the product of
(a)&nbsp;the number of exercisable shares in the contract, and (b)&nbsp;the lesser of (i)&nbsp;the market
value of the underlying security, and (ii)&nbsp;the strike price. For written uncovered call
options, to determine the reduction in the aggregate Fitch Discounted Value, use the greater
of (a)&nbsp;zero and (b)&nbsp;the product of (i)&nbsp;the number of exercisable shares in the contract, and
(ii)&nbsp;the product of (1)&nbsp;the market value of the underlying security or index and (2)&nbsp;the
applicable discount factor, less the strike price. For written put options, to determine
the reduction in the aggregate Fitch Discounted Value, use the greater of (a)&nbsp;zero and (b)
the product of (i)&nbsp;the number of exercisable shares in the contract, and (ii)&nbsp;the strike
price less the quotient of (1)&nbsp;the market value of the underlying security or index, and (2)
the applicable discount factor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Real Estate Investment Trusts:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) For common stock and preferred stock of REITs and other real estate
companies, the Fitch Discount Factor applied shall be:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-22<!-- /Folio -->
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">REIT or other real estate company preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">REIT or other real estate company stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">196</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) For corporate debt securities or REITs, the Fitch Discount Factor applied
shall be:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Terms to Maturity</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>AAA</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>AA</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>A</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>BBB</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>BB</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>B</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unrated</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year or less</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">114</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">117</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">120</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">121</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">127</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">127</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2&nbsp;years or less
(but longer than 1
year)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">116</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">123</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">125</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">127</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">132</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">137</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">137</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3&nbsp;years or less
(but longer than 2
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">121</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">125</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">127</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">131</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">133</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">152</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4&nbsp;years or less
(but longer than 3
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">126</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">126</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">129</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">132</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">136</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">164</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5&nbsp;years or less
(but longer than 4
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">131</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">132</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">139</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">144</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">149</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">185</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7&nbsp;years or less
(but longer than 5
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">143</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">146</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">152</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">159</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">167</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">228</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10&nbsp;years or less
(but longer than 7
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">141</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">143</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">147</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">153</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">160</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">168</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">232</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12&nbsp;years or less
(but longer than 7
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">144</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">144</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">150</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">157</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">165</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">174</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">249</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15&nbsp;years or less
(but longer than 12
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">148</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">151</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">155</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">163</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">172</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">182</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">274</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30&nbsp;years or less
(but longer than 15
years)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">152</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">156</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">160</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">169</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">180</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">191</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">306</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>If a security is not rated by Fitch but is rated by two other Rating Agencies, then the lower
of the ratings on the security from the two other Rating Agencies will be used to determine
the Fitch Discount Factor (e.g., where the S&#038;P rating is A and the Moody&#146;s rating is Baa, a
Fitch rating of BBB will be used). If a security is not rated by Fitch but is rated by only
one other Rating Agency, then the rating on the security from the other Rating Agency will be
used to determined the Fitch Discount Factor (e.g., where the only rating on a security is an
S&#038;P rating of AAA, a Fitch rating of AAA will be used, and where the only rating on a security
is a Moody&#146;s rating of Ba, a Fitch rating of BB will be used). Securities rated either below
B or not rated by any Rating Agency shall be treated as &#147;Unrated&#148; in the table above.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fitch Eligible Assets&#148; means:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cash (including interest and dividends due on assets rated (A)&nbsp;BBB or higher by
Fitch or the equivalent by another Rating Agency if the payment date is within five Business
Days of the Valuation Date, (B)&nbsp;A or higher by Fitch or the equivalent by another Rating
Agency if the payment date is within thirty days of the Valuation Date, and (C)&nbsp;A&#043; or higher
by Fitch or the equivalent by another Rating Agency if the payment date is within the Fitch
Exposure Period) and receivables for Fitch Eligible Assets sold if the receivable is due
within five Business Days of the Valuation Date, and if the trades which generated such
receivables are settled within five business days;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Short Term Money Market Instruments so long as (A)&nbsp;such securities are rated at
least F1&#043; by Fitch or the equivalent by another Rating Agency, (B)&nbsp;in the case of demand
deposits, time deposits and overnight funds, the supporting entity is rated at least A by
Fitch or the equivalent by another Rating Agency, or (C)&nbsp;in all other cases, the supporting
entity (1)&nbsp;is rated at least A by Fitch or the equivalent by another Rating Agency and the
security matures within one month, (2)&nbsp;is rated at least A by Fitch or the equivalent by
another Rating Agency and the security matures within three months or (3)&nbsp;is rated at least
AA by Fitch or the equivalent by another Rating Agency and the security matures within six
months;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-23<!-- /Folio -->
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) U.S. Government Securities and U.S. Treasury Strips;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) debt securities if such securities have been registered under the Securities Act
or are restricted as to resale under federal securities laws but are eligible for resale
pursuant to Rule&nbsp;144A under the Securities Act as determined by the Trust&#146;s investment
manager or portfolio manager acting pursuant to procedures approved by the Board of Trustees
of the Trust; and such securities are issued by (1)&nbsp;a U.S. corporation, limited liability
company or limited partnership, (2)&nbsp;a corporation, limited liability company or limited
partnership domiciled in Argentina, Australia, Brazil, Chile, France, Germany, Italy, Japan,
Korea, Mexico, Spain or the United Kingdom (the &#147;Approved Foreign Nations&#148;), (3)&nbsp;the
government of any Approved Foreign Nation or any of its agencies, instrumentalities or
political subdivisions (the debt securities of Approved Foreign Nation issuers being
referred to collectively as &#147;Foreign Bonds&#148;), (4)&nbsp;a corporation, limited liability company
or limited partnership domiciled in Canada or (5)&nbsp;the Canadian government or any of its
agencies, instrumentalities or political subdivisions (the debt securities of Canadian
issuers being referred to collectively as &#147;Canadian Bonds&#148;). Foreign Bonds held by the
Trust will qualify as Fitch Eligible Assets only up to a maximum of 20% of the aggregate
Market Value of all assets constituting Fitch Eligible Assets. Similarly, Canadian Bonds
held by the Trust will qualify as Fitch Eligible Assets only up to a maximum of 20% of the
aggregate Market Value of all assets constituting Fitch Eligible Assets. Notwithstanding
the limitations in the two preceding sentences, Foreign Bonds and Canadian Bonds held by the
Trust will qualify as Fitch Eligible Assets only up to a maximum of 30% of the aggregate
Market Value of all assets constituting Fitch Eligible Assets. In addition, bonds which are
issued in connection with a reorganization under U.S. federal bankruptcy law
(&#147;Reorganization Bonds&#148;) will be considered debt securities constituting Fitch Eligible
Assets if (a)&nbsp;they provide for periodic payment of interest in cash in U.S. dollars or
euros; (b)&nbsp;they do not provide for conversion or exchange into equity capital at any time
over their lives; (c)&nbsp;they have been registered under the Securities Act or are restricted
as to resale under federal securities laws but are eligible for trading under Rule&nbsp;144A
promulgated pursuant to the Securities Act as determined by the Trust&#146;s investment manager
or portfolio manager acting pursuant to procedures approved by the Board of Trustees of the
Trust; (d)&nbsp;they were issued by a U.S. corporation, limited liability company or limited
partnership; and (e)&nbsp;at the time of purchase at least one year had elapsed since the
issuer&#146;s reorganization. Reorganization Bonds may also be considered debt securities
constituting Fitch Eligible Assets if they have been approved by Fitch, which approval shall
not be unreasonably withheld. All debt securities satisfying the foregoing requirements and
restrictions of this paragraph (iv)&nbsp;are herein referred to as &#147;Debt Securities.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Preferred stocks if (A)&nbsp;dividends on such preferred stock are cumulative, (B)&nbsp;such
securities provide for the periodic payment of dividends thereon in cash in U.S. dollars or
euros and do not provide for conversion or exchange into, or have warrants attached
entitling the holder to receive equity capital at any time over the respective lives of such
securities, (C)&nbsp;the issuer of such a preferred stock has common stock listed on either the
New York Stock Exchange or the American Stock Exchange, (D)&nbsp;the issuer of such a preferred
stock has a senior debt rating or preferred stock rating from Fitch of BBB&#150; or higher or the
equivalent rating by another Rating Agency. In addition, the preferred stocks issue must be
at least $50&nbsp;million;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Asset-backed and mortgage-backed securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Rule&nbsp;144A Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Bank Loans;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-24<!-- /Folio -->
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Municipal debt obligation that (A)&nbsp;pays interest in cash (B)&nbsp;is part of an issue
of municipal debt obligations of at least $5&nbsp;million, except for municipal debt obligations
rated below A by Fitch or the equivalent rating by another Rating Agency, in which case the
minimum issue size is $10&nbsp;million;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Tradable credit baskets (e.g., Traded Custody Receipts or TRACERS and Targeted
Return Index Securities Trust or TRAINS);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Convertible debt and convertible preferred stocks;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Financial contracts, as such term is defined in Section&nbsp;3(c)(2)(B)(ii) of the
Investment Company Act, not otherwise provided for in this definition may be included in
Fitch Eligible Assets, but, with respect to any financial contract, only upon receipt by the
Trust of a writing from Fitch specifying any conditions on including such financial contract
in Fitch Eligible Assets and assuring the Trust that including such financial contract in
the manner so specified would not affect the credit rating assigned by Fitch to the
Preferred Shares;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) Interest rate swaps entered into according to International Swap Dealers
Association (&#147;ISDA&#148;) standards if (1)&nbsp;the counterparty to the swap transaction has a
short-term rating of not less than F1 by Fitch or the equivalent by another, NRSRO, or, if
the swap counterparty does not have a short-term rating, the counterparty&#146;s senior unsecured
long-term debt rating is AA or higher by Fitch or the equivalent by another NRSRO and
(2)&nbsp;the original aggregate notional amount of the interest rate swap transaction or
transactions is not greater than the liquidation preference of the Preferred Shares
originally issued.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) Common stocks (1)(A) which are traded on the New York Stock Exchange, the
American Stock Exchange or in the over-the-counter market (&#147;U.S. Common Stock&#148;), (B)&nbsp;which,
if cash dividend paying, pay cash dividends in U.S. dollars, and (C)&nbsp;which may be sold
without restriction by the Trust; provided, however, that (i)&nbsp;common stock which, while a
Fitch Eligible Asset owned by the Trust, ceases paying any regular cash dividend will no
longer be considered a Fitch Eligible Assets until 60 calendar days after the date of the
announcement of such cessation, unless the issuer of the common stock has senior debt
securities rated at least A- by Fitch and (ii)&nbsp;the aggregate Market Value of the Trust&#146;s
holdings of the common stock of any issuer in excess of 5% per U.S. issuer of the number of
Outstanding shares times the Market Value of such common stock shall not be a Fitch&#146;s
Eligible Asset; and (2)&nbsp;securities denominated in any currency other than the U.S. dollar
and/or securities of issuers formed under the laws of jurisdictions other than the United
States, its states and the District of Columbia (&#147;Foreign Common Stock&#148;); and (iii)
small-cap stocks refer to stocks with a market capitalization between $300&nbsp;million to $2
billion; mid-cap stocks refer to stocks with a market capitalization between $2&nbsp;billion to
$10&nbsp;billion; and large-cap stocks are companies having a market capitalization greater than
$10&nbsp;billion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) REIT and other real estate securities; 5% issuer limitation (including common,
preferred, debt and other securities)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where the Trust sells an asset and agrees to repurchase such asset in the future, the
Discounted Value of such asset will constitute a Fitch Eligible Asset and the amount the Trust is
required to pay upon repurchase of such asset will count as a liability for the purposes of the
Preferred Shares Basic Maintenance Amount. Where the Trust purchases an asset and agrees to sell
it to a third party in the future, cash receivable by the Trust thereby will constitute a Fitch
Eligible Asset if the long-term debt of such other party is rated at least A&#150; by Fitch or the
equivalent by another Rating Agency and such
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-25<!-- /Folio -->
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">agreement has a term of 30&nbsp;days or less; otherwise the Discounted Value of such purchased
asset will constitute a Fitch Eligible Asset.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, an asset will not be considered a Fitch Eligible Asset to the
extent that it has been irrevocably deposited for the payment of (i)(A) through (i)(E) under the
definition of Preferred Shares Basic Maintenance Amount or to the extent it is subject to any
Liens, except for (A)&nbsp;Liens which are being contested in good faith by appropriate proceedings and
which Fitch has indicated to the Trust will not affect the status of such asset as a Fitch Eligible
Asset, (B)&nbsp;Liens for taxes that are not then due and payable or that can be paid thereafter without
penalty, (C)&nbsp;Liens to secure payment for services rendered or cash advanced to the Trust by its
investment manager or portfolio manager, the Trust&#146;s custodian, transfer agent or registrar or the
Auction Agent and (D)&nbsp;Liens arising by virtue of any repurchase agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio holdings as described above must be within the following diversification and issue
size requirements in order to be included in Fitch&#146;s Eligible Assets:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Maximum Single</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Maximum Single</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Minimum Issue Size</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Security Rated At Least</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Issuer</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Industry</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($ in million)</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(3)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AAA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AA-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BBB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BB-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">B-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CCC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Percentages represent a portion of the aggregate market value of corporate debt securities.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Industries are determined according to Fitch&#146;s Industry Classifications, as defined herein.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Preferred stock has a minimum issue size of $50&nbsp;million.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fitch Exposure Period&#148; means the period commencing on (and including) a given Valuation Date
and ending 49&nbsp;days thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fitch Hedging Transactions&#148; means purchases or sales of exchange-traded financial futures
contracts based on any index approved by Fitch or Treasury Bonds, and purchases, writings or sales
of exchange-traded put options on such futures contracts, any index approved by Fitch or Treasury
Bonds and purchases, writings or sales of exchange-traded call options on such financial futures
contracts, any index approved by Fitch or Treasury bonds (&#147;Fitch Hedging Transactions&#148;), subject to
the following limitations:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Trust may not engage in any Fitch Hedging Transaction based on any index
approved by Fitch (other than transactions that terminate a futures contract or option held
by the Trust by the Trust&#146;s taking the opposite position thereto (&#147;closing transactions&#148;))
that would cause the Trust at the time of such transaction to own or have sold outstanding
financial futures contracts based on such index exceeding in number 10% of the average
number of daily traded financial futures contracts based on such index in the 30&nbsp;days
preceding the time of effecting such transaction as reported by The Wall Street Journal.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Trust will not engage in any Fitch Hedging Transaction based on Treasury Bonds
(other than closing transactions) that would cause the Trust at the time of such transaction
to own or have sold:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-26<!-- /Folio -->
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Outstanding financial futures contracts based on Treasury Bonds with such
contracts having an aggregate market value exceeding 20% of the aggregate market
value of Fitch Eligible Assets owned by the Trust and rated AA by Fitch (or, if not
rated by Fitch Ratings, rated Aa by Moody&#146;s; or, if not rated by Moody&#146;s, rated AAA
by S&#038;P); or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Outstanding financial futures contracts based on Treasury Bonds with such
contracts having an aggregate market value exceeding 40% of the aggregate market
value of all Fitch Eligible Assets owned by the Trust (other than Fitch Eligible
Assets already subject to a Fitch Hedging Transaction) and rated A or BBB by Fitch
(or, if not rated by Fitch Ratings, rated Baa by Moody&#146;s; or, if not rated by
Moody&#146;s, rated A or AA by S&#038;P) (for purposes of the foregoing clauses (i)&nbsp;and (ii),
the Trust shall be deemed to own futures contracts that underlie any outstanding
options written by the Trust);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Trust may engage in closing transactions to close out any outstanding
financial futures contract based on any index approved by Fitch if the amount of open
interest in such index as reported by The Wall Street Journal is less than an amount to be
mutually determined by Fitch and the Trust.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Trust may not enter into an option or futures transaction unless, after giving
effect thereto, the Trust would continue to have Fitch Eligible Assets with an aggregate
Discounted Value equal to or greater than the Preferred Shares Basic Maintenance Amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fitch Industry Classifications&#148; means, for the purposes of determining Fitch Eligible Assets,
each of the following industry classifications:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Fitch Industry Classifications</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>SIC Code (Major Groups)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1. Aerospace and Defense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">37, 45</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2. Automobiles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">37, 55</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3. Banking, Finance and Real Estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">60, 65, 67</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4. Broadcasting and Media</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">27, 48</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5. Building and Materials</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">15-17, 32, 52</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6. Cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">48</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7. Chemicals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">28, 30</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">8. Computers and Electronics</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">35, 36</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9. Consumer Products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">23, 51</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10. Energy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">13, 29, 49</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11. Environmental Services</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">87</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12. Farming and Agriculture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1-3, 7-9</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13. Food, Beverage and Tobacco</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">20, 21, 54</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14. Gaming, Lodging and Restaurants</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">70, 58</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15. Health Care and Pharmaceuticals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">38, 28, 80</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">16. Industrial/Manufacturing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">35</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17. Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">63, 64</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18. Leisure and Entertainment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">78, 79</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">19. Metals and Mining</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10, 12, 14, 33, 34</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20. Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">50, 72-76, 99</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">21. Paper and Forest Products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8, 24, 26</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22. Retail</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">53, 56, 59</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">23. Sovereign</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NA</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">24. Supermarkets and Drug Stores</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">54</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->A-27<!-- /Folio -->
</DIV>

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

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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Fitch Industry Classifications</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>SIC Code (Major Groups)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">25. Telecommunications</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">48</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">26. Textiles and Furniture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">22, 25, 31, 57</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">27. Transportation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">40, 42-47</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">28. Utilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">49</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">29. Structured Finance Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NA</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">30. Packaging and Containers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">26, 32, 34</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">31. Business Series</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">73, 87</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust shall use its discretion in determining which industry classification is applicable
to a particular investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Hold Order&#148; has the meaning set forth in Section&nbsp;2(a)(ii) of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Holder&#148; means, with respect to the Preferred Shares, the registered holder of shares of each
Series as the same appears on the share ledger or share records of the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Investment Manager&#148; means Calamos Advisors LLC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;LIBOR Rate&#148; on any Auction Date, means (i)&nbsp;the rate for deposits in U.S. dollars for the
designated Dividend Period, which appears on display page 3750 of Moneyline&#146;s Telerate Service
(&#147;Telerate Page 3750&#148;) (or such other page as may replace that page on that service, or such other
service as may be selected by Citigroup Global Markets Inc. or its successors) as of 11:00&nbsp;a.m.,
London time, on the day that is the London Business Day on the Auction Date or, if the Auction Date
is not a London Business Day, the London Business Day proceeding the Auction Date (the &#147;LIBOR
Determination Date&#148;), or (ii)&nbsp;if such rate does not appear on Telerate Page 3750 or such other page
as may replace such Telerate Page 3750, (A)&nbsp;Citigroup Global Markets Inc. shall determine the
arithmetic mean of the offered quotations of the reference banks to leading banks in the London
interbank market for deposits in U.S. dollars for the designated Dividend Period in an amount
determined by Citigroup Global Markets Inc. by reference to requests for quotations as of
approximately 11:00&nbsp;a.m. (London time) on such date made by Citigroup Global Markets Inc. to the
reference banks, (B)&nbsp;if at least two of the reference banks provide such quotations, LIBOR Rate
shall equal such arithmetic mean of such quotations, (C)&nbsp;if only one or none of the reference banks
provide such quotations, LIBOR Rate shall be deemed to be the arithmetic mean of the offered
quotations that leading banks in The City of New York selected by Citigroup Global Markets Inc.
(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 Citigroup
Global Markets Inc. (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 Citigroup Global Markets Inc. is
not a Broker-Dealer or does not quote a rate required to determine the LIBOR Rate, the LIBOR Rate
will be determined on the basis of the quotation or quotations furnished by any other Broker-Dealer
selected by the Trust to provide such rate or rates not being supplied by Citigroup Global Markets
Inc.; provided further, that if Citigroup Global Markets Inc. and/or a substitute Broker-Dealer are
required but unable to determine a rate in accordance with at least one of the procedures provided
above, the LIBOR Rate shall be the most recently determinable LIBOR Rate. If the number of
Dividend Period days shall be (i)&nbsp;7 or more but fewer than 21&nbsp;days, such rate shall be the
seven-day LIBOR rate; (ii)&nbsp;more than 21 but fewer than 49&nbsp;days, such rate shall be one-month LIBOR
rate; (iii)&nbsp;49 or more but fewer than 77&nbsp;days, such rate shall be the two-month LIBOR rate; (iv)&nbsp;77
or more but fewer than 112&nbsp;days, such rate shall be the three-month LIBOR rate; (v)&nbsp;112 or more but
fewer than 140&nbsp;days, such rate shall be the four-month LIBOR rate; (vi)&nbsp;140 or more but fewer that
168&nbsp;days, such rate shall be the five-month LIBOR rate; (vii)&nbsp;168 or more but fewer 189&nbsp;days, such
rate shall be the six-month LIBOR rate; (viii)&nbsp;189 or more but fewer than 217&nbsp;days, such rate shall
be the seven-month LIBOR rate; (ix)&nbsp;217 or more but fewer than 252&nbsp;days, such rate shall be the
eight-month LIBOR rate; (x)&nbsp;252 or more but fewer than 287&nbsp;days, such rate shall be the nine-month
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-28<!-- /Folio -->
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">LIBOR rate; (xi)&nbsp;287 or more but fewer than 315&nbsp;days, such rate shall be the ten-month LIBOR
rate; (xii)&nbsp;315 or more but fewer than 343&nbsp;days, such rate shall be the eleven-month LIBOR rate;
and (xiii)&nbsp;343 or more days but fewer than 365&nbsp;days, such rate shall be the twelve-month LIBOR
rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;London Business Day&#148; means any day on which commercial banks are generally open for business
in London.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Liquidation Preference&#148; means $25,000 per preferred share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Mandatory Redemption Date&#148; has meaning set forth in Section&nbsp;3(a)(iv) of Part&nbsp;I of this
Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Mandatory Redemption Price&#148; has the meaning set forth in Section&nbsp;3(a)(iii) of Part&nbsp;I of this
Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Market Value&#148; means the fair market value of an asset of the Trust as computed in accordance
with the Trust&#146;s pricing procedures adopted by the Board of the Trust in connection with valuing
the Trust&#146;s assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Maximum Rate&#148; means the Applicable Percentage of the Reference Rate. The Auction Agent will
round each applicable Maximum Rate to the nearest one-thousandth (0.001) of one percent per annum,
with any such number ending in five ten-thousandths of one percent being rounded upwards to the
nearest one-thousandth (0.001) of one percent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Moody&#146;s&#148; means Moody&#146;s Investors Service, Inc. and its successors at law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;1933 Act&#148; means the Securities Act of 1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;1940 Act&#148; means the Investment Company Act of 1940, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;1940 Act Preferred Shares Asset Coverage&#148; means asset coverage, as determined in accordance
with Section&nbsp;18(h) of the 1940 Act, of at least 200% with respect to all outstanding senior
securities of the Trust which are stock, including all Outstanding Preferred Shares (or such other
asset coverage as may in the future be specified in or under the 1940 Act as the minimum asset
coverage for senior securities which are stock of a closed-end investment company as a condition of
declaring dividends on its common shares), determined on the basis of values calculated as of a
time within 48 hours (not including Sundays or holidays) next preceding the time of such
determination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;1940 Act Preferred Shares Asset Coverage Certificate&#148; means the certificate required to be
delivered by the Trust pursuant to Section&nbsp;12(e) of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Notice of Redemption&#148; means any notice with respect to the redemption of Preferred Shares
pursuant to Section&nbsp;3 of Part&nbsp;I of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Order&#148; has the meaning set forth in Section&nbsp;2(a)(ii) of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Other Rating Agency&#148; means any rating agency other than S&#038;P or Fitch then providing a rating
for the Preferred Shares pursuant to the request of the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Other Rating Agency Eligible Assets&#148; means assets of the Trust designated by any Other Rating
Agency as eligible for inclusion in calculating the discounted value of the Trust&#146;s assets in
connection with such Other Rating Agency&#146;s rating of the Preferred Shares.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-29<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Outstanding&#148; means, as of any date, Preferred Shares theretofore issued by the Trust except,
without duplication, (i)&nbsp;any Preferred Shares theretofore canceled, redeemed or repurchased by the
Trust, or delivered to the Auction Agent for cancellation or with respect to which the Trust has
given notice of redemption and irrevocably deposited with the Paying Agent sufficient funds to
redeem such shares and (ii)&nbsp;any Preferred Shares represented by any certificate in lieu of which a
new certificate has been executed and delivered by the Trust. Notwithstanding the foregoing,
(A)&nbsp;for purposes of voting rights (including the determination of the number of shares required to
constitute a quorum), any Preferred Shares as to which the Trust or any Affiliate is the Existing
Holder will be disregarded and not deemed Outstanding; (B)&nbsp;in connection with any Auction, any
Preferred Shares as to which the Trust or any person known to the Auction Agent to be an Affiliate
is the Existing Holder will be disregarded and not deemed Outstanding; and (C)&nbsp;for purposes of
determining the Preferred Shares Basic Maintenance Amount, Preferred Shares held by the Trust will
be disregarded and not deemed Outstanding, but shares held by any Affiliate will be deemed
Outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Paying Agent&#148; means The Bank of New York unless and until another entity appointed by a
resolution of the Board of Trustees enters into an agreement with the Trust to serve as paying
agent, which paying agent may be the same as the Auction Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Person&#148; or &#147;Persons&#148; means and includes an individual, a partnership, the Trust, a trust, a
corporation, a limited liability company, an unincorporated association, a joint venture or other
entity or a government or any agency or political subdivision thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Potential Beneficial Owner&#148; or &#147;Potential Beneficial Holder&#148; has the meaning set forth in
Section&nbsp;1 of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Preferred Shares&#148; has the meaning set forth in paragraph FIRST of Part&nbsp;I of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Preferred Shares Basic Maintenance Amount&#148; means as of any Valuation Date as the dollar
amount equal to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the sum of (A)&nbsp;the product of the number of Preferred Shares outstanding on such
date multiplied by $25,000 (plus the product of the number of shares of any other series of
preferred shares outstanding on such date multiplied by the Liquidation Preference of such shares), plus any redemption premium applicable to the Preferred Shares (or other preferred
shares) then subject to redemption; (B)&nbsp;the aggregate amount of dividends that will have
accumulated at the respective Applicable Rates (whether or not earned or declared) to (but
not including) the first respective Dividend Payment Dates for Preferred Shares outstanding
that follow such Valuation Date (plus the aggregate amount of dividends, whether or not
earned or declared, that will have accumulated in respect of other outstanding preferred
shares to, but not including, the first respective dividend payment dates for such other
shares that follow such Valuation Date); (C)&nbsp;the aggregate amount of dividends that would
accumulate on shares of each series of Preferred Shares outstanding from such first
respective Dividend Payment Date therefor through the 49th day after such Valuation Date, at
the Maximum Rate (calculated as if such Valuation Date were the Auction Date for the
Dividend Period commencing on such Dividend Payment Date) for a Standard Dividend Period of
shares of such series to commence on such Dividend Payment Date, assuming, solely for
purposes of the foregoing, that if on such Valuation Date the Trust shall have delivered a
notice of Special Dividend Period to the Auction Agent pursuant to Section&nbsp;4(b) of Part&nbsp;I of
the Statement with respect to shares of such series, such Maximum Rate shall be the Maximum
Rate for the Special Dividend Period of shares of such series to commence on such Dividend
Payment Date (except that (1)&nbsp;if such Valuation Date occurs at a time when a Failure to
Deposit (or, in the case of preferred shares other than Preferred Shares, a failure similar
to a Failure to Deposit) has occurred that has not been cured, the
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">dividend for purposes of calculation would accumulate at the current dividend rate then
applicable to the shares in respect of which such failure has occurred and (2)&nbsp;for those
days during the period described in this subparagraph (C)&nbsp;in respect of which the Applicable
Rate in effect immediately prior to such Dividend Payment Date will remain in effect (or, in
the case of preferred shares other than Preferred Shares, in respect of which the dividend
rate or rates in effect immediately prior to such respective dividend payment dates will
remain in effect), the dividend for purposes of calculation would accumulate at such
Applicable Rate (or other rate or rates, as the case may be in respect of those days);
(D)&nbsp;the amount of anticipated expenses of the Trust for the 90&nbsp;days subsequent to such
Valuation Date; (E)&nbsp;the amount of any indebtedness or obligations of the Trust senior in
right of payments to the Preferred Shares; and (F)&nbsp;any current liabilities as of such
Valuation Date to the extent not reflected in any of (i)(A) through (i)(E) (including,
without limitation, any payables for portfolio securities purchased as of such Valuation
Date and any liabilities incurred for the purpose of clearing securities transactions); less
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the value (i.e., the face value of cash, short-term municipal obligations and
short-term securities that are the direct obligation of the U.S. government, provided in
each case that such securities mature on or prior to the date upon which any of (i)(A)
though (i)(F) became payable, otherwise the S&#038;P Discounted Value) of any of the Trust&#146;s
assets irrevocably deposited by the Trust for the payment of any of (i)(A) through (i)(F).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Preferred Shares Basic Maintenance Amount Test&#148; means a test which is met if the lower of the
aggregate Discounted Values of the Fitch Eligible Assets or the S&#038;P Eligible Assets meets or
exceeds the Preferred Shares Basic Maintenance Amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Preferred Shares Basic Maintenance Certificate&#148; has the meaning set forth in Section&nbsp;12(d) of
Part&nbsp;I of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Rating Agency&#148; means Fitch and S&#038;P, as long as such rating agency is then rating the
Preferred Shares and any Other Rating Agency then rating the Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Redemption Date&#148; has the meaning set forth in Section&nbsp;2(c)(ii) of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Redemption Default&#148; has the meaning set forth in Section&nbsp;2(c)(ii) of Part&nbsp;I of this
Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Redemption Price&#148; has the meaning set forth in Section&nbsp;3(a)(i) of Part&nbsp;I of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Reference Rate&#148; means, with respect to the determination of the Default Rate, the applicable
LIBOR Rate (for a Dividend Period of fewer than 365&nbsp;days) or the applicable Treasury Index Rate
(for a Dividend Period of 365&nbsp;days or more).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Registrar&#148; means The Bank of New York, unless and until another entity appointed by a
resolution of the Board of Trustees enters into an agreement with the Trust to serve as transfer
agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;S&#038;P&#148; means Standard&nbsp;&#038; Poor&#146;s, a division of The McGraw-Hill Companies, Inc., or its
successors at law.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;S&#038;P Discount Factor&#148; means:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Discount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Factor for</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Type of S&#038;P Eligible Asset</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>AAA Rating</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fixed rate Preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">228.10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustable rate Preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">198.29</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Taxable Preferred stock (Non-DRD)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154.66</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible securities &#145;AAA&#146;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">148.25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible securities &#145;AA&#146;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154.97</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible securities &#145;A&#146;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">161.70</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible securities &#145;BBB&#146;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">168.42</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible securities &#145;BB&#146;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">175.15</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible securities &#145;B&#146;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">181.87</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Convertible securities &#145;CCC&#146;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">188.60</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury 1-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">101.99</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury 2-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">103.77</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury 5-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">109.09</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury 10-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115.14</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury 30-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">126.33</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Agency Debt Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">120.48</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Agency Mortgage Securities 15-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">128.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Agency Mortgage Securities 30-year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">131.20</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Agency Mortgage Securities 1/1 ARMS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">121.70</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Agency Mortgage Securities 3/1 ARMS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">122.10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Agency Mortgage Securities 5/1 ARMS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">122.50</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Agency Mortgage Securities 10/1 ARMS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">122.70</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds Rated AAA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">110.01</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds Rated AA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">113.28</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds Rated A</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">116.85</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds Rated BBB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">121.82</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds Rated BB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">135.32</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds Rated B</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">168.76</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds Rated CCC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">252.03</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate Bonds Rated CCC-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">350.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loan Performing, greater than $.90</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">117.79</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loan Performing, between $.85 and $.90</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">125.47</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loan Non-performing, greater than $.85</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">154.08</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank Loan Non-performing, less than or equal to $.85</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">178.25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Auto Loans (fixed or floating) WAL less than 5-years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">130.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Auto Loans (fixed or floating) WAL between 5 and 10-years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit Card Loans (fixed)&nbsp;WAL less than 5-years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">130.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit Card Loans (fixed)&nbsp;WAL between 5 and 10-years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">140.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit Card Loans (floating)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">112.70</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">REIT Common Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">148.79</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Common Stocks (including ADRs)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">168.46</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-U.S. Common Stocks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Germany</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">227.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">United Kingdom</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">234.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Japan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">248.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">247.93</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Switzerland</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Italy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">France</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Austria</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sweden</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->A-32<!-- /Folio -->
</DIV>

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

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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Discount</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Factor for</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Type of S&#038;P Eligible Asset</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>AAA Rating</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">South Africa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Greece</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Finland</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Canada</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200.00</TD>
    <TD nowrap>%<SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Master Limited Partnerships</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">625.00</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Euro denominated exchange traded equities. For German equities denominated in DEM/USD the
Discount Factor is 226.00%.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Euro denominated exchange traded equities. For UK equities denominated in GPB/USD the
Discount Factor is 228.00%.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Euro denominated exchange traded equities. For Japan equities denominated in JPY/USD the
Discount Factor is 249.00%</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Euro denominated exchange traded equities. For Australian equities denominated in AUD/USD
the Discount Factor is 241.58%.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Euro denominated exchange traded equities. For Swiss equities denominated in Swiss Franc/USD
the Discount Factor is 233.20%.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Euro denominated exchange traded equities.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Euro denominated exchange traded equities and equities denominated in local currencies or
USD.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the S&#038;P Discount Factor for short-term Municipal Obligations
will be 115% so long as such Municipal Obligations are rated A-1 &#043; or SP-1 &#043; by S&#038;P and mature or
have a demand feature exercisable within 30&nbsp;days or less, or 123% so long as such Municipal
Obligations are rated A-1 or SP-1 by S&#038;P and mature or have a demand feature exercisable in 30&nbsp;days
or less, or 125% if such Municipal Obligations are not rated by S&#038;P but are rated equivalent to
A-1&#043; or SP-1&#043; by another nationally recognized statistical rating organization, on a case by case
basis; provided, however, that any such non-S&#038;P rated short-term Municipal Obligations which have
demand features exercisable within 30&nbsp;days or less must be backed by a letter of credit, liquidity
facility or guarantee from a bank or other financial institution with a short-term rating of at
least A-l&#043; from S&#038;P ; and further provided that such non-S&#038;P rated short-term Municipal Obligations
may comprise no more than 50% of short-term Municipal Obligations that qualify as S&#038;P Eligible
Assets; provided, however, that Municipal Obligations not rated by S&#038;P but rated equivalent to BBB
or lower by another nationally recognized statistical rating organization, rated BB&#043; or lower by
S&#038;P or non-rated (such Municipal Obligations are hereinafter referred to as &#147;High Yield
Securities&#148;) may comprise no more than 20% of the short-term Municipal Obligations that qualify as
S&#038;P Eligible Assets; (ii)&nbsp;the S&#038;P Discount Factor for Receivables for Municipal Obligations Sold
that are due in more than five Business Days from such Valuation Date will be the S&#038;P Discount
Factor applicable to the Municipal Obligations sold; (iii)&nbsp;no S&#038;P Discount Factor will be applied
to cash or to Receivables for Municipal Obligations Sold if such receivables are due within five
Business Days of such Valuation Date; and (iv)&nbsp;except as set forth in clause&nbsp;(i) above, in the case
of any Municipal Obligation that is not rated by S&#038;P but qualifies as an S&#038;P Eligible Asset
pursuant to clause&nbsp;(iii) of that definition, such Municipal Obligation will be deemed to have an
S&#038;P rating one full rating category lower than the S&#038;P rating category that is the equivalent of
the rating category in which such Municipal Obligation is placed by a nationally recognized
statistical rating organization. &#147;Receivables for Municipal Obligations Sold,&#148; for purposes of
calculating S&#038;P Eligible Assets as of any Valuation Date, means the book value of receivables for
Municipal Obligations sold as of or prior to such Valuation Date. The Trust may adopt S&#038;P Discount
Factors for Municipal Obligations other than Municipal Obligations provided that S&#038;P advises the
Trust in writing that such action will not adversely affect its then current rating on the
Preferred Shares. For purposes of the foregoing, Anticipation Notes rated SP-1&#043; or, if not rated
by S&#038;P, equivalent to A-1&#043; or SP-1&#043; by another nationally recognized statistical rating
organization, on a case by case basis, which do not mature
</DIV>

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

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or have a demand feature at par exercisable in 30&nbsp;days and which do not have a long-term
rating, shall be considered to be short-term Municipal Obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The S&#038;P Discount Factor applied to cash, cash equivalents and demand deposits in an &#147;A-1&#043;&#148;
rated institution will be 100%. &#147;A-1&#043;&#148; rated commercial paper, with maturities no greater then 30
calendar days and held instead of cash until maturity is valued at 100%. Securities with next-day
maturities invested in &#147;A-1&#043;&#148; rated institutions are considered cash equivalents and are valued at
100%. Securities maturing in 181 to 360 calendar days are valued at 114.2%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The S&#038;P Discount Factor for shares of unrated affiliated Money Market Funds used as &#147;sweep&#148;
vehicles will be 110%. Money Market Funds rated &#147;AAAm&#148; will be discounted at the appropriate level
as dictated by the exposure period. No S&#038;P Discount Factor will be applied to Money Market Funds
rated AAAm by S&#038;P with effective next day maturities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables due within five business days of a valuation will be treated as cash and are
valued at 100%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables that are due in more than five business days of a Valuation Date qualify as an S&#038;P
Eligible Asset at a value no greater than the settlement price discounted at the applicable credit
rating and/or exposure period discount factor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining the discount factors applicable to collateral not rated by S&#038;P,
the collateral will carry an S&#038;P rating one full rating category lower than the equivalent S&#038;P
rating.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;S&#038;P Eligible Asset&#148; means:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Deposit Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) U.S. Government Obligations and U.S. Government Agencies;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Corporate Indebtedness. Evidences of indebtedness other than Deposit Securities,
U.S. Government Obligations and Municipal Obligations that are not convertible into or
exchangeable or exercisable for stock of a corporation (except to the extent of ten percent
(10%) in the case of a share exchange or tender offer) (&#147;Other Debt&#148;) and that satisfy all
of the following conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) no more than 10% of the Other Debt may be unrated;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the remaining term to maturity of such Other Debt shall not exceed thirty
(30)&nbsp;years;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) and such Other Debt must provide for periodic interest payments in cash
over the life of the security;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the issuer of such evidences of indebtedness files periodic financial
statements with the Commission; provided, however, non-rated evidences of such
indebtedness or issuers of Other Debt may not constitute more than 10% of the
Trust&#146;s Other Debt;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Convertible Corporate Indebtedness. Evidences of indebtedness other than Deposit
Securities, U.S. Government Obligations and Municipal Obligations that are convertible into
or exchangeable or exercisable for stock of a corporation and that satisfy all of the
following conditions:
</DIV>

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

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such evidence of indebtedness is rated at least CCC by S&#038;P; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if such evidence of indebtedness is rated BBB or lower by S&#038;P, the market
capitalization of the issuer of such evidence of indebtedness is at least $100
million;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Agency Mortgage Collateral. Certificates guaranteed by U.S. Government Agencies
(as defined below) (e.g., FNMA, GNMA and FHLMC) for timely payment of interest and full and
ultimate payment of principal. Agency Mortgage Collateral also evidence undivided interests
in pools of level-payment, fixed, variable, or adjustable rate, fully amortizing loans that
are secured by first liens on one- to four-family residences residential properties (or in
the case of Plan B FHLMC certificates, five or more units primarily designed for residential
use) (&#147;Agency Mortgage Collateral&#148;). Agency Mortgage Collateral the following conditions
apply:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) For GNMA certificates backed by pools of graduated payment mortgages,
levels are 20 points above established levels;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Qualifying &#147;large pool&#148; FNMA mortgage-backed securities and FHLMC
participation certificates are acceptable as eligible collateral. The eligible
fixed-rate programs include FNMA MegaPools, FNMA Majors, FHLMC Multilender Swaps,
and FHLMC Giant certificates. Eligible adjustable rate mortgage (&#147;ARMs&#148;) programs
include nonconvertible FNMA ARM MegaPools and FHLMC weighted average coupon ARM
certificates. Eligible FHLMC Giant programs exclude interest-only and principal
only stripped securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) FNMA certificates backed by multifamily ARMs pegged to the 11th District
Cost of Funds Index are acceptable as eligible collateral at 5 points above
established levels; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Multiclass REMICs issued by FNMA and FHLMC are acceptable as eligible
collateral at the collateral levels established for CMOs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Mortgage Pass-Through Certificates. Publicly issued instruments maintaining at
least a AA- ratings by S&#038;P. Certificates evidence proportional, undivided interests in
pools of whole residential mortgage loans. Pass-through certificates backed by pools of
convertible ARMs are acceptable as eligible collateral at 5 points above the levels
established for pass-through certificates backed by fixed or non-convertible ARM pools.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Mortgage-backed Securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Mortgage Pass-through Certificates are publicly issued instruments rated at
least &#145;AA-&#146; by S&#038;P. Pass-throughs backed by pools of convertible adjustable-rate
mortgages (ARMs) are discounted at an additional five percentage points above the
levels established for pass-throughs backed by fixed or nonconventional ARM pools.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Fixed-Rate and Adjustable-rate mortgage collateral (conventional/FHA/VA and
Whole Loans) Pool must consist of at least 100 loans each secured by single-family,
one-unit, detached primary residence. 25% of the total pool may have an LTV greater
than 80% but less than or equal to 90%. 10% may have an original LTV of no greater
than 95%. Loans with LTV greater than 80% must have a &#145;AA&#146; rated primary mortgage
insurance. 25% may have balances between $400,000 and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-35<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">$600,000, provided the maximum size of any loan is appropriate with respect to
the market area of the originator. 10% of the pool may represent condominiums that
are four stories or less. High LTVs, high loan balance, and condominiums, in
aggregate, should not exceed 35% of the pool.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) FHAA-Insured Multifamily Loans must have a minimum principal balance of
$100,000 and have at least a one-year remaining maturity. The aggregate market
value of any one loan may not exceed 5% of the aggregate market value of the
portfolio. Such loans should be initially included in minimum blocks of $5&nbsp;million.
Project loans must have at least a 90% occupancy rate at the time the loan is
pledged. After 90&nbsp;days defaulted mortgage loans must be valued at zero. A loan in
default should be liquidated or substituted within a 90-day period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Collateralized Mortgage Obligations tranches are publicly issued
instruments rated &#145;AAA&#146; by S&#038;P. No more than 25% of the total market value of
collateral may be from one private sector issuer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Rule&nbsp;144A Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Senior Loans, provided, however, that the initial issue amount (facility size) is
at least $100&nbsp;million. The minimum accepted holding size (notional amount) of any given
loan not rated by S&#038;P, Fitch or other nationally recognized rating agency is at least $1
million, provided, that participation loans are limited to not more than 10% of the
aggregate value of the S&#038;P Eligible Asset. For loans rated by S&#038;P, Fitch or other
nationally recognized rating agency, there is no minimum accepted holding size. Senior Loan
Participations and non-Senior Loans will qualify as S&#038;P Eligible Assets only up to an
aggregate maximum of 15% of the Trust&#146;s total assets. These levels apply to U.S. lenders
only; any international loans are excluded.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Preferred stocks that satisfy all of the following conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The preferred stock issue has a senior rating from S&#038;P, or the preferred
issue must be rated. In the case of Yankee preferred stock, the issuer should have
an S&#038;P senior rating of at least BBB-, or the preferred issue must be rated at least
BBB-.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The issuer &#151; or if the issuer is a special purpose corporation, its parent
&#151; is listed on either the New York Stock Exchange, the American Stock Exchange or
NASDAQ if the traded par amount is less than $1,000. If the traded par amount is
$1,000 or more exchange listing is not required.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The collateral pays cash dividends denominated in U.S. dollars.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Private placements under Rule&nbsp;144A with registration rights are eligible
assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) The minimum market capitalization of eligible issuers is $100&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restrictions for floating-rate preferred stock:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-36<!-- /Folio -->
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) Holdings must be limited to preferred stock with a dividend period of less
than or equal to 49&nbsp;days, except for a new issue, where the first dividend period
may be up to 64&nbsp;days.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) The floating-rate preferred stock may not have been subject to a failed
auction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restrictions for adjustable &#151; or auction-rate preferred stock:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) The total fair market value of adjustable-rate preferred stock held in the
portfolio may not exceed 10% of eligible assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentration Limits:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Total issuer exposure in preferred stock of any one issuer is limited to
10% of the fair market value of eligible assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) Preferred stock rated below B- (including non-rated preferred stock) are
limited to no more than 15% of the fair market value of the eligible assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) Add 5 points to over-collateralization level for issuers with a senior
rating or preferred stock rating of less than BBB-.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(L) Add 10 point to over-collateralization level of issuers with no senior
rating, preferred stock rating or dividend history.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) U.S. Common Stocks. Common stocks of issuers domiciled in the United States or
common stocks of issuers not domiciled in the United States that trade on a U.S. exchange
(including NASDAQ) (such as ADRs) that satisfy all of the following conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Trust can hold no more than the average monthly trading volume over the
past year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each common stock must have a minimum market capitalization of at least
$100&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Any pink sheet common stocks (generally, stocks that are not carried in
daily over-the-counter newspaper listings) are ineligible.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The common stock has been listed on an exchange or traded for more than one
year and one quarter, or 15&nbsp;months (eligible stock exchanges are the New York Stock
Exchange, American Stock Exchange, Philadelphia Stock Exchange, Boston Stock
Exchange, Washington Stock Exchange, Midwest Stock Exchange, Pacific Stock Exchange,
NASDAQ, and National Market Quotations).
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Note:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Add 20&nbsp;percentage points to the overcollateralization level for common stock that do not meet
the requirement of item (D)&nbsp;above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables due within five business days of a Valuation Date will be treated as cash and are
valued at 100%.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables that are due in more than five business days of a Valuation Date qualify as an S&#038;P
Eligible Asset at a value no greater than the settlement price discounted at the applicable credit
rating and/or exposure period discount factor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Non U.S. Common Stocks. Common stocks of issuers not domiciled in the United
States and that trade on a non-U.S. exchange that satisfy all of the following conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Trust can hold no more than the average monthly trading volume over the
past year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each common stock must have a minimum market capitalization of at least
$100&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The common stock has been listed on an exchange or traded for more than one
year and one quarter, or 15&nbsp;months.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) Municipal Obligations. A Municipal Obligation owned by the Trust that (i)&nbsp;is
interest bearing and pays interest at least semi-annually; (ii)&nbsp;is payable with respect to
principal and interest in U.S. Dollars; (iii)&nbsp;has an original issuance size of $10&nbsp;million
or greater and any securities with an issuance size of under $10&nbsp;million must be rated &#145;AA&#146;
or better by S&#038;P; or, if not rated by S&#038;P but rated AAA by another nationally recognized
statistical rating organization, on a case by case basis; (iv)&nbsp;except for Inverse Floaters,
is not part of a private placement of Municipal Obligations; (v)&nbsp;is issued by any of the 50
states of the U.S., its territories, and their subdivisions, counties, cities, towns,
villages, and school districts; by agencies such as authorities and special districts
created by the states; and by certain federally sponsored agencies such as local housing
authorities. Payments made on these bonds are exempt from federal income taxes and are
generally exempt from state and local taxes in the state of issuance; and (vi)&nbsp;Fifty percent
of the aggregate fair market value of the pledged pool may be rated by a nationally
recognized statistical rating organization other than S&#038;P. Notwithstanding the foregoing
limitations:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Municipal Obligations (excluding Escrowed Bonds) of any one issuer or
guarantor (excluding bond insurers) rated at least &#147;BBB&#148; by S&#038;P or &#147;A&#148; by another
NRSRO shall be considered S&#038;P Eligible Assets only to the extent the Market Value of
such Municipal Obligations (including short-term Municipal Obligations) does not
exceed 10% of the aggregate Market Value of S&#038;P Eligible Assets, provided that
either (i)&nbsp;2% is added to the S&#038;P Discount Factor for every 1% by which the Market
Value for any issuer exceeds 5%, up to a maximum of 10% or (ii)&nbsp;10% is added to the
S&#038;P Discount Factor for any issuer that exceeds 5% of the aggregate S&#038;P Eligible
Assets. High Yield Securities (as defined below) of any one issuer shall be
considered S&#038;P Eligible Assets only to the extent the Market Value of such Municipal
Obligations does not exceed 5% of the aggregate Market Value of S&#038;P Eligible Assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Municipal Obligations not rated by S&#038;P shall be considered S&#038;P Eligible
Assets only to the extent the Market Value of such Municipal Obligations does not
exceed 50% of the aggregate Market Value of S&#038;P Eligible Assets; provided, however,
that High Yield Securities (as defined below) shall be considered S&#038;P Eligible
Assets only to the extent the Market Value of such Municipal Obligations does not
exceed 20% of the aggregate Market Value of S&#038;P Eligible Assets; and
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Municipal Obligations issued by issuers in any one state or territory will
be considered S&#038;P Eligible Assets only to the extent the Market Value of such
Municipal Obligations does not exceed 25% of the aggregate Market Value of S&#038;P
Eligible Assets; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) Asset Backed Securities. Receivables-backed tranches are publicly issued with a
rating of &#147;AA&#148; or higher by S&#038;P, tranches are current interest-bearing, fixed- or
floating-rate, and are backed by automobile loans or credit card (fixed-rate only)
receivables with an original issuance size of at least $200&nbsp;million. No more than 25% of
the total market value of the collateral can be from one private sector issuer. With
respect to floating-rate credit card receivables, not more than 25% of the collateral may be
from one investment-grade private sector issuer. No more than 10% of the market value of
the collateral may be from one noninvestment-grade private sector issuer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Escrow Bonds may comprise 100% of the Trust&#146;s S&#038;P Eligible Assets. Bonds that are
legally defeased and secured by direct U.S. government obligations are not required to meet
any minimum issuance size requirement. Bonds that are economically defeased or secured by
other U.S. agency paper must meet the minimum issuance size requirement for the Trust
described above. Bonds initially rated or rerated as an escrow bond by another NRSRO are
limited to 50% of the Trust&#146;s S&#038;P Eligible Assets, and carry one full rating lower than the
equivalent S&#038;P rating for purposes of determining the applicable discount factors. Bonds
economically defeased and either initially rated or rerated by S&#038;P or another NRSRO are
assigned that same rating level as its debt issuer, and will remain in its original industry
category.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust&#146;s portfolio must consist of no less than 20 issues representing no less than
10 industries as determined by the S&#038;P Global Industry Classification System.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;S&#038;P Exposure Period&#148; means the sum of (i)&nbsp;that number of days from the last Valuation Date on
which the Trust&#146;s Discounted Value of S&#038;P Eligible Assets were greater than the Preferred Shares
Basic Maintenance Amount to the Valuation Date on which the Trust&#146;s Discounted Value of S&#038;P
Eligible Assets failed to exceed the Preferred Shares Basic Maintenance Amount, (ii)&nbsp;the maximum
number of days following a Valuation Date that the Trust has under this Statement to cure any
failure to maintain a Discounted Value of S&#038;P Eligible Assets at least equal to the Preferred
Shares Basic Maintenance Amount, and (iii)&nbsp;the maximum number of days the Trust has to effect a
mandatory redemption under this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;S&#038;P Hedging Transactions&#148; means the purchases or sales of futures contracts based on the
Municipal Index or Treasury Bonds, the writings, purchases or sales of put and call options on such
contracts, purchases of interest rate locks, interest rate caps, interest rate floors, interest
rate collars, and entering into interest rate swaps. For so long as any Preferred Shares are rated
by S&#038;P, the Trust will not purchase or sell futures contracts, write, purchase or sell options on
futures contracts or write put options (except covered put options) or call options (except covered
call options) on portfolio securities unless it receives written confirmation from S&#038;P that
engaging in such transactions will not impair the ratings then assigned to the Preferred Shares by
S&#038;P except that the Trust may engage in S&#038;P Hedging Transactions, subject to the following
limitations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Trust will not engage in any S&#038;P Hedging Transaction based on the Municipal
Index (other than Closing Transactions), which would cause the Trust at the time of such
transaction to own or have sold the least of (A)&nbsp;more than 1,000 outstanding futures
contracts based on the Municipal Index, (B)&nbsp;outstanding futures contracts based on the
Municipal Index exceeding in number 50% of the quotient of the Market Value of the Trust&#146;s
total assets divided by $1,000 or (C)&nbsp;outstanding futures contracts based on the Municipal
Index exceeding in
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">number 10% of the average number of daily traded futures contracts based on the
Municipal Index in the 30&nbsp;days preceding the time of effecting such transaction as reported
by The Wall Street Journal;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Trust will not engage in any S&#038;P Hedging Transaction based on Treasury Bonds
(other than Closing Transactions) which would cause the Trust at the time of such
transaction to own or have sold the lesser of (A)&nbsp;outstanding futures contracts based on
Treasury Bonds and on the Municipal Index exceeding in number 50% of the quotient of the
Market Value of the Trust&#146;s total assets divided by $100,000 ($200,000 in the case of the
two-year United States Treasury Note) or (B)&nbsp;outstanding futures contracts based on Treasury
Bonds exceeding in number 10% of the average number of daily traded futures contracts based
on Treasury Bonds in the 30&nbsp;days preceding the time of effecting such transaction as
reported by The Wall Street Journal;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Trust will engage in Closing Transactions to close out any outstanding
futures contract which the Trust owns or has sold or any outstanding option thereon owned by
the Trust in the event (A)&nbsp;the Trust does not have S&#038;P Eligible Assets with an aggregate
Discounted Value equal to or greater than the Preferred Shares Basic Maintenance Amount on
two consecutive Valuation Dates and (B)&nbsp;the Trust is required to pay variation margin on the
second such Valuation Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Trust will engage in a Closing Transaction to close out any outstanding
futures contract or option thereon in the month prior to the delivery month under the terms
of such futures contract or option thereon unless the Trust holds the securities deliverable
under such terms; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) when the Trust writes a futures contract or option thereon, it will either
(A)&nbsp;maintain an amount of cash, cash equivalents or high grade (rated A or better by S&#038;P),
fixed-income securities in a segregated account with the Trust&#146;s custodian, so that the
amount so segregated plus the amount of initial margin and variation margin held in the
account of or on behalf of the Trust&#146;s broker with respect to such futures contract or
option equals the Market Value of the futures contract or option, or, (B)&nbsp;in the event the
Trust writes a futures contract or option thereon which requires delivery of an underlying
security, hold such underlying security in its portfolio.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining whether the Trust has S&#038;P Eligible Assets with a Discounted
Value that equals or exceeds the Preferred Shares Basic Maintenance Amount, the Discounted
Value of cash or securities held for the payment of initial margin or variation margin shall
be zero and the aggregate Discounted Value of S&#038;P Eligible Assets shall be reduced by an
amount equal to (i)&nbsp;30% of the aggregate settlement value, as marked-to-market, of any
outstanding futures contracts based on the Municipal Index which are owned by the Trust,
plus (ii)&nbsp;25% of the aggregate settlement value, as marked to market, of any outstanding
futures contracts based on Treasury Bonds which contracts are owned by the Trust.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust will only enter into interest rate swaps subject to the following conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The counterparty to the swap transaction has a short-term rating of &#147;A-l,&#148;
&#147;A-&#148; or equivalent by S&#038;P, or, if the counterparty does not have a short-term
rating, the counterparty&#146;s senior unsecured long-term debt rating is &#147;A&#043;,&#148; or
equivalent by S&#038;P, or higher.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The original aggregate notional amount of the interest rate swap
transaction or transactions is not to be greater than the liquidation preference of
the Preferred Shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The interest rate swap transaction will be marked-to-market weekly by the
swap counterparty.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) If the Trust fails to maintain an aggregate discounted value at least equal
to the Preferred Shares Basic Maintenance Amount on two consecutive valuation dates
then the agreement shall terminate immediately.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) For the purpose of calculating the Preferred Shares Basic Maintenance
Amount: (i)&nbsp;90% of any positive mark-to-market valuation of the Trust&#146;s rights will
be S&#038;P Eligible Assets and 100% of any negative mark-to-market valuation of the
Trust&#146;s rights will be included in the calculation of the basic maintenance amount.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) The Trust must maintain liquid assets with an aggregate value at least
equal to the net amount of the excess, if any, of the Trust&#146;s obligations over its
entitlement with respect to each swap. For caps/floors, the Trust must maintain
liquid assets with an aggregate a value at least equal to the Trust&#146;s obligations
with respect to such caps or floors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;S&#038;P Industry Classifications&#148; means for the purpose of determining S&#038;P Eligible Assets, each
of the following industry classifications (as defined by the S&#038;P Global Industry Classification
System):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Aerospace&nbsp;&#038; Defense
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Industrial Conglomerates</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Air Freight and Logistics Airlines
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Automobiles
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Internet&nbsp;&#038; Catalog Retail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Automobile Components
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Internet Software&nbsp;&#038; Services</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Beverages
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">IT Services</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Biotechnology
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leisure Equipment&nbsp;&#038; Products</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Building Products
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Machinery</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cable
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marine</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Capital Markets
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Media</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Computers&nbsp;&#038; Peripherals
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Metals&nbsp;&#038; Mining</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commercial Banks
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Office Electronics</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commercial Services&nbsp;&#038; Supplies
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Oil&nbsp;&#038; Gas</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Communications Equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Packaging and Containers</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Construction&nbsp;&#038; Engineering
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paper&nbsp;&#038; Forest Products</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consumer Finance
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Personal Products</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Containing&nbsp;&#038; Packaging
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pharmaceuticals</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Distributors
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Real Estate</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Diversified Financial Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Retail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Diversified Telecommunication Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Road&nbsp;&#038; Rail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Electric Utilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Software</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Electrical Equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specialty Retail</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Electronic Equipment&nbsp;&#038; Instrument
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Semiconducters and Semi Conducter</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Energy Equipment&nbsp;&#038; Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Equipment</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Food&nbsp;&#038; Staples Retailing
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Textiles, Apparel and Luxury Goods</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Food Products
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Thrift&nbsp;&#038; Mortgage Finance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gas Utilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tobacco</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Healthcare Equipment&nbsp;&#038; Supplies
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trading Companies&nbsp;&#038; Distributors</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->A-41<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Healthcare Providers&nbsp;&#038; Services
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transportation and Infrastructure</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Hotels, Restaurants&nbsp;&#038; Leisure
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transportation Utilities</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Household Durables
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Water Utilities</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Household Products
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wireless Telecommunication Services</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust will use its discretion in determining which industry classification is applicable
to a particular investment in consultation with its independent auditors and S&#038;P, to the extent the
Trust considers necessary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;S&#038;P Loan Category&#148; means the following four categories (and, for purposes of this
categorization, the Market Value of an S&#038;P Eligible Asset trading at par is equal to $1.00):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&#147;S&#038;P Loan Category A&#148; means Performing Senior Loans which have a Market Value greater than
$0.90;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &#147;S&#038;P Loan Category B&#148; means Performing Senior Loans which have a Market Value
greater than or equal to $0.85 but equal to or less than $0.90;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &#147;S&#038;P Loan Category C&#148; means non-Performing Senior Loans which have a Market Value
greater than $0.85;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) &#147;S&#038;P Loan Category D&#148; means:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Performing Senior Loans which have a Market Value less than $.85; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Non-Performing Senior Loans which have a Market Value less than or equal to $.85.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) &#147;Performing&#148; means that no default as to the payment of principal or interest has
occurred and is continuing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;S&#038;P Real Estate Industry/Property Sector Classification&#148; means, for the purposes of
determining S&#038;P Eligible Assets, each of the following industry classifications (as defined by
NAREIT):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Office
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Shopping Centers Industrial</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Regional Malls</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mixed
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Free Standing</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Apartments
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Home Financing</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Manufactured Homes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commercial Financing Diversified</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Self Storage</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lodging/Resorts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specialty</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Health Care</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust will use its discretion in determining which NAREIT Industry Classification is
applicable to a particular investment, and, will consult with the independent auditor and/or S&#038;P,
as necessary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Securities Depository&#148; means The Depository Trust Company and its successors and assigns or
any successor securities depository selected by the Trust that agrees to follow the procedures
required to be followed by such securities depository in connection with the Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Sell Order&#148; has the meaning set forth in Section&nbsp;2(b) of Part&nbsp;II of this Statement.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Short-Term Money Market Instrument&#148; means the following types of instruments if, on the date
of purchase or other acquisition thereof by the Trust, the remaining term to maturity thereof is
not in excess of 180&nbsp;days:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) commercial paper rated A-1 if such commercial paper matures in 30&nbsp;days or A-1&#043; if
such commercial paper matures in over 30&nbsp;days;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) demand or time deposits in, and banker&#146;s acceptances and certificates of deposit
of (A)&nbsp;a depository institution or trust company incorporated under the laws of the United
States of America or any state thereof or the District of Columbia or (B)&nbsp;a United States
branch office or agency of a foreign depository institution (provided that such branch
office or agency is subject to banking regulation under the laws of the United States, any
state thereof or the District of Columbia);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) overnight funds; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) U.S. Government Securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Special Dividend Period&#148; means a Dividend Period that is not a Standard Dividend Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Specific Redemption Provisions&#148; means, with respect to any Special Dividend Period of more
than one year, either, or any combination of (i)&nbsp;a period (a &#147;Non-Call Period&#148;) determined by the
Board of Trustees after consultation with the Broker-Dealers, during which the shares subject to
such Special Dividend Period are not subject to redemption at the option of the Trust, and (ii)&nbsp;a
period (a &#147;Premium Call Period&#148;), consisting of a number of whole years, as determined by the Board
of Trustees after consultation with the Broker-Dealers, during each year of which the shares
subject to such Special Dividend Period will be redeemable at the Trust&#146;s option at a price per
share equal to the Liquidation Preference plus accumulated but unpaid dividends (whether or not
earned or declared) plus a premium expressed as a percentage or percentages of the Liquidation
Preference or expressed as a formula using specified variables as determined by the Board of
Trustees after consultation with the Broker-Dealers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Standard Dividend Period&#148; means a Dividend Period of seven days in the case of Series &#95;&#95;&#95;
Preferred Shares unless such seventh day is not a Business Day, then the number of days ending on
the next Business Day following such seventh day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Submission Deadline&#148; means 1:00&nbsp;p.m., New York City time, on any Auction Date or such other
time on any Auction Date by which Broker-Dealers are required to submit Orders to the Auction Agent
as specified by the Auction Agent from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Transfer Agent&#148; means The Bank of New York, unless and until another entity appointed by a
resolution of the Board of Trustees enters into an agreement with the Trust to serve as Transfer
Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Treasury Index Rate&#148; means the average yield to maturity for actively traded marketable U.S.
Treasury fixed interest rate securities having the same number of 30-day periods to maturity as the
length of the applicable Dividend Period, determined, to the extent necessary, by linear
interpolation based upon the yield for such securities having the next shorter and next longer
number of 30-day periods to maturity treating all Dividend Periods with a length greater than the
longest maturity for such securities as having a length equal to such longest maturity, in all
cases based upon data set forth in the most recent weekly statistical release published by the
Board of Governors of the Federal Reserve System (currently in H.15 (519)); provided, however, if
the most recent such statistical release shall not have been published during the 15&nbsp;days preceding
the date of computation, the foregoing computations shall be based upon the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-43<!-- /Folio -->
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">average of comparable data as quoted to the Trust by at least three recognized dealers in U.S.
Government Securities selected by the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;U.S. Government Securities&#148; means direct obligations of the United States or of its agencies
or instrumentalities that are entitled to the full faith and credit of the United States and that,
other than United States Treasury Bills, provide for the periodic payment of interest and the full
payment of principal at maturity or call for redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Valuation Date&#148; means the last Business Day of each week, or such other date as to which the
Trust and Rating Agencies may agree for purposes of determining the Preferred Shares Basic
Maintenance Amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Voting Period&#148; has the meaning set forth in Section&nbsp;6(b) of Part&nbsp;I of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Winning Bid Rate&#148; has the meaning set forth in Section&nbsp;4(a)(iii) of Part&nbsp;II of this
Statement.
</DIV>
<DIV align="left">
<A name="169"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;<U>Interpretation</U>.
References to sections, subsections, clauses, sub-clauses,
paragraphs and subparagraphs are to such sections, subsections, clauses, sub-clauses, paragraphs
and subparagraphs contained in this Part&nbsp;I or Part&nbsp;II hereof, as the case may be, unless
specifically identified otherwise.
</DIV>
<DIV align="left">
<A name="170"></A>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>PART&nbsp;II:</B> Auction Procedures</DIV>

<DIV align="left">
<A name="171"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Certain Definitions</U>.
As used in Part&nbsp;II of this Statement, the following terms
shall have the following meanings, unless the context otherwise requires and all section references
below are to Part&nbsp;II of this Statement except as otherwise indicated. Capitalized terms not
defined in Section&nbsp;1 of Part&nbsp;II of this Statement shall have the respective meanings specified in
Part&nbsp;I of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Agent Member&#148; means a member of or participant in the Securities Depository that will act on
behalf of existing or potential holders of Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Available Preferred Shares&#148; has the meaning set forth in Section&nbsp;4(a)(i) of Part&nbsp;II of this
Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Existing Holder&#148; with respect to shares of a series of Preferred Shares means a Broker-Dealer
(or any such other Person as may be permitted by the Trust) that is listed on the records of the
Auction Agent as a holder of such series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Hold Order&#148; has the meaning set forth in Section&nbsp;2(a) of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Order&#148; has the meaning set forth in Section&nbsp;2(a) of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Potential Beneficial Holder&#148; or &#147;Potential Beneficial Owner&#148; means (a)&nbsp;any Existing Holder
who may be interested in acquiring additional Preferred Shares, or (b)&nbsp;any other person who may be
interested in acquiring Preferred Shares or whose shares will be listed under such person&#146;s
Broker-Dealer&#146;s name on the records of the Auction Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Sell Order&#148; has the meaning set forth in Section&nbsp;2(a) of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Submitted Bid Order&#148; has the meaning set forth in Section&nbsp;4(a) of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Submitted Hold Order&#148; has the meaning set forth in Section&nbsp;4(a) of Part&nbsp;II of this Statement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Submitted Order&#148; has the meaning set forth in Section&nbsp;4(a) of Part&nbsp;II of this Statement.
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Submitted Sell Order&#148; has the meaning set forth in Section&nbsp;4(a) of Part&nbsp;II of this Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Sufficient Clearing Orders&#148; means that all Preferred Shares are the subject of Submitted Hold
Orders or that the number of Preferred Shares that are the subject of Submitted Buy Orders by
Potential Holders specifying one or more rates equal to or less than the Maximum Rate exceeds or
equals the sum of (A)&nbsp;the number of Preferred Shares that are subject of Submitted Hold/Sell Orders
by Existing Holders specifying one or more rates higher than the Maximum Rate and (B)&nbsp;the number of
Preferred Shares that are subject to Submitted Sell Orders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Winning Bid Rate&#148; means the lowest rate specified in the Submitted Orders which, if (A)&nbsp;each
Submitted Hold/Sell Order from Existing Holders specifying such lowest rate and all other Submitted
Hold/Sell Orders from Existing Holders specifying lower rates were accepted and (B)&nbsp;each Submitted
Buy Order from Potential Holders specifying such lowest rate and all other Submitted Buy Orders
from Potential Holders specifying lower rates were accepted, would result in the Existing Holders
described in clause&nbsp;(A) above continuing to hold an aggregate number of Preferred Shares which,
when added to the number of Preferred Shares to be purchased by the Potential Holders described in
clause&nbsp;(B) above and the number of Preferred Shares subject to Submitted Hold Orders, would be
equal to the number of Preferred Shares.
</DIV>
<DIV align="left">
<A name="172"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Orders</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;On or prior to the Submission Deadline on each Auction Date for shares of a Series of
Preferred Shares:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Beneficial Owner of shares of such Series may submit to its Broker-Dealer by
telephone or otherwise information as to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the number of Outstanding shares, if any, of such Series held by such
Beneficial Owner which such Beneficial Owner desires to continue to hold without
regard to the Applicable Rate for shares of such Series for the next succeeding
Dividend Period of such shares;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the number of Outstanding shares, if any, of such Series held by such
Beneficial Owner which such Beneficial Owner offers to sell if the Applicable Rate
for shares of such Series for the next succeeding Dividend Period of shares of such
Series shall be less than the rate per annum specified by such Beneficial Owner;
and/or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the number of Outstanding shares, if any, of such Series held by such
Beneficial Owner which such Beneficial Owner offers to sell without regard to the
Applicable Rate for shares of such Series for the next succeeding Dividend Period of
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of such series; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each Broker-Dealer, using lists of Potential Beneficial Owners, shall in good
faith for the purpose of conducting a competitive Auction in a commercially reasonable
manner, contact Potential Beneficial Owners (by telephone or otherwise), including Persons
that are not Beneficial Owners, on such lists to determine the number of shares, if any, of
such Series which each such Potential Beneficial Owner offers to purchase if the Applicable
Rate for shares of such Series for the next succeeding Dividend Period of shares of such
Series shall not be less than the rate per annum specified by such Potential Beneficial
Owner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the purposes hereof, the communication by a Beneficial Owner or Potential Beneficial Owner to a
Broker-Dealer, or by a Broker-Dealer to the Auction Agent, of information referred to in
clause&nbsp;(i)(A),
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(i)(B), (i)(C) or (ii)&nbsp;of this paragraph&nbsp;(a) is hereinafter referred to as an
&#147;Order&#148; and collectively as &#147;Orders&#148; and each Beneficial Owner and each Potential Beneficial Owner
placing an Order with a Broker-Dealer, and such Broker-Dealer placing an Order with the Auction
Agent, is hereinafter referred to as a &#147;Bidder&#148; and collectively as &#147;Bidders&#148;; an Order containing
the information referred to in clause&nbsp;(i)(A) of this paragraph&nbsp;(a) is hereinafter referred to as a
&#147;Hold Order&#148; and collectively as &#147;Hold Orders&#148;; an Order containing the information referred to in
clause&nbsp;(i)(B) or (ii)&nbsp;of this paragraph&nbsp;(a) is hereinafter referred to as a &#147;Bid&#148; and collectively
as &#147;Bids&#148;; and an Order containing the information referred to in clause&nbsp;(i)(C) of this
paragraph&nbsp;(a) is hereinafter referred to as a &#147;Sell Order&#148; and collectively as &#147;Sell Orders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;(i)&nbsp;A Bid by a Beneficial Owner or an Existing Holder of shares of a Series of Preferred
Shares subject to an Auction on any Auction Date shall constitute an irrevocable offer to sell:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the number of Outstanding shares of such Series specified in such Bid if
the Applicable Rate for shares of such Series determined on such Auction Date shall
be less than the rate specified therein;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) such number or a lesser number of Outstanding shares of such Series to be
determined as set forth in clause&nbsp;(iv) of paragraph&nbsp;(a) of Section&nbsp;5 of this Part&nbsp;II
if the Applicable Rate for shares of such Series determined on such Auction Date
shall be equal to the rate specified therein; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the number of Outstanding shares of such Series specified in such Bid if
the rate specified therein shall be higher than the Maximum Rate for shares of such
series, or such number or a lesser number of Outstanding shares of such Series to be
determined as set forth in clause&nbsp;(iii) of paragraph&nbsp;(b) of Section&nbsp;5 of this
Part&nbsp;II if the rate specified therein shall be higher than the Maximum Rate for
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of such Series and Sufficient Clearing Bids for shares of such Series do not
exist.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A Sell Order by a Beneficial Owner or an Existing Holder of shares of a Series of
Preferred Shares subject to an Auction on any Auction Date shall constitute an irrevocable
offer to sell:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;the number of Outstanding shares of such Series specified in such Sell
Order; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;such number or a lesser number of Outstanding shares of such series as set
forth in clause&nbsp;(iii) of paragraph&nbsp;(b) of Section&nbsp;5 of this Part&nbsp;II if Sufficient
Clearing Bids for shares of such Series do not exist;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provided, however, that a Broker-Dealer that is an Existing Holder with respect to shares of
a Series of Preferred Shares shall not be liable to any Person for failing to sell such
shares pursuant to a Sell Order described in the proviso to paragraph&nbsp;(c) of Section&nbsp;3 of
this Part&nbsp;II if (1)&nbsp;such shares were transferred by the Beneficial Owner thereof without
compliance by such Beneficial Owner or its transferee Broker-Dealer (or other transferee
person, if permitted by the Trust) with the provisions of Section&nbsp;6 of this Part&nbsp;II or
(2)&nbsp;such Broker-Dealer has informed the Auction Agent pursuant to the terms of its
Broker-Dealer Agreement that, according to such Broker-Dealer&#146;s records, such Broker-Dealer
believes it is not the Existing Holder of such shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A Bid by a Potential Holder of shares of a Series of Preferred Shares subject to
an Auction on any Auction Date shall constitute an irrevocable offer to purchase:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-46<!-- /Folio -->
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the number of Outstanding shares of such Series specified in such Bid if
the Applicable Rate for shares of such Series determined on such Auction Date shall
be higher than the rate specified therein; or (B)&nbsp;such number or a lesser number of
Outstanding shares of such Series as set forth in clause&nbsp;(v) of paragraph&nbsp;(a) of
Section&nbsp;5 of this Part&nbsp;II if the Applicable Rate for shares of such Series
determined on such Auction Date shall be equal to the rate specified therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Order for any number of Preferred Shares other than whole shares shall be valid.
</DIV>
<DIV align="left">
<A name="173"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Submission of Orders by Broker-Dealers to Auction Agent</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Broker-Dealer shall submit in writing to the Auction Agent prior to the Submission
Deadline on each Auction Date all Orders for Preferred Shares of a Series subject to an Auction on
such Auction Date obtained by such Broker-Dealer, designating itself (unless otherwise permitted by
the Trust) as an Existing Holder in respect of shares subject to Orders submitted or deemed
submitted to it by Beneficial Owners and as a Potential Holder in respect of shares subject to
Orders submitted to it by Potential Beneficial Owners, and shall specify with respect to each Order
for such shares:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the name of the Bidder placing such Order (which shall be the Broker-Dealer unless
otherwise permitted by the Trust);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the aggregate number of shares of such Series that are the subject of such Order;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the extent that such Bidder is an Existing Holder of shares of such series:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the number of shares, if any, of such Series subject to any Hold Order of
such Existing Holder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the number of shares, if any, of such Series subject to any Bid of such
Existing Holder and the rate specified in such Bid; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the number of shares, if any, of such Series subject to any Sell Order of
such Existing Holder; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) to the extent such Bidder is a Potential Holder of shares of such series,
the rate and number of shares of such Series specified in such Potential Holder&#146;s
Bid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If any rate specified in any Bid contains more than three figures to the right of the
decimal point, the Auction Agent shall round such rate up to the next highest one thousandth (.001)
of 1%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If an Order or Orders covering all of the Outstanding Preferred Shares of a Series held by
any Existing Holder is not submitted to the Auction Agent prior to the Submission Deadline, the
Auction Agent shall deem a Hold Order to have been submitted by or on behalf of such Existing
Holder
covering the number of Outstanding shares of such Series held by such Existing Holder and not
subject to Orders submitted to the Auction Agent; provided, however, that if an Order or Orders
covering all of the Outstanding shares of such Series held by any Existing Holder is not submitted
to the Auction Agent prior
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to the Submission Deadline for an Auction relating to a Special Dividend
Period consisting of more than 91 Dividend Period days, the Auction Agent shall deem a Sell Order
to have been submitted by or on behalf of such Existing Holder covering the number of Outstanding
shares of such Series held by such Existing Holder and not subject to Orders submitted to the
Auction Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If one or more Orders of an Existing Holder is submitted to the Auction Agent covering in
the aggregate more than the number of Outstanding Preferred Shares of a Series subject to an
Auction held by such Existing Holder, such Orders shall be considered valid in the following order
of priority:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all Hold Orders for shares of such Series shall be considered valid, but only up to
and including in the aggregate the number of Outstanding shares of such Series held by such
Existing Holder, and if the number of shares of such Series subject to such Hold Orders
exceeds the number of Outstanding shares of such Series held by such Existing Holder, the
number of shares subject to each such Hold Order shall be reduced pro rata to cover the
number of Outstanding shares of such Series held by such Existing Holder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A)&nbsp;any Bid for shares of such Series shall be considered valid up to and
including the excess of the number of Outstanding shares of such Series held by such
Existing Holder over the number of shares of such series subject to any Hold Orders referred
to in clause&nbsp;(i) above;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) subject to subclause&nbsp;(A), if more than one Bid of an Existing Holder for
shares of such Series is submitted to the Auction Agent with the same rate and the
number of Outstanding shares of such Series subject to such Bids is greater than
such excess, such Bids shall be considered valid up to and including the amount of
such excess, and the number of shares of such Series subject to each Bid with the
same rate shall be reduced pro rata to cover the number of shares of such Series
equal to such excess;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) subject to subclauses (A)&nbsp;and (B), if more than one Bid of an Existing
Holder for shares of such Series is submitted to the Auction Agent with different
rates, such Bids shall be considered valid in the ascending order of their
respective rates up to and including the amount of such excess; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) in any such event, the number, if any, of such Outstanding shares of such
Series subject to any portion of Bids considered not valid in whole or in part under
this clause&nbsp;(ii) shall be treated as the subject of a Bid for shares of such Series
by or on behalf of a Potential Holder at the rate therein specified; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all Sell Orders for shares of such Series shall be considered valid up to and
including the excess of the number of Outstanding shares of such Series held by such
Existing Holder over the sum of shares of such Series subject to valid Hold Orders referred
to in clause&nbsp;(i) above and valid Bids referred to in clause&nbsp;(ii) above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If more than one Bid for one or more shares of a Series of Preferred Shares is submitted
to the Auction Agent by or on behalf of any Potential Holder, each such Bid submitted shall be a
separate Bid with the rate and number of shares therein specified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Any Order submitted by a Beneficial Owner or a Potential Beneficial Owner to its
Broker-Dealer, or by a Broker-Dealer to the Auction Agent, prior to the Submission Deadline on any
Auction Date, shall be irrevocable.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="174"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Determination of Sufficient Clearing Bids, Winning Bid Rate and Applicable Rate</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Not earlier than the Submission Deadline on each Auction Date for shares of a Series of
Preferred Shares, the Auction Agent shall assemble all valid Orders submitted or deemed submitted
to it by the Broker-Dealers in respect of shares of such Series (each such Order as submitted or
deemed submitted by a Broker-Dealer being hereinafter referred to individually as a &#147;Submitted Hold
Order,&#148; a &#147;Submitted Bid&#148; or a &#147;Submitted Sell Order,&#148; as the case may be, or as a &#147;Submitted
Order&#148; and collectively as &#147;Submitted Hold Orders,&#148; &#147;Submitted Bids&#148; or &#147;Submitted Sell Orders,&#148; as
the case may be, or as &#147;Submitted Orders&#148;) and shall determine for such series:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the excess of the number of Outstanding shares of such Series over the number of
Outstanding shares of such Series subject to Submitted Hold Orders (such excess being
hereinafter referred to as the &#147;Available Preferred Shares&#148; of such series);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) from the Submitted Orders for shares of such Series whether:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the number of Outstanding shares of such Series subject to Submitted Bids
of Potential Holders specifying one or more rates equal to or lower than the Maximum
Rate (for all Dividend Periods) for shares of such series;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">exceeds or is equal to the sum of
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the number of Outstanding shares of such Series subject to Submitted Bids
of Existing Holders specifying one or more rates higher than the Maximum Rate (for
all Dividend Periods) for shares of such Series; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the number of Outstanding shares of such Series subject to Submitted Sell
Orders
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(in the event such excess or such equality exists (other than because the number of shares
of such Series in subclauses (B)&nbsp;and (C)&nbsp;above is zero because all of the Outstanding shares
of such Series are subject to Submitted Hold Orders), such Submitted Bids in subclause&nbsp;(A)
above being hereinafter referred to collectively as &#147;Sufficient Clearing Bids&#148; for shares of
such series); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if Sufficient Clearing Bids for shares of such Series exist, the lowest rate
specified in such Submitted Bids (the &#147;Winning Bid Rate&#148; for shares of such series) which
if:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) (I)&nbsp;each such Submitted Bid of Existing Holders specifying such lowest rate
and (II)&nbsp;all other such Submitted Bids of Existing Holders specifying lower rates
were rejected, thus entitling such Existing Holders to continue to hold the shares
of such Series that are subject to such Submitted Bids; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) (I)&nbsp;each such Submitted Bid of Potential Holders specifying such lowest
rate and (II)&nbsp;all other such Submitted Bids of Potential Holders specifying lower
rates were accepted;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">would result in such Existing Holders described in subclause&nbsp;(A) above continuing to hold an
aggregate number of Outstanding shares of such Series which, when added to the number of
Outstanding shares of such Series to be purchased by such Potential Holders described in
subclause&nbsp;(B) above, would equal not less than the Available Preferred Shares of such
series.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Promptly after the Auction Agent has made the determinations pursuant to paragraph&nbsp;(a) of
this Section&nbsp;4, the Auction Agent shall advise the Trust of the Maximum Rate for shares of the
Series of Preferred Shares for which an Auction is being held on the Auction Date and, based on
such determination, the Applicable Rate for shares of such Series for the next succeeding Dividend
Period thereof as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if Sufficient Clearing Bids for shares of such Series exist, that the Applicable
Rate for all shares of such Series for the next succeeding Dividend Period thereof shall be
equal to the Winning Bid Rate for shares of such Series so determined;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if Sufficient Clearing Bids for shares of such Series do not exist (other than
because all of the Outstanding shares of such Series are subject to Submitted Hold Orders),
that the Applicable Rate for all shares of such Series for the next succeeding Dividend
Period thereof shall be equal to the Maximum Rate for shares of such series; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if all of the Outstanding shares of such Series are subject to Submitted Hold
Orders, that the Applicable Rate for all shares of such Series for the next succeeding
Dividend Period thereof shall be the All Hold Rate.
</DIV>
<DIV align="left">
<A name="175"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and Allocation</U>.
Existing Holders shall continue to hold the Preferred Shares that are subject to
Submitted Hold Orders, and, based on the determinations made pursuant to paragraph&nbsp;(a) of Section&nbsp;4
of this Part&nbsp;II, the Submitted Bids and Submitted Sell Orders shall be accepted or rejected by the
Auction Agent and the Auction Agent shall take such other action as set forth below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If Sufficient Clearing Bids for shares of a Series of Preferred Shares have been made, all
Submitted Sell Orders with respect to shares of such Series shall be accepted and, subject to the
provisions of paragraphs (d)&nbsp;and (e)&nbsp;of this Section&nbsp;5, Submitted Bids with respect to shares of
such Series shall be accepted or rejected as follows in the following order of priority and all
other Submitted Bids with respect to shares of such Series shall be rejected:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Existing Holders&#146; Submitted Bids for shares of such series specifying any rate that
is higher than the Winning Bid Rate for shares of such Series shall be accepted, thus
requiring each such Existing Holder to sell the Preferred Shares subject to such Submitted
Bids;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Existing Holders&#146; Submitted Bids for shares of such series specifying any rate
that is lower than the Winning Bid Rate for shares of such Series shall be rejected, thus
entitling each such Existing Holder to continue to hold the Preferred Shares subject to such
Submitted Bids;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Potential Holders&#146; Submitted Bids for shares of such series specifying any rate
that is lower than the Winning Bid Rate for shares of such Series shall be accepted;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) each Existing Holder&#146;s Submitted Bid for shares of such series specifying a rate
that is equal to the Winning Bid Rate for shares of such Series shall be rejected, thus
entitling such Existing Holder to continue to hold the Preferred Shares subject to such
Submitted Bid, unless the number of Outstanding Preferred Shares subject to all such
Submitted Bids shall be greater than the number of Preferred Shares (&#147;remaining shares&#148;) in
the excess of the Available Preferred Shares of such Series over the number of Preferred
Shares subject to
Submitted Bids described in clauses (ii)&nbsp;and (iii)&nbsp;of this paragraph&nbsp;(a), in which
event such Submitted Bid of such Existing Holder shall be rejected in part, and such
Existing Holder shall be entitled to continue to hold Preferred Shares subject to such
Submitted Bid, but only in an amount
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">equal to the Preferred Shares of such Series obtained
by multiplying the number of remaining shares by a fraction, the numerator of which shall be
the number of Outstanding Preferred Shares held by such Existing Holder subject to such
Submitted Bid and the denominator of which shall be the aggregate number of Outstanding
Preferred Shares subject to such Submitted Bids made by all such Existing Holders that
specified a rate equal to the Winning Bid Rate for shares of such series; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) each Potential Holder&#146;s Submitted Bid for shares of such series specifying a rate
that is equal to the Winning Bid Rate for shares of such Series shall be accepted but only
in an amount equal to the number of shares of such Series obtained by multiplying the number
of shares in the excess of the Available Preferred Shares of such Series over the number of
Preferred Shares subject to Submitted Bids described in clauses (ii)&nbsp;through (iv)&nbsp;of this
paragraph&nbsp;(a) by a fraction, the numerator of which shall be the number of Outstanding
Preferred Shares subject to such Submitted Bid and the denominator of which shall be the
aggregate number of Outstanding Preferred Shares subject to such Submitted Bids made by all
such Potential Holders that specified a rate equal to the Winning Bid Rate for shares of
such series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If Sufficient Clearing Bids for shares of a Series of Preferred Shares have not been made
(other than because all of the Outstanding shares of such series are subject to Submitted Hold
Orders), subject to the provisions of paragraph&nbsp;(d) of this Section&nbsp;5, Submitted Orders for shares
of such series shall be accepted or rejected as follows in the following order of priority and all
other Submitted Bids for shares of such Series shall be rejected:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Existing Holders&#146; Submitted Bids for shares of such series specifying any rate that
is equal to or lower than the Maximum Rate for shares of such Series shall be rejected, thus
entitling such Existing Holders to continue to hold the Preferred Shares subject to such
Submitted Bids;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Potential Holders&#146; Submitted Bids for shares of such series specifying any rate
that is equal to or lower than the Maximum Rate for shares of such Series shall be accepted;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each Existing Holder&#146;s Submitted Bid for shares of such series specifying any
rate that is higher than the Maximum Rate for shares of such Series and the Submitted Sell
Orders for shares of such Series of each Existing Holder shall be accepted, thus entitling
each Existing Holder that submitted or on whose behalf was submitted any such Submitted Bid
or Submitted Sell Order to sell the shares of such Series subject to such Submitted Bid or
Submitted Sell Order, but in both cases only in an amount equal to the number of shares of
such Series obtained by multiplying the number of shares of such Series subject to Submitted
Bids described in clause&nbsp;(ii) of this paragraph&nbsp;(b) by a fraction, the numerator of which
shall be the number of Outstanding shares of such Series held by such Existing Holder
subject to such Submitted Bid or Submitted Sell Order and the denominator of which shall be
the aggregate number of Outstanding shares of such Series subject to all such Submitted Bids
and Submitted Sell Orders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If all of the Outstanding shares of a Series of Preferred Shares are subject to Submitted
Hold Orders, all Submitted Bids for shares of such Series shall be rejected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If, as a result of the procedures described in clause&nbsp;(iv) or (v)&nbsp;of paragraph&nbsp;(a) or
clause&nbsp;(iii) of paragraph&nbsp;(b) of this Section&nbsp;5, any Existing Holder would be entitled or required
to sell, or any Potential Holder would be entitled or required to purchase, a fraction of a share
of a Series of Preferred Shares on any Auction Date, the Auction Agent shall, in such manner as it
shall determine in its
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">sole discretion, round up or down the number of Preferred Shares of such
Series to be purchased or sold by any Existing Holder or Potential Holder on such Auction Date as a
result of such procedures so that the number of shares so purchased or sold by each Existing Holder
or Potential Holder on such Auction Date shall be whole shares of a Series of Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If, as a result of the procedures described in clause&nbsp;(v) of paragraph&nbsp;(a) of this
Section&nbsp;5 any Potential Holder would be entitled or required to purchase less than a whole share of
a Series of Preferred Shares on any Auction Date, the Auction Agent shall, in such manner as it
shall determine in its sole discretion, allocate Preferred Shares of such Series for purchase among
Potential Holders so that only whole Preferred Shares of such Series are purchased on such Auction
Date as a result of such procedures by any Potential Holder, even if such allocation results in one
or more Potential Holders not purchasing Preferred Shares of such Series on such Auction Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Based on the results of each Auction for shares of a Series of Preferred Shares, the
Auction Agent shall determine the aggregate number of shares of such Series to be purchased and the
aggregate number of shares of such Series to be sold by Potential Holders and Existing Holders and,
with respect to each Potential Holder and Existing Holder, to the extent that such aggregate number
of shares to be purchased and such aggregate number of shares to be sold differ, determine to which
other Potential Holder(s) or Existing Holder(s) they shall deliver, or from which other Potential
Holder(s) or Existing Holder(s) they shall receive, as the case may be, Preferred Shares of such
series. Notwithstanding any provision of the Auction Procedures or the Settlement Procedures to
the contrary, in the event an Existing Holder or Beneficial Owner of shares of a Series of
Preferred Shares with respect to whom a Broker-Dealer submitted a Bid to the Auction Agent for such
shares that was accepted in whole or in part, or submitted or is deemed to have submitted a Sell
Order for such shares that was accepted in whole or in part, fails to instruct its Agent Member to
deliver such shares against payment therefor, partial deliveries of Preferred Shares that have been
made in respect of Potential Holders&#146; or Potential Beneficial Owners&#146; Submitted Bids for shares of
such Series that have been accepted in whole or in part shall constitute good delivery to such
Potential Holders and Potential Beneficial Owners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Neither the Trust nor the Auction Agent nor any affiliate of either shall have any
responsibility or liability with respect to the failure of an Existing Holder, a Potential Holder,
a Beneficial Owner, a Potential Beneficial Owner or its respective Agent Member to deliver
Preferred Shares of any Series or to pay for Preferred Shares of any Series sold or purchased
pursuant to the Auction Procedures or otherwise.
</DIV>
<DIV align="left">
<A name="186"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Transfer of Preferred Shares</U>.
Unless otherwise permitted by the Trust, a
Beneficial Owner or an Existing Holder may sell, transfer or otherwise dispose of Preferred Shares
only in whole shares and only pursuant to a Bid or Sell Order placed with the Auction Agent in
accordance with the procedures described in this Part&nbsp;II or to a Broker-Dealer; provided, however,
that (a)&nbsp;a sale, transfer or other disposition of Preferred Shares from a customer of a
Broker-Dealer who is listed on the records of that Broker-Dealer as the holder of such shares to
that Broker-Dealer or another customer of that Broker-Dealer shall not be deemed to be a sale,
transfer or other disposition for purposes of this Section&nbsp;6 if such Broker-Dealer remains the
Existing Holder of the shares so sold, transferred or disposed of immediately after such sale,
transfer or disposition and (b)&nbsp;in the case of all transfers other than pursuant to Auctions, the
Broker-Dealer (or other Person, if permitted by the Trust) to whom such transfer is made shall
advise the Auction Agent of such transfer.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, CALAMOS GLOBAL TOTAL RETURN FUND has caused these presents to be signed in
its name and on its behalf by its Treasurer and witnessed by its Assistant Secretary as of this &#95;&#95;&#95;
day of &#95;&#95;&#95;, 20&#95;&#95;&#95;.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">CALAMOS GLOBAL TOTAL RETURN FUND</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Nimish Bhatt
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Treasurer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">WITNESS:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Stathy Darcy
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Assistant Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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



<DIV align="left">
<A name="147"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX&nbsp;B &#150;<BR>
SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE<BR>
AND FORM OF SUPPLEMENTAL INDENTURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of certain provisions of the indenture (the &#147;Original Indenture&#148;)
and the supplemental indenture (&#147;Supplemental Indenture&#148;) that the Fund expects to enter into in
connection with the issuance of debt securities. This summary does not purport to be complete and
is qualified in its entirety by reference to the indenture, a copy of which will be filed with the
Commission in connection with an offering of debt securities by the Fund.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>&#145;AA&#146; Composite Commercial Paper Rate</B>&#148; on any date means (i)&nbsp;the interest equivalent of
(1)&nbsp;the 7-day rate, in the case of a Rate Period which is 7&nbsp;days or shorter, (2)&nbsp;the 30-day rate,
in the case of a Rate Period which is a Standard Rate Period greater than 7&nbsp;days but fewer than or
equal to 31&nbsp;days, or (3)&nbsp;the 180-day rate, in the case of all other Rate Periods, on financial
commercial paper on behalf of issuers whose corporate bonds are rated &#147;AA&#148; by S&#038;P, or the
equivalent of such rating by another nationally recognized rating agency, as announced by the
Federal Reserve Bank of New York for the close of business on the Business Day immediately
preceding such date; or (ii)&nbsp;if the Federal Reserve Bank of New York does not make available such a
rate, then the arithmetic average of the interest equivalent of such rates on financial commercial
paper placed on behalf of such issuers, as quoted on a discount basis or otherwise by the
Commercial Paper Dealers to the Auction Agent for the close of business on the Business Day
immediately preceding such date (rounded to the next highest .001 of 1%). If any Commercial Paper
Dealer does not quote a rate required to determine the &#147;AA&#148; Composite Commercial Paper Rate, such
rate shall be determined on the basis of the quotations (or quotation) furnished by the remaining
Commercial Paper Dealers (or Dealer), if any, or, if there are no such Commercial Paper Dealers, a
nationally recognized dealer in commercial paper of such issues then making such quotations
selected by the Issuer. For purposes of this definition, (A) &#147;Commercial Paper Dealers&#148; shall mean
(1)&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>; (2)&nbsp;in lieu of any thereof, its respective Affiliate or
successor; and (3)&nbsp;in the event that any of the foregoing shall cease to quote rates for financial
commercial paper of issuers of the sort described above, in substitution therefor, a nationally
recognized dealer in financial commercial paper of such issuers then making such quotations
selected by the Issuer, and (B)&nbsp;&#147;interest equivalent&#148; of a rate stated on a discount basis for
financial commercial paper of a given number of days&#146; maturity shall mean a number equal to the
quotient (rounded upward to the next higher one-thousandth of 1%) of (1)&nbsp;such rate expressed as a
decimal, divided by (2)&nbsp;the difference between (x)&nbsp;1.00 and (y)&nbsp;a fraction, the numerator of which
shall be the product of such rate expressed as a decimal, multiplied by the number of days in which
such commercial paper shall mature and the denominator of which shall be 360.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Affiliate</B>&#148; means any person controlled by, in control of or under common control with the
Issuer; provided that no Broker-Dealer controlled by, in control of or under common control with
the Issuer shall be deemed to be an Affiliate nor shall any corporation or any person controlled
by, in control of or under common control with such corporation one of the directors or executive
officers of which is also a Director of the Issuer be deemed to be an Affiliate solely because such
director or executive officer is also a Director of the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Agent Member</B>&#148; means a member of or participant in the Securities Depository that will act on
behalf of a Bidder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>All Hold Rate</B>&#148; means 80% of the &#147;AA&#148; Composite Commercial Paper Rate.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Applicable Rate</B>&#148; means the rate determined in accordance with the procedures in
Section&nbsp;2.02(c)(i) of this Supplemental Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Auction</B>&#148; means each periodic implementation of the Auction Procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Auction Agent</B>&#148; means <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> unless and until another commercial bank, trust company, or
other financial institution appointed by a resolution of the Board of Directors enters into an
agreement with the Issuer to follow the Auction Procedures for the purpose of determining the
Applicable Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Auction Agreement</B>&#148; means the agreement between the Auction Agent and the Issuer pursuant to
which the Auction Agent agrees to follow the procedures specified in Appendix&nbsp;B-I to this
Supplemental Indenture, as such agreement may from time to time be amended or supplemented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Auction Date</B>&#148; means the first Business Day next preceding the first day of a Rate Period for
each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Auction Desk</B>&#148; means the business unit of a Broker-Dealer that fulfills the responsibilities
of the Broker-Dealer under a Broker-Dealer Agreement, including soliciting Bids for the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, and units of the Broker-Dealer which are not separated by information
controls appropriate to control, limit and monitor the inappropriate dissemination of information
about Bids.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Auction Period</B>&#148; means with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, either a Standard Auction
Period or a Special Auction Period, as applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Auction Procedures</B>&#148; means the procedures for conducting Auctions set forth in Appendix&nbsp;B-I
hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Auction Rate</B>&#148; means for each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for each Auction Period, (i)&nbsp;if
Sufficient Clearing Bids exist, the Winning Bid Rate, provided, however, if all of the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are the subject of Submitted Hold Orders, the All Hold Rate for such series of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and (ii)&nbsp;if Sufficient Clearing Bids do not exist, the Maximum Rate for such
series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Authorized Denomination</B>&#148; means $25,000 and any integral multiple thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Available </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B> Notes</B>&#148; means for each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes on each Auction
Date, the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series that are not the subject of
Submitted Hold Orders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Beneficial Owner</B>,&#148; with respect to each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, means a customer of a
Broker-Dealer who is listed on the records of that Broker-Dealer (or, if applicable, the Auction
Agent) as a holder of such series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Bid</B>&#148; shall have the meaning specified in Appendix&nbsp;B-I hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Bidder</B>&#148; means each Beneficial Owner, Potential Beneficial Owner and Broker Dealer who places
an Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Board of Directors</B>&#148; or &#147;<B>Board</B>&#148; means the Board of Directors of the Issuer or any duly
authorized committee thereof as permitted by applicable law.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Broker-Dealer</B>&#148; means any broker-dealer or broker-dealers, or other entity permitted by law to
perform the function required of a Broker-Dealer by the Auction Procedures, that has been selected
by the Issuer and that is a party to a Broker-Dealer Agreement with the Auction Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Broker-Dealer Agreement</B>&#148; means an agreement between the Auction Agent and a Broker-Dealer,
pursuant to which such Broker-Dealer agrees to follow the Auction Procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Broker-Dealer Deadline</B>&#148; means, with respect to an Order, the internal deadline established by
the Broker-Dealer through which the Order was placed after which it will not accept Orders or any
change in any Order previously placed with such Broker-Dealer; provided, however, that nothing
shall prevent the Broker-Dealer from correcting Clerical Errors by the Broker-Dealer with respect
to Orders from Bidders after the Broker-Dealer Deadline pursuant to the provisions herein. Any
Broker-Dealer may change the time or times of its Broker-Dealer Deadline as it relates to such
Broker-Dealer by giving notice not less than two Business Days prior to the date such change is to
take effect to Bidders who place Orders through such Broker-Dealer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Business Day</B>&#148; means a day on which the New York Stock Exchange is open for trading and which
is not a Saturday, Sunday or other day on which banks in the City of New York, New York are
authorized or obligated by law to close, days on which the Federal Reserve Bank of New York is not
open for business, days on which banking institutions or trust companies located in the state in
which the operations of the Auction Agent are conducted are authorized or required to be closed by
law, regulation or executive order of the state in which the Auction Agent conducts operations with
respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Clerical Error</B>&#148; means a clerical error in the processing of an Order, and includes, but is
not limited to, the following: (i)&nbsp;a transmission error, including but not limited to, an Order
sent to the wrong address or number, failure to transmit certain pages or illegible transmission,
(ii)&nbsp;failure to transmit an Order received from one or more Existing Holders or Potential
Beneficial Owners (including Orders from the Broker-Dealer which were not originated by the Auction
Desk) prior to the Broker-Dealer Deadline or generated by the Broker-Dealer&#146;s Auction Desk for its
own account prior to the Submission Deadline or (iii)&nbsp;a typographical error. Determining whether
an error is a &#147;Clerical Error&#148; is within the reasonable judgment of the Broker-Dealer, provided
that the Broker-Dealer has a record of the correct Order that shows it was so received or so
generated prior to the Broker-Dealer Deadline or the Submission Deadline, as applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Code</B>&#148; means the Internal Revenue Code of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Commercial Paper Dealers</B>&#148; has the meaning set forth in the definition of AA Composite
Commercial Paper Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Commission</B>&#148; means the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Default Rate</B>&#148; means the Reference Rate multiplied by three (3).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Deposit Securities</B>&#148; means cash and any obligations or securities, including short term money
market instruments that are Eligible Assets, rated at least &#95;&#95;&#95;, &#95;&#95;&#95;or &#95;&#95;&#95;by &#95;&#95;&#95;, except that,
such obligations or securities shall be considered &#147;Deposit Securities&#148; only if they are also rated
at least P-2 by Moody&#146;s.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Discount Factor</B>&#148; means the Moody&#146;s Discount Factor (if Moody&#146;s is then rating the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes), &#95;&#95;&#95;Discount Factor (if &#95;&#95;&#95;is then rating the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes) or an
Other Rating Agency Discount Factor, whichever is applicable.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Discounted Value</B>&#148; means the quotient of the Market Value of an Eligible Asset divided by the
applicable Discount Factor, provided that with respect to an Eligible Asset that is currently
callable, Discounted Value will be equal to the quotient as calculated above or the call price,
whichever is lower, and that with respect to an Eligible Asset that is prepayable, Discounted Value
will be equal to the quotient as calculated above or the par value, whichever is lower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Eligible Assets</B>&#148; means Moody&#146;s Eligible Assets or &#95;&#95;&#95;&#146;s Eligible Assets (if Moody&#146;s or &#95;&#95;&#95;
are then rating the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes) and/or Other Rating Agency Eligible Assets, whichever is
applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Error Correction Deadline</B>&#148; means one hour after the Auction Agent completes the dissemination
of the results of the Auction to Broker-Dealers without regard to the time of receipt of such
results by any Broker-Dealer; provided, however, in no event shall the Error Correction Deadline
extend past 4:00&nbsp;p.m., New York City time unless the Auction Agent experiences technological
failure or force majeure in disseminating the Auction results which causes a delay in dissemination
past 3:00&nbsp;p.m., New York City time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Existing Holder</B>,&#148; with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of a series, shall mean a
Broker-Dealer (or any such other Person as may be permitted by the Issuer) that is listed on the
records of the Auction Agent as a holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>&#95;&#95;&#95;</B>&#148; means &#95;&#95;&#95;Ratings and its successors at law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>&#95;&#95;&#95;Discount Factor</B>&#148; means the discount factors set forth in the &#95;&#95;&#95;Guidelines for use in
calculating the Discounted Value of the Issuer&#146;s assets in connection with &#95;&#95;&#95;&#146;s ratings of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;_<B>&#95;&#95;&#95;Eligible Asset</B>&#148; means assets of the Issuer set forth in the &#95;&#95;&#95;Guidelines as eligible
for inclusion in calculating the Discounted Value of the Issuer&#146;s assets in connection with &#95;&#95;&#95;&#146;s
ratings of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>&#95;&#95;&#95;Guidelines</B>&#148; mean the guidelines provided by &#95;&#95;&#95;, as may be amended from time to time,
in connection with &#95;&#95;&#95;&#146;s ratings of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Hold Order</B>&#148; shall have the meaning specified in Appendix&nbsp;B-I hereto or an Order deemed to
have been submitted as provided in paragraph (c)&nbsp;of Section&nbsp;1 of Appendix&nbsp;B-I hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Holder</B>&#148; means, with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, the registered holder of notes of each
series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes as the same appears on the books or records of the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Index</B>&#148; means on any Auction Date with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes in any Auction Period
of 35&nbsp;days or less the applicable LIBOR rate. The Index with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes in
any Auction Period of more than 35&nbsp;days shall be the rate on United States Treasury Securities
having a maturity which most closely approximates the length of the Auction Period as last
published in The Wall Street Journal or such other source as may be mutually agreed upon by the
Trustee and the Broker-Dealers. If either rate is unavailable, the Index shall be an index or rate
agreed to by all Broker-Dealers and consented to by the Issuer. For the purpose of this definition
an Auction Period of 35&nbsp;days or less means a 35-day Auction Period or shorter Auction Period, i.e.,
a 35-day Auction Period which is extended because of a holiday would still be considered an Auction
Period of 35&nbsp;days or less.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Interest Payment Date</B>&#148; when used with respect to any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, means the date on
which an installment of interest on such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes shall be due and payable which
generally shall be the day next following an Auction Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>LIBOR</B>&#148; means, for purposes of determining the Reference Rate, (i)&nbsp;the rate for deposits in
U.S. dollars for the designated Rate Period, which appears on display page&nbsp;3750 of Moneyline&#146;s
Telerate Service (&#147;Telerate Page&nbsp;3750&#148;) (or such other page&nbsp;as may replace that page&nbsp;on that
service, or such other service as may be selected by Lehman Brothers Inc. or its successors) as of
11:00&nbsp;a.m., London time, on the day that is the Business Day on the Auction Date or, if the Auction
Date is not a Business Day, the Business Day preceding the Auction Date (the &#147;LIBOR Determination
Date&#148;), or (ii)&nbsp;if such rate does not appear on Telerate Page&nbsp;3750 or such other page&nbsp;as may
replace such Telerate Page&nbsp;3750, (A)&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> shall determine the arithmetic mean of the
offered quotations of the reference banks to leading banks in the London interbank market for
deposits in U.S. dollars for the designated Rate Period in an amount determined by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
by reference to requests for quotations as of approximately 11:00&nbsp;a.m. (London time) on such date
made by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> to the reference banks, (B)&nbsp;if at least two of the reference banks provide
such quotations, LIBOR shall equal such arithmetic mean of such quotations, (C)&nbsp;if only one or none
of the reference banks provide such quotations, LIBOR shall be deemed to be the arithmetic mean of
the offered quotations that leading banks in The City of New York, New York selected by
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (after obtaining the Issuer&#146;s approval) are quoting on the relevant LIBOR
Determination Date for deposits in U.S. dollars for the designated Rate Period in an amount
determined by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (after obtaining the Issuer&#146;s approval) that is representative of a
single transaction in such market at such time by reference to the principal London office of
leading banks in the London interbank market; provided, however, that if <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> is not a
Broker-Dealer or does not quote a rate required to determine LIBOR, LIBOR will be determined on the
basis of the quotation or quotations furnished by any other Broker-Dealer selected by the Issuer to
provide such rate or rates not being supplied by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>; provided further, that if
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and/or a substitute Broker-Dealer are required but unable to determine a rate in
accordance with at least one of the procedures provided above, LIBOR shall be the most recently
determinable LIBOR. If the number of Rate Period days shall be (i)&nbsp;7 or more but fewer than 21
days, such rate shall be the seven-day LIBOR rate; (ii)&nbsp;more than 21 but fewer than 49&nbsp;days, such
rate shall be one-month LIBOR rate; (iii)&nbsp;49 or more but fewer than 77&nbsp;days, such rate shall be the
two-month LIBOR rate; (iv)&nbsp;77 or more but fewer than 112&nbsp;days, such rate shall be the three-month
LIBOR rate; (v)&nbsp;112 or more but fewer than 140&nbsp;days, such rate shall be the four-month LIBOR rate;
(vi)&nbsp;140 or more but fewer than 168&nbsp;days, such rate shall be the five-month LIBOR rate; (vii)&nbsp;168
or more but fewer 189&nbsp;days, such rate shall be the six-month LIBOR rate; (viii)&nbsp;189 or more but
fewer than 217&nbsp;days, such rate shall be the seven-month LIBOR rate; (ix)&nbsp;217 or more but fewer than
252&nbsp;days, such rate shall be the eight-month LIBOR rate; (x)&nbsp;252 or more but fewer than 287&nbsp;days,
such rate shall be the nine-month LIBOR rate; (xi)&nbsp;287 or more but fewer than 315&nbsp;days, such rate
shall be the ten-month LIBOR rate; (xii)&nbsp;315 or more but fewer than 343&nbsp;days, such rate shall be
the eleven-month LIBOR rate; and (xiii)&nbsp;343 or more days but fewer than 365&nbsp;days, such rate shall
be the twelve-month LIBOR rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Market Value</B>&#148; means the market value of an asset of the Issuer determined as follows: For
equity securities, the value obtained from readily available market quotations. If an equity
security is not traded on an exchange or not available from a Board-approved pricing service, the
value obtained from written broker-dealer quotations. For fixed-income securities, the value
obtained from readily available market quotations based on the last sale price of a security on the
day the Issuer values its assets or the market value obtained from a pricing service or the value
obtained from a direct written broker-dealer quotation from a dealer who has made a market in the
security. &#147;Market Value&#148; for other securities will mean the value obtained pursuant to the
Issuer&#146;s valuation procedures. If the market value of a security cannot be obtained, or the
Issuer&#146;s investment adviser determines that the value of a security as so
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">obtained does not represent the fair value of a security, fair value for that security shall be
determined pursuant to the valuation procedures adopted by the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Maximum Rate</B>&#148; means, on any date on which the Applicable Rate is determined, the rate equal
to the applicable percentage of the Reference Rate, subject to upward but not downward adjustment
in the discretion of the Board of Directors after consultation with the Broker-Dealers, provided
that immediately following any such increase the Issuer would be in compliance with the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Minimum Rate</B>&#148; means, on any Auction Date with respect to a Rate Period of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> days or fewer,
70% of the AA Composite Commercial Paper Rate at the close of business on the Business Day next
preceding such Auction Date. There shall be no Minimum Rate on any Auction Date with respect to a
Rate Period of more than the Standard Rate Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Moody&#146;s</B>&#148; means Moody&#146;s Investors Service, Inc., a Delaware corporation, and its successors at
law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Moody&#146;s Discount Factor</B>&#148; means the discount factors set forth in the Moody&#146;s Guidelines for
use in calculating the Discounted Value of the Issuer&#146;s assets in connection with Moody&#146;s ratings
of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Moody&#146;s Eligible Assets</B>&#148; means assets of the Issuer set forth in the Moody&#146;s Guidelines as
eligible for inclusion in calculating the Discounted Value of the Issuer&#146;s assets in connection
with Moody&#146;s ratings of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Moody&#146;s Guidelines</B>&#148; mean the guidelines provided by Moody&#146;s, as may be amended from time to
time, in connection with Moody&#146;s ratings of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>1940 Act </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B> Notes Asset Coverage</B>&#148; means asset coverage, as determined in
accordance with Section&nbsp;18(h) of the Investment Company Act, of at least 300% with respect to all
outstanding senior securities representing indebtedness of the Issuer, including all Outstanding
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes (or such other asset coverage as may in the future be specified in or under
the Investment Company Act as the minimum asset coverage for senior securities representing
indebtedness of a closed-end investment company as a condition of declaring dividends on its common
stock), determined on the basis of values calculated as of a time within 48 hours next preceding
the time of such determination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Notes</B>&#148; means Securities of the Issuer ranking on a parity with the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes that
may be issued from time to time pursuant to the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Order</B>&#148; means a Hold Order, Bid or Sell Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Original Issue Date</B>&#148; means, with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Other Rating Agency</B>&#148; means each rating agency, if any, other than Moody&#146;s or <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> then
providing a rating for the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes pursuant to the request of the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Other Rating Agency Discount Factor</B>&#148; means the discount factors set forth in the Other Rating
Agency Guidelines of each Other Rating Agency for use in calculating the Discounted Value of the
Issuer&#146;s assets in connection with the Other Rating Agency&#146;s rating of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-6<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Other Rating Agency Eligible Assets</B>&#148; means assets of the Issuer set forth in the Other Rating
Agency Guidelines of each Other Rating Agency as eligible for inclusion in calculating the
Discounted Value of the Issuer&#146;s assets in connection with the Other Rating Agency&#146;s rating of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Other Rating Agency Guidelines</B>&#148; mean the guidelines provided by each Other Rating Agency, as
may be amended from time to time, in connection with the Other Rating Agency&#146;s rating of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Outstanding</B>&#148; or &#147;<B>outstanding</B>&#148; means, as of any date, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes theretofore issued
by the Issuer except, without duplication, (i)&nbsp;any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes theretofore canceled,
redeemed or repurchased by the Issuer, or delivered to the Trustee for cancellation or with respect
to which the Issuer has given notice of redemption and irrevocably deposited with the Paying Agent
sufficient funds to redeem such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and (ii)&nbsp;any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes represented
by any certificate in lieu of which a new certificate has been executed and delivered by the
Issuer. Notwithstanding the foregoing, (A)&nbsp;in connection with any Auction, any series of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes as to which the Issuer or any person known to the Auction Agent to be an
Affiliate of the Issuer shall be the Existing Holder thereof shall be disregarded and deemed not to
be Outstanding; and (B)&nbsp;for purposes of determining the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance
Amount, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes held by the Issuer shall be disregarded and not deemed Outstanding but
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes held by any Affiliate of the Issuer shall be deemed Outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Paying Agent</B>&#148; means <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;unless and until another entity appointed by a resolution of
the Board of Directors enters into an agreement with the Issuer to serve as paying agent, transfer
agent, registrar, and redemption agent with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, which Paying Agent
may be the same as the Trustee or the Auction Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Person</B>&#148; or &#147;<B>person</B>&#148; means and includes an individual, a partnership, a trust, a company, an
unincorporated association, a joint venture or other entity or a government or any agency or
political subdivision thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Potential Beneficial Owner</B>,&#148; with respect to a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, shall mean a
customer of a Broker-Dealer that is not a Beneficial Owner of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series
but that wishes to purchase <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series, or that is a Beneficial Owner of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series that wishes to purchase additional <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such
series; provided, however, that for purposes of conducting an Auction, the Auction Agent may
consider a Broker-Dealer acting on behalf of its customer as a Potential Beneficial Owner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Potential Holder</B>,&#148; with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series, shall mean a
Broker-Dealer (or any such other person as may be permitted by the Issuer) that is not an Existing
Holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series or that is an Existing Holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
of such series that wishes to become the Existing Holder of additional <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such
series; provided, however, that for purposes of conducting an Auction, the Auction Agent may
consider a Broker-Dealer acting on behalf of its customer as a Potential Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Rate Period</B>&#148; means, with respect to a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, the period commencing
on the Original Issue Date thereof and ending on the date specified for such series on the Original
Issue Date thereof and thereafter, as to such series, the period commencing on the day following
each Rate Period for such series and ending on the day established for such series by the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Rating Agency</B>&#148; means each of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (if <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> is then rating <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes), Moody&#146;s (if
Moody&#146;s is then rating <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes) and any Other Rating Agency.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-7<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Rating Agency Guidelines</B>&#148; mean <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Guidelines (if <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> is then rating <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes),
Moody&#146;s Guidelines (if Moody&#146;s is then rating <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes) and any Other Rating Agency
Guidelines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Redemption Date</B>,&#148; when used with respect to any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Note to be redeemed, means the
date fixed for such redemption by or pursuant to the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Redemption Price</B>,&#148; when used with respect to any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Note to be redeemed, means
the price at which it is to be redeemed pursuant to the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Reference Rate</B>&#148; means, with respect to the determination of the Maximum Rate and Default
Rate, the greater of (i)&nbsp;the applicable AA Composite Commercial Paper Rate (for a Rate Period of
fewer than 184&nbsp;days) or the applicable Treasury Index Rate (for a Rate Period of 184&nbsp;days or more),
or (ii)&nbsp;the applicable LIBOR Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Securities Act</B>&#148; means the Securities Act of 1933, as amended from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Securities Depository</B>&#148; means The Depository Trust Company and its successors and assigns or
any successor securities depository selected by the Issuer that agrees to follow the procedures
required to be followed by such securities depository in connection with the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
Series&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Sell Order</B>&#148; shall have the meaning specified in Appendix&nbsp;B-I hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Special Auction Period</B>&#148; means an Auction Period that is not a Standard Auction Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Special Rate Period</B>&#148; means a Rate Period that is not a Standard Rate Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Specific Redemption Provisions</B>&#148; means, with respect to any Special Rate Period of more than
one year, either, or any combination of a period (a &#147;Non-Call Period&#148;) determined by the Board of
Directors after consultation with the Broker-Dealers, during which the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes subject
to such Special Rate Period are not subject to redemption at the option of the Issuer consisting of
a number of whole years as determined by the Board of Directors after consultation with the
Broker-Dealers, during each year of which the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes subject to such Special Rate
Period shall be redeemable at the Issuer&#146;s option and/or in connection with any mandatory
redemption at a price equal to the principal amount plus accrued but unpaid interest plus a premium
expressed as a percentage or percentages of $25,000 or expressed as a formula using specified
variables as determined by the Board of Directors after consultation with the Broker-Dealers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Standard Auction Period</B>&#148; means an Auction Period of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> days.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Standard Rate Period</B>&#148; means a Rate Period of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> days.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Stated Maturity</B>&#148; with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Series <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, shall mean <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Submission Deadline</B>&#148; means 1:00&nbsp;P.M., New York City time, on any Auction Date or such other
time on such date as shall be specified by the Auction Agent from time to time pursuant to the
Auction Agreement as the time by which the Broker-Dealers are required to submit Orders to the
Auction Agent. Notwithstanding the foregoing, the Auction Agent will follow the Securities
Industry and Financial Markets Association&#146;s Early Market Close Recommendations for shortened
trading days for the bond markets (the &#147;SIFMA Recommendation&#148;) unless the Auction Agent is
instructed otherwise in writing by the Issuer. In the event of a SIFMA Recommendation with respect
to an Auction Date, the Submission Deadline will be 11:30&nbsp;A.M., instead of 1:00&nbsp;P.M., New York City
time.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-8<!-- /Folio -->
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Submitted Bid</B>&#148; shall have the meaning specified in Appendix&nbsp;B-I hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Submitted Hold Order</B>&#148; shall have the meaning specified in Appendix&nbsp;B-I hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Submitted Order</B>&#148; shall have the meaning specified in Appendix&nbsp;B-I hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Submitted Sell Order</B>&#148; shall have the meaning specified in Appendix&nbsp;B-I hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Sufficient Clearing Bids</B>&#148; means for each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, an Auction for which
the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series that are the subject of Submitted Bids
by Potential Beneficial Owners specifying one or more rates not higher than the Maximum Rate is not
less than the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series that are the subject of
Submitted Sell Orders and of Submitted Bids by Existing Holders specifying rates higher than the
Maximum Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B> Notes Basic Maintenance Amount</B>&#148; as of any Valuation Date has the meaning set
forth in the Rating Agency Guidelines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><B> Notes Series </B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#148; means the Series <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes or any other Notes
hereinafter designated as Series&nbsp;&#95;&#95;&#95;of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Treasury Index Rate</B>&#148; means the average yield to maturity for actively traded marketable U.S.
Treasury fixed interest rate securities having the same number of 30-day periods to maturity as the
length of the applicable Rate Period, determined, to the extent necessary, by linear interpolation
based upon the yield for such securities having the next shorter and next longer number of 30-day
periods to maturity treating all Rate Periods with a length greater than the longest maturity for
such securities as having a length equal to such longest maturity, in all cases based upon data set
forth in the most recent weekly statistical release published by the Board of Governors of the
Federal Reserve System (currently in H.15(519)); provided, however, if the most recent such
statistical release shall not have been published during the 15&nbsp;days preceding the date of
computation, the foregoing computations shall be based upon the average of comparable data as
quoted to the Issuer by at least three recognized dealers in U.S. Government securities selected by
the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Trustee</B>&#148; means <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;or such other person who is named as a trustee pursuant to the
terms of the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Unit</B>&#148; means, with respect to each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, the principal amount of the
minimum Authorized Denomination of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Valuation Date</B>&#148; means every Friday, or, if such day is not a Business Day, the next preceding
Business Day; provided, however, that the first Valuation Date may occur on any other date
established by the Issuer; provided, further, however, that such first Valuation Date shall be not
more than one week from the date on which <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Series <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> initially are issued.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Winning Bid Rate</B>&#148; means for each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, the lowest rate specified in
any Submitted Bid of such series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes which if selected by the Auction Agent as
the Applicable Rate would cause the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series that are
the subject of Submitted Bids specifying a rate not greater than such rate to be not less than the
number of Units of Available <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-9<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NOTE DETAILS, FORM OF NOTES AND REDEMPTION OF NOTES</B>
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Holders of any series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes shall be entitled to receive interest
payments on their <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes at the Applicable Rate, determined as set forth in paragraph
(c)&nbsp;of this Section&nbsp;2.02, and no more, payable on the respective dates determined as set forth in
paragraph (b)&nbsp;of this Section&nbsp;2.02. Interest on the Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series
issued on the Original Issue Date shall accumulate from the Original Issue Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;(i)&nbsp;Interest shall be payable, subject to subparagraph (b)(ii) of this Section&nbsp;2.02, on
each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, with respect to any Rate Period on the first Business Day
following the last day of such Rate Period; provided, however, if the Rate Period is greater than
30&nbsp;days then on a monthly basis on the first Business Day of each month within such Rate Period,
not including the initial Rate Period, and on the Business Day following the last day of such Rate
Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a day for payment of interest resulting from the application of subparagraph
(b)(i) above is not a Business Day, then the Interest Payment Date shall be the first
Business Day following such day for payment of interest in the case of a series of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes designated as &#147;Series <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Issuer shall pay to the Paying Agent not later than 3:00&nbsp;p.m., New York City
time, on the Business Day next preceding each Interest Payment Date for each series of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, an aggregate amount of funds available on the next Business Day in the
City of New York, New York, equal to the interest to be paid to all Holders of such
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes on such Interest Payment Date. The Issuer shall not be required to
establish any reserves for the payment of interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) All moneys paid to the Paying Agent for the payment of interest shall be held in
trust for the payment of such interest by the Paying Agent for the benefit of the Holders
specified in subparagraph (b)(v) of this Section&nbsp;2.02. Any moneys paid to the Paying Agent
in accordance with the foregoing but not applied by the Paying Agent to the payment of
interest, including interest earned on such moneys, will, to the extent permitted by law, be
repaid to the Issuer at the end of 90&nbsp;days from the date on which such moneys were to have
been so applied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Each interest payment on a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes shall be paid on the
Interest Payment Date therefor to the Holders of that series as their names appear on the
security ledger or security records of the Issuer on the Business Day next preceding such
Interest Payment Date. Interest in arrears for any past Rate Period may be declared and
paid at any time, without reference to any regular Interest Payment Date, to the Holders as
their names appear on the books or records of the Issuer on such date, not exceeding 15&nbsp;days
preceding the payment date thereof, as may be fixed by the Board of Directors. No interest
will be payable in respect of any Interest Payment or payments which may be in arrears.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;(i)&nbsp;The interest rate on Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of each series during the period
from and after the Original Issue Date to and including the last day of the initial Rate Period
therefor shall be equal to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>%. For each subsequent Rate Period with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes Outstanding thereafter, the interest rate shall be equal to the rate per annum that results
from an Auction; provided, however, that if an Auction for any subsequent Rate Period of a series
of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes is not held for any reason or if Sufficient Clearing Bids have not been
made in an Auction (other than as a result of all series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes being the subject
of Submitted
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Hold Orders), then the interest rate on a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for any such Rate
Period shall be the Maximum Rate (except during a Default Period (as defined below) when the
interest rate shall be the Default Rate, as set forth in Section&nbsp;2.02(c)(ii) below). The All Hold
Rate will apply automatically following an Auction in which all of the Outstanding series of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are subject (or are deemed to be subject) to Hold Orders. The rate per annum
at which interest is payable on a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes as determined pursuant to this
Section&nbsp;2(c)(i) shall be the &#147;Applicable Rate.&#148; For Standard Rate Periods or shorter periods only,
the Applicable Rate resulting from an Auction will not be less than the Minimum Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subject to the cure provisions below, a &#147;Default Period&#148; with respect to a
particular series will commence on any date the Issuer fails to deposit irrevocably in trust
in same-day funds, with the Paying Agent by 12:00 noon, New York City time, (A)&nbsp;the full
amount of any redemption price (the &#147;Redemption Price&#148;) payable on the date fixed for
redemption (the &#147;Redemption Date&#148;) (a &#147;Redemption Default,&#148; which shall constitute an Event
of Default pursuant to Section&nbsp;5.1(7) of the Original Indenture) or (B)&nbsp;the full amount of
any accrued interest on that series payable on the Interest Payment Date (an &#147;Interest
Default&#148; and together with a Redemption Default, hereinafter referred to as &#147;Default&#148;).
Subject to the cure provisions of Section&nbsp;2(c)(iii) below, a Default Period with respect to
an Interest Default or a Redemption Default shall end on the Business Day on which, by 12:00
noon, New York City time, all unpaid interest and any unpaid Redemption Price shall have
been deposited irrevocably in trust in same-day funds with the Paying Agent. In the case of
an Interest Default, the Applicable Rate for each Rate Period commencing during a Default
Period will be equal to the Default Rate, and each subsequent Rate Period commencing after
the beginning of a Default Period shall be a Standard Rate Period; provided, however, that
the commencement of a Default Period will not by itself cause the commencement of a new Rate
Period. No Auction shall be held during a Default Period with respect to an Interest
Default applicable to that series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Default Period with respect to an Interest Default or Redemption Default shall
be deemed to commence if the amount of any interest or any Redemption Price due (if such
default is not solely due to the willful failure of the Issuer) is deposited irrevocably in
trust, in same-day funds with the Paying Agent by 12:00 noon, New York City time within
three Business Days after the applicable Interest Payment Date or Redemption Date, together
with an amount equal to the Default Rate applied to the amount of such non-payment based on
the actual number of days comprising such period divided by 360 for each series. The
Default Rate shall be equal to the Reference Rate multiplied by three (3).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The amount of interest per Unit of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes payable on each Interest
Payment Date of each Rate Period of less than one (1)&nbsp;year (or in respect of interest on
another date in connection with a redemption during such Rate Period) shall be computed by
multiplying the Applicable Rate (or the Default Rate) for such Rate Period (or a portion
thereof) by a fraction, the numerator of which will be the number of days in such Rate
Period (or portion thereof) that such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes were outstanding and for which
the Applicable Rate or the Default Rate was applicable and the denominator of which will be
360, multiplying the amount so obtained by $25,000, and rounding the amount so obtained to
the nearest cent. During any Rate Period of one (1)&nbsp;year or more, the amount of interest
per Unit of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes payable on any Interest Payment Date (or in respect of
interest on another date in connection with a redemption during such Rate Period) shall be
computed as described in the preceding sentence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Any Interest Payment made on any series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes shall first be credited
against the earliest accrued but unpaid interest due with respect to such series.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Redemption</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;(i)&nbsp;After the initial Rate Period, subject to the provisions of this Section&nbsp;2.03 and to
the extent permitted under the Investment Company Act, the Issuer may, at its option, redeem in
whole or in part out of funds legally available therefor a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes herein
designated as (A)&nbsp;having a Rate Period of one year or less, on the Business Day after the last day
of such Rate Period by delivering a notice of redemption not less than 15&nbsp;days and not more than
40&nbsp;days prior to the date fixed for such redemption, at a redemption price equal to the aggregate
principal amount, plus an amount equal to accrued but unpaid interest thereon (whether or not
earned) to the date fixed for redemption (&#147;Redemption Price&#148;), or (B)&nbsp;having a Rate Period of more
than one year, on any Business Day prior to the end of the relevant Rate Period by delivering a
notice of redemption not less than 15&nbsp;days and not more than 40&nbsp;days prior to the date fixed for
such redemption, at the Redemption Price, plus a redemption premium, if any, determined by the
Board of Directors after consultation with the Broker-Dealers and set forth in any applicable
Specific Redemption Provisions at the time of the designation of such Rate Period as set forth in
Section&nbsp;2.04 hereof; provided, however, that during a Rate Period of more than one year no series
of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes will be subject to optional redemption except in accordance with any
Specific Redemption Provisions approved by the Board of Directors after consultation with the
Broker-Dealers at the time of the designation of such Rate Period. Notwithstanding the foregoing,
the Issuer shall not give a notice of or effect any redemption pursuant to this
Section&nbsp;2.03(a)(i)&nbsp;unless, on the date on which the Issuer intends to give such notice and on the
date of redemption (a)&nbsp;the Issuer has available certain Deposit Securities with maturity or tender
dates not later than the day preceding the applicable redemption date and having a value not less
than the amount (including any applicable premium) due to Holders of a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes by reason of the redemption of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes on such date fixed for the
redemption and (b)&nbsp;the Issuer would have Eligible Assets with an aggregate Discounted Value at
least equal the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount immediately subsequent to such
redemption, if such redemption were to occur on such date, it being understood that the provisions
of paragraph (d)&nbsp;of this Section&nbsp;2.03 shall be applicable in such circumstances in the event the
Issuer makes the deposit and takes the other action required thereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Issuer fails to maintain, as of any Valuation Date, Eligible Assets with an
aggregate Discounted Value at least equal to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance
Amount or, as of the last Business Day of any month, the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset
Coverage, and such failure is not cured within ten Business Days following such Valuation
Date in the case of a failure to maintain the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount
or on the last Business Day of the following month in the case of a failure to maintain the
1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage as of such last Business Day (each an &#147;Asset
Coverage Cure Date&#148;), the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes will be subject to mandatory redemption out
of funds legally available therefor. The aggregate principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
to be redeemed in such circumstances will be equal to the lesser of (A)&nbsp;the minimum
principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes the redemption of which, if deemed to have occurred
immediately prior to the opening of business on the relevant Asset Coverage Cure Date, would
result in the Issuer having Eligible Assets with an aggregate Discounted Value at least
equal to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount, or sufficient to satisfy 1940
Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage, as the case may be, in either case as of the
relevant Asset Coverage Cure Date (provided that, if there is no such minimum principal
amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes the redemption of which would have such result, all
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes then Outstanding will be redeemed), and (B)&nbsp;the maximum principal
amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes that can be redeemed out of funds expected to be available
therefor on the Mandatory Redemption Date at the Mandatory Redemption Price set forth in
subparagraph (a)(iii) of this Section&nbsp;2.03.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In determining the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes required to be redeemed in accordance
with the foregoing Section&nbsp;2.03(a)(ii), the Issuer shall allocate the aggregate principal
amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes required to be redeemed to satisfy the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
Basic Maintenance Amount or the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage, as the case
may be, pro rata among the Holders of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes in proportion to the aggregate
principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes they hold, by lot or by such other method as the
Issuer shall deem equitable, subject to the further provisions of this subparagraph (iii).
The Issuer shall effect any required mandatory redemption pursuant to subparagraph (a)(ii)
of this Section&nbsp;2.03 no later than 40&nbsp;days after the Asset Coverage Cure Date (the
&#147;Mandatory Redemption Date&#148;), except that if the Issuer does not have funds legally
available for the redemption of, or is not otherwise legally permitted to redeem, the
aggregate principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes which would be required to be redeemed by
the Issuer under clause (A)&nbsp;of subparagraph (a)(ii) of this Section&nbsp;2.03 if sufficient funds
were available, or the Issuer otherwise is unable to effect such redemption on or prior to
such Mandatory Redemption Date, the Issuer shall redeem those <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, and
other Notes, on the earliest practicable date on which the Issuer will have such funds
available, upon notice pursuant to Section&nbsp;2.03(b) to record owners of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes to be redeemed and the Paying Agent. The Issuer will deposit with the Paying Agent
funds sufficient to redeem the specified aggregate principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
with respect to a redemption required under subparagraph (a)(ii) of this Section&nbsp;2.03, by
1:00&nbsp;p.m., New York City time, of the Business Day immediately preceding the Mandatory
Redemption Date. If fewer than all of the Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are to be
redeemed pursuant to this Section&nbsp;2.03(a)(iii), the aggregate principal amount of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes to be redeemed shall be redeemed pro rata from the Holders of such
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes in proportion to the aggregate principal amount of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes held by such Holders, by lot or by such other method as the Issuer shall deem fair and
equitable, subject, however, to the terms of any applicable Specific Redemption Provisions.
&#147;Mandatory Redemption Price&#148; means the Redemption Price plus (in the case of a Rate Period
of one year or more only) a redemption premium, if any, determined by the Board of Directors
after consultation with the Broker-Dealers and set forth in any applicable Specific
Redemption Provisions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the event of a redemption pursuant to Section&nbsp;2.03(a), the Issuer will file a notice of
its intention to redeem with the Commission so as to provide at least the minimum notice required
under Rule&nbsp;23c-2 under the Investment Company Act or any successor provision. In addition, the
Issuer shall deliver a notice of redemption to the Auction Agent and the Trustee (the &#147;Notice of
Redemption&#148;) containing the information set forth below (i)&nbsp;in the case of an optional redemption
pursuant to subparagraph (a)(i) above, at least three Business Days prior to the giving of notice
to the Holders and (ii)&nbsp;in the case of a mandatory redemption pursuant to subparagraph (a)(ii)
above, on or prior to the 30th day preceding the Mandatory Redemption Date. The Trustee will use
its reasonable efforts to provide notice to each Holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes called for
redemption by electronic or other reasonable means not later than the close of business on the
Business Day immediately following the day on which the Trustee determines the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
to be redeemed (or, during a Default Period with respect to such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, not later
than the close of business on the Business Day immediately following the day on which the Trustee
receives Notice of Redemption from the Issuer). The Trustee shall confirm such notice in writing
not later than the close of business on the third Business Day preceding the date fixed for
redemption by providing the Notice of Redemption to each Holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes called for
redemption, the Paying Agent (if different from the Trustee) and the Securities Depository. Notice
of Redemption will be addressed to the registered owners of each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes at
their addresses appearing on the books or records of the Issuer. Such Notice of Redemption will
set forth (i)&nbsp;the date fixed for redemption, (ii)&nbsp;the principal amount and identity of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes to be redeemed, (iii)&nbsp;the redemption price (specifying the amount of accrued
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">interest to be included therein and any redemption premium, if any), (iv)&nbsp;that interest on the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes to be redeemed will cease to accrue on such date fixed for redemption,
(v)&nbsp;applicable cusip number(s) and (vi)&nbsp;the provision under which redemption shall be made. No
defect in the Notice of Redemption or in the transmittal or mailing thereof will affect the
validity of the redemption proceedings, except as required by applicable law. If fewer than all
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes held by any Holder are to be redeemed, the Notice of Redemption mailed to such
Holder shall also specify the principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes to be redeemed from such
Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Notwithstanding the provisions of paragraph (a)&nbsp;of this Section&nbsp;2.03, no <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes may be redeemed unless all interest on the Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and all Notes of
the Issuer ranking on a parity with the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, have been or are being
contemporaneously paid or set aside for payment; provided, however, that the foregoing shall not
prevent the purchase or acquisition of all Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes pursuant to the
successful completion of an otherwise lawful purchase or exchange offer made on the same terms to,
and accepted by, Holders of all Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Upon the deposit of funds sufficient to redeem any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes with the Paying
Agent and the giving of the Notice of Redemption to the Trustee under paragraph (b)&nbsp;of this
Section&nbsp;2.03, interest on such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes shall cease to accrue and such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes shall no longer be deemed to be Outstanding for any purpose (including, without limitation,
for purposes of calculating whether the Issuer has maintained the requisite <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
Basic Maintenance Amount or the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage), and all rights of
the Holder of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes so called for redemption shall cease and terminate, except
the right of such Holder to receive the redemption price specified herein, but without any interest
or other additional amount. Such redemption price shall be paid by the Paying Agent to the nominee
of the Securities Depository. The Issuer shall be entitled to receive from the Paying Agent,
promptly after the date fixed for redemption, any cash deposited with the Paying Agent in excess of
(i)&nbsp;the aggregate redemption price of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes called for redemption on such date
and (ii)&nbsp;such other amounts, if any, to which Holders of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes called for
redemption may be entitled. Any funds so deposited that are unclaimed at the end of two years from
such redemption date shall, to the extent permitted by law, be paid to the Issuer, after which time
the Holders of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes so called for redemption may look only to the Issuer for
payment of the redemption price and all other amounts, if any, to which they may be entitled. The
Issuer shall be entitled to receive, from time to time after the date fixed for redemption, any
interest earned on the funds so deposited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;To the extent that any redemption for which Notice of Redemption has been given is not
made by reason of the absence of legally available funds therefor, or is otherwise prohibited, such
redemption shall be made as soon as practicable to the extent such funds become legally available
or such redemption is no longer otherwise prohibited. Failure to redeem any series of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes shall be deemed to exist at any time after the date specified for redemption
in a Notice of Redemption when the Issuer shall have failed, for any reason whatsoever, to deposit
in trust with the Paying Agent the redemption price with respect to any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for
which such Notice of Redemption has been given. Notwithstanding the fact that the Issuer may not
have redeemed any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for which a Notice of Redemption has been given, interest
may be paid on a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and shall include those <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for
which Notice of Redemption has been given but for which deposit of funds has not been made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;All moneys paid to the Paying Agent for payment of the redemption price of any
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes called for redemption shall be held in trust by the Paying Agent for the
benefit of Holders of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes to be redeemed.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-14<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;So long as any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are held of record by the nominee of the Securities
Depository, the redemption price for such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes will be paid on the date fixed for
redemption to the nominee of the Securities Depository for distribution to Agent Members for
distribution to the persons for whom they are acting as agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Except for the provisions described above, nothing contained herein limits any right of
the Issuer to purchase or otherwise acquire any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes outside of an Auction at any
price, whether higher or lower than the price that would be paid in connection with an optional or
mandatory redemption, so long as, at the time of any such purchase, there is no arrearage in the
payment of interest on, or the mandatory or optional redemption price with respect to, any series
of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for which Notice of Redemption has been given and the Issuer is in
compliance with the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage and has Eligible Assets with an
aggregate Discounted Value at least equal to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount
after giving effect to such purchase or acquisition on the date thereof. If fewer than all the
Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series are redeemed or otherwise acquired by the Issuer,
the Issuer shall give notice of such transaction to the Trustee, in accordance with the procedures
agreed upon by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Board of Directors may, without further consent of the holders of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes or the holders of shares of capital stock of the Issuer, authorize, create or issue any class
or series of Notes, including other series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, ranking prior to or on a parity
with the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes to the extent permitted by the Investment Company Act, if, upon
issuance, either (A)&nbsp;the net proceeds from the sale of such Notes (or such portion thereof needed
to redeem or repurchase the Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes) are deposited with the Trustee in
accordance with Section&nbsp;2.03(d), Notice of Redemption as contemplated by Section&nbsp;2.03(b)&nbsp;has been
delivered prior thereto or is sent promptly thereafter, and such proceeds are used to redeem all
Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes or (B)&nbsp;the Issuer would meet the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
Asset Coverage, the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount and the requirements of
Section&nbsp;2.08 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;If any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are to be redeemed and such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are held by
the Securities Depository, the Issuer shall include in the notice of redemption delivered to the
Securities Depository: (i)&nbsp;under an item entitled &#147;Publication Date for Securities Depository
Purposes&#148;, the Interest Payment Date prior to the Redemption Date, and (ii)&nbsp;an instruction to the
Securities Depository to (x)&nbsp;determine on such Publication Date after the Auction held on the
immediately preceding Auction Date has settled, the Depository participants whose Securities
Depository positions will be redeemed and the principal amount of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes to be
redeemed from each such position (the &#147;Securities Depository Redemption Information&#148;), and
(y)&nbsp;notify the Auction Agent immediately after such determination of (A)&nbsp;the positions of the
Depository Participants in such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes immediately prior to such Auction settlement,
(B)&nbsp;the positions of the Depository Participants in such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes immediately following
such Auction settlement and (C)&nbsp;the Securities Depository Redemption Information. &#147;Publication
Date&#148; shall mean three Business Days after the Auction Date next preceding such Redemption Date.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The initial Rate Period for each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes is as set forth under
&#147;Designation&#148; in Section&nbsp;2.01(a) above. The Issuer will designate the duration of subsequent Rate
Periods of each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes; provided, however, that no such designation is
necessary for a Standard Rate Period and, provided further, that any designation of a Special Rate
Period shall be effective only if (i)&nbsp;notice thereof shall have been given as provided herein,
(ii)&nbsp;any failure to pay
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in a timely manner to the Trustee the full amount of any interest on, or the redemption price
of, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes shall have been cured as provided above, (iii)&nbsp;Sufficient Clearing Bids
shall have existed in an Auction held on the Auction Date immediately preceding the first day of
such proposed Special Rate Period, (iv)&nbsp;if the Issuer shall have mailed a Notice of Redemption with
respect to any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, the redemption price with respect to such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
shall have been deposited with the Paying Agent, and (v)&nbsp;in the case of the designation of a
Special Rate Period, the Issuer has confirmed that as of the Auction Date next preceding the first
day of such Special Rate Period, it has Eligible Assets with an aggregate Discounted Value at least
equal to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount, and the Issuer has consulted with the
Broker-Dealers and has provided notice of such designation and otherwise complied with the Rating
Agency Guidelines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Issuer proposes to designate any Special Rate Period, not fewer than 7 (or two Business
Days in the event the duration of the Rate Period prior to such Special Rate Period is fewer than
8&nbsp;days) nor more than 30 Business Days prior to the first day of such Special Rate Period, notice
shall be (i)&nbsp;made by press release and (ii)&nbsp;communicated by the Issuer by telephonic or other means
to the Trustee and confirmed in writing promptly thereafter. Each such notice shall state (A)&nbsp;that
the Issuer proposes to exercise its option to designate a succeeding Special Rate Period,
specifying the first and last days thereof and (B)&nbsp;that the Issuer will by 3:00&nbsp;p.m., New York City
time, on the second Business Day next preceding the first day of such Special Rate Period, notify
the Auction Agent and the Trustee, who will promptly notify the Broker-Dealers, of either (x)&nbsp;its
determination, subject to certain conditions, to proceed with such Special Rate Period, subject to
the terms of any Specific Redemption Provisions, or (y)&nbsp;its determination not to proceed with such
Special Rate Period, in which latter event the succeeding Rate Period shall be a Standard Rate
Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No later than 3:00&nbsp;p.m., New York City time, on the second Business Day next preceding the
first day of any proposed Special Rate Period, the Issuer shall deliver to the Auction Agent and
Trustee, who will promptly deliver to the Broker-Dealers and Existing Holders, either:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a notice stating (A)&nbsp;that the Issuer has determined to designate the next
succeeding Rate Period as a Special Rate Period, specifying the first and last days thereof
and (B)&nbsp;the terms of any Specific Redemption Provisions; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a notice stating that the Issuer has determined not to exercise its option to
designate a Special Rate Period.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the Issuer fails to deliver either such notice with respect to any designation of any proposed
Special Rate Period to the Auction Agent or is unable to make the confirmation provided in
clause&nbsp;(v) of Paragraph&nbsp;(a) of this Section&nbsp;2.04 by 3:00&nbsp;p.m., New York City time, on the second
Business Day next preceding the first day of such proposed Special Rate Period, the Issuer shall be
deemed to have delivered a notice to the Auction Agent with respect to such Rate Period to the
effect set forth in clause (ii)&nbsp;above, thereby resulting in a Standard Rate Period.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes may be transferred only (a)&nbsp;pursuant to an order placed in an Auction,
(b)&nbsp;to or through a Broker-Dealer or (c)&nbsp;to the Issuer or any Affiliate. Notwithstanding the
foregoing, a transfer other than pursuant to an Auction will not be effective unless the selling
Existing Holder or the Agent Member of such Existing Holder, in the case of an Existing Holder
whose <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are listed in its own name on the books of the Auction Agent, or the
Broker-Dealer or Agent Member of such Broker-Dealer, in the case of a transfer between persons
holding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes through different Broker-Dealers, advises the Auction Agent of such
transfer. The certificates representing the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes issued to the Securities Depository will bear legends with respect to the
restrictions described above and stop-transfer instructions will be issued to the Transfer Agent
and/or Registrar.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Issuer shall maintain, as of the last Business Day of each month in which any
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are Outstanding, asset coverage with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes which
is equal to or greater than the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage; provided, however,
that Section&nbsp;2.03(a)(ii) shall be the sole remedy in the event the Issuer fails to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are Outstanding and any Rating Agency is then rating the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, the Issuer shall maintain, as of each Valuation Date, Eligible Assets having
an aggregate Discounted Value equal to or greater than the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance
Amount; provided, however, that Section&nbsp;2.03(a)(ii) shall be the sole remedy in the event the
Issuer fails to do so.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For so long as any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are Outstanding and any Rating Agency is then rating
the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, the Issuer will not engage in certain proscribed transactions set forth
in the Rating Agency Guidelines, unless it has received written confirmation from each such Rating
Agency that proscribes the applicable transaction in its Rating Agency Guidelines that any such
action would not impair the rating then assigned by such Rating Agency to a series of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For so long as any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are Outstanding, the Issuer will not declare, pay or
set apart for payment any dividend or other distribution (other than a dividend or distribution
paid in shares of, or options, warrants or rights to subscribe for or purchase, common shares or
other shares of capital stock of the Issuer) upon any class of shares of capital stock of the
Issuer, unless, in every such case, immediately after such transaction, the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes Asset Coverage would be achieved after deducting the amount of such dividend, distribution,
or purchase price, as the case may be; provided, however, that dividends may be declared upon any
preferred shares of capital stock of the Issuer if the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and any other senior
securities representing indebtedness of the Issuer have an asset coverage of at least 200% at the
time of declaration thereof, after deducting the amount of such dividend.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A declaration of a dividend or other distribution on or purchase or redemption of any common
or preferred shares of capital stock of the Issuer is prohibited (i)&nbsp;at any time that an Event of
Default under the Indenture has occurred and is continuing, (ii)&nbsp;if after giving effect to such
declaration, the Issuer would not have Eligible Assets with an aggregate Discounted Value at least
equal to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount or the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
Asset Coverage, or (iii)&nbsp;the Issuer has not redeemed the full amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
required to be redeemed by any provisions for mandatory redemption contained herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compliance Procedures for Asset Maintenance Tests</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For so long as any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are Outstanding and any Rating Agency is then rating
such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes:
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As of each Valuation Date, the Issuer shall determine in accordance with the procedures
specified herein (i)&nbsp;the Market Value of each Eligible Asset owned by the Issuer on that date,
(ii)&nbsp;the Discounted Value of each such Eligible Asset using the Discount Factors, (iii)&nbsp;whether the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount is met as of that date, (iv)&nbsp;the value of the total
assets of the Issuer, less all liabilities, and (v)&nbsp;whether the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset
Coverage is met as of that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Upon any failure to maintain the required <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount or
1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage on any Valuation Date, the Issuer may use reasonable
commercial efforts (including, without limitation, altering the composition of its portfolio,
purchasing <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes outside of an Auction or in the event of a failure to file a Rating
Agency Certificate (as defined below) on a timely basis, submitting the requisite Rating Agency
Certificate) to re-attain (or certify in the case of a failure to file on a timely basis, as the
case may be) the required <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount or 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes Asset Coverage on or prior to the Asset Coverage Cure Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Compliance with the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount and 1940 Act
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage tests shall be determined with reference to those
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes which are deemed to be Outstanding hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Issuer shall deliver to each Rating Agency which is then rating <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
and any other party specified in the Rating Agency Guidelines all certificates that are set forth
in the respective Rating Agency Guidelines regarding 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage,
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount and/or related calculations at such times and
containing such information as set forth in the respective Rating Agency Guidelines (each, a
&#147;Rating Agency Certificate&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;In the event that any Rating Agency Certificate is not delivered within the time periods
set forth in the Rating Agency Guidelines, the Issuer shall be deemed to have failed to maintain
the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount or the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset
Coverage, as the case may be, on such Valuation Date for purposes of Section&nbsp;2.09(b). In the event
that any Rating Agency Certificate with respect to an applicable Asset Coverage Cure Date is not
delivered within the time periods set forth in the Rating Agency Guidelines, the Issuer shall be
deemed to have failed to have Eligible Assets with an aggregate Discounted Value at least equal to
the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Basic Maintenance Amount or to meet the 1940 <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset
Coverage, as the case may be, as of the related Valuation Date, and such failure shall be deemed
not to have been cured as of such Asset Coverage Cure Date for purposes of the mandatory redemption
provisions.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the execution and delivery of this Supplemental Indenture, the Issuer shall execute and
deliver to the Trustee and the Trustee shall authenticate the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and deliver them
to The Depository Trust Company and as hereinafter in this Section provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to the delivery by the Trustee of any of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, there shall have been
filed with or delivered to the Trustee the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;A resolution duly adopted by the Issuer, certified by the Secretary or other Authorized
Officer thereof, authorizing the execution and delivery of this Supplemental Indenture and the
issuance of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-18<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Duly executed copies of this Supplemental Indenture and a copy of the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Rating letters from each Rating Agency rating the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;An Opinion of Counsel and an Officers&#146; Certificate pursuant to Sections&nbsp;3.3 and 9.3 of the
Original Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Trustee&#146;s Authentication Certificate</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee&#146;s authentication certificate upon the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes shall be substantially
in the forms provided in Appendix&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> hereto. No <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Note shall be secured hereby or
entitled to the benefit hereof, or shall be valid or obligatory for any purpose, unless a
certificate of authentication, substantially in such form, has been duly executed by the Trustee;
and such certificate of the Trustee upon any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Note shall be conclusive evidence and
the only competent evidence that such Bond has been authenticated and delivered hereunder. The
Trustee&#146;s certificate of authentication shall be deemed to have been duly executed by it if
manually signed by an authorized officer of the Trustee, but it shall not be necessary that the
same person sign the certificate of authentication on all of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes issued
hereunder.
</DIV>

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


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An &#147;Event of Default&#148; means any one of the following events set forth below (whatever the
reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;default in the payment of any interest upon a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes when it
becomes due and payable and the continuance of such default for thirty (30)&nbsp;days; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;default in the payment of the principal of, or any premium on, a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes at its Stated Maturity; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;default in the performance, or breach, of any covenant or warranty of the Company in the
Indenture, and continuance of such default or breach for a period of ninety (90)&nbsp;days after there
has been given, by registered or certified mail, to the Company by the Trustee a written notice
specifying such default or breach and requiring it to be remedied and stating that such notice is a
&#147;Notice of Default;&#148; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the entry by a court having jurisdiction in the premises of (A)&nbsp;a decree or order for
relief in respect of the Company in an involuntary case or proceeding under any applicable Federal
or State bankruptcy, insolvency, reorganization or other similar law or (B)&nbsp;a decree or order
adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or in respect of the Company under any
applicable Federal or State law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of any substantial part of its
property, or ordering the winding up or liquidation of its affairs, and the continuance of any such
decree or order for relief or any such other decree or order unstayed and in effect for a period of
60 consecutive days; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;the commencement by the Company of a voluntary case or proceeding under any applicable
Federal or State bankruptcy, insolvency, reorganization or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a
decree
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or order for relief in respect of the Company in an involuntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of
a petition or answer or consent seeking reorganization or relief under any applicable Federal or
State law, or the consent by it to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the admission by it in writing of its inability to pay
its debts generally as they become due, or the taking of corporate action by the Company in
furtherance of any such action; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;if, pursuant to Section&nbsp;18(a)(1)(c)(ii) of the 1940 Act on the last business day of each
of twenty-four (24)&nbsp;consecutive calendar months, the 1940 Act <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Asset Coverage
is less than 100%; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;any other Event of Default provided with respect to a series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes,
including a default in the payment of any Redemption Price payable on the date fixed for
redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise noted, an Event of Default that relates only to one series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes will not affect any other series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Acceleration of Maturity; Rescission and Annulment</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Default with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of a series at the time
Outstanding occurs and is continuing, then in every such case the Trustee or the holders of not
less than a majority in principal amount of the Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series may
declare the principal amount of all the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by holders), and
upon any such declaration such principal amount (or specified amount) shall become immediately due
and payable. If an Event of Default specified in paragraphs (d)&nbsp;and (e)&nbsp;above with respect to
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series at the time Outstanding occurs, the principal amount of all the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series shall automatically, and without any declaration or other
action on the part of the Trustee or any holder, become immediately due and payable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any time after such a declaration of acceleration with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of
any series has been made and before a judgment or decree for payment of the money due has been
obtained by the Trustee, the holders of a majority in principal amount of the Outstanding
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series, by written notice to the Company and the Trustee, may rescind
and annul such declaration and its consequences if:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Company has paid or deposited with the Trustee a sum sufficient to pay
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all overdue interest on all <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the principal of (and premium, if any, on) any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series
which have become due otherwise than by such declaration of acceleration and any interest
thereon at the rate or rates prescribed therefor in such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the extent that payment of such interest is lawful, interest upon overdue
interest at the rate or rates prescribed therefor in such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all sums paid or advanced by the Trustee and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel; and
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all Events of Default with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series, other than the
non-payment of the principal of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series which have become due solely by
such declaration of acceleration, have been cured or waived.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No such rescission shall affect any subsequent default or impair any right consequent thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Collection of Indebtedness and Suits for Enforcement by Trustee</B>
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;default is made in the payment of any interest on any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes when such
interest becomes due and payable and such default continues for a period of 90&nbsp;days, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;default is made in the payment of the principal of (or premium, if any, on) any
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes at the Maturity thereof, the Company will, upon demand of the Trustee, pay to
it, for the benefit of the holders of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, the whole amount then due and
payable on such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for principal and any premium and interest and, to the extent
that payment of such interest shall be legally enforceable, interest on any overdue principal and
premium and on any overdue interest, at the rate or rates prescribed therefor in such
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Default with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the
rights of the holders of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in the Indenture or in aid of the
exercise of any power granted in the Indenture, or to enforce any other proper remedy.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any money collected by the Trustee pursuant to the provisions of the Indenture relating to an
Event of Default shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money on account of principal or any premium or interest,
upon presentation of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST: To the payment of all amounts due the Trustee under the Indenture;
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND: To the payment of the amounts then due and unpaid for principal of and any premium
and interest on the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes in respect of which or for the benefit of which such money
has been collected, ratably, without preference or priority of any kind, according to the amounts
due and payable on such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for principal and any premium and interest,
respectively.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No holder of any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series shall have any right to institute any
proceeding, judicial or otherwise, with respect to the Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-21<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;such holder has previously given written notice to the Trustee of a continuing Event of
Default with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the holders of not less than a majority in principal amount of the Outstanding
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;such holder or holders have offered to the Trustee indemnity reasonably satisfactory to it
against the costs, expenses and liabilities to be incurred in compliance with such request;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the Trustee for 60&nbsp;days after its receipt of such notice, request and offer of indemnity
has failed to institute any such proceeding; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the holders of a majority in principal amount of the Outstanding
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that series;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">it being understood and intended that no one or more of such holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of the Indenture to affect, disturb
or prejudice the rights of any other of such holders, or to obtain or to seek to obtain priority or
preference over any other of such holders or to enforce any right under the Indenture, except in
the manner provided and for the equal and ratable benefit of all of such holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Unconditional Right of Holders to Receive Principal, Premium and Interest</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision in the Indenture, the holder of any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
shall have the right, which is absolute and unconditional, to receive payment of the principal of
and any premium and (subject to the provisions of any supplemental indenture) interest on such
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes on the respective Stated Maturities expressed in such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
(or, in the case of redemption, on the Redemption Date), and to institute suit for the enforcement
of any such payment and such rights shall not be impaired without the consent of such holder.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Trustee or any holder has instituted any proceeding to enforce any right or remedy
under the Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such holder, then and in every such case, subject to
any determination in such proceeding, the Company, the Trustee and the holders shall be restored
severally and respectively to their former positions and thereafter all rights and remedies of the
Trustee and the holders shall continue as though no such proceeding had been instituted.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, no right or remedy conferred upon or reserved to
the Trustee or to the holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in addition to every
other right and remedy given or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-22<!-- /Folio -->
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of not less than a majority in principal amount of the Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes of any series shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series, provided that
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;such direction shall not be in conflict with any rule of law or with the Indenture, and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of not less than a majority in principal amount of the Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes of any series may on behalf of the holders of all the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series
waive any past default hereunder with respect to such series and its consequences, except a default
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;in the payment of the principal of or any premium or interest on any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
of such series, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;in respect of a covenant or provision which cannot be modified or amended without the
consent of the holder of each Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series affected.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of the Indenture; but no such waiver shall
extend to any subsequent or other default or impair any right consequent thereon.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SATISFACTION AND DISCHARGE OF INDENTURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indenture shall upon request of the Company cease to be of further effect (except as to
any surviving rights of registration of transfer or exchange of any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes expressly
provided for herein or in the terms of such security), and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of the
Indenture, when
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes theretofore authenticated and delivered (other than
(1)&nbsp;securities which have been destroyed, lost or stolen and which have been replaced or
paid as provided in the Indenture; and (2)&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust, as provided in the
Indenture) have been delivered to the Trustee for cancellation; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes not theretofore delivered to the Trustee for
cancellation have become due and payable, or will become due and payable at their Stated
Maturity within one year, or are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company, and the Company, in the case of
this subsection (ii)&nbsp;has deposited or caused to be deposited with the Trustee as trust funds
in trust money in an amount sufficient to pay and discharge the entire indebtedness on such
securities not theretofore delivered to the Trustee for cancellation, for principal and any
premium and interest to the date of such deposit (in
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-23<!-- /Folio -->
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">the case of Securities which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the Company has paid or caused to be paid all other sums payable hereunder by the Trust;
and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the Company has delivered to the Trustee an Officers&#146; Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of the Indenture have been complied with.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding the satisfaction and discharge of the Indenture, the obligations of the Company to
the Trustee under the Indenture and, if money shall have been deposited with the Trustee pursuant
to subparagraph (ii)&nbsp;of paragraph (a)&nbsp;above, the obligations of the Trustee under certain
provisions of the Indenture shall survive.
</DIV>


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


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;Except during the continuance of an Event of Default,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in the Indenture and as required by the Trust Indenture Act, and no
implied covenants or obligations shall be read into the Indenture against the Trustee; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of the
Indenture; but in the case of any such certificates or opinions which by any provision of
the Indenture are specifically required to be furnished to the Trustee, the Trustee shall be
under a duty to examine the same to determine whether or not they conform to the
requirements of the Indenture (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;In case an Event of Default has occurred and is continuing, the Trustee shall exercise
such of the rights and powers vested in it by the Indenture, and use the same degree of care and
skill in their exercise, as a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;In no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations arising out of or caused by, directly or indirectly, forces beyond
its control, including, without limitation, strikes, work stoppages, accidents, acts of war or
terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-24<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;No provision of the Indenture shall be construed to relieve the Trustee from liability for
its own negligent action, its own negligent failure to act, or its own willful misconduct, except
that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) this Subsection shall not be construed to limit the effect of Subsection&nbsp;(1)(A) of
this Section;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the holders of a majority in
principal amount of the Outstanding securities of any series, determined as provided in the
Indenture, relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under the Indenture with respect to the Securities of such series; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) no provision of the Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties, or
in the exercise of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk or liability
is not reasonably assured to it.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a default occurs hereunder with respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series, the Trustee
shall give the Holders of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series notice of such default as and to the
extent provided by the Trust Indenture Act; provided, however, that in the case of any default with
respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series, no such notice to Holders shall be given until at
least 90&nbsp;days after the occurrence thereof. For the purpose hereof, the term &#147;default&#148; means any
event which is, or after notice or lapse of time or both would become, an Event of Default with
respect to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the provisions under &#147;Certain Duties and Responsibilities&#148; above:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Trustee may conclusively rely and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by the proper party or
parties;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any request or direction of the Company shall be sufficiently evidenced by a Company
Request or Company Order, and any resolution of the Board of Directors shall be sufficiently
evidenced by a Board Resolution;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;whenever in the administration of the Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee may, in the absence of bad faith on its part, rely upon an Officers&#146; Certificate;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-25<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the Trustee may consult with counsel of its selection and the written advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it in good faith and in reliance thereon;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by the Indenture at the request or direction of any of the holders pursuant to the Indenture,
unless such holders shall have offered to the Trustee security or indemnity reasonably satisfactory
to it against the costs, expenses and liabilities which might be incurred by it in compliance with
such request or direction;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;the Trustee may execute any of the trusts or powers or perform any duties hereunder either
directly or by or through agents or attorneys and the Trustee shall not be responsible for any
misconduct or negligence on the part of any agent or attorney appointed with due care by it
hereunder;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;the Trustee shall not be liable for any action taken, suffered or omitted to be taken by
it in good faith and reasonably believed by it to be authorized or within the discretion or rights
or powers conferred upon it by the Indenture;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the Trustee shall not be deemed to have notice of any default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and the Indenture;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;the rights, privileges, protections, immunities and benefits given to the Trustee,
including its rights to be indemnified, are extended to, and shall be enforceable by, the Trustee
in each of its capacities hereunder; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;the Trustee may request that the Company deliver an Officers&#146; Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to the Indenture, which Officers&#146; Certificate may be signed by any person
authorized to sign an Officers&#146; Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superceded.
</DIV>

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


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;to pay to the Trustee from time to time such compensation as shall be agreed in writing
between the parties for all services rendered by it (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;except as otherwise expressly provided, to reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with
any provision of the Indenture (including the reasonable compensation and the expenses and
disbursements of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-26<!-- /Folio -->
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">its agents and counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;to indemnify each of the Trustee or any predecessor Trustee for, and to hold it harmless
against, any and all losses, liabilities, damages, claims or expenses including taxes (other than
taxes imposed on the income of the Trustee) incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses of defending itself against any claim (whether asserted
by the Company, a holder or any other Person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the Trustee incurs expenses or renders services in connection with an Event of Default,
the expenses (including the reasonable charges and expenses of its counsel) and the compensation
for the services are intended to constitute expenses of administration under any applicable Federal
or State bankruptcy, insolvency or other similar law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions hereof shall survive the termination of the Indenture.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and the Indenture.
To the extent not prohibited by the Trust Indenture Act, the Trustee shall not be deemed to have a
conflicting interest by virtue of being a trustee under the Indenture with respect to
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of more than one series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Resignation and Removal; Appointment of Successor</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No resignation or removal of the Trustee and no appointment of a successor Trustee shall
become effective until the acceptance of appointment by the successor Trustee in accordance with
the applicable requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee may resign at any time with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of one or more
series by giving written notice thereof to the Company. If the instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 60&nbsp;days after the giving of
such notice of resignation, the resigning Trustee may petition, at the expense of the Company, any
court of competent jurisdiction for the appointment of a successor Trustee with respect to the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee may be removed at any time with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series
by Act of the holders of a majority in principal amount of the Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of
such series, delivered to the Trustee and to the Company. If the instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 30&nbsp;days after the giving of a
notice of removal pursuant to this paragraph, the Trustee being removed may petition, at the
expense of the Company, any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Trustee shall fail to comply after written request therefor by the Company or by any
holder who has been a bona fide holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for at least six months, or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-27<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the Trustee shall cease to be eligible and shall fail to resign after written request
therefor by the Company or by any such holder, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent
or a receiver of the Trustee or of its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then, in any such case, (i)&nbsp;the Company by a Board Resolution may
remove the Trustee with respect to all <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, or (ii)&nbsp;any holder who has been a bona
fide holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the removal of the
Trustee with respect to all <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and the appointment of a successor Trustee or
Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of one or
more series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or
Trustees with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that or those series (it being understood that
any such successor Trustee may be appointed with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of one or more
or all of such series and that at any time there shall be only one Trustee with respect to the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any particular series) and shall comply with the applicable requirements.
If, within one year after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series shall be
appointed by Act of the holders of a majority in principal amount of the Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes of such series delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements, become the successor Trustee with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of
such series and to that extent supersede the successor Trustee appointed by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If no successor Trustee with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series shall have been
so appointed by the Company or the holders and accepted appointment in the manner required, any
holder who has been a bona fide holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of
such series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall give notice of each resignation and each removal of the Trustee with respect
to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series and each appointment of a successor Trustee with respect
to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of any series to all holders of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series in
the manner provided. Each notice shall include the name of the successor Trustee with respect to
the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series and the address of its Corporate Trust Office.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Acceptance of Appointment by Successor</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In case of the appointment hereunder of a successor Trustee with respect to all <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-28<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In case of the appointment hereunder of a successor Trustee with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes of one or more (but not all) series, the Company, the retiring Trustee and each successor
Trustee with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of one or more series shall execute and deliver a
supplemental indenture wherein each successor Trustee shall accept such appointment and which
(1)&nbsp;shall contain such provisions as shall be necessary or desirable to transfer and confirm to,
and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that or those series to which the appointment
of such successor Trustee relates, (2)&nbsp;if the retiring Trustee is not retiring with respect to all
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that or those series as to which the retiring Trustee is not retiring shall
continue to be vested in the retiring Trustee, and (3)&nbsp;shall add to or change any of the provisions
of the Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, it being understood that nothing in the Indenture shall
constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee
of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered
by any other such Trustee; and upon the execution and delivery of such supplemental indenture the
resignation or removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that or those series to which the appointment of such successor Trustee
relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly
assign, transfer and deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder with respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of that or those series to which the
appointment of such successor Trustee relates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon request of any such successor Trustee, the Company shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts referred to in the first or second preceding paragraph, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No successor Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Merger, Conversion, Consolidation or Succession to Business</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible, without the execution or filing of any
paper or any further act on the part of any of the parties hereto. In case any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes shall have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes so authenticated with the same effect as if
such successor Trustee had itself authenticated such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Company May Consolidate, Etc., Only On Certain Terms</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall not consolidate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person, and the Company shall
not permit any Person to consolidate with or merge into the Company, unless:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-29<!-- /Folio -->
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;in case the Company shall consolidate with or merge into another Person or convey,
transfer or lease its properties and assets substantially as an entirety to any Person, the Person
formed by such consolidation or into which the Company is merged or the Person which acquires by
conveyance or transfer, or which leases, the properties and assets of the Company substantially as
an entirety shall be a corporation, partnership or trust, shall be organized and validly existing
under the laws of any domestic or foreign jurisdiction and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee,
the due and punctual payment of the principal of and any premium and interest on all the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and the performance or observance of every covenant of the Indenture on the
part of the Company to be performed or observed;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;immediately after giving effect to such transaction and treating any indebtedness which
becomes an obligation of the Company or any subsidiary as a result of such transaction as having
been incurred by the Company or such Subsidiary at the time of such transaction, no Event of
Default, and no event which, after notice or lapse of time or both, would become an Event of
Default, shall have happened and be continuing;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the Company has delivered to the Trustee an Officers&#146; Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, such supplemental indenture
comply and that all conditions precedent in the Indenture provided for relating to such transaction
have been complied with.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety, the successor Person formed by such consolidation or into which the Company is merged or
to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and
may exercise every right and power of, the Company under the Indenture with the same effect as if
such successor Person had been named as the Company in the Indenture, and thereafter, except in the
case of a lease, the predecessor Person shall be relieved of all obligations and covenants under
the Indenture and the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes.
</DIV>

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


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the Company&#146;s exercise of its option (if any) to have the provisions of the Indenture
relating to Defeasance applied to any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes or any series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes,
as the case may be, the Company shall be deemed to have been discharged from its obligations, with
respect to such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes as provided in the Indenture on and after the date the
conditions set forth are satisfied (hereinafter called &#147;Defeasance&#148;). For this purpose, such
Defeasance means that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and to have satisfied all its other
obligations under such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and the Indenture insofar as such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), subject to the following which shall survive until otherwise terminated or
discharged hereunder: (1)&nbsp;the rights of holders of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes to receive, solely
from the trust fund, payments in respect of the principal of and any premium and interest on such
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes when payments are due, (2)&nbsp;the Company&#146;s obligations with respect to such
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, (3)&nbsp;the rights, powers, trusts, duties and immunities of the Trustee.
</DIV>

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

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the Company&#146;s exercise of its option (if any) to have provisions of the Indenture
relating to Covenant Defeasance applied to any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes or any series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes, as the case may be, (1)&nbsp;the Company shall be released from its obligations under certain
provisions of the Indenture for the benefit of the holders of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and (2)&nbsp;the
occurrence of any event specified in the Indenture, and any such covenants provided pursuant to
certain provisions of the Indenture shall be deemed not to be or result in an Event of Default, in
each case with respect to such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes as provided in the Indenture on and after the
date the conditions are satisfied (hereinafter called &#147;Covenant Defeasance&#148;). For this purpose,
such Covenant Defeasance means that, with respect to such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, the Company may
omit to comply with and shall have no liability in respect of any term, condition or limitation set
forth in any such specified section of the Indenture, whether directly or indirectly by reason of
any reference elsewhere in the Indenture, or by reason of any reference in any such section or
article of the Indenture to any other provision in the Indenture or in any other document, but the
remainder of the Indenture and such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes shall be unaffected thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conditions to Defeasance or Covenant Defeasance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company shall irrevocably have deposited or caused to be deposited with the Trustee
(or another trustee which satisfies the requirements and agrees to comply with the provisions of
the relevant Article&nbsp;of the Indenture applicable to it) as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for, and dedicated solely to, the
benefits of the holders of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, (i)&nbsp;money in an amount, or (ii)&nbsp;U.S.
Government Obligations which through the scheduled payment of principal and interest in respect
thereof in accordance with their terms will provide, not later than one day before the due date of
any payment, money in an amount, or (iii)&nbsp;such other obligations or arrangements as may be
specified with respect to such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, or (iv)&nbsp;a combination thereof, in each case
sufficient, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and
which shall be applied by the Trustee (or any such other qualifying trustee) to pay and discharge,
the principal of and any premium and interest on such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes on the respective Stated
Maturities, in accordance with the terms of the Indenture and such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes. As used
in the Indenture, &#147;U.S. Government Obligation&#148; means (x)&nbsp;any security which is (i)&nbsp;a direct
obligation of the United States of America for the payment of which the full faith and credit of
the United States of America is pledged or (ii)&nbsp;an obligation of a Person controlled or supervised
by and acting as an agency or instrumentality of the United States of America the payment of which
is unconditionally guaranteed as a full faith and credit obligation by the United States of
America, which, in either case (i)&nbsp;or (ii), is not callable or redeemable at the option of the
Company thereof, and (y)&nbsp;any depositary receipt issued by a bank (as defined in Section&nbsp;3(a)(2) of
the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes Act) as custodian with respect to any U.S. Government Obligation which is
specified in Clause (x)&nbsp;above and held by such bank for the account of the holder of such
depositary receipt, or with respect to any specific payment of principal of or interest on any U.S.
Government Obligation which is so specified and held, provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable to the holder of
such depositary receipt from any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of principal or interest evidenced by such depositary receipt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the event of an election to have Defeasance and Discharge apply to any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Notes or any series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, as the case may be, the Company shall have delivered
to the Trustee an Opinion of Counsel stating that (i)&nbsp;the Company has received from, or there has
been published by, the Internal Revenue Service a ruling or (ii)&nbsp;since the date of this instrument,
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">there has been a change in the applicable Federal income tax law, in either case (i)&nbsp;or (ii)
to the effect that, and based thereon such opinion shall confirm that, the holders of such
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes will not recognize gain or loss for Federal income tax purposes as a result of
the deposit, Defeasance and discharge to be effected with respect to such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and
will be subject to Federal income tax on the same amount, in the same manner and at the same times
as would be the case if such deposit, Defeasance and discharge were not to occur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event of an election to have Covenant Defeasance apply to any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes
or any series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, as the case may be, the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that the holders of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes will not
recognize gain or loss for Federal income tax purposes as a result of the deposit and Covenant
Defeasance to be effected with respect to such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes and will be subject to Federal
income tax on the same amount, in the same manner and at the same times as would be the case if
such deposit and Covenant Defeasance were not to occur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company shall have delivered to the Trustee an Officers&#146; Certificate to the effect
that neither such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes nor any other <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of the same series, if
then listed on any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes exchange, will be delisted as a result of such deposit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;No event which is, or after notice or lapse of time or both would become, an Event of
Default with respect to such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes or any other <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes shall have
occurred and be continuing at the time of such deposit or, with regard to any such event specified,
at any time on or prior to the 90th day after the date of such deposit (it being understood that
this condition shall not be deemed satisfied until after such 90th day).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a conflicting
interest within the meaning of the Trust Indenture Act (assuming all <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes are in
default within the meaning of such Act).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or
constitute a default under, any other agreement or instrument to which the Company is a party or by
which it is bound.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Such Defeasance or Covenant Defeasance shall not result in the trust arising from such
deposit constituting an investment company within the meaning of the Investment Company Act unless
such trust shall be registered under the Investment Company Act or exempt from registration
thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;No event or condition shall exist that would prevent the Company from making payments of
the principal of (and any premium) or interest on the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes of such series on the
date of such deposit or at any time on or prior to the 90th day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until after such 90th day).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;The Company shall have delivered to the Trustee an Officers&#146; Certificate and an Opinion of
Counsel, each stating that all conditions precedent with respect to such Defeasance or Covenant
Defeasance have been complied with.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;The Company shall have delivered to the Trustee an Opinion of Counsel substantially to the
effect that (i)&nbsp;the trust funds deposited pursuant hereto will not be subject to any rights of any
holders of indebtedness or equity of the Company, and (ii)&nbsp;after the 90th day following the
deposit, the trust funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors&#146; rights generally, except that if a
court were to rule under any such law in any case or
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">proceeding that the trust funds remained property of the Company, no opinion is given as to
the effect of such laws on the trust funds except the following: (A)&nbsp;assuming such trust funds
remained in the possession of the trustee with whom such funds were deposited prior to such court
ruling to the extent not paid to holders of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Notes, such trustee would hold, for
the benefit of such holders, a valid and perfected security interest in such trust funds that is
not avoidable in bankruptcy or otherwise and (B)&nbsp;such holders would be entitled to receive adequate
protection of their interests in such trust funds if such trust funds were used.
</DIV>


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



<DIV align="left">
<A name="148"></A>
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Orders by Existing Holders and Potential Beneficial Owners</U>. (a)&nbsp;Prior to the
Broker-Dealer Deadline for each Series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes on each Auction Date:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Existing Holder may submit to a Broker-Dealer, in writing or by such other
method as shall be reasonably acceptable to such Broker-Dealer, one or more Orders as to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes, if any, of the series held
by the Existing Holder which the Existing Holder commits to continue to hold for the
next succeeding Auction Period without regard to the Applicable Rate for such
Auction Period;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes, if any, of the series held
by the Existing Holder which the Existing Holder commits to continue to hold for the
next succeeding Auction Period if the Applicable Rate for <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes for
the next succeeding Auction Period is not less than the rate per annum specified in
such Bid (and if the Auction Rate is less than such specified rate, the effect of
the Order shall be as set forth in paragraph (b)(i)(A) of this Section); and/or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes, if any, of the series held
by the Existing Holder which the Existing Holder offers to sell on the first
Business Day of the next succeeding Auction Period without regard to the Applicable
Rate for <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes for the next succeeding Auction Period; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each Potential Beneficial Owner may submit to a Broker-Dealer, in writing or by
such other method as shall be reasonably acceptable to such Broker-Dealer, an Order as to
the principal amount of outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a series which each such
Potential Beneficial Owner offers to purchase if the Applicable Rate for the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>_
Notes of such series for the next succeeding Rate Period is not less than the rate per annum
then specified by such Potential Beneficial Owner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of the Auction Procedures, an Order containing the information referred to in
clause (i)(A) of this paragraph (a)&nbsp;is referred to as a &#147;Hold Order,&#148; an Order containing the
information referred to in clause (i)(B) or (ii)&nbsp;of this paragraph (a)&nbsp;is referred to as a &#147;Bid,&#148;
and an Order containing the information referred to in clause (i)(C) of this paragraph (a)&nbsp;is
referred to as a &#147;Sell Order.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Auction Desk of a Broker-Dealer shall accept as an Order a submission (whether received
from an Existing Holder or a Potential Beneficial Owner or generated by the Broker-Dealer for its
own account) which does not conform to the requirements of the Auction Procedures, including, but
not limited to, submissions which are not in Authorized Denominations, specify a rate which
contains more than three figures to the right of the decimal point or specify an amount greater
than the amount of outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes. No Auction Desk of a Broker-Dealer shall
accept a Bid or Sell Order which is conditioned on being filled in whole or a Bid which does not
specify a specific interest rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i)&nbsp;A Bid by an Existing Holder shall constitute an offer to sell on the first Business
Day of the next succeeding Auction Period:
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->B-I-1<!-- /Folio -->
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the principal amount of outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes specified in the
Bid if the Applicable Rate for the next succeeding Auction Period shall be less than
the rate specified in such Bid; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the principal amount or a lesser principal amount of outstanding
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes to be determined as described in clause (v)&nbsp;of paragraph (a)
of Section&nbsp;5 of this Appendix&nbsp;B-I if the Applicable Rate for the next succeeding
Auction Period shall be equal to such specified rate; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) a lesser principal amount of outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes be
determined as described in clause (iv)&nbsp;of paragraph (b)&nbsp;of Section&nbsp;5 of this
Appendix&nbsp;B-I if the rate specified therein shall be higher than the Maximum Rate and
Sufficient Clearing Bids do not exist.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A Sell Order by an Existing Holder shall constitute an offer to sell:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the principal amount of outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series
specified in the Sell Order; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the principal amount or a lesser principal amount of outstanding
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series as set forth in clause (iv)&nbsp;of paragraph (b)&nbsp;of
Section&nbsp;5 of this Appendix&nbsp;B-I if Sufficient Clearing Bids for <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes
of the series do not exist;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A Bid by a Potential Holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes shall constitute an offer to
purchase:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the principal amount of outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series
specified in the Bid if the Applicable Rate for the next succeeding Auction Period
shall be higher than the rate specified therein; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the principal amount or a lesser principal amount of outstanding
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series as set forth in clause (vi)&nbsp;of paragraph (a)&nbsp;of
Section&nbsp;5 of this Appendix&nbsp;B-I if the Applicable Rate for the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes
determined on the Auction Date shall be equal to the rate specified therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Anything herein to the contrary notwithstanding:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if an Order or Orders covering all of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of
a particular series held by any Existing Holder is not submitted to the
Broker-Dealer prior to the Broker-Dealer Deadline, such Broker-Dealer shall
deem a Hold Order to have been submitted on behalf of the Existing Holder
covering the principal amount of outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the
series held by the Existing Holder and not subject to Orders submitted to
the Auction Agent; provided, however, that if there is a conversion from one
Auction Period to a longer Auction Period and Orders have not been submitted
to such Broker-Dealer prior to the Broker-Dealer Deadline covering the
aggregate principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a particular series
to be converted held by such Existing Holder, such Broker-Dealer shall deem
a Sell Order to have been submitted on behalf of the Existing Holder
covering the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-I-2<!-- /Folio -->
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp; Notes to be converted held by the
Existing Holder and not subject to Orders submitted to such Broker-Dealer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) for purposes of any Auction, any Order by an Existing Holder or
Potential Holder shall be revocable until the Broker-Dealer Deadline, and
after the Broker-Dealer Deadline all such Orders shall be irrevocable except
as provided in Sections&nbsp;2(e)(ii) and 2(f); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) for purposes of any Auction, any <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes sold or
purchased pursuant to clauses (i), (ii)&nbsp;or (iii)&nbsp;of paragraph (b)&nbsp;of this
Section&nbsp;1 shall be sold or purchased at a price equal to 100% of the
principal amount thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Submission of Orders by Broker-Dealers to Auction Agent</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Broker-Dealer shall submit to the Auction Agent in writing, or by such other
electronic means, as shall be reasonably acceptable to the Auction Agent, prior to the Submission
Deadline on each Auction Date, all Orders accepted by such Broker-Dealer in accordance with Section
1 above and specifying with respect to each Order or aggregation of Orders pursuant to paragraph
(b)&nbsp;of this Section&nbsp;2:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the name of the Broker-Dealer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the number of Bidders placing Orders, if requested by the Auction Agent;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the aggregate number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series, if any,
that are the subject of the Order;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent that the Bidder is an Existing Holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of
the series:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes, if any, of the series subject
to any Hold Order placed by the Existing Holder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes, if any, of the series subject
to any Bid placed by the Existing Holder and the rate specified in the Bid; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes, if any, of the series subject
to any Sell Order placed by the Existing Holder; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to the extent the Bidder is a Potential Holder of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the
series, the rate specified in such Bid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If more than one Bid is submitted to a Broker-Dealer on behalf of any single Potential
Beneficial Owner, the Broker-Dealer shall aggregate each Bid on behalf of such Potential Beneficial
Owner submitted with the same rate and consider such Bids as a single Bid and shall consider each
Bid submitted with a different rate a separate Bid with the rate and the number of Units of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series specified therein.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Broker-Dealer may aggregate the Orders of different Potential Beneficial Owners with those
of other Potential Beneficial Owners on whose behalf the Broker-Dealer is submitting Orders and may
aggregate the Orders of different Existing Holders with other Existing Holders on whose behalf the
Broker-Dealer is submitting Orders; provided, however, Bids may only be aggregated if the interest
rates on the Bids are the same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;None of the Company, the Trustee or the Auction Agent shall be responsible for the failure
of any Broker-Dealer to submit an Order to the Auction Agent on behalf of any Beneficial Owner,
Potential Beneficial Owner, Existing Holder or Potential Holder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Nothing contained herein shall preclude a Broker-Dealer from placing an Order for some or
all of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a series for its own account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Until the Submission Deadline, a Broker-Dealer may withdraw or modify any Order previously
submitted to the Auction Agent (i)&nbsp;for any reason if the Order was generated by the Auction Desk of
the Broker-Dealer for the account of the Broker-Dealer or (ii)&nbsp;to correct a Clerical Error in the
case of any other Order, including Orders from the Broker-Dealer which were not originated by the
Auction Desk.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;After the Submission Deadline, and prior to the Error Correction Deadline, a Broker-Dealer
may:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) submit to the Auction Agent an Order received from an Existing Holder, Potential
Beneficial Owner or a Broker-Dealer which is not an Order generated by the Auction Desk, in
each case prior to the Broker-Dealer Deadline, or an Order generated by the Broker-Dealer&#146;s
Auction Desk for its own account prior to the Submission Deadline (provided that in each
case the Broker-Dealer has a record of such Order and the time when such Order was received
or generated) and not submitted to the Auction Agent prior to the Submission Deadline as a
result of (A)&nbsp;an event of force majeure or a technological failure which made delivery prior
to the Submission Deadline impossible or, under the conditions then prevailing,
impracticable or (B)&nbsp;a clerical error on the part of the Broker-Dealer; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) modify or withdraw an Order received from an Existing Holder or a Potential
Beneficial Owner or generated by the Broker-Dealer (whether generated by the Broker-Dealer&#146;s
Auction Desk or elsewhere within the Broker-Dealer) for its own account and submitted to the
Auction Agent prior to the Submission Deadline or pursuant to clause (i)&nbsp;above, if the
Broker-Dealer determines that such Order contained a Clerical Error on the part of the
Broker-Dealer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event a Broker-Dealer makes a submission, modification or withdrawal pursuant to this
Section 2(f) and the Auction Agent has already run the Auction, the Auction Agent shall rerun the
Auction, taking into account such submission, modification or withdrawal. Each submission,
modification or withdrawal of an Order submitted pursuant to this Section 2(f) by a Broker-Dealer
after the Submission Deadline and prior to the Error Correction Deadline shall constitute a
representation by the Broker-Dealer that (A)&nbsp;in the case of a newly submitted Order or portion
thereof or revised Order, the failure to submit such Order prior to the Submission Deadline
resulted from an event described in clause (i)&nbsp;above and such Order was received from an Existing
Holder or Potential Beneficial Owner or is an Order received from the Broker-Dealer that was not
originated by the Auction Desk, in each case, prior to the Broker-Dealer Deadline, or generated
internally by such Broker-Dealer&#146;s Auction Desk for its own account prior to the Submission
Deadline or (B)&nbsp;in the case of a modified or withdrawn Order, such Order was received from an
Existing Holder, a Potential Beneficial Owner or the Broker-Dealer which was not
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">originated by the Auction Desk prior to the Broker-Dealer Deadline, or generated internally by
such Broker-Dealer&#146;s Auction Desk for its own account prior to the Submission Deadline and such
Order as submitted to the Auction Agent contained a Clerical Error on the part of the Broker-Dealer
and that such Order has been modified or withdrawn solely to effect a correction of such Clerical
Error, and in the case of either (A)&nbsp;or (B), as applicable, the Broker-Dealer has a record of such
Order and the time when such Order was received or generated. The Auction Agent shall be entitled
to rely conclusively (and shall have no liability for relying) on such representation for any and
all purposes of the Auction Procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;If after the Auction Agent announces the results of an Auction, a Broker-Dealer becomes
aware that an error was made by the Auction Agent, the Broker-Dealer shall communicate such
awareness to the Auction Agent prior to 5:00 p.m., New York City time on the Auction Date. If the
Auction Agent determines there has been such an error (as a result of either a communication from a
Broker-Dealer or its own discovery) prior to 3:00 p.m., New York City time on the first day of the
next applicable Auction Period with respect to such Auction, the Auction Agent shall correct the
error and notify each Broker-Dealer that submitted Bids or held a position in the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>_
Notes of the series subject to such Auction of the corrected results.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Nothing contained herein shall preclude the Auction Agent from:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) advising a Broker-Dealer prior to the Submission Deadline that it has not received
Sufficient Clearing Bids for <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series, provided, however, that if
the Auction Agent so advises any Broker-Dealer, it shall so advise all Broker-Dealers; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) verifying the Orders of a Broker-Dealer prior to the Submission Deadline,
provided, however, that if the Auction Agent verifies the Orders of any Broker-Dealer, it
shall verify the Orders of all Broker-Dealers requesting such verification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Treatment of Orders by the Auction Agent</U>. Anything herein to the contrary
notwithstanding:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Auction Agent receives an Order which does not conform to the requirements of the
Auction Procedures, the Auction Agent may contact the Broker-Dealer submitting such Order until one
hour after the Submission Deadline and inform such Broker-Dealer that it may resubmit such Order so
that it conforms to the requirements of the Auction Procedures. Upon being so informed, such
Broker-Dealer may correct and resubmit to the Auction Agent any such Order that, solely as a result
of a Clerical Error on the part of such Broker-Dealer, did not conform to the requirements of the
Auction Procedures when previously submitted to the Auction Agent. Any such resubmission by a
Broker-Dealer shall constitute a representation by such Broker-Dealer that the failure of such
Order to have so conformed was solely as a result of a Clerical Error on the part of such
Broker-Dealer. If the Auction Agent has not received a corrected conforming Order within one hour
and fifteen minutes of the Submission Deadline, the Auction Agent shall, if and to the extent
applicable, adjust or apply such Order, as the case may be, in conformity with the provisions of
subsections (b), (c)&nbsp;or (d)&nbsp;of this Section&nbsp;3 and, if the Auction Agent is unable to so adjust or
apply such Order, the Auction Agent shall reject such Order.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If any rate specified in any Bid contains more than three figures to the right of the
decimal point, the Auction Agent shall round the rate up to the next highest one thousandth of one
percent (0.001%).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If one or more Orders covering in the aggregate more than the number of Units of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a particular series are submitted by a Broker-Dealer to the Auction Agent,
such Orders shall be considered valid as follows:
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all Hold Orders for <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a series shall be considered Hold
Orders, but only up to and including in the aggregate the number of Units of outstanding
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series for which such Broker-Dealer is the Broker-Dealer of
record;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A)&nbsp;any Bid of a Broker-Dealer shall be considered valid as a Bid of an Existing
Holder up to and including the excess of the number of Units of outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>_
Notes of such series for which such Broker-Dealer is the Broker-Dealer of record over the
number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series subject to any Hold Orders referred
to in clause&nbsp;(i) above;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) subject to subclause (A), all Bids of a Broker-Dealer with the same rate
shall be aggregated and considered a single Bid of an Existing Holder up to and
including the excess of the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series
for which such Broker-Dealer is the Broker-Dealer of record over the number of Units
of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series for which the Broker-Dealer is the
Broker-Dealer of record subject to any Hold Orders referred to in clause (i)&nbsp;above;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) subject to subclause (A), if more than one Bid with different rates is
submitted by a Broker-Dealer, such Bids shall be considered Bids of an Existing
Holder in the ascending order of their respective rates up to the amount of excess
of the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series for which such
Broker-Dealer is the Broker-Dealer of record over the number of Units of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such Series for which such Broker-Dealer is the
Broker-Dealer of record subject to any Hold Orders referred to in clause (i)&nbsp;above;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the number of Units, if any, of outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the
series subject to Bids not considered to be Bids for which such Broker-Dealer is the
Broker-Dealer of record under this clause (ii)&nbsp;shall be treated as the subject of a
Bid for <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series by a Potential Beneficial Owner; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all Sell Orders shall be considered Sell Orders, but only up to and including the
number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series equal to the excess of the number of
Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series for which such Broker-Dealer is the
Broker-Dealer of record over the sum of the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such
series subject to Hold Orders referred to in clause (i)&nbsp;above and the number of Units of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series considered to be subject to Bids for which such
Broker-Dealer is the Broker-Dealer of record pursuant to clause (ii)&nbsp;above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If an Order is for other than an integral number of Units, then the Auction Agent shall
round the number down to the nearest number of whole Units, and the Auction Agent shall conduct the
Auction Procedures as if such Order had been submitted in such number of Units.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If the Auction Agent has been notified by the Trustee or the Company that any portion of
an Order by a Broker-Dealer relates to a <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Note of a series that has been called for
redemption on or prior to the Interest Payment Date next succeeding such Auction, the Order shall
be invalid with respect to such portion and the Auction Agent shall conduct the Auction Procedures
as if such portion of such Order had not been submitted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;No <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Note of a series which the Auction Agent has been notified by the
Trustee or the Company has been called for redemption on or prior to the Interest Payment
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date next succeeding such Auction shall be included in the calculation of Available
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes for such Auction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;If an Order or Orders covering all of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a particular series is
not submitted by a Broker-Dealer of record prior to the Submission Deadline, the Auction Agent
shall deem a Hold Order to have been submitted on behalf of such Broker-Dealer covering the number
of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes for which such Broker-Dealer is the Broker-Dealer of record and
not subject to Orders submitted to the Auction Agent; provided, however, that if there is a
conversion from one Auction Period to a longer Auction Period and Orders have not been submitted by
such Broker-Dealer prior to the Submission Deadline covering the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>_
Notes of a particular series to be converted for which such Broker-Dealer is the Broker-Dealer of
record, the Auction Agent shall deem a Sell Order to have been submitted on behalf of such
Broker-Dealer covering the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes to be converted for which such
Broker-Dealer is the Broker-Dealer of record not subject to Orders submitted by such Broker-Dealer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Determination of Applicable Rate</U>. (a)&nbsp;If requested by the Trustee or a
Broker-Dealer, not later than 10:30&nbsp;a.m., New York City time (or such other time as may be agreed
to by the Auction Agent and all Broker-Dealers), on each Auction Date for each series of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes, the Auction Agent shall advise such Broker-Dealer (and thereafter confirm to
the Trustee, if requested) the All Hold Rate. Such advice, and confirmation, shall be made by
telephone or other electronic means acceptable to the Auction Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Promptly after the Submission Deadline for the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a series on each
Auction Date, the Auction Agent shall assemble all Orders submitted or deemed submitted to it by
the Broker-Dealers (each such Order as submitted or deemed submitted by a Broker-Dealer being
hereinafter referred to as a &#147;Submitted Hold Order,&#148; a &#147;Submitted Bid&#148; or a &#147;Submitted Sell Order,&#148;
as the case may be, and collectively as a &#147;Submitted Order&#148;) and shall determine (i)&nbsp;the Available
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes, (ii)&nbsp;whether there are Sufficient Clearing Bids, and (iii)&nbsp;the Applicable
Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event the Auction Agent shall fail to calculate or, for any reason, fails to
provide the Auction Rate on the Auction Date, for any Auction Period (i)&nbsp;if the preceding Auction
Period was a period of 35&nbsp;days or less, (A)&nbsp;a new Auction Period shall be established for the same
length of time as the preceding Auction Period, if the failure to make such calculation was because
there was not at the time a duly appointed and acting Auction Agent or Broker-Dealer, and the
Applicable Rate for the new Auction Period shall be the percentage of the Index set forth in
Section 4(f) below if the Index is ascertainable on such date (by the Auction Agent, if there is at
the time an Auction Agent, or the Trustee, if at the time there is no Auction Agent) or, (B)&nbsp;if the
failure to make such calculation was for any other reason or if the Index is not ascertainable on
such date, the prior Auction Period shall be extended for seven days and the Applicable Rate for
the period as so extended shall be the same as the Applicable Rate for the Auction Period prior to
the extension, and (ii)&nbsp;if the preceding Auction Period was a period of greater than 35&nbsp;days, (A)&nbsp;a
new Auction Period shall be established for a period that ends on the seventh day following the day
that was the last day of the preceding Auction Period, (or if such seventh day is not followed by a
Business Day then to the next succeeding day which is followed by a Business Day) if the failure to
make such calculation was because there was not at the time a duly appointed and acting Auction
Agent or Broker-Dealer, and the Applicable Rate for the new Auction Period shall be the percentage
of the Index set forth in Section 4(f) below if the Index is ascertainable on such date (by the
Auction Agent, if there is at the time an Auction Agent, or the Trustee, if at the time there is no
Auction Agent) or, (B)&nbsp;if the failure to make such calculation was for any other reason or if the
Index is not ascertainable on such date, the prior Auction Period shall be extended to the seventh
day following the day that would have been the last day of the preceding Auction Period (or if such
seventh day is not followed by a Business Day then to the next succeeding day that is followed by a
Business Day) and the
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Applicable Rate for the period as so extended shall be the same as the Applicable Rate for the
Auction Period prior to the extension. In the event a new Auction Period is established as set
forth in clause (ii) (A)&nbsp;above, an Auction shall be held on the last Business Day of the new
Auction Period to determine an Auction Rate for an Auction Period beginning on the Business Day
immediately following the last day of the new Auction Period and ending on the date on which the
Auction Period otherwise would have ended had there been no new Auction Period or Auction Periods
subsequent to the last Auction Period for which a Winning Bid Rate had been determined. In the
event an Auction Period is extended as set forth in clause (i) (B)&nbsp;or (ii) (B)&nbsp;above, an Auction
shall be held on the last Business Day of the Auction Period as so extended to determine an Auction
Rate for an Auction Period beginning on the Business Day immediately following the last day of the
extended Auction Period and ending on the date on which the Auction Period otherwise would have
ended had there been no extension of the prior Auction Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, neither new nor extended Auction Periods shall total more than
35&nbsp;days in the aggregate. If at the end of the 35&nbsp;days the Auction Agent fails to calculate or
provide the Auction Rate, or there is not at the time a duly appointed and acting Auction Agent or
Broker-Dealer, the Applicable Rate shall be the Maximum Rate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the event of a failed conversion from an Auction Period to any other period or in the
event of a failure to change the length of the current Auction Period due to the lack of Sufficient
Clearing Bids at the Auction on the Auction Date for the first new Auction Period, the Applicable
Rate for the next Auction Period shall be the Maximum Rate and the Auction Period shall be a
seven-day Auction Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes are no longer maintained in book-entry-only form by the
Securities Depository, then the Auctions shall cease and the Applicable Rate shall be the Maximum
Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The percentage of the Index in Section 4(c) is 100%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Allocation of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes</U>. (a)&nbsp;In the event of Sufficient Clearing Bids
for the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a series subject to the further provisions of paragraphs (c)&nbsp;and
(d)&nbsp;of this Section&nbsp;5. Submitted Orders for <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series shall be accepted
or rejected as follows in the following order of priority:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Submitted Hold Order of each Existing Holder shall be accepted, thus requiring
each such Existing Holder to continue to hold the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes that are the subject
of such Submitted Hold Order;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Submitted Sell Order of each Existing Holder shall be accepted and the
Submitted Bids of each Existing Holder specifying any rate that is higher than the Winning
Bid Rate shall be rejected, thus requiring each Existing Holder to sell the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>_
Notes that are the subject of such Submitted Sell Order or Submitted Bid;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Submitted Bid of each Existing Holder specifying any rate that is lower than
the Winning Bid Rate shall be accepted, thus requiring each such Existing Holder to continue
to hold the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes that are the subject of the Submitted Bid;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Submitted Bid of each Potential Holder specifying any rate that is lower than
the Winning Bid Rate for <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series shall be accepted, thus
requiring each such Potential Holder to purchase the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes that are the
subject of the Submitted Bid;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-I-8<!-- /Folio -->
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Submitted Bid of each Existing Holder specifying a rate that is equal to the
Winning Bid Rate shall be accepted, thus requiring each such Existing Holder to continue to
hold the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series that are the subject of the Submitted Bid, but
only up to and including the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series
obtained by multiplying (A)&nbsp;the aggregate number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes which are
not the subject of Submitted Hold Orders described in clause (i)&nbsp;of this paragraph (a)&nbsp;or of
Submitted Bids described in clauses (iii)&nbsp;and (iv)&nbsp;of this paragraph (a)&nbsp;by (B)&nbsp;a fraction,
the numerator of which shall be the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes held by such
Existing Holder subject to such Submitted Bid and the denominator of which shall be the
aggregate number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes subject to such Submitted Bids made by
all such Existing Holders that specified a rate equal to the Winning Bid Rate, and the
remainder, if any, of such Submitted Bid shall be rejected, thus requiring each such
Existing Holder to sell any excess amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Submitted Bid of each Potential Holder specifying a rate that is equal to the
Winning Bid Rate shall be accepted, thus requiring each such Potential Holder to purchase
the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series that are the subject of such Submitted Bid, but only
in an amount equal to the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series obtained
by multiplying (A)&nbsp;the aggregate number of Units of Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes which
are not the subject of Submitted Hold Orders described in clause (i)&nbsp;of this paragraph (a)
or of Submitted Bids described in clauses (iii), (iv)&nbsp;or (v)&nbsp;of this paragraph (a)&nbsp;by (B)&nbsp;a
fraction, the numerator of which shall be the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes
subject to such Submitted Bid and the denominator of which shall be the sum of the aggregate
number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes subject to such Submitted Bids made by all such
Potential Holders that specified a rate equal to the Winning Bid Rate, and the remainder of
such Submitted Bid shall be rejected; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Submitted Bid of each Potential Holder specifying any rate that is higher
than the Winning Bid Rate shall be rejected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the event there are not Sufficient Clearing Bids for the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a
series, Submitted Orders for the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series shall be accepted or rejected
as follows in the following order of priority:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Submitted Hold Order of each Existing Holder shall be accepted, thus requiring
each such Existing Holder to continue to hold the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes that are the subject
of such Submitted Hold Order;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Submitted Bid of each Existing Holder specifying any rate that is not higher
than the Maximum Rate shall be accepted, thus requiring each such Existing Holder to
continue to hold the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes that are the subject of such Submitted Bid;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Submitted Bids specifying any rate that is not higher than the Maximum Rate
for the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes shall be accepted, thus requiring each such Potential Holder
to purchase the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes that are the subject of such Submitted Bid; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Submitted Sell Orders of each Existing Holder shall be accepted as Submitted
Sell Orders and the Submitted Bids of each Existing Holder specifying any rate that is
higher than the Maximum Rate shall be deemed to be and shall be accepted as Submitted Sell
Orders, in both cases only up to and including the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes
of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-I-9<!-- /Folio -->
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">such series obtained by multiplying (A)&nbsp;the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp; Notes
subject to Submitted Bids described in clause (iii)&nbsp;of this paragraph (b)&nbsp;by (B)&nbsp;a fraction,
the numerator of which shall be the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp; Notes held by such
Existing Holder subject to such Submitted Sell Order or such Submitted Bid deemed to be a
Submitted Sell Order and the denominator of which shall be the number of Units of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp; Notes subject to all such Submitted Sell Orders and such Submitted Bids
deemed to be Submitted Sell Orders, and the remainder of each such Submitted Sell Order or
Submitted Bid shall be deemed to be and shall be accepted as a Hold Order and each such
Existing Holder shall be required to continue to hold such excess amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>_
Notes; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Submitted Bid of each Potential Holder specifying any rate that is higher than
the Maximum Rate shall be rejected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Notice of Applicable Rate</U>. (a)&nbsp;On each Auction Date, the Auction Agent shall
notify each Broker-Dealer that participated in the Auction held on such Auction Date by electronic
means acceptable to the Auction Agent and the applicable Broker-Dealer of the following, with
respect to the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a series for which an Auction was held on such Auction
Date:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Applicable Rate determined on such Auction Date for the succeeding Auction
Period;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) whether Sufficient Clearing Bids existed for the determination of the Winning Bid
Rate;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if such Broker-Dealer submitted a Bid or a Sell Order on behalf of an Existing
Holder, whether such Bid or Sell Order was accepted or rejected and the number of Units of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series, if any, to be sold by such Existing Holder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if such Broker-Dealer submitted a Bid on behalf of a Potential Holder, whether
such Bid was accepted or rejected and the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the
series, if any, to be purchased by such Potential Holder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if the aggregate number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a series to be sold by
all Existing Holders on whose behalf such Broker-Dealer submitted Bids or Sell Orders is
different from the aggregate number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series to be
purchased by all Potential Holders on whose behalf such Broker-Dealer submitted a Bid, the
name or names of one or more Broker-Dealers (and the Agent Member, if any, of each such
other Broker-Dealer) and the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series to be
(A)&nbsp;purchased from one or more Existing Holders on whose behalf such other Broker-Dealers
submitted Bids or Sell Orders or (B)&nbsp;sold to one or more Potential Holders on whose behalf
such Broker-Dealer submitted Bids; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the immediately succeeding Auction Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;On each Auction Date, with respect to each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes for which an
Auction was held on such Auction Date, each Broker-Dealer that submitted an Order on behalf of any
Existing Holder or Potential Holder shall: (i)&nbsp;if requested by an Existing Holder or a Potential
Holder advise such Existing Holder or Potential Holder on whose behalf such Broker-Dealer submitted
an Order as to (A)&nbsp;the Applicable Rate determined on such Auction Date, (B)&nbsp;whether any Bid or Sell
Order submitted on behalf of each such Owner was accepted or rejected and (C)&nbsp;the immediately
succeeding Auction Date; (ii)&nbsp;instruct each Potential Holder on whose behalf such Broker-Dealer
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">submitted a Bid that was accepted, in whole or in part, to instruct such Potential Holder&#146;s
Agent Member to pay to such Broker-Dealer (or its Agent Member) through the Securities Depository
the amount necessary to purchase the number of Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series to be
purchased pursuant to such Bid against receipt of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes; and (iii)&nbsp;instruct
each Existing Holder on whose behalf such Broker-Dealer submitted a Sell Order that was accepted or
a Bid that was rejected in whole or in part, to instruct such Existing Holder&#146;s Agent Member to
deliver to such Broker-Dealer (or its Agent Member) through the Securities Depository the number of
Units of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series to be sold pursuant to such Bid or Sell Order against
payment therefor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Auction Agent shall give notice of the Auction Rate to the Company and the Trustee by
mutually acceptable electronic means and the Trustee shall promptly give notice of such Auction
Rate to the Securities Depository.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Miscellaneous Provisions Regarding Auctions</U>. (a)&nbsp;In this Appendix&nbsp;B-I, each
reference to the purchase, sale or holding of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes shall refer to beneficial
interests in <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes, unless the context clearly requires otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;During an auction Rate Period with respect to each series of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes, the
provisions of the Indenture and the definitions contained therein and described in this Appendix
B-I, including without limitation the definitions of All Hold Rate, Interest Payment Date, Maximum
Rate, and Applicable Rate, may be amended pursuant to the Indenture by obtaining the consent of the
majority of the owners of the affected Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a series bearing
interest at the Applicable Rate as follows. If on the first Auction Date occurring at least 20
days after the date on which the Trustee mailed notice of such proposed amendment to the registered
owners of the affected Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series, (i)&nbsp;the Applicable Rate
which is determined on such date is the Winning Bid Rate or the All Hold Rate and (ii)&nbsp;there is
delivered to the Company and the Trustee an opinion of counsel to the effect that such amendment
shall not adversely affect the validity of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series or any exemption
from federal income tax to which the interest on the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series would
otherwise be entitled, the proposed amendment shall be deemed to have been consented to by the
owners of all affected Outstanding <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series bearing interest at the
Applicable Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If the Securities Depository notifies the Company that it is unwilling or unable to
continue as registered owner of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a series or if at any time the
Securities Depository shall no longer be registered or in good standing under the Securities
Exchange Act of 1934, as amended, or other applicable statute or regulation and a successor to the
Securities Depository is not appointed by the Company within 90&nbsp;days after the Company receives
notice or becomes aware of such condition, as the case may be, the Auctions shall cease and the
Company shall execute and the Trustee shall authenticate and deliver certificates representing the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series. Such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes shall be registered in such names
and Authorized Denominations as the Securities Depository, pursuant to instructions from the Agent
Members or otherwise, shall instruct the Company and the Trustee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;During an Auction Period, so long as the ownership of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a
series is maintained in book-entry form by the Securities Depository, an Existing Holder or a
Beneficial Owner may sell, transfer or otherwise dispose of a <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Note only pursuant to
a Bid or Sell Order in accordance with the Auction Procedures or to or through a Broker-Dealer,
provided that (i)&nbsp;in the case of all transfers other than pursuant to Auctions such Existing Holder
or its Broker-Dealer or its Agent Member advises the Auction Agent of such transfer and (ii)&nbsp;a
sale, transfer or other disposition of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series from a customer of a
Broker-Dealer who is listed on
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-I-11<!-- /Folio -->
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the records of that Broker-Dealer as the holder of such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes to that
Broker-Dealer or another customer of that Broker-Dealer shall not be deemed to be a sale, transfer
or other disposition for purposes of this paragraph if such Broker-Dealer remains the Existing
Holder of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes so sold, transferred or disposed or immediately after such
sale, transfer or disposition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Changes in Auction Period or Auction Date</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <I>Changes in Auction Period</I>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) During any Auction Period, the Issuer, may, from time to time on the Interest
Payment Date immediately following the end of any Auction Period, change the length of the
Auction Period with respect to all of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of a series in order to
accommodate economic and financial factors that may affect or be relevant to the length of
the Auction Period and the rate of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of such series. The Company shall
initiate the change in the length of the Auction Period by giving written notice to the
Trustee, Auction Agent, the Broker-Dealers and the Securities Depository that the Auction
Period shall change if the conditions described herein are satisfied and the proposed
effective date of the change, at least 10 Business Days prior to the Auction Date for such
Auction Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any such changed Auction Period shall be for a period of one day, seven-days,
28-days, 35-days, three months, six months and shall be for all of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes
of such series.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The change in length of the Auction Period shall take effect only if Sufficient
Clearing Bids exist at the Auction on the Auction Date for such new Auction Period. For
purposes of the Auction for such new Auction Period only, except to the extent such Existing
Holder submits an Order with respect to such <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes each Existing Holder
shall be deemed to have submitted Sell Orders with respect to all of its <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>_
Notes of such series if the change is to a longer Auction Period and a Hold Order if the
change is to a shorter Auction Period. If there are not Sufficient Clearing Bids for the
first Auction Period, the Auction Rate for the new Auction Period shall be the Maximum Rate,
and the Auction Period shall be a seven-day Auction Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <I>Changes in Auction Date</I>. During any Auction Period, the Auction Agent, at the direction
of the Company, may specify an earlier or later Auction Date (but in no event more than five
Business Days earlier or later) than the Auction Date that would otherwise be determined in
accordance with the definition of &#147;Auction Date&#148; in order to conform with then current market
practice with respect to similar securities or to accommodate economic and financial factors that
may affect or be relevant to the day of the week constituting an Auction Date and the rate of the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#95;&#95;&#95;Notes of the series. The Auction Agent shall provide notice of the Company&#146;s
direction to specify an earlier Auction Date for an Auction Period by means of a written notice
delivered at least 45&nbsp;days prior to the proposed changed Auction Date to the Company, the
Broker-Dealers and the Securities Depository. In the event that Auction Agent is instructed to
specify an earlier Auction Date, the days of the week on which an Auction Period begins and ends
and the Interest Payment Date shall be adjusted accordingly.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <I>Changes Resulting from Unscheduled Holidays</I>. If, in the opinion of the Auction Agent and
the Broker-Dealers, there is insufficient notice of an unscheduled holiday to allow the efficient
implementation of the Auction Procedures set forth herein, the Auction Agent and the Broker-Dealers
may, as they deem appropriate, and after providing notice to the Company, set a different Auction
Date and adjust any Interest Payment Dates and Auction Periods affected by such unscheduled
holiday. In the event there is not agreement among the Broker-Dealers, the Auction Agent shall set
the different Auction
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-I-12<!-- /Folio -->
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date and make such adjustments as directed by a majority of the Broker-Dealers (based on the
number of Units for which a Broker-Dealer is listed as the Broker-Dealer in the Existing Holder
registry maintained by the Auction Agent pursuant to Section&nbsp;2.2 of the Auction Agreement), and, if
there is not a majority so directing, the Auction Date shall be moved to the next succeeding
Business Day following the scheduled Auction Date, and the Interest Payment Date and the Auction
Period shall be adjusted accordingly.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;Index.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If for any reason on any Auction Date the Index shall not be determined as provided in
Appendix&nbsp;A-I <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Auction Procedures, the Index shall be the Index for the prior Business Day.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The determination of the Index as provided in the Indenture and Appendix&nbsp;B-I <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
Auction Procedures shall be conclusive and binding upon the Company, the Trustee, the
Broker-Dealers, the Auction Agent and the holders of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->B-I-13<!-- /Folio -->
</DIV>

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



<DIV align="left">
<A name="149"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX C &#150; DESCRIPTION OF RATINGS</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Moody&#146;s Prime Rating System</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moody&#146;s short-term ratings are opinions of the ability of issuers to honor senior financial
obligations and contracts. Such obligations generally have an original maturity not exceeding one
year, unless explicitly noted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moody&#146;s employs the following designations, all judged to be investment grade, to indicate the
relative repayment ability of rated issuers:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Prime-1</U>: Issuers rated Prime-1 (or supporting institutions) have a superior ability
for repayment of senior short-term debt obligations. Prime-1 repayment ability will often be
evidenced by many of the following characteristics:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leading market positions in well-established industries. High rates of return on funds
employed. Conservative capitalization structure with moderate reliance on debt and ample asset
protection. Broad margins in earnings coverage of fixed financial charges and high internal cash
generation. Well-established access to a range of financial markets and assured sources of
alternate liquidity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Prime-2</U>: Issuers (or supporting institutions) rated Prime-2 have a strong ability to
repay senior short-term debt obligations. This will normally be evidenced by many of the
characteristics cited above, but to a lesser degree. Earnings trends and coverage ratios, while
sound, may be more subject to variation than is the case for Prime-1 securities. Capitalization
characteristics, while still appropriate, may be more affected by external conditions. Ample
alternate liquidity is maintained.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Prime-3</U>: Issuers (or supporting institutions) rated Prime-3 have an acceptable
ability for repayment of senior short-term obligations. The effect of industry characteristics and
market compositions may be more pronounced. Variability in earnings and profitability may result
in changes in the level of debt-protection measurements and may require relatively high financial
leverage. Adequate alternate liquidity is maintained.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Not Prime</U>: Issuers rated Not Prime do not fall within any of the Prime rating
categories.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, in certain countries the prime rating may be modified by the issuer&#146;s or
guarantor&#146;s senior unsecured long-term debt rating.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Moody&#146;s Debt Ratings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Aaa</U>: Bonds and preferred stock which are rated Aaa are judged to be of the best
quality. They carry the smallest degree of investment risk and are generally referred to as &#147;gilt
edged.&#148; Interest payments are protected by a large or by an exceptionally stable margin and
principal is secure. While the various protective elements are likely to change, such changes as
can be visualized are most unlikely to impair the fundamentally strong position of such issues.
</DIV>


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

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

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The ratings indicated herein are believed to be the
most recent ratings available at the date of this prospectus for the securities
listed. Ratings are generally given to securities at the time of issuance.
While the rating agencies may from time to time revise such ratings, they
undertake no obligation to do so, and the ratings indicated do not necessarily
represent ratings which will be given to these securities on the date of the
fund&#146;s fiscal year-end.</TD>
</TR>

</TABLE>


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

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






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Aa</U>: Bonds and preferred stock which are rated Aa are judged to be of high quality by
all standards. Together with the Aaa group they comprise what are generally known as high-grade
bonds. They are rated lower than the best bonds because margins of protection may not be as large
as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may
be other elements present which make the long-term risk in Aa-rated securities appear somewhat
larger than those securities rated Aaa.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>A</U>: Bonds and preferred stock which are rated A possess many favorable investment
attributes and are to be considered as upper-medium-grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present which suggest a
susceptibility to impairment some time in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Baa</U>: Bonds and preferred stock which are rated Baa are considered as medium-grade
obligations (i.e., they are neither highly protected nor poorly secured). Interest payments and
principal security appear adequate for the present but certain protective elements may be lacking
or may be characteristically unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and in fact have speculative characteristics as well.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Ba</U>: Bonds and preferred stock which are rated Ba are judged to have speculative
elements; their future cannot be considered as well-assured. Often the protection of interest and
principal payments may be very moderate, and thereby not well safeguarded during both good and bad
times over the future. Uncertainty of position characterizes bonds in this class.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>B</U>: Bonds and preferred stock which are rated B generally lack characteristics of the
desirable investment. Assurance of interest and principal payments or of maintenance of other
terms of the contract over any long period of time may be small.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Caa</U>: Bonds and preferred stock which are rated Caa are of poor standing. Such issues
may be in default or there may be present elements of danger with respect to principal or interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Ca</U>: Bonds and preferred stock which are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in default or have other marked shortcomings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>C</U>: Bonds and preferred stock which are rated C are the lowest rated class of bonds,
and issues so rated can be regarded as having extremely poor prospects of ever attaining any real
investment standing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moody&#146;s assigns ratings to individual debt securities issued from medium-term note (MTN)
programs, in addition to indicating ratings to MTN programs themselves. Notes issued under MTN
programs with such indicated ratings are rated at issuance at the rating applicable to all pari
passu notes issued under the same program, at the program&#146;s relevant indicated rating, provided
such notes do not exhibit any of the characteristics listed below. For notes with any of the
following characteristics, the rating of the individual note may differ from the indicated rating
of the program:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notes containing features which link the cash flow and/or market value to the
credit performance of any third party or parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notes allowing for negative coupons, or negative principal.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notes containing any provision which could obligate the investor to make any
additional payments.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->C-2<!-- /Folio -->
</DIV>

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



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market participants must determine whether any particular note is rated, and if so, at what
rating level.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: Moody&#146;s applies numerical modifiers 1, 2, and 3 in each generic rating classification
from Aa through Caa. The modifier&nbsp;1 indicates that the obligation ranks in the higher end of its
generic rating category; the modifier&nbsp;2 indicates a mid-range ranking; and the modifier&nbsp;3 indicates
a ranking in the lower end of that generic rating category.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Standard&nbsp;&#038; Poor&#146;s Short-Term Issue Credit Ratings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>A-1</U>: A short-term obligation rated A-1 is rated in the highest category by Standard&nbsp;&#038;
Poor&#146;s. The obligor&#146;s capacity to meet its financial commitment on the obligation is strong.
Within this category, certain obligations are designated with a plus sign (&#043;). This indicates that
the obligor&#146;s capacity to meet its financial commitment on these obligations is extremely strong.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>A-2</U>: A short-term obligation rated A-2 is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than obligations in higher rating
categories. However, the obligor&#146;s capacity to meet its financial commitment on the obligation is
satisfactory.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>A-3</U>: A short-term obligation rated A-3 exhibits adequate protection parameters.
However, adverse economic conditions or changing circumstances are more likely to lead to a
weakened capacity of the obligor to meet its financial commitment on the obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>B</U>: A short-term obligation rated B is regarded as having significant speculative
characteristics. The obligor currently has the capacity to meet its financial commitment on the
obligation; however, it faces major ongoing uncertainties which could lead to the obligor&#146;s
inadequate capacity to meet its financial commitment on the obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>C</U>: A short-term obligation rated C is currently vulnerable to nonpayment and is
dependent upon favorable business, financial, and economic conditions for the obligor to meet its
financial commitment on the obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>D</U>: A short-term obligation rated D is in payment default. The D rating category is
used when payments on an obligation are not made on the date due even if the applicable grace
period has not expired, unless Standard&nbsp;&#038; Poor&#146;s believes that such payments will be made during
such grace period. The D rating also will be used upon the filing of a bankruptcy petition or the
taking of a similar action if payments on an obligation are jeopardized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Standard&nbsp;&#038; Poor&#146;s Long-Term Issue Credit Ratings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issue credit ratings are based, in varying degrees, on the following considerations:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">-&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Likelihood of payment-capacity and willingness of the obligor to meet its
financial commitment on an obligation in accordance with the terms of the obligation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">-&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Nature of and provisions of the obligation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">-&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Protection afforded by, and relative position of, the obligation in the event
of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and
other laws affecting creditors&#146; rights.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The issue rating definitions are expressed in terms of default risk. As such, they pertain to
senior obligations of an entity. Junior obligations are typically rated lower than senior
obligations, to reflect the
</DIV>

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">lower priority in bankruptcy, as noted above. (Such differentiation applies when an entity
has both senior and subordinated obligations, secured and unsecured obligations, or operating
company and holding company obligations.) Accordingly, in the case of junior debt, the rating may
not conform exactly with the category definition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>AAA</U>: An obligation rated AAA has the highest rating assigned by Standard&nbsp;&#038; Poor&#146;s.
The obligor&#146;s capacity to meet its financial commitment on the obligation is extremely strong.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>AA</U>: An obligation rated AA differs from the highest rated obligations only in small
degree. The obligor&#146;s capacity to meet its financial commitment on the obligation is very strong.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>A</U>: An obligation rated A is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than obligations in higher rated categories.
However, the obligor&#146;s capacity to meet its financial commitment on the obligation is still strong.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>BBB</U>: An obligation rated BBB exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely to lead to a weakened
capacity of the obligor to meet its financial commitment on the obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obligations rated BB, B, CCC, CC, and C are regarded as having significant speculative
characteristics. BB indicates the least degree of speculation and C the highest. While such
obligations will likely have some quality and protective characteristics, these may be outweighed
by large uncertainties or major exposures to adverse conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>BB</U>: An obligation rated BB is less vulnerable to nonpayment than other speculative
issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial,
or economic conditions which could lead to the obligor&#146;s inadequate capacity to meet its financial
commitment on the obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>B</U>: An obligation rated B is more vulnerable to nonpayment than obligations rated BB,
but the obligor currently has the capacity to meet its financial commitment on the obligation.
Adverse business, financial, or economic conditions will likely impair the obligor&#146;s capacity or
willingness to meet its financial commitment on the obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>CCC</U>: An obligation rated CCC is currently vulnerable to nonpayment, and is dependent
upon favorable business, financial, and economic conditions for the obligor to meet its financial
commitment on the obligation. In the event of adverse business, financial, or economic conditions,
the obligor is not likely to have the capacity to meet its financial commitment on the obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>CC</U>: An obligation rated CC is currently highly vulnerable to nonpayment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>C</U>: A subordinated debt or preferred stock obligation rated C is <B>currently highly
vulnerable </B>to nonpayment. The C rating may be used to cover a situation where a bankruptcy
petition has been filed or similar action taken, but payments on this obligation are being
continued. A C also will be assigned to a preferred stock issue in arrears on dividends or sinking
fund payments, but that is currently paying.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>D</U>: An obligation rated D is in payment default. The D rating category is used when
payments on an obligation are not made on the date due even if the applicable grace period has not
expired, unless Standard&nbsp;&#038; Poor&#146;s believes that such payments will be made during such grace
period. The D rating also will be used upon the filing of a bankruptcy petition or the taking of a
similar action if payments on an obligation are jeopardized.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->C-4<!-- /Folio -->
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Plus (&#043;) or Minus (-)</U>: The ratings from AA to CCC may be modified by the addition of
a plus or minus sign to show relative standing within the major rating categories.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>r</U>: This symbol is attached to the ratings of instruments with significant noncredit
risks. It highlights risks to principal or volatility of expected returns which are not addressed
in the credit rating.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>N.R.</U>: This indicates that no rating has been requested, that there is insufficient
information on which to base a rating, or that Standard&nbsp;&#038; Poor&#146;s does not rate a particular
obligation as a matter of policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Local Currency and Foreign Currency Risks</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Country risk considerations are a standard part of Standard&nbsp;&#038; Poor&#146;s analysis for credit
ratings on any issuer or issue. Currency of repayment is a key factor in this analysis. An
obligor&#146;s capacity to repay foreign currency obligations may be lower than its capacity to repay
obligations in its local currency due to the sovereign government&#146;s own relatively lower capacity
to repay external versus domestic debt. These sovereign risk considerations are incorporated in
the debt ratings assigned to specific issues. Foreign currency issuer ratings are also
distinguished from local currency issuer ratings to identify those instances where sovereign risks
make them different for the same issuer.
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PART C &#151; OTHER INFORMATION
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 25: FINANCIAL STATEMENTS AND EXHIBITS</B>
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Registrant&#146;s audited statement of assets and liabilities and
statement of operations as of October 31, 2007, notes to such statements
and report of independent public accountants thereon are filed herewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Exhibits:
</DIV>


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

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">a.1.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement and Declaration of Trust.
(4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">a.2.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Trust. (1)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">b.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By-laws. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">c.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None.</TD>
</TR>
<TR valign="bottom">
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">d.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Common Share Certificate. (6)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">d.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Preferred Share
Certificate. (7)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">d.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Note. (2)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">d.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indenture of Trust. (2)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">d.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Supplemental Indenture of
Trust. (2)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">e.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Terms and Conditions of the
Dividend Reinvestment Plan. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">f.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">g.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Management Agreement
with Calamos Advisors LLC. (6)</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">h.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Underwriting Agreement
relating to Common Shares. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">h.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Master Agreement Among
Underwriters relating to Common Shares. (6)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">h.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Master Selected Dealers
Agreement relating to Common Shares. (6)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">h.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Underwriting Agreement
relating to Preferred Shares. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">h.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Underwriting Agreement
relating to Notes. (2)</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">i.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">j.1.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Custody Agreement. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">j.2.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Foreign Custody Manager Agreement.
(4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">k.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stock Transfer Agency Agreement. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">k.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Accounting Services
Agreement. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">k.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Master Services Agreement. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">k.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Auction Agency Agreement
relating to Preferred Shares. (7)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">k.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Broker - Dealer Agreement relating to Preferred Shares.
(7)</TD>
</TR>

<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">k.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Auction Agency Agreement
relating to Notes.
(2)</TD>
</TR>

<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">k.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Broker - Dealer Agreement
relating to Notes.
(2)</TD>
</TR>




<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">k.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of DTC Representations Letter
relating to Preferred Shares and Notes.
(4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">l.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of
Morris, Nichols, Arsht &#038; Tunnell. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">m.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">n.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Auditors. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">o.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not applicable.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">p.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subscription Agreement. (3)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">q.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">r.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Code of Ethics. (4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">s.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Powers of Attorney. (5)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

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





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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Registrant&#146;s initial Registration
Statement on Form N-2 (1933 Act File No.&nbsp;333-114111) as filed with the
Commission on March&nbsp;31, 2004.</TD>
</TR>



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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed by post-effective amendment.</TD>
</TR>
<TR><TD><FONT size="1">

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

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

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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Pre-Effective Amendment
No.&nbsp;4 to Registrant&#146;s Registration
Statement on Form N-2 (1933 Act File No. 333-114111) as filed with
the Commission on October&nbsp;26, 2005.</TD>
</TR>
<TR><TD><FONT size="1">

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


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




<tr><td>                                                       </td></tr>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Filed herewith.</TD>
</TR>

<tr><td></td></tr>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Registrant&#146;s Registration Statement on
Form N-2 (1933 Act File No. 333-146944) as filed with the Commission on October 26, 2007.</TD>
</TR>


<tr><td>                                                        </td></tr>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Pre-Effective Amendment
No.&nbsp;3 Registrant&#146;s Registration Statement on
Form N-2 (1933 Act File <FONT style="white-space=nowrap">No.&nbsp;333-11411</FONT>) as filed with the Commission
on October 24, 2005.</TD>
</TR>
<TR><TD><FONT size="1">

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


<tr><td>                                                        </td></tr>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Incorporated by reference to Pre-Effective Amendment No. 1 to Registrant&#146;s Registration Statement on
Form N-2 (1933 Act File No. 333-129102) as filed with the Commission
on December 22, 2005.</TD>
</TR>
<TR><TD><FONT size="1">

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



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 26: MARKETING ARRANGEMENTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference
will be made to the forms of underwriting agreement for the Registrant&#146;s
common shares, preferred shares and notes to be filed in an amendment to the Registrant&#146;s
Registration Statement.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Part&nbsp;C &#151; Page 1

</DIV>

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

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 27: OTHER OFFERING EXPENSES AND DISTRIBUTION
</DIV>


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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the estimated expenses to be incurred in
connection with all offerings described in this Registration Statement:
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


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

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="83%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Registration fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,303</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing (other than certificates)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">175,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FINRA fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,500</TD>
    <TD>&nbsp;</TD>
</TR>



<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rating
Agency fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounting fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">514,803</TD>
    <TD nowrap>(*)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>


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

</FONT></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(*)</TD>
    <TD>&nbsp;</TD>
    <TD>These expenses will be borne by the Fund unless otherwise
specified in a prospectus supplement.</TD>
</TR>
<TR><TD><FONT size="1">

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 28. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 29. NUMBER OF HOLDERS OF SECURITIES
</DIV>


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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December&nbsp;10, 2007, the number of record holders of each class of
securities of the Registrant was
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR valign="bottom" style="font-size:8pt">
    <TD style="border-bottom:1px solid #000000" valign="top"><DIV style="margin-left:0px; text-indent:-0px">TITLE OF CLASS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NUMBER OF RECORD HOLDERS</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Common
shares (no par value)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">65</TD>
</TR>

<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Preferred
Shares, Series T (Liquidation Preference $25,000 per share)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">8</TD>
</TR>
<TR><TD><FONT size="1">

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

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


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

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

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 30. INDEMNIFICATION
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant&#146;s Agreement and Declaration of Trust (the &#147;Declaration&#148;),
dated March&nbsp;12, 2004, provides that every person who is, or has been, a Trustee
or an officer, employee or agent of the Registrant (including any individual who
serves at its request as director, officer, partner, employee, Trustee, agent or
the like of another organization in which it has any interest as a shareholder,
creditor or otherwise (&#147;Covered Person&#148;) shall be indemnified by the Registrant
or the appropriate series of the Registrant to the fullest extent permitted by
law against liability and against all expenses reasonably incurred or paid by
him in connection with any claim, action, suit or proceeding in which he becomes
involved as a party or otherwise by virtue of his being or having been a Covered
Person and against amounts paid or incurred by him in the settlement thereof;
provided that no indemnification shall be provided to a Covered Person (i)&nbsp;who
shall have been adjudicated by a court or body before which the proceeding was
brought (A)&nbsp;to be liable to the Registrant or its shareholders by reason of
willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of his office, or (B)&nbsp;not to have acted in good
faith and in a manner the person reasonably believed to be or not opposed to the
best interest of the Registrant; or (ii)&nbsp;in the event of a settlement, unless
there has been a determination that such Covered Person did not engage in
willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of his office; (A)&nbsp;by the court or other body
approving the settlement; (B)&nbsp;by at least a majority of those Trustees who are
neither Interested Persons of the Trust nor are parties to the matter based upon
a review of readily available facts (as opposed to a full trial-type inquiry);
(C)&nbsp;by written opinion of independent legal counsel based upon a review of
readily available facts (as opposed to a full trial-type inquiry) or (D)&nbsp;by a
vote of a majority of the Outstanding Shares entitled to vote (excluding any
Outstanding Shares owned of record or beneficially by such individual).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The Declaration also provides that if any shareholder or former shareholder
of the Registrant shall be held personally liable solely by reason of his being
or having been a shareholder and not because of his acts or omissions or for
some other reason, the shareholder or former shareholder (or
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Part&nbsp;C &#151; Page 2

</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">his heirs, executors, administrators or other legal representatives or in the
case of any entity, its general successor) shall be entitled out of the assets
belonging to the applicable series of the Registrant to be held harmless from and indemnified against all
loss and expense arising from such liability. The Registrant on
behalf of its affected series shall, upon request
by such shareholder, assume the defense of any claim made against such
shareholder for any act or obligation of the series and satisfy any judgment
thereon from the assets of the series.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant, its Trustees and officers, its investment adviser, the
other investment companies advised by the adviser and certain persons
affiliated with them are insured, within the limits and subject to the
limitations of the insurance, against certain expenses in connection with the
defense of actions, suits or proceedings, and certain liabilities that might be
imposed as a result of such actions, suits or proceedings. The insurance
expressly excludes coverage for any Trustee or officer whose personal
dishonesty, fraudulent breach of trust, lack of good faith, or intention to
deceive or defraud has been finally adjudicated or may be established or who
willfully fails to act prudently.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liability arising under the Securities Act
of 1933, as amended (the &#147;1933 Act&#148;), may be available to Trustees, officers and
controlling persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the Commission
such indemnification is against public policy as expressed in the 1933 Act and
is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant&#146;s expenses
incurred or paid by a Trustee, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
Trustee, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the 1933 Act and will be governed by the final
adjudication of such issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 31. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in the Statement of Additional Information under the
caption &#147;Management&#151;Trustees and Officers&#148; is incorporated by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 32. LOCATION OF ACCOUNTS AND RECORDS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All such accounts, books, and other documents are maintained at the offices
of the Registrant, at the offices of the Registrant&#146;s investment manager,
Calamos Advisors LLC 2020 Calamos Court, Naperville, Illinois 60563, at the
offices of the custodian, 100 Church Street, New York, New York 10286 or at the
offices of the transfer agent, 111 8th Avenue, New York, New York 10011 5201.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 33. MANAGEMENT SERVICES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ITEM 34. UNDERTAKINGS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Registrant undertakes to suspend the offering of shares until the
prospectus is amended if (1)&nbsp;subsequent to the effective date of its
registration statement, the net asset value declines more than ten percent from
its net asset value as of the effective date of the registration statement or
(2)&nbsp;the net asset value increases to an amount greater than its net proceeds as
stated in the prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Not applicable.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The securities being registered will be offered on a delayed or continuous basis
in reliance on Rule&nbsp;415 under the 1933 Act. Accordingly, the Registrant undertakes:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;to file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act of
1933;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to reflect in the prospectus any facts or events arising after the effective
date of the registration statement (or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in the information set forth in
the registration statement; and
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such information in
the registration statement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;that, for the purpose of determining any liability under the Securities Act of
1933, each such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of those securities at that time shall
be deemed to be the initial bona fide offering thereof; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;to remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the offering;
</DIV>
 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;that, for the purpose of determining liability under the 1933 Act to any
purchaser, if the Registrant is subject to Rule&nbsp;430C: each prospectus filed pursuant to Rule
497(b), (c), (d)&nbsp;or (e)&nbsp;under the 1933 Act as part of this registration statement relating to an
offering, other than prospectuses filed in reliance on Rule&nbsp;430A under the 1933 Act, shall be
deemed to be part of and included in this registration statement as of the date it is first used
after effectiveness. <U>Provided</U>, <U>however</U>, that no statement made in this
registration statement or prospectus that is part of this registration statement or made in a
document incorporated or deemed incorporated by reference into this registration or prospectus that
is part of this registration statement will, as to a purchaser with a time of contract of sale
prior to such first use, supersede or modify any statement that was made in this registration
statement or prospectus that was part of this registration statement or made in any such document
immediately prior to such date of first use.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;that for the purpose of determining liability of the Registrant under the 1933
Act to any purchaser in the initial distribution of securities:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned Registrant undertakes that in a primary offering of securities of the
undersigned Registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such
purchaser by means of any of the following communications, the undersigned Registrant will be a
seller to the purchaser and will be considered to offer or sell such securities to the purchaser:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any preliminary prospectus or prospectus of the undersigned Registrant relating
to the offering required to be filed pursuant to Rule&nbsp;497 under the 1933 Act;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the portion of any advertisement pursuant to Rule&nbsp;482 under the 1933 Act
relating to the offering containing material information about the undersigned Registrant or its
securities provided by or on behalf of the undersigned Registrant; and
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any other communication that is an offer in the offering made by the undersigned
Registrant to the purchaser.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;(a)&nbsp;For the purposes of determining any liability under the 1933 Act,
the information omitted from the form of prospectus filed as part of a
registration statement in reliance upon Rule&nbsp;430A and contained in the form of
prospectus filed by the Registrant under Rule 497(h) under the 1933 Act shall be
deemed to be part of the Registration Statement as of the time it was declared
effective.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Part&nbsp;C &#151; Page 3

</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For the purpose of determining any liability under the 1933 Act,
each post-effective amendment that contains a form of prospectus shall be deemed
to be a new registration statement relating to the securities offered therein,
and the offering of the securities at that time shall be deemed to be the
initial bona fide offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;The Registrant undertakes to send by first class mail or other means
designed to ensure equally prominent delivery within two business days of
receipt of a written or oral request the Registrant&#146;s statement of additional
information.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Upon each issuance of securities pursuant to this Registration Statement, the
Registrant undertakes to file a form of prospectus and/or form of prospectus supplement pursuant to
Rule&nbsp;497 and a post-effective amendment to the extent required by the 1933 Act and the rules and
regulations thereunder, including, but not limited to a post-effective amendment pursuant to Rule
462(c) or Rule 462(d) under the 1933 Act.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Part C &#151; Page 4
</DIV>


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

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

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

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

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933 and/or
Investment Company Act of 1940, the Registrant has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in this City of Naperville and State of Illinois, on the
22nd day of
February, 2008.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CALAMOS GLOBAL TOTAL RETURN FUND<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ John P. Calamos
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">John P. Calamos,&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Trustee and President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons in the<BR>
capacities and on the date(s) indicated.
</DIV>

<DIV align="center">

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Date</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ John P. Calamos
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
John P. Calamos
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee and President
(principal executive officer)
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)<br>
)<br>
)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="center" valign="top" nowrap>February&nbsp;22, 2008</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Joe F. Hanauer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)<br>
)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Weston W. Marsh
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
John E. Neal
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)<br>
)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
William Rybak
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)<br>
)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
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    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Stephen B. Timbers
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)<br>
)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap></TD>
</TR>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
David D. Tripple
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trustee&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)<br>
)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap></TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Nimish S. Bhatt
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Nimish S. Bhatt
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Chief Financial Officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)<br>
)<br>
)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>February&nbsp;22, 2008</TD>
</TR>
<TR><TD><FONT size="1">

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

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


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

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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>John P. Calamos signs this document pursuant to powers of attorney
previously filed.</TD>
</TR>

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

</FONT></DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                                   /s/ John P. Calamos
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">John P. Calamos&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Attorney-In-Fact<BR>
February&nbsp;22, 2008&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR><TD><FONT size="1">

</FONT></TD></TR>
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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Part&nbsp;C &#151; Page 5

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<DOCUMENT>
<TYPE>EX-99.(A)(1)
<SEQUENCE>2
<FILENAME>c19483a2exv99wxayx1y.htm
<DESCRIPTION>AGREEMENT AND DECLARATION OF TRUST
<TEXT>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit a.1
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
<B>CALAMOS GLOBAL TOTAL RETURN FUND<BR>

AMENDED AND RESTATED<BR>

AGREEMENT AND DECLARATION OF TRUST</B></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST is made on September&nbsp;13, 2006,
and hereby amends the Agreement and Declaration of Trust dated as March&nbsp;12, 2004 (as such agreement
is hereby amended and restated, the &#147;Agreement and Declaration of Trust&#148;), by the undersigned
(together with all other persons from time to time duly elected, qualified and serving as Trustees
in accordance with the provisions of Article&nbsp;II hereof, the &#147;Trustees&#148;) for the purpose of forming
a Delaware statutory trust in accordance with the provisions hereinafter set forth;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the Trustees declare that all money and property contributed to the Trust
shall be held and managed IN TRUST pursuant to this Agreement and Declaration of Trust.
</DIV>

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


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Name</U>. The name of the Trust created by this Agreement and
Declaration of Trust is &#147;Calamos Global Total Return Fund&#148; and the Trustees shall conduct the
business of the Trust under that name or any other name or names as they may from time to time
determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Definitions</U>. Unless otherwise provided or required by the
context:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &#147;Administrator&#148; means the party, other than the Trust, to the contract described
in Article&nbsp;III, Section&nbsp;3 hereof.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &#147;By-Laws&#148; means the By-Laws of the Trust adopted by the Trustees, as amended
from time to time, which By-Laws are expressly herein incorporated by reference as part of the
&#147;governing instrument&#148; within the meaning of the Delaware Act.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &#147;Class&#148; means any class of Shares of any Series established and designated under
or in accordance with the provisions of Article&nbsp;V.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &#147;Commission,&#148; &#147;Interested Person&#148; and &#147;Principal Underwriter&#148; have the meanings
provided in the 1940 Act. Except as such term may be otherwise defined by the Trustees in
conjunction with the establishment of any Series of Shares, the term &#147;vote of a majority of the
shares outstanding and entitled to vote&#148; shall have the same meaning as is assigned to the term
&#147;vote of a majority of the outstanding voting securities&#148; in the 1940 Act.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &#147;Covered Person&#148; means a person so defined in Article&nbsp;IV, Section&nbsp;2.</DIV>






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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &#147;Custodian&#148; means any Person other than the Trust who has custody of any Trust
Property as required by Section 17(f) of the 1940 Act, but does not include a system for the
central handling of securities described in said Section&nbsp;17(f).</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &#147;Declaration&#148; shall mean this Agreement and Declaration of Trust, as amended or
restated from time to time. Reference in this Declaration of Trust to &#147;Declaration,&#148; &#147;hereof,&#148;
&#147;herein,&#148; and &#147;hereunder&#148; shall be deemed to refer to this Declaration rather than exclusively to
the article or section in which such words appear.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)
&#147;Delaware Act&#148; means the Delaware Statutory Trust Act, 12 <U>Del</u>. <U>C</u>. &#167;&#167;3801, et seq., as amended from time to time.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &#147;Distributor&#148; means the party or parties, other than the Trust, to the contract
described in Article&nbsp;III, Section&nbsp;1 hereof.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) &#147;His&#148; shall include the feminine and neuter, as well as the masculine, genders.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) &#147;Investment Adviser&#148; means the party, other than the Trust, to the contract
described in Article&nbsp;III, Section&nbsp;2 hereof.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) &#147;Net Asset Value&#148; means the net asset value of each Series of the Trust,
determined as provided in Article&nbsp;VI, Section&nbsp;3.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) &#147;Person&#148; means and includes individuals, corporations, partnerships, trusts,
associations, joint ventures, estates and other entities, whether or not legal entities, and
governments and agencies and political subdivisions, thereof, whether domestic or foreign.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) &#147;Securities Act&#148; shall mean the Securities Act of 1933, as amended.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) &#147;Series&#148; means a series of Shares established and designated under or in
accordance with the provisions of Article&nbsp;V, each of which shall be accounted for and maintained as
a separate series or portfolio of the Trust.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) &#147;Shareholder&#148; means a record owner of Outstanding Shares;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) &#147;Shares&#148; means the equal proportionate transferable units of interest into which
the beneficial interest of each Series and Class, as applicable, of the Trust is divided from time
to time (including whole Shares and fractions of Shares). &#147;Outstanding Shares&#148; means Shares shown
in the books of the Trust or its transfer agent as then issued and outstanding, but does not
include Shares which have been repurchased or redeemed by the Trust and which are held in the
treasury of the Trust.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) &#147;Transfer Agent&#148; means any Person other than the Trust who maintains the
Shareholder records of the Trust, such as the list of Shareholders, the number of Shares credited
to each account, and the like.</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) &#147;Trust&#148; means Calamos Global Total Return Fund established hereby, and reference
to the Trust, when applicable to one or more Series, refers to that Series.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) &#147;Trustee&#148; means each person who has signed this Declaration of Trust, so long as
he shall continue in office in accordance with the terms hereof, and all other persons who may from
time to time be duly qualified and serving as Trustees in accordance with Article&nbsp;II, in all cases
in their capacities as Trustees hereunder.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) &#147;Trust Property&#148; means any and all property, real or personal, tangible or
intangible, which is from time to time owned or held by or for the account of the Trust or any
Series or the Trustees on behalf of the Trust or any Series, each and every asset of which shall be
allocated and belong to a specific series to the exclusion of all other series.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;The &#147;1940 Act&#148; means the Investment Company Act of 1940, as amended from time to
time, including the rules and regulations of the Commission thereunder and any order or orders
thereunder which may from time to time be applicable to the Trust.</DIV>


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


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Management of the Trust</U>. The business and affairs of the Trust
shall be managed by or under the direction of the Trustees, and they shall have all powers
necessary or desirable to carry out that responsibility. The Trustees may execute all instruments
and take all action they deem necessary or desirable to promote the interests of the Trust. Any
determination made by the Trustees in good faith as to what is in the interests of the Trust shall
be conclusive. In construing the provisions of this Declaration, the presumption shall be in favor
of a grant of power to the Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Powers</u>. The Trustees in all instances shall act as principals,
free of the control of the Shareholders. The Trustees shall have full power and authority to take
or refrain from taking any action and to execute any contracts and instruments that they may
consider necessary or desirable in the management of the Trust. The Trustees shall not in any way
be bound or limited by current or future laws or customs applicable to trust investments, but shall
have full power and authority to make any investments which they, in their sole discretion, deem
proper to accomplish the purposes of the Trust. The Trustees may exercise all of their powers
without recourse to any court or other authority. Subject to any applicable limitation herein or
in the By-Laws or resolutions of the Trust, the Trustees shall have power and authority, without
limitation:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;To operate as and carry on the business of an investment company, and exercise
all the powers necessary and appropriate to the conduct of such operations.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;To invest in, hold for investment, or reinvest in, cash; securities of any type,
including, but not limited to, common, preferred and preference stocks; warrants; subscription
rights; profit-sharing interests or participations and all other contracts for or evidence of
equity interests; bonds, debentures, bills, time notes and all other evidences of indebtedness;
negotiable or non-negotiable</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">instruments; government securities, including securities of any state, municipality or other
political subdivision thereof, or any governmental or quasi-governmental agency or instrumentality;
and money market instruments including bank certificates of deposit, finance paper, commercial
paper, bankers&#146; acceptances and all kinds of repurchase agreements, of any corporation, company,
trust, association, firm or other business organization however established, and of any country,
state, municipality or other political subdivision, or any governmental or quasi-governmental
agency or instrumentality; or any other security, property or instrument in which the Trust or any
of its Series shall be authorized to invest.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;To acquire (by purchase, subscription or otherwise), to hold, to trade in and
deal in, to acquire any rights or options to purchase or sell, to sell or otherwise dispose of, to
lend and to pledge any such securities, to enter into repurchase agreements, reverse repurchase
agreements, firm commitment agreements, forward foreign currency exchange contracts, interest rate
mortgage or currency swaps and interest rate caps, floors and collars, to purchase and sell options
on securities, securities indices, currency, swaps and other financial assets, futures contracts
and options on futures contracts of all descriptions and to engage in all types of hedging,
risk-management or income enhancement transactions.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;To exercise all rights, powers and privileges of ownership or interest in all
securities, repurchase agreements and other assets included in the Trust Property, including the
right to vote thereon and otherwise act with respect thereto and to do all acts for the
preservation, protection, improvement and enhancement in value of all such securities, repurchase
agreements and other assets.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;To acquire (by purchase, lease or otherwise) and to hold, use, maintain, develop
and dispose of (by sale or otherwise) any property, real or personal, including cash or foreign
currency, and any interest therein.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;To borrow money or other property in the name of the Trust exclusively for Trust
purposes and in this connection issue notes or other evidence of indebtedness; to secure borrowings
by mortgaging, pledging or otherwise subjecting as security the Trust Property; and to endorse,
guarantee, or undertake the performance of any obligation or engagement of any other Person and to
lend Trust Property.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;To aid by further investment any corporation, company, trust, association or
firm, any obligation of or interest in which is included in the Trust Property or in the affairs of
which the Trustees have any direct or indirect interest; to do all acts and things designed to
protect, preserve, improve or enhance the value of such obligation or interest; and to guarantee or
become surety on any or all of the contracts, stocks, bonds, notes, debentures and other
obligations of any such corporation, company, trust, association or firm.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;To adopt By-Laws not inconsistent with this Declaration providing for the
conduct of the business of the Trust and to amend and repeal them to the extent such right is not
reserved to the Shareholders.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;To elect and remove with or without cause such officers and appoint and
terminate such agents as they deem appropriate.</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;To employ as custodian of any assets of the Trust, subject to any provisions
herein or in the By-Laws, one or more banks, trust companies or companies that are members of a
national securities exchange, or other entities permitted by the Commission to serve as such.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;To retain one or more transfer agents and shareholder servicing agents, or both.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;To provide for the distribution of Shares either through a Principal Underwriter
as provided herein or by the Trust itself, or both, or pursuant to a distribution plan of any kind.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;To set record dates in the manner provided for herein or in the By-Laws.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;To delegate such authority as they consider desirable to any officers of the
Trust and to any agent, independent contractor, manager, investment adviser, custodian or
underwriter.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;To hold any security or other property (i)&nbsp;in a form not indicating any trust,
whether in bearer, book entry, unregistered or other negotiable form, or (ii)&nbsp;either in the Trust&#146;s
or Trustees&#146; own name or in the name of a custodian or a nominee or nominees, subject to safeguards
according to the usual practice of statutory trusts or investment companies.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;To establish separate and distinct Series with separately defined investment
objectives and policies and distinct investment purposes, and with separate Shares representing
beneficial interests in such Series, and to establish separate Classes, all in accordance with the
provisions of Article&nbsp;V.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;To the full extent permitted by Section&nbsp;3804 of the Delaware Act, to allocate
assets, liabilities and expenses of the Trust to a particular Series and assets, liabilities and
expenses to a particular Class or to apportion the same between or among two or more Series or
Classes, provided that any liabilities or expenses incurred by a particular Series or Class shall
be payable solely out of the assets belonging to that Series or Class as provided for in Article&nbsp;V,
Section&nbsp;4.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;To consent to or participate in any plan for the reorganization, consolidation
or merger of any corporation or concern whose securities are held by the Trust; to consent to any
contract, lease, mortgage, purchase, or sale of property by such corporation or concern; and to pay
calls or subscriptions with respect to any security held in the Trust.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;To compromise, arbitrate, or otherwise adjust claims in favor of or against the
Trust or any matter in controversy including, but not limited to, claims for taxes.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;To make distributions of income, capital gains, returns of capital (if any) and
redemption proceeds to Shareholders in the manner hereinafter provided for.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;To establish committees for such purposes, with such membership, and with such
responsibilities as the Trustees may consider proper, including a committee consisting of fewer
than all of the Trustees then in office, which may act for and bind the Trustees and the Trust with
respect to the</DIV>




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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">institution, prosecution, dismissal, settlement, review or investigation of any action, suit
or proceeding, pending or threatened to be brought before any court, administrative agency or other
adjudicatory body.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;To issue, sell, repurchase, redeem, cancel, retire, acquire, hold, resell,
reissue, dispose of and otherwise deal in Shares; to establish terms and conditions regarding the
issuance, sale, repurchase, redemption, cancellation, retirement, acquisition, holding, resale,
reissuance, disposition of or dealing in Shares; and, subject to Articles V and VI, to apply to any
such repurchase, redemption, retirement, cancellation or acquisition of Shares any funds or
property of the Trust or of the particular Series with respect to which such Shares are issued.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;To invest part or all of the Trust Property (or part or all of the assets of any
Series), or to dispose of part or all of the Trust Property (or part or all of the assets of any
Series) and invest the proceeds of such disposition, in securities issued by one or more other
investment companies registered under the 1940 Act (including investment by means of transfer of
part or all of the Trust Property in exchange for an interest or interest in such one or more
investment companies) all without any requirement of approval by Shareholders. Any such other
investment company may (but need not) be a trust (formed under the laws of any state) which is
classified as a partnership for federal income tax purposes.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;To sell or exchange any or all of the assets of the Trust, subject to
Article&nbsp;IX, Sections&nbsp;4, 6 and 7.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;To enter into joint ventures, partnerships and any other combinations and
associations.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;To join with other security holders in acting through a committee, depositary,
voting trustee or otherwise, and in that connection to deposit any security with, or transfer any
security to, any such committee, depositary or trustee, and to delegate to them such power and
authority with relation to any security (whether or not so deposited or transferred) as the
Trustees shall deem proper, and to agree to pay, and to pay, such portion of the expenses and
compensation of such Committee, depositary or trustee as the Trustees shall deem proper.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;To purchase and pay for entirely out of Trust Property such insurance as the
Trustees may deem necessary or appropriate for the conduct of the business, including, without
limitation, insurance policies insuring the assets of the Trust or payment of distributions and
principal on its portfolio investments, and, subject to applicable law and any restrictions set
forth in the By-Laws, insurance policies insuring the Shareholders, Trustees, officers, employees,
agents, investment advisers, Principal Underwriters, or independent contractors of the Trust,
individually, against all claims and liabilities of every nature arising by reason of holding
Shares, holding, being or having held any such office or position, or by reason of any action
alleged to have been taken or omitted by any such Person as Trustee, officer, employee, agent,
investment adviser, Principal Underwriter, or independent contractor, including any action taken or
omitted that may be determined to constitute negligence, whether or not the Trust would have the
power to indemnify such Person against liability.</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;To adopt, establish and carry out pension, profit-sharing, share bonus, share
purchase, savings, thrift and other retirement, incentive and benefit plans and trusts, including
the purchasing of life insurance and annuity contracts as a means of providing such retirement and
other benefits, for any or all of the Trustees, officers, employees and agents of the Trust.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;To vote or give assent, or exercise any rights of ownership, with respect to
stock or other securities or property; and to execute and deliver proxies or powers of attorneys to
such Person or Persons as the Trustees shall deem proper, granting to such Person or Persons such
power and discretion with relation to securities and property as the Trustees shall deem proper.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;To enter into contracts of any kind and description.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;To interpret the investment policies, practices or limitations of any
Series or Class.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;To guarantee indebtedness and contractual obligations of others.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;To carry on any other business in connection with or incidental to any of the
foregoing powers, to do everything necessary or desirable to accomplish any purpose or to further
any of the foregoing powers, and to take every other action incidental to the foregoing business or
purposes, objects or powers.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The clauses above shall be construed as objects and powers, and the enumeration of specific
powers shall not limit in any way the general powers of the Trustees. Any action by one or more of
the Trustees in their capacity as such hereunder shall be deemed an action on behalf of the Trust
or the applicable Series, and not an action in an individual capacity. No one dealing with the
Trustees shall be under any obligation to make any inquiry concerning the authority of the
Trustees, or to see to the application of any payments made or property transferred to the Trustees
or upon their order. In construing this Declaration, the presumption shall be in favor of a grant
of power to the Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Certain Transactions</u>. Except as prohibited by applicable law,
the Trustees may, on behalf of the Trust, buy any securities from or sell any securities to, or
lend any assets of the Trust to, any Trustee or officer of the Trust or any firm of which any such
Trustee or officer is a member acting as principal, or have any such dealings with any investment
adviser, administrator, distributor or transfer agent for the Trust or with any Interested Person
of such person. The Trust may employ any such person or entity in which such person is an
Interested Person, as broker, legal counsel, registrar, investment adviser, administrator,
distributor, transfer agent, dividend disbursing agent, custodian or in any other capacity upon
customary terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Initial Trustee(s); Election and Number of Trustees</U>. The initial
Trustee(s) shall be the persons initially signing this Declaration. The number of Trustees (other
than the initial Trustees) shall be fixed from time to time by a majority of the Trustees then in
office; provided, that there shall be at least one (1)&nbsp;Trustee and no more than fifteen (15).
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Term of Office of Trustees; Classes</U>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the voting rights established with respect to a particular Series or
Class, each Trustee shall hold office for life or until his successor is elected and duly qualified
or the Trust terminates. Notwithstanding the foregoing but subject to the voting rights
established with respect to a particular Series or Class, (1)&nbsp;any Trustee may resign by delivering
to the other Trustees or to any Trust officer a written resignation effective upon such delivery or
a later date specified therein; (2)&nbsp;any Trustee may be removed with or without cause at any time by
a written instrument signed by at least two-thirds of the then Trustees, specifying the effective
date of removal; (3)&nbsp;any Trustee who requests to be retired, or who is declared bankrupt or has
become physically or mentally incapacitated or is otherwise unable to serve, may be retired by a
written instrument signed by a majority of the other Trustees, specifying the effective date of
retirement; and (4)&nbsp;any Trustee may be removed, with or without cause, by a vote of at least a
majority of the then Trustees if such removal is approved by the holders of at least two-thirds of
the Outstanding Shares entitled to vote with respect to the election of such Trustee and present in
person or by proxy at a meeting of the Shareholders called for such purpose.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Board of Trustees shall be divided into three classes, designated Class&nbsp;I,
Class&nbsp;II and Class&nbsp;III. Each class shall consist, as nearly as may be possible, of one-third of
the total number of trustees constituting the entire Board of Trustees. Within the limits above
specified, the number of the Trustees in each class shall be determined by resolution of the Board
of Trustees. The term of office of the 1st class shall expire on the date of the 1st annual
meeting of Shareholders or special meeting in lieu thereof following the effective date of the
Registration Statement relating to the Shares under the Securities Act. The term of the 2nd class
shall expire on the date of the 2nd annual meeting of Shareholders or special meeting in lieu
thereof following the effective date of the Registration Statement relating to the Shares under the
Securities Act. The term of the 3rd class shall expire on the date of the 3rd annual meeting of
Shareholders or special meeting in lieu thereof following the effective date of the Registration
Statement relating to the Shares under the Securities Act. Upon expiration of the term of office
of each class as set forth above, the number of Trustees in such class, as determined by the Board
of Trustees, shall be elected for a term expiring on the date of the 3rd annual meeting of
Shareholders or special meeting in lieu thereof following such expiration to succeed the Trustees
whose terms of office expire. The Trustees shall be elected at an annual meeting of the
Shareholders or special meeting in lieu thereof called for that purpose.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Vacancies; Appointment of Trustees</U>. Whenever a vacancy shall
exist in the Board of Trustees, regardless of the reason for such vacancy, the remaining Trustees
shall appoint any person as they determine in their sole discretion to fill that vacancy,
consistent with the limitations under the 1940 Act, provided, that if the Shareholders of any Class
or Series of Shares are entitled separately to elect one or more Trustees, a majority of the
remaining Trustees or the sole remaining Trustee elected by that Class or Series may fill any
vacancy among the number of Trustees elected by that Class or Series. Such appointment shall be
made by a written instrument signed by a majority of the Trustees or by a resolution of the
Trustees, duly adopted and recorded in the records of the Trust, specifying the effective date of
the appointment. The Trustees may appoint a new Trustee as provided above in anticipation of a
vacancy expected to occur because of the retirement, resignation or removal of a Trustee, or an
increase in number of Trustees, provided that such appointment shall become effective only at or
after the expected vacancy occurs. As soon as any such Trustee has accepted his appointment in
writing, the trust estate shall vest in
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the new Trustee, together with the continuing Trustees, without any further act or conveyance,
and he shall be deemed a Trustee hereunder. The Trustees&#146; power of appointment is subject to
Section 16(a) of the 1940 Act. Whenever a vacancy in the number of Trustees shall occur, until
such vacancy is filled as provided in this Article&nbsp;II, the Trustees in office, regardless of their
number, shall have all the powers granted to the Trustees and shall discharge all the duties
imposed upon the Trustees by the Declaration. The death, declination to serve, resignation,
retirement, removal or incapacity of one or more Trustees, or all of them, shall not operate to
annul the Trust or to revoke any existing agency created pursuant to the terms of this Declaration
of Trust.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Chairman</u>. The Trustees may appoint one of their number to be
Chairman of the Board of Trustees. The Chairman shall preside at all meetings of the Trustees,
shall be responsible for the execution of policies established by the Trustees and the
administration of the Trust, and may be the chief executive, financial and/or accounting officer of
the Trust. If the Trustees do not appoint a Chairman, the President shall perform the duties and
have the responsibilities hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>Action by the Trustees</u>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as expressly provided in this Agreement, the Trustees shall act by
majority vote at a meeting duly called at which a quorum is present, including a meeting held by
conference telephone, teleconference or other electronic media or communication equipment by means
of which all persons participating in the meeting can communicate with each other; or by written
consent of a majority of Trustees (or such greater number as may be required by applicable law)
without a meeting. A majority of the Trustees shall constitute a quorum at any meeting. Meetings
of the Trustees may be called orally or in writing by the President or by any one of the Trustees
or as set forth in the By-Laws. Notice of the time, date and place of all Trustees&#146; meetings shall
be given to each Trustee as set forth in the By-Laws; provided, however, that no notice is required
if the Trustees provide for regular or stated meetings. Notice need not be given to any Trustee
who attends the meeting without objecting to the lack of notice or who signs a waiver of notice
either before or after the meeting. Except as expressly provided in this Agreement, the Trustees
by majority vote may delegate to any Trustee or Trustees or committee authority to approve
particular matters or take particular actions on behalf of the Trust. Any written consent or
waiver may be provided and delivered to the Trust by facsimile or other similar electronic
mechanism.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A Trustee who with respect to the Trust is not an Interested Person shall be
deemed to be independent and disinterested when making any determinations or taking any action as a
Trustee, whether pursuant to the 1940 Act, the Delaware Act or otherwise.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <U>Ownership of Trust Property</u>. The Trust Property of the Trust and
of each Series shall be held separate and apart from any assets now or hereafter held in any
capacity other than as Trustee hereunder by the Trustees or any successor Trustees. Legal title in
and beneficial ownership of all of the assets of the Trust shall at all times be considered as
vested in the Trust, except that the Trustees may cause legal title in and beneficial ownership of
any Trust Property to be held by, or in the name of one or more of the Trustees acting for and on
behalf of the Trust, or in the name of any person as nominee acting for and on behalf of the Trust.
No Shareholder shall be deemed to have a severable ownership in any individual asset of the Trust
or of any Series or any right of partition or possession thereof, but each
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Shareholder shall have, as provided in Article&nbsp;V, a proportionate undivided beneficial
interest in the Trust or Series or Class thereof represented by Shares. The Shares shall be
personal property giving only the rights specifically set forth in this Trust Instrument. The
Trust, or at the determination of the Trustees one or more of the Trustees or a nominee acting for
and on behalf of the Trust, shall be deemed to hold legal title and beneficial ownership of any
income earned on securities of the Trust issued by any business entities formed, organized, or
existing under the laws of any jurisdiction, including the laws of any foreign country. Upon the
resignation or removal of a Trustee, or his otherwise ceasing to be a Trustee, he shall execute and
deliver such documents as the remaining Trustees shall require for the purpose of conveying to the
Trust or the remaining Trustees any Trust Property held in the name of the resigning or removed
Trustee. Upon the incapacity or death of any Trustee, his legal representative shall execute and
deliver on his behalf such documents as the remaining Trustees shall require as provided in the
preceding sentence.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <U>Effect of Trustees Not Serving</u>. The death, resignation,
retirement, removal, incapacity or inability or refusal to serve of the Trustees, or any one of
them, shall not operate to annul the Trust or to revoke any existing agency created pursuant to the
terms of this Declaration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <U>Trustees, Etc. as Shareholders</u>. Subject to any restrictions in
the By-Laws, any Trustee, officer, agent or independent contractor of the Trust may acquire, own
and dispose of Shares to the same extent as any other Shareholder; the Trustees may issue and sell
Shares to and buy Shares from any such person or any firm or company in which such Person is
interested, subject only to any general limitations herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12. <U>Series&nbsp;Trustees</u>. In connection with the establishment of one or
more Series or Classes, the Trustees establishing such Series or Class may appoint, to the extent
permitted by the Delaware Act, separate Trustees with respect to such Series or Classes (the
&#147;Series&nbsp;Trustees&#148;). Series&nbsp;Trustees may, but are not required to, serve as Trustees of the Trust
or any other Series or Class of the Trust. The Series&nbsp;Trustees shall have, to the exclusion of any
other Trustee of the Trust, all the powers and authorities of Trustees hereunder with respect to
such Series or Class, but shall have no power or authority with respect to any other Series or
Class. Any provision of this Declaration relating to election of Trustees by Shareholders only
shall entitle the Shareholders of a Series or Class for which Series&nbsp;Trustees have been appointed
to vote with respect to the election of such Series&nbsp;Trustees and the Shareholders of any other
Series or Class shall not be entitled to participate in such vote. In the event that Series
Trustees are appointed, the Trustees initially appointing such Series&nbsp;Trustees shall, without the
approval of any Outstanding Shares, amend either the Declaration or the By-Laws to provide for the
respective responsibilities of the Trustees and the Series&nbsp;Trustees in circumstances where an
action of the Trustees or Series&nbsp;Trustees affects all Series of the Trust or two or more Series
represented by different Trustees.
</DIV>

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CONTRACTS WITH SERVICE PROVIDERS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Underwriting Contract</u>. The Trustees may in their discretion from
time to time enter into an exclusive or non-exclusive underwriting or distribution contract or
contracts providing for the sale of the Shares whereby the Trustees may either agree to sell the
Shares to the other party to the contract or appoint such other party as their sales agent for the
Shares, and in either case on such terms and conditions, if any, as may be prescribed in the
By-Laws, and such further terms and conditions as the Trustees may in their discretion determine
not inconsistent with the provisions of this Article&nbsp;III or of the By-Laws; and such contract may
also provide for the repurchase of the Shares by such other party as agent of the Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Advisory or Management Contract</u>. The Trustees may in their
discretion from time to time enter into one or more investment advisory or management contracts or,
if the Trustees establish multiple Series, separate investment advisory or management contracts
with respect to one or more Series whereby the other party or parties to any such contracts shall
undertake to furnish the Trust or such Series management, investment advisory, administration,
accounting, legal, statistical and research facilities and services, promotional or marketing
activities, and such other facilities and services, if any, as the Trustees shall from time to time
consider desirable and all upon such terms and conditions as the Trustees may in their discretion
determine. Notwithstanding any provisions of the Declaration, the Trustees may authorize the
Investment Adviser(s) or persons to whom the Investment Adviser(s) delegates certain or all of its
duties, or any of them, under any such contracts (subject to such general or specific instructions
as the Trustees may from time to time adopt) to effect purchases, sales, loans or exchanges of
portfolio securities and other investments of the Trust on behalf of the Trustees or may authorize
any officer, employee or Trustee to effect such purchases, sales, loans or exchanges pursuant to
recommendations of such Investment Adviser(s), or any of them (and all without further action by
the Trustees). Any such purchases, sales, loans and exchanges shall be deemed to have been
authorized by all of the Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Administration Agreement</u>. The Trustees may in their discretion
from time to time enter into an administration agreement or, if the Trustees establish multiple
Series or Classes, separate administration agreements with respect to each Series or Class, whereby
the other party to such agreement shall undertake to manage the business affairs of the Trust or of
a Series or Class thereof of the Trust and furnish the Trust or a Series or a Class thereof with
office facilities, and shall be responsible for the ordinary clerical, bookkeeping and
recordkeeping services at such office facilities, and other facilities and services, if any, and
all upon such terms and conditions as the Trustees may in their discretion determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Service Agreement</u>. The Trustees may in their discretion from
time to time enter into service agreements with respect to one or more Series or Classes of Shares
whereby the other parties to such Service Agreements will provide administration and/or support
services pursuant to administration plans and service plans, and all upon such terms and conditions
as the Trustees in their discretion may determine.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Transfer Agent</u>. The Trustees may in their discretion from time to time enter
into a transfer agency and shareholder service contract whereby the other party to such contract
shall undertake to furnish transfer agency and shareholder services to the Trust. The contract
shall have such terms and conditions as the Trustees may in their discretion determine not
inconsistent with the Declaration. Such services may be provided by one or more Persons.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Custodian</u>. The Trustees may appoint or otherwise engage one or
more banks or trust companies or any other entity satisfying the requirements of the 1940 Act, to
serve as Custodian with authority as its agent, but subject to such restrictions, limitations and
other requirements, if any, as may be contained in the By-Laws of the Trust. The Trustees may also
authorize the Custodian to employ one or more sub-custodians, including such foreign banks and
securities depositories as meet the requirements of applicable provisions of the 1940 Act, and upon
such terms and conditions as may be agreed upon between the Custodian and such sub-custodian, to
hold securities and other assets of the Trust and to perform the acts and services of the
Custodian, subject to applicable provisions of law and resolutions adopted by the Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Affiliations of Trustees or Officers, Etc.</U> The fact that:
(i)&nbsp;any of the Shareholders, Trustees or officers of the Trust or any Series thereof is a
shareholder, director, officer, partner, trustee, employee, manager, adviser or distributor of or
for any partnership, corporation, trust, association or other organization or of or for any parent
or affiliate of any organization, with which a contract of the character described in this
Article&nbsp;III or for services as Custodian, Transfer Agent or disbursing agent or for related
services may have been or may hereafter be made, or that any such organization, or any parent or
affiliate thereof, is a Shareholder of or has an interest in the Trust, or that (ii)&nbsp;any
partnership, corporation, trust, association or other organization with which a contract of the
character described in Sections&nbsp;1, 2, 3 or 4 of this Article&nbsp;III or for services as Custodian,
Transfer Agent or disbursing agent or for related services may have been or may hereafter be made
also has any one or more of such contracts with one or more other partnerships, corporations,
trusts, associations or other organizations, or has other business or interests, shall not affect
the validity of any such contract or disqualify any Shareholder, Trustee or officer of the Trust
from voting upon or executing the same or create any liability or accountability to the Trust or
its Shareholders.
</DIV>

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>COMPENSATION, LIMITATION OF LIABILITY AND INDEMNIFICATION</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Compensation</u>. The Trustees as such shall be entitled to
reasonable compensation from the Trust, and they may fix the amount of such compensation. Nothing
herein shall in any way prevent the employment of any Trustee for advisory, management, legal,
accounting, investment banking or other services and payment for the same by the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Limitation of Liability</u>. All persons contracting with or having
any claim against the Trust or a particular Series shall look only to the assets of all Series or
such particular Series for payment under such contract or claim; and neither the Trustees nor, when
acting in such capacity, any of the Trust&#146;s officers, employees or agents, whether past, present or
future, shall be personally liable therefor. Every written instrument or obligation on behalf of
the Trust or any Series shall contain a statement to the
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">foregoing effect, but the absence of such statement shall not operate to make any Trustee or
officer of the Trust liable thereunder. Provided they have exercised reasonable care and have
acted under the reasonable belief that their actions are in the best interest of the Trust, the
Trustees and officers of the Trust shall not be responsible or liable for any act or omission or
for neglect or wrongdoing of them or any officer, agent, employee, investment adviser or
independent contractor of the Trust, but nothing contained in this Declaration or in the Delaware
Act shall protect any Trustee or officer of the Trust against liability to the Trust or to
Shareholders to which he would otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence or reckless disregard of the duties involved in the conduct of his office.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Indemnification</u>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the exceptions and limitations contained in subsection (b)&nbsp;below:</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) every person who is, or has been, a Trustee or an officer,
employee or agent of the Trust (including any individual who serves at its request
as director, officer, partner, employee, trustee, agent or the like of another
organization in which it has any interest as a shareholder, creditor or otherwise)
(&#147;Covered Person&#148;) shall be indemnified by the Trust or the appropriate Series to
the fullest extent permitted by law against liability and against all expenses
reasonably incurred or paid by him in connection with any claim, action, suit or
proceeding in which he becomes involved as a party or otherwise by virtue of his
being or having been a Covered Person and against amounts paid or incurred by him in
the settlement thereof; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as used herein, the words &#147;claim,&#148; &#147;action,&#148; &#147;suit,&#148; or
&#147;proceeding&#148; shall apply to all claims, actions, suits or proceedings (civil,
criminal, administrative, investigative or other, including appeals), actual or
threatened, and the words &#147;liability&#148; and &#147;expenses&#148; shall include, without
limitation, attorneys&#146; fees, costs, judgments, amounts paid in settlement, fines,
penalties and other liabilities.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No indemnification shall be provided hereunder to a Covered Person:</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) who shall have been adjudicated by a court or body before which
the proceeding was brought (A)&nbsp;to be liable to the Trust or its Shareholders by
reason of willful misfeasance, bad faith, gross negligence or reckless disregard of
the duties involved in the conduct of his office, or (B)&nbsp;not to have acted in good
faith and in a manner the person reasonably believed to be in or not opposed to the
best interests of the Trust; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event of a settlement, unless there has been a
determination that such Covered Person did not engage in willful misfeasance, bad
faith, gross negligence or reckless disregard of the duties involved in the conduct
of his office; (A)&nbsp;by the court or other body approving the settlement; (B)&nbsp;by at
least a majority of those Trustees who are neither Interested Persons of the Trust
nor are parties to the matter based upon a review of readily available facts (as
opposed to a full trial-type inquiry); (C)&nbsp;by written opinion
</DIV>

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</DIV>

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





<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">of independent legal counsel based upon a review of readily available facts (as
opposed to a full trial-type inquiry) or (D)&nbsp;by a vote of a majority of the
Outstanding Shares entitled to vote (excluding any Outstanding Shares owned of
record or beneficially by such individual).
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The rights of indemnification herein provided may be insured against by policies
maintained by the Trust, shall be severable, shall not be exclusive of or affect any other rights
to which any Covered Person may now or hereafter be entitled, and shall inure to the benefit of the
heirs, executors and administrators of a Covered Person.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;To the maximum extent permitted by applicable law, expenses in connection with
the preparation and presentation of a defense to any claim, action, suit or proceeding of the
character described in subsection (a)&nbsp;of this Section may be paid by the Trust or applicable Series
from time to time prior to final disposition thereof upon receipt of an undertaking by or on behalf
of such Covered Person that such amount will be paid over by him to the Trust or applicable Series
if it is ultimately determined that he is not entitled to indemnification under this Section;
provided, however, that either (i)&nbsp;such Covered Person shall have provided appropriate security for
such undertaking, (ii)&nbsp;the Trust is insured against losses arising out of any such advance payments
or (iii)&nbsp;either a majority of a quorum of the Trustees who are neither Interested Persons of the
Trust nor parties to the matter, or independent legal counsel in a written opinion, shall have
determined, based upon a review of readily available facts (as opposed to a full trial-type
inquiry) that there is reason to believe that such Covered Person will not be disqualified from
indemnification under this Section. Independent counsel retained for the purpose of rendering an
opinion regarding advancement of expenses and/or a majority of a quorum of the Trustees who are
neither Interested Persons of the Trust nor parties to the matter, may proceed under a rebuttable
presumption that the Covered Person has not engaged in willful misfeasance, bad faith, gross
negligence or reckless disregard of the Covered Person&#146;s duties to the Trust and were based on the
Covered Person&#146;s determination that those actions were in the best interests of the Trust and its
Shareholders; provided that the Covered Person is not an Interested Person (or is an Interested
Person solely by reason of being an officer of the Trust).</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Any repeal or modification of this Article&nbsp;IV by the Shareholders, or adoption
or modification of any other provision of the Declaration or By-Laws inconsistent with this
Article, shall be prospective only, to the extent that such repeal, or modification would, if
applied retrospectively, adversely affect any limitation on the liability of any Covered Person or
indemnification available to any Covered Person with respect to any act or omission which occurred
prior to such repeal, modification or adoption. Any such repeal or modification by the
Shareholders shall require a vote of at least two-thirds of the Outstanding Shares entitled to
vote and present in person or by proxy at any meeting of the Shareholders.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Indemnification of Shareholders</u>. If any Shareholder or former
Shareholder of any Series shall be held personally liable solely by reason of his being or having
been a Shareholder and not because of his acts or omissions or for some other reason, the
Shareholder or former Shareholder (or his heirs, executors, administrators or other legal
representatives or in the case of any entity, its general successor) shall be entitled out of the
assets belonging to the applicable Series to be held harmless from and indemnified against all loss
and expense arising from such liability. The Trust, on behalf of the
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">affected Series, shall, upon request by such Shareholder, assume the defense of any claim made
against such Shareholder for any act or obligation of the Series and satisfy any judgment thereon
from the assets of the Series.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>No Bond Required of Trustees</u>. No Trustee shall be obligated to
give any bond or other security for the performance of any of his duties hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>No Duty of Investigation; Notice in Trust Instruments, Etc.</U> No
purchaser, lender, transfer agent or other Person dealing with the Trustees or any officer,
employee or agent of the Trust or a Series thereof shall be bound to make any inquiry concerning
the validity of any transaction purporting to be made by the Trustees or by said officer, employee
or agent or be liable for the application of money or property paid, loaned, or delivered to or on
the order of the Trustees or of said officer, employee or agent. Every obligation, contract,
instrument, certificate, Share, other security of the Trust or a Series thereof or undertaking, and
every other act or thing whatsoever executed in connection with the Trust shall be conclusively
presumed to have been executed or done by the executors thereof only in their capacity as Trustees
under this Declaration or in their capacity as officers, employees or agents of the Trust or a
Series thereof. Every written obligation, contract, instrument, certificate, Share, other security
of the Trust or a Series thereof or undertaking made or issued by the Trustees may recite that the
same is executed or made by them not individually, but as Trustees under the Declaration, and that
the obligations of the Trust or a Series thereof under any such instrument are not binding upon any
of the Trustees or Shareholders individually, but bind only the Trust Property or the Trust
Property of the applicable Series, and may contain any further recital which they may deem
appropriate, but the omission of such recital shall not operate to bind the Trustees individually.
The Trustees may maintain insurance for the protection of the Trust Property or the Trust Property
of the applicable Series, its Shareholders, Trustees, officers, employees and agents in such amount
as the Trustees shall deem adequate to cover possible tort liability, and such other insurance as
the Trustees in their sole judgment shall deem advisable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Reliance on Experts, Etc.</U> Each Trustee, officer or employee of
the Trust or a Series thereof shall, in the performance of his duties, powers and discretions
hereunder be fully and completely justified and protected with regard to any act or any failure to
act resulting from reliance in good faith upon the books of account or other records of the Trust
or a Series thereof, upon an opinion of counsel, or upon reports made to the Trust or a Series
thereof by any of its officers or employees or by the Investment Adviser, the Administrator, the
Distributor, the Principal Underwriter, Transfer Agent, selected dealers, accountants, appraisers
or other experts or consultants selected with reasonable care by the Trustees, officers or
employees of the Trust, regardless of whether such counsel or expert may also be a Trustee.
</DIV>

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SERIES; CLASSES; SHARES; OTHER SECURITIES</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Establishment of Series or Class</u>. The Trust shall consist of one
or more Series. Without limiting the authority of the Trustees to establish and designate any
further Series or Classes, the Trustees hereby establish a single Series, designated Calamos Global
Total Return Fund, and one Class of Shares, designated as the common shares. Each additional
Series or Class shall be established and is effective upon the adoption of a resolution of a
majority of the Trustees or any alternative date specified
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in such resolution. Such resolution may establish such additional Series or Classes directly
in such resolution or by reference to, or approval of, another document that sets forth such Series
or Classes, including any registration statement of the Trust, or as otherwise provided in such
resolution. The Trustees may designate the relative rights and preferences of the Shares of each
Series. The Trustees may divide the Shares of any Series into Classes. Any Shares of any further
Series and Classes that may from time to time be established and designated by the Trustees shall
be established and designated, and the variations in the relative rights and preferences as between
the different Series shall be fixed and determined, by the Trustees; provided, that all Shares
shall be identical except for such variations as shall be fixed and determined between different
Series or Classes by the Trustees in establishing and designating such Class or Series. Unless
otherwise designated by the Trustees in the By-Laws or resolutions establishing a Series or Class,
the purchase price, the method of determining the net asset value, and the relative liquidation,
voting, dividend and other rights and preferences of holders of each Series or Class shall be as
set forth in the Trust&#146;s Registration Statement on Form N-2 under the Securities Act of 1933 and/or
the 1940 Act relating to the issuance of Shares of such Series or Class.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All references to Shares in this Declaration shall be deemed to be Shares of any or all Series
or Classes as the context may require. The Trust shall maintain separate and distinct records for
each Series and hold and account for the assets thereof separately from the other assets of the
Trust or of any other Series. A Series may issue any number of Shares or any Class thereof and
need not issue Shares. Except as otherwise provided with respect to a specific Class, each Share
of a Series shall represent an equal beneficial interest in the net assets of such Series. Each
holder of Shares of a Series or a Class thereof shall be entitled to receive his pro rata share of
all distributions made with respect to such Series or Class. Upon redemption of his Shares, such
Shareholder shall be paid solely out of the funds and property of such Series. The Trustees may
adopt and change the name of any Series or Class without Shareholder approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Shares</u>. The beneficial interest in the Trust shall be divided
into transferable Shares of one or more separate and distinct Series or Classes established by the
Trustees. The number of Shares of each Series and Class is unlimited and each Share shall have no
par value per Share or such other amount as the Trustees may establish. All Shares issued
hereunder shall be fully paid and nonassessable. Shareholders shall have no preemptive or other
right to subscribe to any additional Shares or other securities issued by the Trust. The Trustees
shall have full power and authority, in their sole discretion and without obtaining Shareholder
approval, to issue original or additional Shares at such times and on such terms and conditions as
they deem appropriate; to issue fractional Shares and Shares held in the treasury; to establish and
to change in any manner Shares of any Series or Classes with such preferences, rights upon
liquidation, redemption rights, terms of conversion, voting powers, and other rights and privileges
as the Trustees may determine (but the Trustees may not change Outstanding Shares in a manner
materially adverse to the Shareholders of such Shares); to divide or combine the Shares of any
Series or Classes into a greater or lesser number; to classify or reclassify any unissued Shares
of any Series or Classes into one or more Series or Classes of Shares; to abolish any one or more
Series or Classes of Shares; to issue Shares to acquire other assets (including assets subject to,
and in connection with, the assumption of liabilities) and businesses; and to take such other
action with respect to the Shares as the Trustees may deem desirable. Shares held in the treasury
shall not confer any voting rights on the Trustees and shall not be entitled to any dividends or
other distributions declared with respect to the Shares.
</DIV>

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</DIV>

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Investment in the Trust</u>. The Trustees shall accept investments
in any Series or Class from such persons and on such terms as they may from time to time authorize.
At the Trustees&#146; discretion, such investments, subject to applicable law, may be in the form of
cash or securities in which that Series is authorized to invest, valued as provided in Article&nbsp;VI,
Section&nbsp;3. Investments in a Series shall be credited to each Shareholder&#146;s account in the form of
full Shares at the Net Asset Value per Share next determined after the investment is received or
accepted as may be determined by the Trustees; provided, however, that the Trustees may, in their
sole discretion, (a)&nbsp;impose a sales charge upon investments in any Series or Class, (b)&nbsp;issue
fractional Shares, (c)&nbsp;determine the Net Asset Value per Share of the initial capital contribution
or (d)&nbsp;authorize the issuance of Shares at a price other than Net Asset Value to the extent
permitted by the 1940 Act or any rule, order or interpretation of the Commission thereunder. The
Trustees shall have the right to refuse to accept investments in any Series at any time without any
cause or reason therefor whatsoever.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Assets and Liabilities of Series</u>. All consideration received by
the Trust for the issue or sale of Shares of a particular Series, together with all assets in which
such consideration is invested or reinvested, all income, earnings, profits, and proceeds thereof
(including any proceeds derived from the sale, exchange or liquidation of such assets, and any
funds or payments derived from any reinvestment of such proceeds in whatever form the same may be),
shall be held and accounted for separately from the assets of every other Series and are referred
to as &#147;assets belonging to&#148; that Series. The assets belonging to a Series shall belong only to
that Series for all purposes, and to no other Series, subject only to the rights of creditors of
that Series. Any assets, income, earnings, profits, and proceeds thereof, funds, or payments which
are not readily identifiable as belonging to any particular Series shall be allocated by the
Trustees between and among one or more Series as the Trustees deem fair and equitable. Each such
allocation shall be conclusive and binding upon the Shareholders of all Series for all purposes,
and such assets, earnings, income, profits or funds, or payments and proceeds thereof shall be
referred to as assets belonging to that Series. Separate and distinct records shall be maintained
for each Series and the assets held with respect to each Series shall be held and accounted for
separately from the assets held with respect to all other Series and from any assets, income,
earnings, profits, and proceeds thereof, funds, or payments which are not readily identifiable as
belonging to any particular Series that are not allocated to such Series by the Trustees in
accordance with this Section&nbsp;4. The assets belonging to a Series shall be so recorded upon the
books of the Trust, and shall be held by the Trustees in trust for the benefit of the Shareholders
of that Series. The assets belonging to a Series shall be charged with the liabilities of that
Series and all expenses, costs, charges and reserves attributable to that Series, except that
liabilities and expenses allocated solely to a particular Class shall be borne by that Class. Any
general liabilities, expenses, costs, charges or reserves of the Trust which are not readily
identifiable as belonging to any particular Series or Class shall be allocated and charged by the
Trustees between or among any one or more of the Series or Classes in such manner as the Trustees
deem fair and equitable. Each such allocation shall be conclusive and binding upon the
Shareholders of all Series or Classes for all purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the foregoing, but subject to the right of the Trustees to allocate general
liabilities, expenses, costs, charges or reserves as herein provided, (a)&nbsp;the debts, liabilities,
obligations and expenses incurred, contracted for or otherwise existing with respect to a
particular Series shall be enforceable against the assets of such Series only, and not against the
assets of any other Series or against the assets of the Trust generally, and (b)&nbsp;none of the debts,
liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect
to the Trust generally or any other Series thereof shall be
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">enforceable against the assets of such Series. Notice of this contractual limitation on
liabilities among Series shall be set forth in the certificate of trust of the Trust (whether
originally or by amendment) as filed or to be filed in the Office of the Secretary of State of the
State of Delaware pursuant to the Delaware Act, and upon the giving of such notice in the
certificate of trust, the statutory provisions of Section&nbsp;3804 of the Delaware Act relating to
limitations on liabilities among Series (and the statutory effect under Section&nbsp;3804 of setting
forth such notice in the certificate of trust) shall become applicable to the Trust and each
Series. Any person extending credit to, contracting with or having any claim against any Series
may look only to the assets of that Series to satisfy or enforce any debt, with respect to that
Series. No Shareholder or former Shareholder of any Series shall have a claim on or any right to
any assets allocated or belonging to any other Series.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Ownership and Transfer of Shares</u>. The Trust or a transfer or
similar agent for the Trust shall maintain a register containing the names and addresses of the
Shareholders of each Series and Class thereof, the number of Shares of each Series and Class held
by such Shareholders, and a record of all Share transfers. The register shall be conclusive as to
the identity of Shareholders of record and the number of Shares held by them from time to time.
The Trustees may authorize the issuance of certificates representing Shares and adopt rules
governing their use. The Trustees may make rules governing the transfer of Shares, whether or not
represented by certificates. Except as otherwise provided by the Trustees, Shares shall be
transferable on the books of the Trust only by the record holder thereof or by his duly authorized
agent upon delivery to the Trustees or the Trust&#146;s transfer agent of a duly executed instrument of
transfer, together with a Share certificate if one is outstanding, and such evidence or the
genuineness of each such execution and authorization and of such other matters as may be required
by the Trustees. Upon such delivery, and subject to any further requirements specified by the
Trustees or contained in the By-Laws, the transfer shall be recorded on the books of the Trust.
Until a transfer is so recorded, the Shareholder of record of Shares shall be deemed to be the
holder of such Shares for all purposes hereunder and neither the Trustees nor the Trust, nor any
transfer agent or registrar or any officer, employee or agent of the Trust, shall be affected by
any notice of a proposed transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Status of Shares; Limitation of Shareholder Liability</u>. Shares
shall be deemed to be personal property giving Shareholders only the rights provided in this
Declaration. Every Shareholder, by virtue of having acquired a Share, shall be held expressly to
have assented to and agreed to be bound by the terms of this Declaration and to have become a party
hereto. No Shareholder shall be personally liable for the debts, liabilities, obligations and
expenses incurred by, contracted for, or otherwise existing with respect to, the Trust or any
Series. The death, incapacity, dissolution, termination or bankruptcy of a Shareholder during the
existence of the Trust shall not operate to terminate the Trust, nor entitle the representative of
any such Shareholder to an accounting or to take any action in court or elsewhere against the Trust
or the Trustees, but entitles such representative only to the rights of such Shareholder under this
Trust. Ownership of Shares shall not entitle the Shareholder to any title in or to the whole or
any part of the Trust Property or right to call for a partition or division of the same or for an
accounting, nor shall the ownership of Shares constitute the Shareholders as partners. Neither the
Trust nor the Trustees shall have any power to bind any Shareholder personally or to demand payment
from any Shareholder for anything, other than as agreed by the Shareholder. Shareholders shall
have the same limitation of personal liability as is extended to shareholders of a private
corporation for profit incorporated in the State of Delaware. Every written obligation of the
Trust or any Series shall contain a statement to the effect that such obligation may only be
enforced against the assets of the appropriate
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Series or all Series; however, the omission of such statement shall not operate to bind or
create personal liability for any Shareholder or Trustee.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Other Securities</u>. The Trustees may authorize and issue such
other securities of the Trust other than Shares as they determine to be necessary, desirable or
appropriate, having such terms, rights, preferences, privileges, limitations and restrictions as
the Trustees see fit, including preferred interests, debt securities or other senior securities.
To the extent that the Trustees authorized and issue preferred shares of any Class or Series, they
are hereby authorized and empowered to amend or supplement this Declaration as they deem necessary
or appropriate, including to comply with the requirements of the 1940 Act or requirements imposed
by the rating agencies or other Persons, all without the approval of Shareholders. Any such
supplement or amendment shall be filed as is necessary. The Trustees are also authorized to take
such actions and retain such persons as they see fit to offer and sell such securities.
</DIV>

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


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Distributions</u>. The Trustees or a committee of one or more
Trustees may declare and pay dividends and other distributions, including dividends on Shares of a
particular Series and other distributions from the assets belonging to that Series. No dividend or
distribution, including, without limitation, any distribution paid upon termination of the Trust or
of any Series (or Class) with respect to, nor any redemption or repurchase of, the Shares of any
Series (or Class) shall be effected by the Trust other than from the assets held with respect to
such Series, nor shall any Shareholder of any particular Series otherwise have any right or claim
against the assets held with respect to any other Series except to the extent that such Shareholder
has such a right or claim hereunder as a Shareholder of such other Series. The Trustees shall have
full discretion to determine which items shall be treated as income and which items as capital; and
each such determination and allocation shall be conclusive and binding upon the Shareholders. The
amount and payment of dividends or distributions and their form, whether they are in cash, Shares
or other Trust Property, shall be determined by the Trustees. Dividends and other distributions
may be paid pursuant to a standing resolution adopted once or more often as the Trustees determine.
Except as provided with respect to a particular Class in the By-Laws or the resolutions
establishing such Class, all dividends and other distributions on Shares of a particular Series
shall be distributed pro rata to the Shareholders of that Series in proportion to the number of
Shares of that Series they held on the record date established for such payment. The Trustees may
adopt and offer to Shareholders such dividend reinvestment plans, cash dividend payout plans or
similar plans as the Trustees deem appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Redemptions</u>. Except as provided with respect to a particular
Class in the By-Laws or the resolutions establishing such Class, Shares of the Trust will not be
redeemed or repurchased by the Trust, except as the Trustees shall determine from time to time and
the Trust shall be under no obligation to redeem or repurchase Shares. The Trustees may specify
conditions, prices, and places of redemption, may specify binding requirements for the proper form
or forms of requests for redemption and may specify the amount of any redemption fee to be withheld
from redemption proceeds. Payment of the redemption price may be wholly or partly in securities or
other assets at the value of such securities or
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assets used in such determination of Net Asset Value, or may be in cash. Upon redemption,
Shares may be reissued from time to time. The Trustees may require Shareholders to redeem Shares
for any reason under terms set by the Trustees, including, but not limited to, the failure of a
Shareholder to supply a taxpayer identification number if required to do so, or to have the minimum
investment required, or to pay when due for the purchase of Shares issued to him. To the extent
permitted by law, the Trustees may retain the proceeds of any redemption of Shares required by them
for payment of amounts due and owing by a Shareholder to the Trust or any Series or Class or any
governmental authority. Notwithstanding the foregoing, the Trustees may postpone payment of the
redemption price and may suspend the right of the Shareholders to require any Series or Class to
redeem Shares during any period of time when and to the extent permissible under the 1940 Act.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Determination of Net Asset Value</u>. The Trustees shall cause the
Net Asset Value of Shares of each Series or Class to be determined from time to time in a manner
consistent with applicable laws and regulations. The Trustees may delegate the power and duty to
determine Net Asset Value per Share to one or more Trustees or officers of the Trust or to a
custodian, depository or other agent appointed for such purpose. The Net Asset Value of Shares
shall be determined separately for each Series or Class at such times as may be prescribed by the
Trustees or, in the absence of action by the Trustees, as of the close of trading on the New York
Stock Exchange on the last day of each week.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Suspension of Right of Redemption</u>. If, as referred to in
Section&nbsp;2 of this Article, the Trustees postpone payment of the redemption price and suspend the
right of Shareholders to redeem their Shares, such suspension shall take effect at the time the
Trustees shall specify, but not later than the close of business on the business day next following
the declaration of suspension. Thereafter Shareholders shall have no right of redemption or
payment until the Trustees declare the end of the suspension. If the right of redemption is
suspended, a Shareholder may withdraw his request for redemption.
</DIV>

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SHAREHOLDERS&#146; VOTING POWERS AND MEETINGS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Voting Powers</u>. Subject to the voting rights established with
respect to a particular Class in the By-Laws or the resolutions establishing such Class, the
Shareholders shall have power to vote only with respect to (a)&nbsp;the election of Trustees as provided
in Section&nbsp;2 of this Article; (b)&nbsp;the removal of Trustees as provided in Article&nbsp;II, Section&nbsp;5(a);
(c)&nbsp;any investment advisory or management contract to the extent required by the 1940 Act; (d)&nbsp;the
amendment of this Declaration to the extent and as provided in Article&nbsp;X, Section&nbsp;10; (e)&nbsp;the
conversion of the Trust to an open-end investment company to the extent provided in Article&nbsp;IX,
Section&nbsp;5; (f)&nbsp;the reorganization of the Trust to the extent provided in Article&nbsp;IX, Section&nbsp;6; (g)
to approve a transaction subject to Article&nbsp;IX, Section&nbsp;7, and (h)&nbsp;such additional matters relating
to the Trust as may be required by the 1940 Act or any registration of the Trust with the
Commission or any State, or as the Trustees may consider desirable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On any matter submitted to a vote of the Shareholders, all Shares shall be voted by individual
Series or Class, except (a)&nbsp;as provided with respect to a particular Class in the By-Laws or the
resolutions establishing such Class, (b)&nbsp;when required by the 1940 Act, Shares shall be voted in
the aggregate and not by individual Series or Class, and (c)&nbsp;when the Trustees have determined that
the matter affects the
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">interests of more than one Series or Class, then the Shareholders of all such Series or
Classes shall be entitled to vote thereon. As determined by the Trustees without the vote or
consent of shareholders and except as provided with respect to a particular Class in the By-Laws or
the resolutions establishing such Class, on any matter submitted to a vote of Shareholders either
(i)&nbsp;each whole Share shall be entitled to one vote as to any matter on which it is entitled to vote
and each fractional Share shall be entitled to a proportionate fractional vote or (ii)&nbsp;each dollar
of net asset value (number of Shares owned times net asset value per share of such Series or Class,
as applicable) shall be entitled to one vote on any matter on which such Shares are entitled to
vote and each fractional dollar amount shall be entitled to a proportionate fractional vote.
Without limiting the power of the Trustees in any way to designate otherwise in accordance with the
preceding sentence, the Trustees hereby establish that each whole Share shall be entitled to one
vote as to any matter on which it is entitled to vote and each fractional Share shall be entitled
to a proportionate fractional vote. There shall be no cumulative voting in the election of
Trustees. Shares may be voted in person or by proxy or in any manner provided for in the By-Laws.
The By-Laws may provide that proxies may be given by any electronic or telecommunications device or
in any other manner, but if a proposal by anyone other than the officers or Trustees is submitted
to a vote of the Shareholders of any Series or Class, or if there is a proxy contest or proxy
solicitation or proposal in opposition to any proposal by the officers or Trustees, Shares may be
voted only in person or by written proxy. Until Shares of a Series are issued, as to that Series
the Trustees may exercise all rights of Shareholders and may take any action required or permitted
to be taken by Shareholders by law, this Declaration or the By-Laws. Meetings of Shareholders
shall be called and notice thereof and record dates therefor shall be given and set as provided in
the By-Laws.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Quorum; Required Vote</u>. One-third of the Outstanding Shares of
each Series or Class, or one-third of the Outstanding Shares of the Trust, entitled to vote in
person or by proxy shall be a quorum for the transaction of business at a Shareholders&#146; meeting
with respect to such Series or Class, or with respect to the entire Trust, respectively. Any
lesser number shall be sufficient for adjournments. Any adjourned session of a Shareholders&#146;
meeting may be held within a reasonable time without further notice. Except when a larger vote is
required by the 1940 Act, this Declaration or the By-Laws, a majority of the Shares voting at a
Shareholders&#146; meeting in person or by proxy shall decide any matters to be voted upon with respect
to the entire Trust and a plurality of such Shares shall elect a Trustee; provided, that if this
Declaration or applicable law permits or requires that Shares be voted on any matter by individual
Series or Classes, then a majority of the Shares of that Series or Class (or, if required by law, a
majority of the Shares outstanding and entitled to vote of that Series or Class) voting at a
Shareholders&#146; meeting in person or by proxy on the matter shall decide that matter insofar as that
Series or Class is concerned.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Record Dates</u>. For the purpose of determining the Shareholders of
any Series (or Class) who are entitled to receive payment of any dividend or of any other
distribution, the Trustees may from time to time fix a date, which shall be before the date for the
payment of such dividend or such other payment, as the record date for determining the Shareholders
of such Series (or Class) having the right to receive such dividend or distribution. Without
fixing a record date, the Trustees may for distribution purposes close the register or transfer
books for one or more Series (or Classes) any time prior to the payment of a distribution. Nothing
in this Section shall be construed as precluding the Trustees from setting different record dates
for different Series (or Classes).
</DIV>

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</DIV>

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Additional Provisions</u>. The By-Laws may include further
provisions for Shareholders&#146; votes and meetings and related matters.
</DIV>

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>EXPENSES OF THE TRUST AND SERIES</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Payment of Expenses by the Trust</u>. Subject to Article&nbsp;V,
Section&nbsp;4, the Trust or a particular Series shall pay, or shall reimburse the Trustees from the
assets belonging to all Series or the particular Series, for their expenses (or the expenses of a
Class of such Series) and disbursements, including, but not limited to, interest charges, taxes,
brokerage fees and commissions; expenses of issue, repurchase and redemption of Shares; insurance
premiums; applicable fees, interest charges and expenses of third parties, including the Trust&#146;s
investment advisers, managers, administrators, distributors, custodians, transfer agents and fund
accountants; fees of pricing, interest, dividend, credit and other reporting services; costs of
membership in trade associations; telecommunications expenses; funds transmission expenses;
auditing, legal and compliance expenses; costs of forming the Trust and its Series and maintaining
its existence; costs of preparing and printing the prospectuses of the Trust and each Series,
statements of additional information and Shareholder reports and delivering them to Shareholders;
expenses of meetings of Shareholders and proxy solicitations therefor; costs of maintaining books
and accounts; costs of reproduction, stationery and supplies; fees and expenses of the Trustees;
compensation of the Trust&#146;s officers and employees and costs of other personnel performing services
for the Trust or any Series; costs of Trustee meetings; Commission registration fees and related
expenses; state or foreign securities laws registration fees and related expenses; and for such
non-recurring items as may arise, including litigation to which the Trust or a Series (or a Trustee
or officer of the Trust acting as such) is a party, and for all losses and liabilities by them
incurred in administering the Trust. The Trustees shall have a lien on the assets belonging to the
appropriate Series, or in the case of an expense allocable to more than one Series, on the assets
of each such Series, prior to any rights or interests of the Shareholders thereto, for the
reimbursement to them of such expenses, disbursements, losses and liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Payment of Expenses by Shareholders</u>. The Trustees shall have the
power, as frequently as they may determine, to cause each Shareholder, or each Shareholder of any
particular Series, to pay directly, in advance or arrears, for charges of the Trust&#146;s custodian or
transfer, shareholder servicing or similar agent, an amount fixed from time to time by the
Trustees, by setting off such charges due from such Shareholder from declared but unpaid dividends
owed such Shareholder and/or by reducing the number of Shares in the account of such Shareholder by
that number of full and/or fractional Shares which represents the outstanding amount of such
charges due from such Shareholder.
</DIV>

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


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Trust Not a Partnership</u>. This Declaration creates a trust and
not a partnership. No Trustee shall have any power to bind personally either the Trust&#146;s officers
or any Shareholder.
</DIV>

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</DIV>

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Trustee Action</u>. The exercise by the Trustees of their powers and
discretion hereunder in good faith and with reasonable care under the circumstances then prevailing
shall be binding upon everyone interested. Subject to the provisions of Article&nbsp;IV, the Trustees
shall not be liable for errors of judgment or mistakes of fact or law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Record Dates</u>. The Trustees may fix in advance a date up to
ninety (90)&nbsp;days before the date of any Shareholders&#146; meeting, or the date for the payment of any
dividends or other distributions, or the date for the allotment of rights, or the date when any
change or conversion or exchange of Shares shall go into effect as a record date for the
determination of the Shareholders entitled to notice of, and to vote at, any such meeting, or
entitled to receive payment of such dividend or other distribution, or to receive any such
allotment of rights, or to exercise such rights in respect of any such change, conversion or
exchange of Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Termination of the Trust</u>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;This Trust shall have perpetual existence subject to the provisions of this
Section&nbsp;4.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Trust or any Series or Class thereof may be dissolved and terminated by the
affirmative vote of not less than three-quarters of the Trustees then in office by written notice
to the Shareholders.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In connection with subsection (b)&nbsp;or to the extent appropriate in connection
with a reorganization as provided in Article&nbsp;IX, Section&nbsp;6, upon making reasonable provision for
the payment of all known liabilities of all Series or any affected Series or Classes, by such
assumption or otherwise, the Trustees shall distribute the remaining proceeds or assets (as the
case may be) ratably among the Shareholders of all Series or any affected Series or Classes;
however, the payment to any particular Class of such Series may be reduced by any fees, expenses or
charges allocated to that Class.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Upon completion of the distribution of the remaining proceeds or assets pursuant
to subsection (c)&nbsp;above, the Trust or affected Series or Classes shall terminate and the Trustees
and the Trust shall be discharged of any and all further liabilities and duties hereunder with
respect thereto and the right, title and interest of all parties therein shall be canceled and
discharged. Upon termination of the Trust, following completion of winding up of its business, the
Trustees shall cause a certificate of cancellation of the Trust&#146;s certificate of trust to be filed
in accordance with the Delaware Act, which certificate of cancellation may be signed by any one
Trustee.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Conversion to an Open-End Investment Company</u>. Notwithstanding
any other provisions of this Declaration or the By-Laws of the Trust, a favorable vote of a
majority of the Trustees then in office followed by the favorable vote of the holders of not less
than three-quarters of the Shares of each affected class or series outstanding, voting as separate
classes or series, shall be required to approve, adopt or authorize an amendment to this
Declaration that makes the Shares a &#147;redeemable security&#148; as that term is defined in the 1940 Act,
unless such amendment has been approved by three-quarters of the Trustees, in which case approval
by a vote of a majority of the Shares outstanding and entitled to vote shall be required. Upon the
adoption of a proposal to convert the Trust from a &#147;closed-end company&#148; to
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">an &#147;open-end company&#148; as those terms are defined by the 1940 Act and the necessary amendments
to this Declaration to permit such a conversion of the Trust&#146;s outstanding Shares entitled to vote,
the Trust shall, upon complying with any requirements of the 1940 Act and state law, become an
&#147;open-end&#148; investment company. Such affirmative vote or consent shall be in addition to the vote
or consent of the holders of the Shares otherwise required by law, or any agreement between the
Trust and any national securities exchange.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Reorganization</u>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as provided in clause (b)&nbsp;of this Section&nbsp;6 or in Section&nbsp;7 of this
Article&nbsp;IX, subject to the affirmative vote of not less than three-quarters of the Outstanding
Shares and entitled to vote of the Trust or any affected Series, the Trust may merge or consolidate
with any other corporation, association, trust or other organization or may sell, lease or exchange
all or substantially all of the Trust Property or the property, including its good will, upon such
terms and conditions and for such consideration when and as authorized by a majority of the
Trustees; provided however, if at least three-quarters of the Trustees then in office have approved
such transaction, then the actions may be approved by the affirmative vote of a majority of the
Outstanding Shares entitled to vote of the Trust or the affected Series.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Notwithstanding anything else herein, to change the Trust&#146;s form or place of
organization the Trustees may, without Shareholder approval unless such approval is required by
applicable law, (i)&nbsp;cause the Trust to merge or consolidate with or into one or more entities, if
the surviving or resulting entity is the Trust or any other corporation, association, trust or
other organization, or a series thereof, (ii)&nbsp;cause the Shares to be exchanged under or pursuant to
any state or federal statute to the extent permitted by law, or (iii)&nbsp;cause the Trust to
incorporate under the laws of Delaware or any other U.S. jurisdiction. Any agreement of merger or
consolidation or certificate of merger may be signed by a majority of Trustees and facsimile
signatures conveyed by electronic or telecommunication means shall be valid.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Pursuant to and in accordance with the provisions of Section 3815(f) of the
Delaware Act, an agreement of merger or consolidation approved by the Trustees, and if applicable,
Shareholders in accordance with this Section&nbsp;6 may effect any amendment to the Declaration or
effect the adoption of a new trust instrument of the Trust if it is the surviving or resulting
trust in the merger or consolidation.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Trustees may create one or more statutory trusts to which all or any part of
the assets, liabilities, profits or losses of the Trust or any Series or Class thereof may be
transferred and may provide for the conversion of Shares in the Trust or any Series or Class
thereof into beneficial interests in any such newly created trust or trusts or any series or
classes thereof.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Certain Transactions</u>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Notwithstanding any other provision of this Declaration and subject to the
exceptions provided in paragraph (d)&nbsp;of this Section, the types of transactions described in
paragraph (c)&nbsp;of this Section shall require the affirmative vote or consent of a majority of the
Trustees then in office</DIV>


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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">followed by the affirmative vote or consent of holders of not less than three-quarters of the
Shares of each affected class or series outstanding, votes voting as separate classes or series,
when a Principal Shareholder (as defined in paragraph (b)&nbsp;of this Section) is a party to the
transaction. Such affirmative vote or consent shall be in addition to the vote or consent of the
holders of Shares otherwise required by law or by the terms of any class or series of preferred
stock, whether now or hereafter authorized, or any agreement between the Trust and any national
securities exchange.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The term &#147;Principal Shareholder&#148; shall mean any corporation, Person or other
entity which is the beneficial owner, directly or indirectly, of five percent (5%) or more of the
outstanding Shares of any class or series and shall include any affiliate or associates, as such
terms are defined in clause (ii)&nbsp;below, of a Principal Shareholder. For the purpose of this
Section, in addition to the Shares which a corporation, Person or other entity beneficially owns
directly, (a)&nbsp;any corporation, Person or other entity shall be deemed to be the beneficial owner of
any Shares (i)&nbsp;which it has the right to acquire pursuant to any agreement or upon exercise of
conversion rights or warrants, or otherwise (but excluding share options granted by the Trust) or
(ii)&nbsp;which are beneficially owned, directly or indirectly (including Shares deemed owned through
application of clause (i)&nbsp;above, by any other corporation, Person or entity with which its
&#147;affiliate&#148; or &#147;associate&#148; (as defined below) has any agreement, arrangement or understanding for
the purpose of acquiring, holding, voting or disposing of Shares, of which is its &#147;affiliate&#148; or
&#147;associate&#148; as those terms are defined in Rule&nbsp;12b-2 of the General Rules and Regulations under the
Securities Exchange Act of 1934, and (b)&nbsp;the outstanding Shares shall include Shares deemed owned
through application of clauses (i)&nbsp;and (ii)&nbsp;above but shall not include any other Shares which may
be issuable pursuant to any agreement, or upon exercise of conversion rights or warrants, or
otherwise.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;This Section shall apply to the following transactions:</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The merger or consolidation of the Trust or any subsidiary of the
Trust with or into any Principal Shareholder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The issuance of any securities of the Trust to any Principal
Shareholder for such (other than pursuant to any automatic dividend reinvestment
plan).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The sale, lease or exchange to the Trust or any subsidiary
thereof, in exchange for securities of the Trust, of any assets of any Principal
Shareholder (except assets having an aggregate fair market value of less than
$1,000,000, aggregating for the purpose of such computation all assets sold, leased
or exchanged in any series of similar transactions within a twelve-month period.)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The sale, lease or exchange to the Trust or any subsidiary
thereof, in exchange for securities of the Trust, of any assets of any Principal
Shareholder (except assets having an aggregate fair market value of less than
$1,000,000, aggregating for the purposes of such computation all assets sold, leased
or exchanged in any series of similar transactions within a twelve-month period).
</DIV>


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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The provisions of this Section shall not be applicable to (i)&nbsp;any of the transactions
described in paragraph (c)&nbsp;of this Section if three-quarters of the Trustees shall by resolution
have approved a memorandum of understanding with such Principal Shareholder with respect to and
substantially consistent with such transaction, in which case approval by the vote of a majority of
the Shares outstanding and entitled to vote shall be the only vote of Shareholders required by this
Section, or (ii)&nbsp;any such transaction with any entity of which a majority of the outstanding shares
of all classes and series of a stock normally entitled to vote in elections of directors is owner
of record or beneficially by the Trust and its subsidiaries.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Board of Trustees shall have the power and duty to determine for the
purposes of this Section on the basis of information known to the Trust whether (i)&nbsp;a corporation,
person or entity beneficially owns five percent (5%) or more of the outstanding Shares of any class
or series, (ii)&nbsp;a corporation, person or entity is an &#147;affiliate&#148; or &#147;associate&#148; (as defined
above) of another, (iii)&nbsp;the assets being acquired or leased to or by the Trust or any subsidiary
thereof constitute a substantial part of the assets of the Trust and have an aggregate fair market
value of less than $1,000,000, and (iv)&nbsp;the memorandum of understanding referred to in
paragraph (d)&nbsp;hereof is substantially consistent with the transaction covered thereby. Any such
determination shall be conclusive and binding for all purposes of this Section.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>Declaration of Trust</u>. The original or a copy of this Declaration
of Trust and of each amendment hereto or Declaration of Trust supplemental shall be kept at the
office of the Trust where it may be inspected by any Shareholder. Anyone dealing with the Trust
may rely on a certificate by a Trustee or an officer of the Trust as to the authenticity of the
Declaration of Trust or any such amendments or supplements and as to any matters in connection with
the Trust. The masculine gender herein shall include the feminine and neuter genders. Headings
herein are for convenience only and shall not affect the construction of this Declaration of Trust.
This Declaration of Trust may be executed in any number of counterparts, each of which shall be
deemed an original.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <U>Applicable Law</u>. This Declaration and the Trust created hereunder
are governed by and construed and administered according to the Delaware Act and the applicable
laws of the State of Delaware; provided, however, that there shall not be applicable to the Trust,
the Trustees or this Declaration of Trust (a)&nbsp;the provisions of Section&nbsp;3540 of Title 12 of the
Delaware Code, or (b)&nbsp;any provisions of the laws (statutory or common) of the State of Delaware
(other than the Delaware Act) pertaining to trusts which relate to or regulate (i)&nbsp;the filing with
any court or governmental body or agency of trustee accounts or schedules of trustee fees and
charges, (ii)&nbsp;affirmative requirements to post bonds for trustees, officers, agents or employees of
a trust, (iii)&nbsp;the necessity for obtaining court or other governmental approval concerning the
acquisition, holding or disposition of real or personal property, (iv)&nbsp;fees or other sums payable
to trustees, officers, agents or employees of a trust, (v)&nbsp;the allocation of receipts and
expenditures to income or principal, (vi)&nbsp;restrictions or limitations on the permissible nature,
amount or concentration of trust investments or requirements relating to the titling, storage or
other manner of holding of trust assets, or (vii)&nbsp;the establishment of fiduciary or other standards
of responsibilities or limitations on the acts or powers of trustees, which are inconsistent with
the limitations or liabilities or authorities and powers of the Trustees set forth or referenced in
this Declaration. The Trust shall be of the type commonly called a Delaware statutory trust, and,
without limiting the provisions hereof, the Trust may exercise all powers which are ordinarily
exercised by such a trust under Delaware
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">law. The Trust specifically reserves the right to exercise any of the powers or privileges
afforded to trusts or actions that may be engaged in by trusts under the Delaware Act, and the
absence of a specific reference herein to any such power, privilege or action shall not imply that
the Trust may not exercise such power or privilege or take such actions.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <U>Amendments</u>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Trustees may, without any Shareholder vote, amend or otherwise supplement
this Declaration by making an amendment, a Declaration of Trust supplemental hereto or an amended
and restated trust instrument; provided, that Shareholders shall have the right to vote on any
amendment (a)&nbsp;which would affect the voting rights of Shareholders granted in Article&nbsp;VII,
Section l, (b)&nbsp;to this Section&nbsp;10, (c)&nbsp;required to be approved by Shareholders by the 1940 Act or
by the Trust&#146;s registration statement(s) filed with the Commission or any State, and (d)&nbsp;submitted
to them by the Trustees in their discretion. Any amendment submitted to Shareholders which the
Trustees determine would affect the Shareholders of any Series shall be authorized by vote of the
Shareholders of such Series and no vote shall be required of Shareholders of a Series not affected.
Notwithstanding anything else herein, any amendment to Article&nbsp;IV which would have the effect of
reducing the indemnification and other rights provided thereby to Trustees, officers, employees,
and agents of the Trust or to Shareholders or former Shareholders, and any repeal or amendment of
this sentence shall each require the affirmative vote of the holders of two-thirds of the
Outstanding Shares of the Trust entitled to vote thereon and no such amendment shall effect the
right to indemnification of any person who is no longer a Trustee, Officer or employee or agent at
the time of such amendment or of any person with respect to any act or omission taken or omitted
prior to the adoption or enactment of such amendment or repeal.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Trustees may not amend this Declaration of Trust to eliminate the rights of
Shareholders of any Class or Series as set forth in this Section 10(b) to vote on any amendment of
this Declaration of Trust or the By-Laws or alter or amend the percentage of voting Shares required
to approve any amendment or action which requires a specific Shareholder vote under this
Declaration of Trust or the By-Laws unless an equivalent vote has authorized such an amendment of
the Declaration of Trust or By-Laws. Any amendment which adversely affects the holders of one or
more Classes or Series of Shares shall require a vote of the Shareholders holding a majority of the
Shares of each Class or Series so adversely affected and entitled to vote thereon and no vote of
Shareholders of any Class or Series not so adversely affected shall be required, except that any
amendment of any provision of Article&nbsp;IX, Sections&nbsp;5, 6 or 7 shall require the vote of the
Shareholders holding three-quarters of the Shares of each Class and Series entitled to vote
thereon, regardless of the percentage of Trustees recommending such amendment.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <U>Derivative Actions</u>. In addition to the requirements set forth
in Section&nbsp;3816 of the Delaware Act, a Shareholder may bring a derivative action on behalf of the
Trust only if the following conditions are met:
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Shareholder or Shareholders must make a pre-suit demand upon the Trustees to bring
the subject action unless an effort to cause the Trustees to bring such an action is not likely to
succeed. For purposes of this Section&nbsp;11(a), a demand on the Trustees shall only be deemed not
likely to succeed and therefore excused if a majority of the Board of Trustees, or a majority of
any committee established to consider the merits of such action, is composed of Trustees who are
not &#147;independent trustees&#148; (as that term is defined in the Delaware Act).</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Unless a demand is not required under paragraph (a)&nbsp;of this Section&nbsp;11,
Shareholders eligible to bring such derivative action under the Delaware Act who hold at least 10%
of the Outstanding Shares of the Trust, or 10% of the Outstanding Shares of the Series or Class to
which such action relates, shall join in the request for the Trustees to commence such action; and</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Unless a demand is not required under paragraph (a)&nbsp;of this Section&nbsp;11, the
Trustees must be afforded a reasonable amount of time to consider such shareholder request and to
investigate the basis of such claim. The Trustees shall be entitled to retain counsel or other
advisers in considering the merits of the request and shall require an undertaking by the
Shareholders making such request to reimburse the Trust for the expense of any such advisers in the
event that the Trustees determine not to bring such action.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Section&nbsp;11, the Board of Trustees may designate a committee of one
Trustee to consider a Shareholder demand if necessary to create a committee with a majority of
Trustees who are independent trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12. <U>Fiscal Year</u>. The fiscal year of the Trust shall end on a
specified date as set forth in the By-Laws. The Trustees may change the fiscal year of the Trust
without Shareholder approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;13. <U>Severability</u>. The provisions of this Declaration are severable.
If the Trustees determine, with the advice of counsel, that any provision hereof conflicts with
the 1940 Act, the regulated investment company provisions of the Internal Revenue Code or with
other applicable laws and regulations, the conflicting provision shall be deemed never to have
constituted a part of this Declaration; provided, however, that such determination shall not affect
any of the remaining provisions of this Declaration or render invalid or improper any action taken
or omitted prior to such determination. If any provision hereof shall be held invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall attach only to such
provision only in such jurisdiction and shall not affect any other provision of this Declaration.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">{REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.}
</DIV>


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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>IN WITNESS WHEREOF</B>, the undersigned being all the Trustees of the Trust have executed
this instrument as Trustee and not individually and as of the date first written above.</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">John P. Calamos
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stephen B. Timbers</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Joe F. Hanauer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD>&nbsp;</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Weston W. Marsh</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">John E. Neal</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD>&nbsp;</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William R. Rybak</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
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    <TD align="left" valign="top">&nbsp;</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">David D. Tripple</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>



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<DOCUMENT>
<TYPE>EX-99.(B)
<SEQUENCE>3
<FILENAME>c19483a2exv99wxby.htm
<DESCRIPTION>BY-LAWS
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit b
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
<B>CALAMOS GLOBAL TOTAL RETURN FUND</B></DIV>



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

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">(as
amended through September&nbsp;13, 2006)</div>
<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">
<B>ARTICLE 1</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Agreement and Declaration of Trust</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <B>General. </B>These By-Laws shall be subject to the Agreement and Declaration of Trust, as
from time to time amended, supplemented or restated (the &#147;Declaration of Trust&#148;) of Calamos Global
Total Return Fund (the &#147;Trust&#148;), a Delaware business trust established by the Declaration of Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <B>Definitions. </B>Unless otherwise defined herein, the terms used herein have the respective
meanings given them in the Declaration of Trust.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 2</B>
</DIV>


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <B>Offices. </B>The Trust may have such offices in such places without as well as within the
State of Delaware as the Trustees may from time to time determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <B>Registered Office and Registered Agent. </B>The registered office of the Trust shall be
located in the City of Wilmington, State of Delaware or such other location within the State of
Delaware as the Trustees may from time to time determine. The Board of Trustees shall establish a
registered office in the State of Delaware and shall appoint a registered agent for service of
process in the State of Delaware for the Trust as provided in the Delaware Business Trust Act,
12 <U>Del</U>. <U>C</U>. &#167;3807, as amended from time to time.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 3</B>
</DIV>


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <B>Annual Meetings. </B>Annual meetings of the Shareholders of the Trust or a Series or Class
thereof shall be held on such date and at such place within or without the State of Delaware as the
Trustees shall designate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <B>Special Meetings.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Special meetings of the Shareholders may be called at any time by the
Chairman, the President or the Trustees. Subject to subsection (c)&nbsp;of this Section&nbsp;3.2, a
special meeting of Shareholders shall also be called by the Secretary of the Trust upon the
written request of the Shareholders entitled to cast not less than a majority of all the
votes entitled to be cast at such meeting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Shareholder of record seeking to have Shareholders request a special
meeting shall, by sending written notice to the Secretary (the &#147;Record Date Request Notice&#148;)
by registered mail, return receipt requested, request the Trustees to fix a record date to
determine the Shareholders entitled to request a special meeting (the &#147;Requested Record
Date&#148;). The Record Date Request Notice shall set forth the purpose of the meeting and the
matters proposed to be
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">acted on at it, shall be signed by one or more Shareholders of record as of the date of
signature (or their duly authorized agents), shall bear the date of signature of each such
Shareholder (or other agent) and shall set forth all information relating to each such
Shareholder that must be disclosed in solicitations of proxies for election of trustees in
an election contest (even if an election contest is not involved), or is otherwise required,
in each case pursuant to Regulation&nbsp;14A under the Securities Exchange Act of 1934, as
amended (the &#147;Exchange Act&#148;), and Rule&nbsp;14a-11 thereunder. Upon receiving the Record Date
Request Notice, the Trustees may fix a Requested Record Date. The Requested Record Date
shall not precede and shall not be more than ten days after the close of business on the
date on which the resolution fixing the Requested Record Date is adopted by the Trustees.
If the Trustees, within thirty days after the date on which a valid Record Date Request
Notice is received, fail to adopt a resolution fixing the Requested Record Date and make a
public announcement of such Requested Record Date, the Requested Record Date shall be the
close of business on the 30th day after the first date on which the Record Date Request
Notice is received by the Secretary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In order for any Shareholder to request a special meeting, one or more
written requests for a special meeting signed by Shareholders of record (or their duly
authorized agents) as of the Requested Record Date entitled to cast not less than a majority
(the &#147;Special Meeting Percentage&#148;) of all of the votes entitled to be cast at such meeting
(the &#147;Special Meeting Request&#148;) shall be delivered to the Secretary. In addition, the
Special Meeting Request shall set forth the purpose of the meeting and the matters proposed
to be acted on at it (which shall be limited to the matters set forth in the Record Date
Request Notice received by the Secretary), shall bear the date of signature of each such
Shareholder (or other agent) signing the Special Meeting Request, shall set forth the name
and address, as they appear in the Trust&#146;s books, of each Shareholder signing such request
(or on whose behalf the Special Meeting Request is signed) and the class and number of
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of the Trust which are owned of record and beneficially by each such Shareholder,
shall be sent to the Secretary by registered mail, return receipt requested, and shall be
received by the Secretary within sixty days after the Request Record Date. Any requesting
Shareholder may revoke his, her or its request for a special meeting at any time by written
revocation delivered to the Secretary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Secretary shall inform the requesting Shareholders of the reasonably
estimated cost of preparing and mailing the notice of meeting (including the Trust&#146;s proxy
materials). The Secretary shall not be required to call a special meeting upon Shareholder
request and such meeting shall not be held unless, in addition to the documents required by
paragraphs (b)&nbsp;and (c)&nbsp;of this Section&nbsp;3.2, the Secretary receives payment of such
reasonably estimated cost prior to the mailing of any notice of the meeting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as provided in the next sentence, any special meeting shall be
held at such place, date and time as may be designated by the President, Chairman or
Trustees, whoever has called the meeting. In the case of any special meeting called by the
Secretary upon the request of Shareholders (a &#147;Shareholder Requested Meeting&#148;), such meeting
shall be held at such place, date and time as may be designated by the Trustees; PROVIDED,
however, that the date of any Shareholder Requested Meeting shall be not more than
ninety days after the record date for such meeting (the &#147;Meeting Record Date&#148;); and PROVIDED
FURTHER that if the Trustees fail to designate, within thirty days after the date that a
valid Special Meeting Request is actually received by the Secretary (the &#147;Delivery Date&#148;), a
date and time for a Shareholder Requested Meeting, then such meeting shall be held at
2:00 p.m. Central Time on the 90th day after the date the request for such meeting is
actually received by the Trust or, if such 90th day is not a Business Day (as defined
below), on the first preceding Business Day; and PROVIDED FURTHER that in the event that the
Trustees fail to designate a place for a Shareholder
</DIV>

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





<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Requested Meeting within thirty days after the Delivery Date, then such meeting shall
be held at the principal office of the Trust. In fixing a date for any special meeting, the
President, Chairman or Trustees may consider such factors as he, she, or they deem(s)
relevant within the good faith exercise of business judgment, including, without limitation,
the nature of the matters to be considered, the facts and circumstances surrounding any
request for a meeting and any plan of the Trustees to call an annual meeting or a special
meeting. In the case of any Shareholder Requested Meeting, if the Trustees fail to fix a
Meeting Record Date that is a date within thirty days after the Delivery Date, then the
close of business on the 30th day after the Delivery Date shall be the Meeting Record Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If at any time as a result of written revocations of requests for the
special meeting, Shareholders of record (or their duly authorized agents) as of the Request
Record Date entitled to cast less than the Special Meeting Percentage shall have delivered
and not revoked requests for a special meeting, the Secretary may refrain from mailing the
notice of the meeting or, if the notice of the meeting has been mailed, the Secretary may
revoke the notice of the meeting at any time before ten days prior to the meeting if the
Secretary has first sent to all other requesting Shareholders written notice of such
revocation and of intention to revoke the notice of the meeting. Any request for a special
meeting received after a revocation by the Secretary of a notice of a meeting shall be
considered a request for a new special meeting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Chairman, the President or the Trustees may appoint regionally or
nationally recognized independent inspectors of elections to act as the agent of the Trust
for the purpose of promptly performing a ministerial review of the validity of any purported
Special Meeting Request received by the Secretary. For the purpose of permitting the
inspectors to perform such review, no such purported request shall be deemed to have been
delivered to the Secretary until the earlier of (i)&nbsp;five Business Days after receipt by the
Secretary of such purported request and (ii)&nbsp;such date as the independent inspectors certify
to the Trust that the valid requests received by the Secretary represent at least a majority
of the issued and outstanding shares of stock that would be entitled to vote at such
meeting. Nothing contained in this paragraph (g)&nbsp;shall in any way be construed to suggest
or imply that the Trust or any Shareholder shall not be entitled to contest the validity of
any request, whether during or after such five Business Day period, or to take any other
action (including, without limitation, the commencement, prosecution or defense of any
litigation with respect thereto, and the seeking of injunctive relief in such litigation).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <B>Business Day. </B>For purposes of these By-Laws, &#147;Business Day&#148; shall mean any day other than
a Saturday, a Sunday or a day on which banking institutions in the State of New York are authorized
or obligated by law or executive order to close.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <B>Notice of Meetings. </B>Notice of all meetings of the Shareholders, stating the time, place
and purposes of the meeting, shall be given by the Trustees by mail or telegraphic or electronic
means to each Shareholder at the Shareholder&#146;s address as recorded on the register of the Trust
mailed at least ten days and not more than ninety days before the meeting, PROVIDED, HOWEVER, that
notice of a meeting need not be given to a Shareholder to whom such notice need not be given under
the proxy rules of the Commission under the 1940 Act and the Exchange Act; and PROVIDED, FURTHER,
that notice of any Shareholder Requested Meeting shall be provided in a manner and time consistent
with Section&nbsp;3.2(e). Only the business stated in the notice of the meeting shall be considered at
such meeting. Any adjourned meeting may be held and adjourned without further notice. No notice
need be given to any Shareholder who shall have failed to inform the Trust of his or her current
address or if a written waiver of notice, executed before or after the meeting by the Shareholder
who shall have failed to inform the Trust of his or her current address or if a written waiver of
notice, executed before or after the meeting by the Shareholder or his or her attorney thereunto
authorized, is filed with the records of the meeting.
</DIV>

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</DIV>

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <B>Record Date for Meetings and Other Purposes. </B>Except as provided in Section&nbsp;3.2, for the
purpose of determining the Shareholders who are entitled to notice of and to vote at any meeting,
or to participate in any distribution, or for the purpose of any other action, the Trustees may
from time to time close the transfer books for such period, not exceeding thirty days, as the
Trustees may determine; or without closing the transfer books the Trustees may fix a date not more
than ninety days prior to the date of any meeting of Shareholders or distribution or other action
as a record date for the determination of the persons to be treated as Shareholders of record for
such purposes, except for dividend payments which shall be governed by the Declaration of Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <B>Proxies. </B>At any meeting of Shareholders, any holder of Shares entitled to vote thereat
may vote by proxy, provided that no proxy shall be voted at any meeting unless it shall have been
placed on file with the Secretary, or with such other officer or agent of the Trust as the
Secretary may direct, for verification prior to the time at which such vote shall be taken. A
proxy shall be deemed signed if the Shareholder&#146;s name is placed on the proxy, (whether by manual
signature, typewriting, telegraphic transmission, facsimile, other electronic means or otherwise)
by the Shareholder or the Shareholder&#146;s attorney-in-fact. Proxies may be recorded by any
electronic, telephonic, internet or other telecommunication device except as otherwise provided in
the Declaration of Trust. The placing of a Shareholder&#146;s name on a proxy pursuant to telephonic or
electronically transmitted instructions pursuant to procedures reasonably designed to verify that
such instructions have been authorized by the Shareholder shall constitute execution of the proxy
by or on behalf of the Shareholder. Proxies may be solicited in the name of one or more Trustees
or one or more of the officers of the Trust. Only Shareholders of record shall be entitled to
vote. As determined by the Trustees without the vote or consent of Shareholders, on any matter
submitted to a vote of Shareholders each whole Share shall be entitled to one vote as to any matter
on which it is entitled to vote and each fractional Share shall be entitled to a proportionate
fractional vote. Without limiting their power to designate otherwise in accordance with the
preceding sentence, the Trustees have established in the Declaration of Trust that each whole share
shall be entitled to one vote as to any matter on which it is entitled by the Declaration of Trust
to vote and fractional shares shall be entitled to a proportionate fractional vote. When any Share
is held jointly by several persons, any one of them may vote at any meeting in person or by proxy
in respect of such Share, but if more than one of them shall be present at such meeting in person
or by proxy, and such joint owners or their proxies so present disagree as to any vote to be cast,
such vote shall not be received in respect of such Share. A proxy, including a photographic or
similar reproduction thereof and a telegram, cablegram, wireless or similar transmission thereof,
purporting to be executed by or on behalf of a Shareholder shall be deemed valid unless challenged
at or prior to its exercise, and the burden of proving invalidity shall rest on the challenger. If
the holder of any such share is a minor or a person of unsound mind, and subject to guardianship or
the legal control of any other person as regards the charge or management of such Share, he or she
may vote by his or her guardian or such other person appointed or having such control, and such
vote may be given in person or by proxy. Except as otherwise provided herein or in the Declaration
of Trust or the Delaware Business Trust Act, 12 <U>Del</u>. <U>C</u>. &#167;&#167; 3801 <U>et</U>
<U>seq</u>., all matters relating to the giving, voting or validity of proxies shall be governed
by the General Corporation Law of the State of Delaware relating to proxies, and judicial
interpretations thereunder, as if the Trust were a Delaware corporation and the Shareholders were
shareholders of a Delaware corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <B>Inspection of Books. </B>The Trustees shall from time to time determine whether and to what
extent, and at what times and places, and under what conditions and regulations the accounts and
books of the Trust or any of them shall be open to the inspection of the Shareholders; and no
Shareholder shall have any right to inspect any account or book or document of the Trust except as
conferred by law or otherwise by the Trustees or by resolution of the Shareholders.
</DIV>

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</DIV>

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




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">3.8 <b>Nominations and Proposals by Shareholders.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Annual Meetings of Shareholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Nominations of persons for election as a Trustee and the proposal
of business to be considered by the Shareholders may be made at an annual meeting of
Shareholders (i)&nbsp;pursuant to the Trust&#146;s notice of meeting, (ii)&nbsp;by or at the
direction of the Trustees or (iii)&nbsp;by any Shareholder of the Trust who was a
Shareholder of record both at the time of giving of notice provided for in this
Section&nbsp;3.8(a) and at the time of the annual meeting, who is entitled to vote at the
meeting and who complied with the notice procedures set forth in this
Section&nbsp;3.8(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For nominations for election to the Trustees or other business to be properly
brought before an annual meeting by a Shareholder pursuant to clause (iii)&nbsp;of
paragraph (a)(1) of this Section&nbsp;3.8, the Shareholder must have given timely notice
thereof in writing to the Secretary of the Trust and such other business must
otherwise be a proper matter for action by Shareholders. To be timely, a
Shareholder&#146;s notice must be delivered to the Secretary at the principal executive
office of the Trust by not later than the close of business on the 90th day prior to
the first anniversary of the date of mailing of the notice for the preceding year&#146;s
annual meeting nor earlier than the close of business on the 120th day prior to the
first anniversary of the date of mailing of the notice for the preceding year&#146;s
annual meeting; provided, however, that in the event that the date of the mailing of
the notice for the annual meeting is advanced or delayed by more than thirty days
from the anniversary date of the mailing of the notice for the preceding year&#146;s
annual meeting, notice by the Shareholder to be timely must be so delivered not
earlier than the close of business on the 120th day prior to the date of mailing of
the notice for such annual meeting and not later than the close of business on the
later of the 90th day prior to the date of mailing of the notice for such annual
meeting or the 10th day following the day on which public announcement of the date
of mailing of the notice for such meeting is first made by the Trust. In no event
shall the public announcement of a postponement of the mailing of the notice for
such annual meeting or of an adjournment or postponement of an annual meeting to a
later date or time commence a new time period for the giving of a Shareholder&#146;s
notice as described above. A Shareholder&#146;s notice to be proper must set forth (i)
the class or series and number of all shares of the Trust owned beneficially and of
record by Shareholder at the time the recommendation is submitted and the dates on
which such shares were acquired, specifying the number of shares owned beneficially;
(ii)&nbsp;a full listing of the proposed candidate&#146;s education, experience (including
knowledge of the investment company industry, experience as a director or senior
officer of public or private companies, and directorships on other boards of other
registered investment companies), current employment, date of birth, business and
residence address, and the names and addresses of at least three professional
references; (iii)&nbsp;information as to whether the candidate is, has been or may be an
&#147;interested person&#148; (as such term is defined in the Investment Company Act of 1940,
as amended) of the Trust, Calamos Advisors LLC (the &#147;Adviser&#148;) or any affiliate of
the Adviser, and, if believed not to be or have been an &#147;interested person,&#148;
information regarding the candidate that will be sufficient for the Committee to
make such determination; (iv)&nbsp;the written and signed consent of the candidate to be
named as a nominee and to serve as a Trustee of the Trust, if elected; (v)&nbsp;a
description of all arrangements or understandings between the Shareholder, the
candidate and/or any other person or persons (including their names) pursuant to
which the Shareholder recommendation is being made, and if none, so specify; (vi)
the class or series and
</DIV>

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</DIV>

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





<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">number of all shares of the Trust or any other Trust owned of record or
beneficially by the candidate, as reported by the candidate; and (vii)&nbsp;such other
information that would be helpful to the Committee in evaluating the candidate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the event that the number of trustees to be elected to the
Board of Trustees is increased and there is no public announcement by the Trust of
such action or specifying the size of the increased Trustees at least one hundred
days prior to the first anniversary of the date of mailing of the notice for the
preceding year&#146;s annual meeting, a Shareholder&#146;s notice required by this
Section&nbsp;3.8(a) shall also be considered timely, but only with respect to nominees
for any new positions created by such increase, if the notice is delivered to the
Secretary at the principal executive offices of the Trust not later than the close
of business on the 10th day immediately following the day on which such public
announcement is first made by the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Special Meetings of Shareholders. Only such business shall be conducted
at a special meeting of Shareholders as shall have been brought before the meeting pursuant
to the Trust&#146;s notice of meeting. Nominations of persons for election to the Trustees may
be made at a special meeting of Shareholders at which trustees are to be elected
(i)&nbsp;pursuant to the Trust&#146;s notice of meeting, (ii)&nbsp;by or at the direction of the Trustees
or (iii)&nbsp;provided that the Trustees have determined that trustees shall be elected at such
special meeting, by any Shareholder of the Trust who is a Shareholder of record both at the
time of giving of notice provided for in this Section&nbsp;3.8(b) and at the time of the special
meeting, who is entitled to vote at the meeting and who complied with the notice procedures
set forth in this Section&nbsp;3.8(b)<B>. </B>In the event the Trust calls a special meeting of
Shareholders for the purpose of electing one or more Trustees, any such Shareholder may
nominate a person or persons (as the case may be) for election to such position as specified
in the Trust&#146;s notice of meeting, if the Shareholder&#146;s notice containing the information
required by paragraph (a)(2) of this Section&nbsp;3.8 shall have been delivered to the Secretary
at the principal offices of the Trust not earlier than the close of business on the 120th
day prior to such special meeting and not later than the close of business on the later of
the 90th day prior to such special meeting or the 10th day following the day on which public
announcement is first made of the date of the special meeting and the nominees proposed by
the Trustees to be elected at such meeting. In no event shall the public announcement of a
postponement or adjournment of a special meeting to a later date or time commence a new time
period for the giving of a Shareholder&#146;s notice as described above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;General. Only such persons who are nominated in accordance with the
procedures set forth in this Section&nbsp;3.8 shall be eligible to serve as trustee, and only
such business shall be conducted at a meeting of Shareholders as shall have been brought
before the meeting in accordance with the procedures set forth in this Section&nbsp;3.8. The
chairman of the meeting shall have the power and duty to determine whether a nomination or
any other business proposed to be brought before the meeting was made or proposed, as the
case may be, in accordance with the procedures set forth in this Section&nbsp;3.8 and, if any
proposed nomination or other business is not in compliance with this Section&nbsp;3.8, to declare
that such nomination or proposal shall be disregarded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Section&nbsp;3.8 (a)&nbsp;the &#147;date of mailing of the notice&#148; shall mean the
date of the proxy statement for the solicitation of proxies for election of trustees and
(b) &#147;public announcement&#148; shall mean disclosure (i)&nbsp;in a press release either transmitted to
the principal securities exchange on which Shares of the Trust&#146;s common stock are traded or
reported by a recognized news service or (ii)&nbsp;in a document publicly filed by the Trust with
the Commission.
</DIV>

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</DIV>

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





<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Compliance with State and Federal Law. Notwithstanding the foregoing
provisions of this Section&nbsp;3.8, a Shareholder shall also comply with all applicable
requirements of state law and of the Exchange Act and the rules and regulations thereunder
with respect to the matters set forth in this Section&nbsp;3.8. Nothing in this Section&nbsp;3.8
shall be deemed to affect any right of a Shareholder to request inclusion of a proposal in,
nor the right of the Trust to omit a proposal from, the Trust&#146;s proxy statement pursuant to
Rule&nbsp;14a-8 (or any successor provision) under the Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <B>Abstentions and Broker Non-Votes. </B>Outstanding Shares represented in person or by proxy
(including Shares which abstain or do not vote with respect to one or more of any proposals
presented for Shareholder approval) will be counted for purposes of determining whether a quorum is
present at a meeting. Abstentions will be treated as Shares that are present and entitled to vote
for purposes of determining the number of Shares that are present and entitled to vote with respect
to any particular proposal, but will not be counted as a vote in favor of such proposal. If a
broker or nominee holding Shares in &#147;street name&#148; indicates on the proxy that it does not have
discretionary authority to vote as to a particular proposal, those Shares will not be considered as
present and entitled to vote with respect to such proposal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <B>Action without Meeting. </B>Any action which may be taken by Shareholders may be taken
without a meeting if a majority of Outstanding Shares entitled to vote on the matter (or such
larger proportion thereof as shall be required by law) consent to the action in writing and the
written consents are filed with the records of the meetings of Shareholders. Such consents shall
be treated for all purposes as a vote taken at a meeting of Shareholders.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 4</B>
</DIV>


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <B>Chairman of the Trustees. </B>The Trustees shall appoint one of their number to be Chairman
of the Trustees (&#147;Chairman&#148;). The Chairman shall preside at all meetings of the Trustees and
shareholders and shall have such other duties as may be assigned to the Chairman by the Trustees
from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <B>Lead Independent Trustee. </B>If the Chairman is an &#147;interested person&#148; of the Trust, as
defined in the Investment Company Act of 1940 (the &#147;1940 Act&#148;), the Trustees who are not such
interested persons of the Trust (&#147;Independent Trustees&#148;) shall appoint one of their number to be
Lead Independent Trustee, who shall have such duties as may be assigned by the Independent Trustees
from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <B>Meetings of the Trustees. </B>The Trustees may in their discretion provide for regular or
stated meetings of the Trustees. Notice of regular or stated meetings need not be given. Meetings
of the Trustees other than regular or stated meetings shall be held whenever called by the
Chairman, the Lead Independent Trustee or by two or more other Trustees, at the time then in
office. Notice of the time and place of each meeting other than regular or stated meetings shall
be given by the Secretary or an Assistant Secretary or by the officer or Trustee calling the
meeting and shall be mailed, postage prepaid, to each Trustee at least three days before the
meeting, or shall be given by telephone, cable, wireless, facsimile or other electronic mechanism
by which receipt thereof can be confirmed to each Trustee at his or her business address, or
personally delivered to him or her at least one day before the meeting. Such notice may, however,
be waived by any Trustee. Notice of a meeting need not be given to any Trustee if a written waiver
of notice, executed by him or her before or after the meeting, is filed with the records of the
meeting, or to any Trustee who attends the meeting without protesting prior thereto or at its
commencement the lack of notice to him or her. A notice or waiver of notice need not specify the
</DIV>

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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">purpose of any meeting. The Trustees may meet by means of a telephone conference circuit or
similar communications equipment by means of which all persons participating in the meeting can
hear each other at the same time and participation by such means shall be deemed to have been held
at a place designated by the Trustees at the meeting. Participation in a telephone conference
meeting shall constitute presence in person at such meeting. Any action required or permitted to
be taken at any meeting of the Trustees may be taken by the Trustees without a meeting if a
majority of the Trustees then in office (or such higher number of Trustees as would be required to
act on the matter under the Declaration of Trust, these By-Laws or applicable law if a meeting were
held) consent to the action in writing and the written consents are filed with the records of the
Trustees&#146; meetings. Such consents shall be treated as a vote for all purposes. Notwithstanding
the foregoing, all actions of the Trustees shall be taken in compliance with the provisions of the
1940 Act.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <B>Quorum and Manner of Acting. </B>A majority of the Trustees then in office shall be present
in person at any regular or special meeting of the Trustees in order to constitute a quorum for the
transaction of business at such meeting and (except as otherwise required by law, the Declaration
of Trust or these By-Laws) the act of a majority of the Trustees present at any such meeting, at
which a quorum is present, shall be the act of the Trustees. In the absence of a quorum, a
majority of the Trustees present may adjourn the meeting from time to time until a quorum shall be
present. Notice of an adjourned meeting need not be given.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <B>Action by Consent</B>. Any action required or permitted to be taken at any meeting of the
Trustees or any committee thereof may be taken without a meeting, if a written consent to such
action is signed by a majority of the Trustees then in office or a majority of the members of such
committee, as the case may be, and such written consent is filed with the minutes of the
proceedings of the Trustees or such committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <B>Eligibility to Serve. </B>Each Independent Trustee shall retire as a Trustee as of the end of
the calendar year in which the Trustee attains the age of 72&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <B>Liability of Chairman and Lead Independent Trustee. </B>A Trustee serving as Chairman or Lead
Independent Trustee shall not be subject to any greater liability, nor subject to any higher
standard or duty, than that to which he or she would be subject if not serving as such.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 5</B>
</DIV>


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <B>Executive and Other Committees. </B>The Trustees by vote of a majority of all the Trustees
may elect from their own number an Executive Committee to consist of not less than two members to
hold office at the pleasure of the Trustees, which shall have the power to conduct the current and
ordinary business of the Trust while the Trustees are not in session, including the purchase and
sale of securities and the designation of securities to be delivered upon redemption of Shares of
the Trust or a Series thereof, and such other powers of the Trustees as the Trustees may delegate
to them, from time to time, except those powers which by law, the Declaration of Trust or these
By-Laws they are prohibited from delegating. The Trustees may also elect from their own number
other Committees from time to time; the number composing such Committees, the powers conferred upon
the same (subject to the same limitations as with respect to the Executive Committee) and the term
of membership on such Committees to be determined by the Trustees. The Trustees may designate a
Chairman of any such Committee. In the absence of such designation the Committee may elect its own
Chairman.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <B>Quorum and Manner of Acting. </B>A majority of the members of any Committee of the Trustees
shall constitute a quorum for the transaction of business, and any action of such a Committee
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">may be taken at a meeting by a majority of the members present (a quorum being present) or
evidenced by one or more writings signed by a majority of the members of such Committee. Members
of a Committee may participate in a meeting of such Committee by means of a conference telephone or
other communications equipment by means of which all persons participating in the meeting can hear
each other at the same time and participation by such means shall constitute presence in person at
a meeting.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <B>Liability of Committee Chairman. </B>A Trustee serving as a Chairman of any Committee of the
Trustees shall not be subject to any greater liability, nor subject to any higher standard or duty,
than that to which he or she would be subject if not serving as Chairman of the Committee.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 6</B>
</DIV>


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <B>General Provisions. </B>The officers of the Trust shall be a President, a Treasurer and a
Secretary, who shall be elected by the Trustees. The Trustees may elect such other officers or
agents as the business of the Trust may require, including one or more Vice Presidents, one or more
Assistant Secretaries, and one or more Assistant Treasurers. The Trustees may delegate to any
officer or Committee the power to appoint any subordinate officers or agents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <B>Election. </B>The President, the Vice Presidents (if any), the Treasurer and the Secretary
shall be elected annually by the Trustees. Other officers, if any, may be elected by the Trustees
at such meeting or at any other time. Vacancies in any office may be filled at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <B>Tenure. </B>Subject to Section&nbsp;6.4, each officer shall hold office and each agent shall
retain authority at the pleasure of the Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <B>Removal. </B>The Trustees, at any regular or special meeting of the Trustees, may remove any
officer with or without cause, by a vote of a majority of the Trustees then in office. Any officer
or agent appointed by an officer or committee may be removed with or without cause by such
appointing officer or committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <B>President. </B>Unless the Trustees otherwise provide, the President shall be the chief
executive officer of the Trust and, subject to the direction of the Trustees, shall have general
charge of the business affairs and property of the Trust and general supervision over its officers,
employees and agents. Except as the Trustees may otherwise order, the President shall have the
power to grant, issue, execute or sign such powers of attorney, proxies, agreements, certifications
or other documents as he or she may deem advisable or necessary in the furtherance of the interests
of the Trust or any Series or Class thereof. The President also shall have the power to employ
attorneys, accountants and other advisers and agents for the Trust. The President shall exercise
such other powers and perform such other duties as the Trustees may from time to time assign to the
President.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <B>Vice Presidents. </B>The Vice Presidents shall, in the absence or disability of the
President, and in the order designated by the Trustees, perform the duties and exercise the powers
of the President and, in addition, shall at all time perform such other duties and exercise such
other powers as may be prescribed by the Trustees or the President, to whose supervision they shall
be subject. Any Vice President of the Trust may be designated the chief financial officer of the
Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <B>Chief Financial Officer. </B>The Chief Financial Officer of the Trust shall have general
charge of the finances of the Trust. The Chief Financial Officer shall make annual reports
regarding the business and financial condition of the Trust as soon as possible after the close of
the Trust&#146;s fiscal year and shall furnish such other reports concerning the business and financial
condition of the Trust as the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Trustees may from time to time require. The Chief Financial Officer shall perform all acts
incidental to the office of Chief Financial Officer, subject to the supervision of the Trustees,
and shall perform such additional duties as the Trustees or the Chairman may from time to time
designate. The Chief Financial Officer shall be responsible to and shall report to the Trustees.
In the absence of the Chief Financial Officer, the Treasurer may perform all duties of the Chief
Financial Officer.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <B>Treasurer. </B>The Treasurer shall, subject to the provisions of the Declaration of Trust and
to any arrangement made by the Trustees with any custodian, investment adviser, or transfer,
accounting or Shareholder servicing or similar agent, be the chief accounting officer and be in
charge of the valuable papers, books of account and accounting records of the Trust and shall have
such other duties and powers as may be designated from time to time by the Trustees or by the
President. The Treasurer may be designated the chief financial officer of the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <B>Secretary. </B>The Secretary shall, if and to the extent requested by the Trustees and/or
shareholders, attend all meetings of the Trustees, any committee of the Trustees and the
Shareholders and record all the proceedings of such meetings in a book to be kept for that purpose.
Subject to Section&nbsp;3.4 hereof, he or she shall give, or cause to be given, notice of all meetings
of the Trustees and meetings of the Shareholders, and shall perform such other duties as may be
prescribed by the Trustees or President, to whose supervision he or she shall be subject. The
Secretary shall keep in safe custody the seal of the Trust and, when authorized by the Trustee,
affix the same to any instrument requiring it, which seal when so affixed may be attested by his or
her signature or by the signature of the Treasurer or an Assistant Secretary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <B>Assistant Treasurers. </B>In the absence or disability of the Treasurer, any Assistant
Treasurer designated by the Trustees shall perform all the duties, and may exercise any of the
powers, of the Treasurer. Each Assistant Treasurer shall perform such other duties as from time to
time may be assigned to such Assistant Treasurer by the Trustees. Each Assistant Treasurer
performing the duties and exercising the powers of the Treasurer, if any, shall give a bond for the
faithful discharge of his or her duties, if required so to do by the Trustees, in such sum and with
such surety or sureties as the Trustees shall require.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <B>Assistant Secretaries. </B>In the absence or disability of the Secretary, any Assistant
Secretary designated by the Trustees shall perform all the duties, and may exercise any of the
powers, of the Secretary. Each Assistant Secretary shall perform such other duties as from time to
time may be assigned to such officer by the Trustees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <B>Compensation of Officers and Trustees and Members of the Advisory Board. </B>Subject to any
applicable provisions of the Declaration of Trust, the compensation of the officers and Trustees
and members of any advisory board shall be fixed from time to time by the Trustees or, in the case
of officers, by any Committee or officer upon whom such power may be conferred by the Trustees. No
officer shall be prevented from receiving such compensation as such officer by reason of the fact
that the officer is also a Trustee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <B>Power to Vote Securities. </B>Unless otherwise ordered by the Trustees, the Chief Financial
Officer and/or the Treasurer shall have full power and authority on behalf of the Trust to give
proxies for, and/or to attend and to act and to vote at, any meeting of stockholders of any
corporation in which the Trust may hold stock, and at any such meeting the Treasurer or his or her
proxy shall possess and may exercise any and all rights and powers incident to the ownership of
such stock which, as the owner thereof, the Trust might have possessed and exercised if present.
The Trustees, by resolution from time to time, or, in the absence thereof, the Treasurer, may
confer like powers upon any other person or persons as attorneys and proxies of the Trust.
</DIV>

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</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 7</B>
</DIV>


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

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The fiscal year of the Trust shall end on such date as the Trustees shall from time to time
determine.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 8</B>
</DIV>


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

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Trustees may, but shall not be required to, adopt a seal which shall be in such form and shall
have such inscription thereon as the Trustees may from time to time prescribe.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 9</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Sufficiency and Waivers of Notice</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Whenever any notice whatever is required to be given by law, the Declaration of Trust or these
By-Laws, a waiver thereof in writing, signed by the person or persons entitled to said notice,
whether before or after the time stated therein, shall be deemed equivalent thereto. A notice
shall be deemed to have been sent by mail, telegraph or cable when it has been delivered to a
representative of any company holding itself out as capable of sending notice by such means with
instructions that it be so sent, or at the time of confirmation if sent by wireless, facsimile or
other electronic means.</DIV>


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


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

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If so determined by resolution of the Board of Trustees, each Shareholder of the Trust shall be
entitled upon request to have a certificate or certificates, in such form as shall be approved by
the Board of Trustees, representing the number of Shares of the Trust owned by the Shareholder,
provided, however, that certificates for fractional shares will not be delivered in any case.
Certificates representing Shares shall be signed by or in the name of the Trust by the President or
a Vice President or the Chairman and by the Secretary or an Assistant Secretary or the Treasurer or
an Assistant Treasurer. Any or all of the signatures may be a facsimile. In case any officer,
transfer agent or registrar who has signed or whose facsimile signature has been placed upon a
certificate shall have ceased to be such officer, transfer agent or registrar before such
certificate shall be issued, it may be issued by the Trust with the same effect as if such officer,
transfer agent or registrar were still in the office at the date of issue.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 11</B>
</DIV>


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

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These By-Laws, or any of them, may be altered, amended or repealed, or new By-Laws may be adopted
by the Trustees, provided, however, that no By-law may be amended, adopted or repealed by the
Trustees if such amendment, adoption or repeal requires, pursuant to law, the Declaration of Trust
or these By-Laws, a vote of the Shareholders.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">END OF BY-LAWS
</DIV>



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<DOCUMENT>
<TYPE>EX-99.(E)
<SEQUENCE>4
<FILENAME>c19483a2exv99wxey.htm
<DESCRIPTION>TERMS AND CONDITIONS OF THE DIVIDEND REINVESTMENT PLAN
<TEXT>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit e
</DIV>


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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>TERMS AND CONDITIONS OF THE</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AMENDED AND RESTATED DIVIDEND REINVESTMENT PLAN</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>(as revised March&nbsp;30, 2006)</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Registered holders (&#147;Common Shareholders&#148;) of common shares of beneficial interest (the &#147;Common
Shares&#148;) of Calamos Global Total Return Fund (the &#147;Trust&#148;) will automatically be enrolled (the
&#147;Participants&#148;) in its Dividend Reinvestment Plan (the &#147;Plan&#148;) and are advised as follows:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;THE PLAN AGENT. The Bank of New York (the &#147;Agent&#148;) will act as agent for each Participant.
The Agent will open an account for each Participant under the Plan in the same name in which his
or her outstanding Common Shares are registered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;CASH OPTION. Pursuant to the Fund&#146;s Plan, unless a holder of Common Shares otherwise
elects, all dividend and capital gains distributions will be automatically reinvested by the Agent
in additional Common Shares of the Fund. Common Shareholders who elect not to participate in the
Plan will receive all distributions in cash paid by check mailed directly to the shareholder of
record (or, if the shares are held in street or other nominee name then to such nominee) by the
Agent, as dividend paying agent. Such participants may elect not to participate in the Plan and to
receive all distributions of dividends and capital gains in cash by sending written instructions to
the Agent, as dividend paying agent, at the address set forth below. Please note that the Plan
administrator may use BNY ESI &#038; Co. for trading activity, relative to the Plan on behalf of Plan
participants. BNY ESI &#038; Co. Inc. receives a commission in connection with any such transactions it
processes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;MARKET PREMIUM ISSUANCES. If on the payment date for a Distribution, the net asset value
per Common Share is equal to or less than the market price per Common Share plus estimated
brokerage commissions, the Agent shall receive newly issued Common Shares (&#147;Additional Common
Shares&#148;) from the Trust for each Participant&#146;s account. The number of Additional Common Shares to
be credited shall be determined by dividing the dollar amount of the Distribution by the greater of
(i)&nbsp;the net asset value per Common Share on the payment date, or (ii)&nbsp;95% of the market price per
Common Share on the payment date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;MARKET DISCOUNT PURCHASES. If the net asset value per Common Share exceeds the market
price plus estimated brokerage commissions on the payment date for a Distribution, the Agent (or a
broker-dealer selected by the Agent) shall endeavor to apply the amount of such Distribution on
each Participant&#146;s Common Shares to purchase Common Shares on the open market. In the event of a
market discount on the payment date, the Agent will use commercially reasonable efforts to invest
the dividend amount in shares acquired in open-market purchases by the last business day before the
next date on which the shares trade on an &#147;ex-dividend&#148; basis, but in no event shall the Agent
invest such dividend amount in shares acquired in open-market purchases more than 30&nbsp;days after the
dividend payment date (the &#147;last purchase date&#148;). It is contemplated that the Trust will pay
monthly income dividends. Therefore, the period during which open-market purchases generally will
be made will exist only from the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">payment date of each dividend through the date before the next &#147;ex-dividend&#148; date, which
typically will be approximately ten days. The weighted average price (including brokerage
commissions) of all Common Shares purchased by the Agent as Agent shall be the price per Common
Share allocable to each Participant. If, before the Agent has completed its purchases, the market
price plus estimated brokerage commissions exceeds the net asset value of the Common Shares as of
the payment date, the purchase price paid by Agent may exceed the net asset value of the Common
Shares, resulting in the acquisition of fewer Common Shares than if such Distribution had been paid
in Common Shares issued by the Trust. Because of the foregoing difficulty with respect to
open-market purchases, the Plan provides that if the Plan Agent is unable to invest the full
dividend amount in open-market purchases during the purchase period or if the market discount
shifts to a market premium during the purchase period, the Plan Agent may cease making open-market
purchases and may invest the uninvested portion of the dividend amount in newly issued Common
Shares at the net asset value per Common Share at the close of business on the last purchase date.
Participants should note that they will not be able to instruct the Agent to purchase Common Shares
at a specific time or at a specific price. Open-market purchases may be made on any securities
exchange where Common Shares are traded, in the over-the-counter market or in negotiated
transactions, and may be on such terms as to price, delivery and otherwise as the Agent shall
determine. Each Participant&#146;s uninvested funds held by the Agent will not bear interest. The
Agent shall have no liability in connection with any inability to purchase Common Shares within the
time provided, or with the timing of any purchases effected. The Agent shall have no
responsibility for the value of Common Shares acquired. The Agent may commingle Participants&#146;
funds to be used for open-market purchases of Trust shares and the price per share allocable to
each Participant in connection with such purchases shall be the average price (including brokerage
commissions and other related costs) of all Trust shares purchased by Agent.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;VALUATION. The market price of Common Shares on a particular date shall be the last sales
price on the securities exchange where the Common Shares are listed on that date (the &#147;Exchange&#148;),
or, if there is no sale on such Exchange on that date, then the mean between the closing bid and
asked quotations on such Exchange on such date will be used. The net asset value per Common Share
on, a particular date shall be the amount calculated on that date (or if not calculated on such
date, the amount most recently calculated) by or on behalf of the Trust in accordance with the
Trust&#146;s current prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;TAXATION. The automatic reinvestment of Distributions does not relieve Participants of any
federal, state or local taxes which may be payable (or required to be withheld on Distributions.
Participants will receive tax information annually for their personal records and to help them
prepare their federal income tax return. For further information as to tax consequences of
participation in the Plan, Participants should consult with their own tax advisors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;LIABILITY OF AGENT. The Agent shall at all times act in good faith and agree to use its
best efforts within reasonable limits to ensure the accuracy of all services performed under this
Agreement and to comply with applicable law, but assumes no responsibility and shall not be liable
for loss or damage due to errors unless such error is caused by the Agent&#146;s negligence, bad faith,
or willful misconduct or that of its employees.
</DIV>

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</DIV>

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;RECORDKEEPING. The Agent may hold each Participant&#146;s Common Shares acquired pursuant to
the Plan together with the Common Shares of other Common Shareholders of the Trust acquired
pursuant to the Plan in non-certificated form in the Agent&#146;s name or that of the Agent&#146;s nominee.
Each Participant will be sent a confirmation by the Agent of each acquisition made for his or her
account as soon as practicable, but in no event later than 60&nbsp;days, after the date thereof. Upon a
Participant&#146;s request, the Agent will deliver to the Participant, without charge, a certificate or
certificates for the full Common Shares. Although each Participant may from time to time have an
undivided fractional interest in a Common Share of the Trust, no certificates for a fractional
share will be issued. Similarly, Participants may request to sell a portion of the Common Shares
held by the Agent in their Plan accounts by calling the Agent, writing to the Agent, or completing
and returning the transaction form attached to each Plan statement. The Agent will sell such
Common Shares through a broker-dealer selected by the Agent within 5 business days of receipt of
the request. The sale price will equal the weighted average price of all Common Shares sold
through the Plan on the day of the sale, less brokerage commissions. Participants should note that
the Agent is unable to accept instructions to sell on a specific date or at a specific price. Any
share dividends or split shares distributed by the Trust on Common Shares held by the Agent for
Participants will be credited to their accounts. In the event that the Trust makes available to
its Common Shareholders rights to purchase additional Common Shares, the Common Shares held for
each Participant under the Plan will be added to other Common Shares held by the Participant in
calculating the number of rights to be issued to each Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;PROXY MATERIALS. The Agent will forward to each Participant any proxy solicitation
material. The Agent will vote any Common Shares held for a Participant first in accordance with
the instructions set forth on proxies returned by such Participant to the Trust, and then with
respect to any proxies not returned by such Participant to the Trust, in the same proportion as the
Agent votes the proxies returned by the Participants to the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;FEES. The Agent&#146;s service fee for handling Distributions will be paid by the Trust. Each
Participant will be charged his or her pro rata share of brokerage commissions on all open-market
purchases. If a Participant elects to have the Agent sell part or all of his or her Common Shares
and remit the proceeds, such Participant will be charged his or her pro rata share of brokerage
commissions on the shares sold, plus a $15 transaction fee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;TERMINATION IN THE PLAN. Each registered Participant may terminate his or her account
under the Plan by notifying the Agent in writing at P.O. Box 1958, Newark, New Jersey 07101-9774,
or by calling the Agent at 1-800-432-8224, or using The Bank of New York&#146;s website:
<U>http://stockbny.com.</u> Such termination will be effective with respect to a particular Distribution
if the Participant&#146;s notice is received by the Agent prior to such Distribution record date. The
Plan may be terminated by the Agent or the Trust upon notice in writing mailed to each Participant
at least 60&nbsp;days prior to the effective date of the termination. Upon any termination, the Agent
will cause a certificate or certificates to be issued for the full shares held for each Participant
under the Plan and cash adjustment for any fraction of a Common Share at the then current market
value of the Common Shares to be delivered to him. If preferred, a Participant may request the
sale of all of the Common Shares held by the Agent in his or her Plan account in order to terminate
participation in the Plan. If any Participant elects in advance of such termination to have Agent
sell part or all of his shares, Agent is authorized to
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">deduct from the proceeds a $15.00 fee plus the brokerage commissions incurred for the
transaction. If a Participant has terminated his or her participation in the Plan but continues to
have Common Shares registered in his or her name, he or she may re-enroll in the Plan at any time
by notifying the Agent in writing at the address above.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;AMENDMENT OF THE PLAN. These terms and conditions may be amended by the Agent or the
Trust at any time but, except when necessary or appropriate to comply with applicable law or the
rules or policies of the Securities and Exchange Commission or any other regulatory authority, only
by mailing to each Participant appropriate written notice at least 30&nbsp;days prior to the effective
date thereof. The amendment shall be deemed to be accepted by each Participant unless, prior to
the effective date thereof, the Agent receives notice of the termination of the Participant&#146;s
account under the Plan. Any such amendment may include an appointment by the Agent of a successor
Agent, subject to the prior written approval of the successor Agent by the Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;APPLICABLE LAW. These terms and conditions shall be governed by the laws of the State of
New York.
</DIV>


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<DOCUMENT>
<TYPE>EX-99.(H)(1)
<SEQUENCE>5
<FILENAME>c19483a2exv99wxhyx1y.htm
<DESCRIPTION>FORM OF UNDERWRITING AGREEMENT RELATING TO COMMON SHARES
<TEXT>
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<TITLE>exv99wxhyx1y</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit h.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS &#091;CLOSED-END&#093; FUND</B>
</DIV>


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

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per Share

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>UNDERWRITING AGREEMENT</U>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Dated: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2008
</DIV>


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




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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">REPRESENTATIONS AND WARRANTIES
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SALE AND DELIVERY TO UNDERWRITERS; CLOSING
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">COVENANTS OF THE FUND AND THE ADVISER
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAYMENT OF EXPENSES
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CONDITIONS OF UNDERWRITERS&#146; OBLIGATIONS
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">INDEMNIFICATION
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CONTRIBUTION
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE DELIVERY
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">TERMINATION OF AGREEMENT
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DEFAULT BY ONE OR MORE OF THE UNDERWRITERS
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NOTICES
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PARTIES
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">GOVERNING LAW
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 14
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">EFFECT OF HEADINGS
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DEFINITIONS
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SECTION 16
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ABSENCE OF FIDUCIARY RELATIONSHIP
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">30</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">-
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Initial Securities to be Sold</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;B
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">-
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Opinion of Fund Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;C
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">-
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Opinion of Adviser Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;D
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">-
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Opinion of Delaware Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;E
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">-
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Price-Related Information</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS &#091;CLOSED-END&#093; FUND</B>
</DIV>


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

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>UNDERWRITING AGREEMENT</U>

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 60%"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2008
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#091;Underwriter(s)&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As Representatives of the several Underwriters<BR>
listed on Exhibit&nbsp;A hereto

</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos &#091;Closed End&#093; Fund, a Delaware statutory trust (the &#147;<U>Fund</U>&#148;), and Calamos
Advisors LLC, a Delaware limited liability company (the &#147;<U>Adviser</U>&#148;), confirm their
respective agreements with &#091;Lead Underwriter&#093; and each of the other Underwriters named in Exhibit&nbsp;A
hereto (collectively, the &#147;<U>Underwriters</U>,&#148; which term shall also include any underwriter
substituted as hereinafter provided in Section&nbsp;10 hereof), for whom &#091;Lead Underwriter&#093; is acting as
representative (in such capacity, the &#147;<U>Representative</U>&#148;), with respect to the issue and sale
by the Fund of a total of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> common shares of beneficial interest, no par value per share
(the &#147;<U>Initial Securities</U>&#148;), and the purchase by the Underwriters, acting severally and not
jointly, of the respective numbers of Initial Securities set forth in said Exhibit&nbsp;A hereto, and
with respect to the grant by the Fund to the Underwriters, acting severally and not jointly, of the
option described in Section 2(b) hereof to purchase all or any part of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> additional common
shares of beneficial interest to cover over allotments, if any. The Initial Securities to be
purchased by the Underwriters and all or any part of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> common shares of beneficial
interest subject to the option described in Section 2(b) hereof (the &#147;<U>Option Securities</U>&#148;)
are hereinafter called, collectively, the &#147;<U>Securities</U>.&#148; Certain terms used in this
Agreement are defined in Section&nbsp;15 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund understands that the Underwriters propose to make a public offering of the Securities
as soon as the Representatives deem advisable after this Agreement has been executed and delivered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has entered into (i)&nbsp;an Investment Management Agreement with the Adviser dated as of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, (ii)&nbsp;a Custody Agreement with The Bank of New York dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, (iii)&nbsp;a
Foreign Custody Agreement with The Bank of New York dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, (iv)&nbsp;a Stock Transfer
Agency Agreement with The Bank of New York dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, (v)&nbsp;an Amended and Restated
Financial Accounting Services Agreement with the Adviser dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, as effective with
respect to the Fund as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and (vi)&nbsp;a Master Services Agreement with State Street Bank
and Trust Company dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, as effective with respect to the Fund as of<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and
such agreements are herein referred to as the &#147;<U>Advisory Agreement,</U>&#148; the &#147;<U>Custodian
Agreement</U>&#148;, the &#147;<U>Foreign Custody Agreement</U>,&#148; the &#147;<U>Transfer Agency Agreement</U>,&#148;
the &#147;<U>Accounting Agreement</U>&#148; and the &#147;<U>Administration Agreement</U>,&#148; respectively.
Collectively, the Advisory Agreement, the Custodian Agreement, the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Foreign Custody Agreement, the Transfer Agency Agreement, the Accounting Agreement and the
Administration Agreement are herein referred to as the &#147;<U>Fund Agreements</U>.&#148; The Adviser has
entered into a Structuring Fee Agreement with <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and a Structuring
Fee Agreement with <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, and such agreements are herein referred to as
the &#147;<U>Structuring Fee Agreements</U>,&#148; an Incentive Fee Agreement with <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, dated as of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and an Incentive Fee Agreement with <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, and such
agreements are herein referred to as the &#147;<U>Incentive Fee Agreements</U>.&#148; In addition, the Fund
has adopted a dividend reinvestment plan pursuant to which holders of common shares of beneficial
interest shall have their dividends automatically reinvested in additional common shares of
beneficial interest of the Fund unless they elect to receive such dividends in cash, and such plan
is herein referred to as the &#147;<U>Dividend Reinvestment Plan</U>.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has prepared and filed with the Commission a registration statement (file numbers
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>) on Form N-2, including a related preliminary prospectus (including the
statement of additional information incorporated by reference therein), for registration under the
1933 Act and the 1940 Act of the offering and sale of the Securities. The Fund may have filed one
or more amendments thereto, including a related preliminary prospectus (including the statement of
additional information incorporated by reference therein), each of which has previously been
furnished to you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will next file with the Commission one of the following: either (1)&nbsp;prior to the
effective date of the registration statement, a further amendment to the registration statement
(including the form of final prospectus (including the statement of additional information
incorporated by reference therein)) or (2)&nbsp;after the effective date of the registration statement,
a final prospectus (including the statement of additional information incorporated by reference
therein) in accordance with Rules&nbsp;430A and 497. In the case of clause (2), the Fund has included or
incorporated by reference in the Registration Statement, as amended at the effective date, all
information (other than Rule&nbsp;430A Information) required by the 1933 Act and the 1940 Act and the
Rules and Regulations to be included in the registration statement and the Prospectus. As filed,
such amendment and form of final prospectus (including the statement of additional information
incorporated by reference therein), or such final prospectus (including the statement of additional
information incorporated by reference therein), shall contain all Rule&nbsp;430A Information, together
with all other such required information, and, except to the extent the Representatives shall agree
in writing to a modification, shall be in all substantive respects in the form furnished to you
prior to the Applicable Time or, to the extent not completed at the Applicable Time, shall contain
only such specific additional information and other changes (beyond that contained in the latest
preliminary prospectus) as the Fund has advised you, prior to the Applicable Time, will be included
or made therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1 <U>Representations and Warranties</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Representations and Warranties by the Fund and the Adviser</U>. The Fund and
the Adviser, jointly and severally, represent and warrant to each Underwriter as of the date
hereof, as of the Applicable Time, as of the Closing Date referred to in Section 2(c)
hereof, and as of each Option Closing Date (if any) referred to in Section 2(b) hereof, and
agree with each Underwriter, as follows:
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <U>Compliance with Registration Requirements</U>. The Securities have
been duly registered under the 1933 Act and the 1940 Act pursuant to the
Registration Statement. Each of the Initial Registration Statement and any Rule
462(b) Registration Statement has become effective under the 1933 Act and the 1940
Act, and no stop order suspending the effectiveness of the Initial Registration
Statement or any Rule 462(b) Registration Statement has been issued under the 1933
Act or the 1940 Act, and no proceedings for that purpose have been instituted or are
pending or, to the knowledge of the Fund or the Adviser, are contemplated by the
Commission, and any request on the part of the Commission for additional information
has been complied with. The Preliminary Prospectus and the Prospectus complied when
filed with the Commission in all material respects with the requirements of the 1933
Act, the 1940 Act and the Rules and Regulations. The Preliminary Prospectus and the
Prospectus and any amendments or supplements thereto delivered to the Underwriters
for use in connection with the offering of the Securities each was identical to the
electronically transmitted copy thereof filed with the Commission pursuant to EDGAR,
except to the extent permitted by Regulation&nbsp;S-T.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the respective times the Initial Registration Statement, any Rule 462(b)
Registration Statement and any post-effective amendments thereto became or become
effective and at the Closing Date (and, if any Option Securities are purchased, at
the applicable Option Closing Date), the Initial Registration Statement, any Rule
462(b) Registration Statement will, and the 1940 Act Notification when originally
filed with the Commission and any amendments and supplements thereto did or will,
comply in all material respects with the requirements of the 1933 Act, the 1940 Act
and the Rules and Regulations and did not and will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading. Neither the Prospectus nor
any amendments or supplements thereto, as of its date, at the Closing Date (and, if
any Option Securities are purchased, at the applicable Option Closing Date), and at
any time when a prospectus is required by applicable law to be delivered in
connection with sales of Securities, included or will include an untrue statement of
a material fact or omitted or will omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which they
were made, not misleading. The Preliminary Prospectus and the information included
on Exhibit&nbsp;E hereto, all considered together (collectively, the &#147;General Disclosure
Package&#148;) did not or will not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;
provided, however, that the Fund makes no representations or warranties as to the
information contained in or omitted from the Preliminary Prospectus or the
Prospectus in reliance upon and in conformity with information furnished in writing
to the Fund by or on behalf of any Underwriter specifically for inclusion therein,
it being understood and agreed that the only such information furnished by any
Underwriter consists of the information described as such in Section 6(b) hereof.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s registration statement on Form 8-A under the 1934 Act is effective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <U>Independent Accountants</U>. Deloitte &#038; Touche LLP who certified and
audited the financial statements and supporting schedules included in the
Registration Statement and the Prospectus are independent public accountants as
required by the 1933 Act, the 1940 Act and the Rules and Regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <U>Financial Statements</U>. The financial statements of the Fund
included in the Registration Statement and the Prospectus, together with the related
schedules (if any) and notes, present fairly the financial position of the Fund at
the dates indicated and the results of operations and cash flows of the Fund for the
periods specified; and all such financial statements have been prepared in
conformity with GAAP applied on a consistent basis throughout the periods involved
and comply with all applicable accounting requirements under the 1933 Act, the 1940
Act and the Rules and Regulations. The supporting schedules, if any, included in
the Registration Statement present fairly, in accordance with GAAP, the information
required to be stated therein, and the other financial and statistical information
and data included in the Registration Statement, the Preliminary Prospectus and the
Prospectus are accurately derived from such financial statements and the books and
records of the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <U>No Material Adverse Change in Business</U>. Since the respective dates
as of which information is given in the Preliminary Prospectus and the Prospectus,
except as otherwise stated therein, (A)&nbsp;there has been no Fund Material Adverse
Effect and (B)&nbsp;there have been no transactions entered into by the Fund which are
material with respect to the Fund other than those in the ordinary course of its
business as described in the Preliminary Prospectus and the Prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <U>Good Standing of the Fund</U>. The Fund has been duly formed and is
validly existing in good standing as a statutory trust under the laws of the State
of Delaware and has power and authority to own, lease and operate its properties and
to conduct its business as described in the Registration Statement, the Preliminary
Prospectus and the Prospectus and to enter into and perform its obligations under
this Agreement and the Fund Agreements; and the Fund is duly qualified to transact
business and is in good standing under the laws of each jurisdiction which requires
qualification.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <U>No Subsidiaries</U>. The Fund has no subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <U>Investment Company Status</U>. The Fund is duly registered under the
1940 Act as a closed-end, diversified management investment company under the 1940
Act and the Rules and Regulations, and the 1940 Act Notification has been duly filed
with the Commission. The Fund has not received any notice from the Commission
pursuant to Section 8(e) of the 1940 Act with respect to the 1940 Act Notification
or the Registration Statement.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <U>Officers and Trustees</U>. No person is serving or acting as an
officer, trustee or investment adviser of the Fund except in accordance with the
provisions of the 1940 Act and the Rules and Regulations and the Advisers Act.
Except as disclosed in the Registration Statement, the Preliminary Prospectus and
the Prospectus, no trustee of the Fund is (A)&nbsp;an &#147;interested person&#148; (as defined in
the 1940 Act) of the Fund or (B)&nbsp;an &#147;affiliated person&#148; (as defined in the 1940 Act)
of any Underwriter. For purposes of this Section&nbsp;1(a)(8), the Fund and the Adviser
shall be entitled to rely on representations from such officers and trustees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)
<U>Capitalization</U>. The authorized, issued and outstanding common shares of beneficial interest of the Fund are as set forth in the Preliminary
Prospectus and in the Prospectus. All issued and outstanding common shares of
beneficial interest of the Fund have been duly authorized and validly issued and are
fully paid and non-assessable and have been offered and sold or exchanged by the
Fund in compliance with all applicable laws (including, without limitation, federal
and state securities laws); none of the outstanding common shares of beneficial
interest of the Fund was issued in violation of the preemptive or other similar
rights of any securityholder of the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <U>Power and Authority</U>. The Fund has full power and authority to
enter into this Agreement and the Fund Agreements; the execution and delivery of,
and the performance by the Fund of its obligations under this Agreement and the Fund
Agreements have been duly and validly authorized by the Fund; and this Agreement and
the Fund Agreements have been duly executed and delivered by the Fund and
constitute the valid and legally binding agreements of the Fund, enforceable against
the Fund in accordance with their terms, except as rights to indemnity and
contribution may be limited by federal or state securities laws and subject to the
qualification that the enforceability of the Fund&#146;s obligations hereunder and
thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance and other laws relating to or affecting creditors&#146; rights
generally and by general equitable principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) <U>Agreements&#146; Compliance with Law</U>. This Agreement and each of the
Fund Agreements comply in all material respects with all applicable provisions of
the 1940 Act, the 1940 Act Rules and Regulations, the Advisers Act and the Advisers
Act Rules and Regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) <U>Absence of Defaults and Conflicts</U>. The Fund is not (i)&nbsp;in
violation of its Declaration of Trust or bylaws, (ii)&nbsp;in breach or default in the
performance of the terms of any indenture, contract, lease, mortgage, declaration of
trust, note agreement, loan agreement or other agreement, obligation, condition,
covenant or instrument to which it is a party or bound or to which its property is
subject or (iii)&nbsp;in violation of any law, ordinance, administrative or governmental
rule or regulation applicable to the Fund or of any decree of the Commission, FINRA,
any state securities commission, any foreign securities commission, any national
securities exchange, any arbitrator, any court or any other governmental,
regulatory, self regulatory or administrative agency or any official having
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">jurisdiction over the Fund, except in the case of (ii)&nbsp;and (iii)&nbsp;for such
breaches, defaults or violations which would not have a Fund Material Adverse
Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) <U>Absence of Proceedings</U>. There is no action, suit, proceeding,
inquiry or investigation before or brought by any court or governmental agency or
body, domestic or foreign, now pending, or, to the knowledge of the Fund,
threatened, against or affecting the Fund which is required to be disclosed in the
Preliminary Prospectus and Prospectus (other than as disclosed therein), or that
could reasonably be expected to result in a Fund Material Adverse Effect, or that
could reasonably be expected to materially and adversely affect the properties or
assets of the Fund or the consummation of the transactions contemplated in this
Agreement or the performance by the Fund of its obligations under this Agreement or
the Fund Agreements; the aggregate of all pending legal or governmental proceedings
to which the Fund is a party or of which any of its property or assets is the
subject which are not described in the Preliminary Prospectus or the Prospectus or
to be filed as an exhibit to the Registration Statement that are not described or
filed as required by the 1933 Act, the 1940 Act or the Rules and Regulations,
including ordinary routine litigation incidental to the business, could not
reasonably be expected to result in a Fund Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) <U>Accuracy of Descriptions and Exhibits</U>. The statements set forth
under the headings &#147;Closed-End Fund Structure,&#148; &#147;Certain Provisions of the Agreement
and Declaration of Trust and By-Laws&#148; and &#147;U.S. Federal Income Tax Matters&#148; in the
Preliminary Prospectus and the Prospectus and &#147;U.S. Federal Income Tax Matters&#148; in
the Statement of Additional Information, insofar as such statements purport to
summarize certain provisions of the 1940 Act, the Delaware Statutory Trust Act, the
Fund&#146;s Declaration of Trust, U.S. federal income tax law and regulations or legal
conclusions with respect thereto, fairly and accurately summarize such provisions in
all material respects; all descriptions in the Registration Statement, the
Preliminary Prospectus and the Prospectus of any Fund documents are accurate in all
material respects; and there are no franchises, contracts, indentures, mortgages,
deeds of trust, loan or credit agreements, bonds, notes, debentures, evidences of
indebtedness, leases or other instruments or agreements required to be described or
referred to in the Registration Statement, the Preliminary Prospectus or the
Prospectus or to be filed as exhibits to the Registration Statement that are not
described or filed as required by the 1933 Act, the 1940 Act or the Rules and
Regulations which have not been so described and filed as required.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) <U>Absence of Further Requirements</U>. (A)&nbsp;No filing with, or
authorization, approval, consent, license, order, registration, qualification or
decree of, any court or governmental authority or agency, domestic or foreign, and
(B)&nbsp;no authorization, approval, vote or other consent of any other person or entity,
is necessary or required for the performance by the Fund of its obligations under
this Agreement or the Fund Agreements, for the offering, issuance, sale or delivery
of the Securities hereunder, or for the consummation of any of the other
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">transactions contemplated by this Agreement or the Fund Agreements, in each
case on the terms contemplated by the Registration Statement, the Preliminary
Prospectus and the Prospectus, except such as have been already obtained and under
the 1933 Act, the 1940 Act, the Rules and Regulations, the rules and regulations of
FINRA and the NYSE and such as may be required under state securities laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) <U>Non-Contravention</U>. Neither the execution, delivery or performance
of this Agreement and the Fund Agreements nor the consummation by the Fund of the
transactions herein or therein contemplated (i)&nbsp;conflicts or will conflict with or
constitutes or will constitute a breach of the Declaration of Trust or bylaws of the
Fund, (ii)&nbsp;conflicts or will conflict with or constitutes or will constitute a
breach of or a default under, any agreement, indenture, lease or other instrument to
which the Fund is a party or by which it or any of its properties may be bound or
(iii)&nbsp;violates or will violate any statute, law, regulation or filing or judgment,
injunction, order or decree applicable to the Fund or any of its properties or will
result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Fund pursuant to the terms of any agreement or instrument
to which the Fund is a party or by which the Fund may be bound or to which any of
the property or assets of the Fund is subject.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) <U>Possession of Licenses and Permits</U>. The Fund has such licenses,
permits, and authorizations of governmental or regulatory authorities (&#147;permits&#148;) as
are necessary to own its property and to conduct its business in the manner
described in the Preliminary Prospectus and the Prospectus; the Fund has fulfilled
and performed all its material obligations with respect to such permits and no event
has occurred which allows or, after notice or lapse of time, would allow, revocation
or termination thereof or results in any other material impairment of the rights of
the Fund under any such permit, subject in each case to such qualification as may be
set forth in the Preliminary Prospectus and the Prospectus; and, except as described
in the Preliminary Prospectus and the Prospectus, none of such permits contains any
restriction that is materially burdensome to the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) <U>Distribution of Offering Material</U>. The Fund has not distributed
and, prior to the later to occur of (i)&nbsp;the Closing Date and (ii)&nbsp;completion of the
distribution of the Securities, will not distribute any offering material in
connection with the offering and sale of the Securities other than the Registration
Statement, the Preliminary Prospectus, the Prospectus, the sales material or other
materials permitted by the Act, the 1940 Act or the Rules and Regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) <U>Absence of Registration Rights</U>. There are no persons with
registration rights or other similar rights to have any securities (debt or equity)
(A)&nbsp;registered pursuant to the Registration Statement or included in the offering
contemplated by this Agreement or (B)&nbsp;otherwise registered by the Fund under the
1933 Act or the 1940 Act. There are no persons with tag-along rights or other
similar rights to have any securities (debt or equity) included in the offering
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">contemplated by this Agreement or sold in connection with the sale of
Securities by the Fund pursuant to this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) <U>NYSE</U>. The Securities are duly listed and admitted and authorized
for trading, subject to official notice of issuance and evidence of satisfactory
distribution, on the NYSE.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) <U>FINRA Matters</U>. All of the information provided to the
Underwriters or to counsel for the Underwriters by the Fund, its officers and
Trustees in connection with letters, filings or other supplemental information
provided to FINRA pursuant to the NASD&#146;s conduct rules is true, complete and
correct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) <U>Tax Returns</U>. The Fund has filed all tax returns that are required
to be filed and has paid all taxes required to be paid by it and any other
assessment, fine or penalty levied against it, to the extent that any of the
foregoing is due and payable, except for any such tax, assessment, fine or penalty
that is currently being contested in good faith by appropriate actions and except
for such taxes, assessments, fines or penalties the nonpayment of which would not,
individually or in the aggregate, have a Fund Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) <U>Subchapter M</U>. The Fund intends to comply with the requirements of
Subchapter M of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) to
qualify as a regulated investment company under the Code and intends to direct the
investment of the net proceeds of the offering of the Securities in such a manner as
to comply with the requirements of Subchapter M of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) <U>Insurance</U>. The Fund&#146;s trustees and officers/errors and omissions
insurance policy and its fidelity bond required by Rule&nbsp;17g-1 of the 1940 Act Rules
and Regulations are in full force and effect; the Fund is in compliance with the
terms of such policy and fidelity bond in all material respects; and there are no
claims by the Fund under any such policy or fidelity bond as to which any insurance
company is denying liability or defending under a reservation of rights clause; the
Fund has not been refused any insurance coverage sought or applied for; and the Fund
has no reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would
not have a Fund Material Adverse Effect, except as set forth in or contemplated in
the Preliminary Prospectus and Prospectus (exclusive of any supplement thereto).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) <U>Accounting Controls and Disclosure Controls</U>. The Fund maintains a
system of internal accounting controls sufficient to provide reasonable assurances
that (A)&nbsp;transactions are executed in accordance with management&#146;s general or
specific authorizations and with the investment objectives, policies and
restrictions of the Fund and the applicable requirements of the 1940 Act, the 1940
Act Rules and Regulations and the Code; (B)&nbsp;transactions are recorded as
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">necessary to permit preparation of financial statements in conformity with GAAP
and to maintain asset accountability to calculate net asset value and to maintain
material compliance with the books and records requirements under the 1940 Act and
the 1940 Act Rules and Regulations; (C)&nbsp;access to assets is permitted only in
accordance with management&#146;s general or specific authorization; and (D)&nbsp;the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Fund
employs &#147;disclosure controls and procedures&#148; (as such term is defined in Rule&nbsp;30a 3
under the 1940 Act); such disclosure controls and procedures are currently in
effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26) <U>Compliance with the Sarbanes-Oxley Act</U>. There is and has been no
failure on the part of the Fund or any of the Fund&#146;s trustees or officers, in their
capacities as such, to comply with any provision of the Sarbanes-Oxley Act and the
rules and regulations promulgated in connection therewith, including Sections&nbsp;302
and 906 related to certifications.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27) <U>Fund Compliance with Policies and Procedures</U>. The Fund has
adopted and implemented written policies and procedures reasonably designed to
prevent violation of the Federal Securities Laws (as that term is defined in Rule
38a 1 under the 1940 Act) by the Fund, including policies and procedures that
provide oversight of compliance for each investment adviser, administrator and
transfer agent of the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28) <U>Absence of Manipulation</U>. The Fund has not taken and will not
take, directly or indirectly, any action designed to or that would constitute or
that might reasonably be expected to cause or result in the stabilization or
manipulation of the price of any security to facilitate the sale or resale of the
Securities, and the Fund is not aware of any such action taken or to be taken by any
affiliates of the Fund, other than such actions as taken by the Underwriters that
are affiliates of the Fund, so long as such actions are in compliance with all
applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29) <U>Statistical, Demographic or Market-Related Data</U>. Any statistical,
demographic or market-related data included in the Registration Statement, the
Preliminary Prospectus or the Prospectus is based on or derived from sources that
the Fund believes to be reliable and accurate and all such data included in the
Registration Statement, the Preliminary Prospectus or the Prospectus accurately
reflects the materials upon which it is based or from which it was derived.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30) <U>Advertisements</U>. All advertising, sales literature or other
promotional material (including &#147;prospectus wrappers&#148;, &#147;broker kits&#148;, &#147;road show
slides&#148; and &#147;road show scripts&#148;), whether in printed or electronic form, authorized
in writing by or prepared by or at the direction of the Fund or the Adviser for use
in connection with the offering and sale of the Securities (collectively, &#147;sales
material&#148;) complied and comply in all material respects with the applicable
requirements of the 1933 Act, the 1933 Act Rules and Regulations and the rules
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">and interpretations of FINRA and if required to be filed with FINRA under the
NASD&#146;s conduct rules were provided to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, counsel for the
Underwriters, for filing. No sales material contained or contains an untrue
statement of a material fact or omitted or omits to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Representations and Warranties by the Adviser</U>. The Adviser represents and
warrants to each Underwriter as of the date hereof, as of the Applicable Time, as of the
Closing Date and as of each Option Closing Date (if any), and agrees with each Underwriter,
as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <U>Investment Manager Status</U>. The Adviser is duly registered as an
investment adviser under the Advisers Act and it not prohibited by the Advisers Act,
the 1940 Act, the Advisers Act Rules and Regulations or the 1940 Act Rules and
Regulations from acting under the Advisory Agreement, the Accounting Agreement, the
Structuring Fee Agreements or the Incentive Fee Agreements as contemplated by the
Preliminary Prospectus and the Prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <U>Capitalization</U>. The Adviser has the financial resources available
to it necessary for the performance of its services and obligations as contemplated
in the Preliminary Prospectus and the Prospectus and under this Agreement and the
Advisory Agreement, the Accounting Agreement, the Structuring Fee Agreements and the
Incentive Fee Agreements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <U>No Material Adverse Change in Business</U>. Since the respective dates
as of which information is given in the Preliminary Prospectus and the Prospectus,
except as otherwise stated therein, (A)&nbsp;there has been no Adviser Material Adverse
Effect and (B)&nbsp;there have been no transactions entered into by the Adviser which are
material with respect to the Adviser other than those in the ordinary course of its
business as described in the Preliminary Prospectus and the Prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <U>Good Standing</U>. The Adviser has been duly formed and is validly
existing in good standing as a limited liability company under the laws of the State
of Delaware and has power and authority to own, lease and operate its properties and
to conduct its business as described in the Registration Statement, the Preliminary
Prospectus and the Prospectus and to enter into and perform its obligations under
this Agreement, the Fund Agreements to which it is a party, the Structuring Fee
Agreements and the Incentive Fee Agreements; and the Adviser is duly qualified to
transact business and is in good standing under the laws of each jurisdiction which
requires qualification.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <U>Power and Authority</U>. The Adviser has full power and authority to
enter into this Agreement, the Advisory Agreement, the Accounting Agreement, the
Structuring Fee Agreements and the Incentive Fee Agreements; the execution and
delivery of, and the performance by the Adviser of its obligations under this
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Agreement, the Advisory Agreement, the Accounting Agreement, the Structuring
Fee Agreements and the Incentive Fee Agreements have been duly and validly
authorized by the Adviser; and this Agreement, the Advisory Agreement, the
Accounting Agreement, the Structuring Fee Agreements and the Incentive Fee
Agreements have been duly executed and delivered by the Adviser and constitute the
valid and legally binding agreements of the Adviser, enforceable against the Adviser
in accordance with their terms, except as rights to indemnity and contribution may
be limited by federal or state securities laws and subject to the qualification that
the enforceability of the Adviser&#146;s obligations hereunder and thereunder may be
limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
and other laws relating to or affecting creditors&#146; rights generally and by general
equitable principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <U>Description of the Adviser</U>. The description of the Adviser and its
business and the statements attributable to the Adviser in the Preliminary
Prospectus and Prospectus complied and comply in all material respects with the
provisions of the 1933 Act, the 1940 Act, the Advisers Act, the 1940 Act Rules and
Regulations and the Advisers Act Rules and Regulations and did not and will not
contain an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <U>Non-Contravention</U>. Neither the execution, delivery or performance
of this Agreement, the Advisory Agreement, the Accounting Agreement, the Structuring
Fee Agreements or the Incentive Fee Agreements nor the consummation by the Fund or
the Adviser of the transactions herein or therein contemplated (i)&nbsp;conflicts or will
conflict with or constitutes or will constitute a breach of the Organizational
Documents of the Adviser, (ii)&nbsp;conflicts or will conflict with or constitutes or
will constitute a breach of or a default under, any agreement, indenture, lease or
other instrument to which the Adviser is a party or by which it or any of its
properties may be bound or (iii)&nbsp;violates or will violate any statute, law,
regulation or filing or judgment, injunction, order or decree applicable to the
Adviser or any of its properties or will result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Adviser pursuant to
the terms of any agreement or instrument to which the Adviser is a party or by which
the Adviser may be bound or to which any of the property or assets of the Adviser is
subject.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <U>Agreements&#146; Compliance with Laws</U>. This Agreement, the Advisory
Agreement, the Accounting Agreement, the Structuring Fee Agreements and the
Incentive Fee Agreements comply in all material respects with all applicable
provisions of the 1940 Act, the 1940 Act Rules and Regulations, the Advisers Act,
and the Advisers Act Rules and Regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) <U>Absence of Proceedings</U>. There is no action, suit, proceeding,
inquiry or investigation before or brought by any court or governmental agency or
body, domestic or foreign, now pending, or, to the knowledge of the Adviser,
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">threatened, against or affecting the Adviser which is required to be disclosed
in the Preliminary Prospectus and Prospectus (other than as disclosed therein), or
that could reasonably be expected to result in an Adviser Material Adverse Effect,
or that could reasonably be expected to materially and adversely affect the
properties or assets thereof or the consummation of the transactions contemplated in
this Agreement or the performance by the Adviser of its obligations under this
Agreement, the Advisory Agreement, the Accounting Agreement, the Structuring Fee
Agreements or the Incentive Fee Agreements; the aggregate of all pending legal or
governmental proceedings to which the Adviser is a party or of which any of its
property or assets is the subject which are not described in the Preliminary
Prospectus or the Prospectus, including ordinary routine litigation incidental to
the business, could not reasonably be expected to result in an Adviser Material
Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <U>Absence of Further Requirements</U>. (A)&nbsp;No filing with, or
authorization, approval, consent, license, order, registration, qualification or
decree of, any court or governmental authority or agency, domestic or foreign, and
(B)&nbsp;no authorization, approval, vote or other consent of any other person or entity,
is necessary or required for the performance by the Adviser of its obligations under
this Agreement, the Advisory Agreement, the Accounting Agreement, the Structuring
Fee Agreements or the Incentive Fee Agreements, except such as have been already
obtained under the 1933 Act, the 1940 Act, the Rules and Regulations, the rules and
regulations of FINRA and the NYSE and such as may be required under state securities
laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) <U>Possession of Permits</U>. The Adviser has such licenses, permits and
authorizations of governmental or regulatory authorities (&#147;permits&#148;) as are
necessary to own its property and to conduct its business in the manner described in
the Preliminary Prospectus and the Prospectus; the Adviser has fulfilled and
performed all its material obligations with respect to such permits and no event has
occurred which allows, or after notice or lapse of time would allow, revocation or
termination thereof or results in any other material impairment of the rights of the
Adviser under any such permit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) <U>Adviser Compliance with Policies and Procedures</U>. The Adviser has
adopted and implemented written policies and procedures under Rule&nbsp;206(4) 7 of the
Advisers Act reasonably designed to prevent violation of the Advisers Act and the
Advisers Act Rules by the Adviser and its supervised persons.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) <U>Absence of Manipulation</U>. The Adviser has not taken and will not
take, directly or indirectly, any action designed to or that would constitute or
that might reasonably be expected to cause or result in the stabilization or
manipulation of the price of any security to facilitate the sale or resale of the
Securities, and the Adviser is not aware of any such action taken or to be taken by
any affiliates of the Adviser, other than such actions as taken by the Underwriters
that are affiliates of the Adviser, so long as such actions are in compliance with
all applicable law.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Certificates</U>. Any certificate signed by any officer of the Fund or the
Adviser and delivered to the Representatives or to counsel for the Underwriters shall be
deemed a representation and warranty by the Fund or the Adviser, as the case may be, to each
Underwriter as to the matters covered thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2 <U>Sale and Delivery to Underwriters; Closing</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Initial Securities</U>. On the basis of the representations and warranties
herein contained and subject to the terms and conditions herein set forth, the Fund agrees
to sell to each Underwriter, severally and not jointly, and each Underwriter, severally and
not jointly, agrees to purchase from the Fund, at a purchase price of $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share, the
amount of the Initial Securities set forth opposite such Underwriter&#146;s name in Exhibit&nbsp;A
hereto. The Fund is advised that the Underwriters intend to (i)&nbsp;make a public offering of
their respective portions of the Securities as soon after the Applicable Time as is
advisable and (ii)&nbsp;initially to offer the Securities upon the terms set forth in the
Preliminary Prospectus and the Prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Option Securities</U>. Subject to the terms and conditions and in reliance
upon the representations and warranties herein set forth, the Fund hereby grants an option
to the several Underwriters to purchase, severally and not jointly, up to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Option
Securities at the same purchase price per share as the Underwriters shall pay for the
Initial Securities. Said option may be exercised only to cover over-allotments in the sale
of the Initial Securities by the Underwriters. Said option may be exercised in whole or in
part at any time and from time to time on or before the 45th day after the date of the
Prospectus upon written or telegraphic notice by the Representatives to the Fund setting
forth the number of shares of the Option Securities as to which the several Underwriters are
exercising the option and the settlement date. The number of Option Securities to be
purchased by each Underwriter shall be the same percentage of the total number of shares of
the Option Securities to be purchased by the several Underwriters as such Underwriter is
purchasing of the Initial Securities, subject to such adjustments as you in your absolute
discretion shall make to eliminate any fractional shares. Any such time and date of
delivery (an &#147;Option Closing Date&#148;) shall be determined by the Representatives, but shall
not be later than seven full business days after the exercise of said option, nor in any
event prior to the Closing Date, as hereinafter defined.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Payment</U>. Payment of the purchase price for the Initial Securities, and
delivery of the related closing certificates therefor, shall be made at the offices of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, or at such other place as shall be agreed upon by the Representatives
and the Fund, at 10:00&nbsp;A.M. (Eastern time) on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (unless postponed in accordance
with the provisions of Section&nbsp;10), or such other time not later than ten business days
after such date as shall be agreed upon by the Representatives and the Fund (such time and
date of payment and delivery being herein called &#147;Closing Date&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, in the event that any or all of the Option Securities are purchased by the
Underwriters, payment of the purchase price for, and delivery of certificates for, such Option
Securities shall be made at the above mentioned offices, or at such other place as shall be agreed
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">upon by the Representatives and the Fund, on each Option Closing Date as specified in the
notice from the Representatives to the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delivery of the Securities shall be made to the Representatives for the respective accounts of
the several Underwriters against payment by the several Underwriters through the Representatives of
the purchase price thereof to or upon the order of the Fund by Federal Funds wire transfer payable
in same-day funds to an account specified by the Fund. Delivery of the Initial Securities and the
Option Securities shall be made through the facilities of The Depository Trust Company unless the
Representatives shall otherwise instruct. &#091;Underwriter&#093;, individually and not as Representative of
the Underwriters, may (but shall not be obligated to) make payment of the purchase price for the
Initial Securities or the Option Securities, if any, to be purchased by any Underwriter whose funds
have not been received by the Closing Date or the relevant Option Closing Date, as the case may be,
but such payment shall not relieve such Underwriter from its obligations hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Denominations; Registration</U>. Certificates for the Initial Securities and
the Option Securities, if any, shall be in such denominations and registered in such names
as the Representatives may request in writing at least one full business day before the
Closing Date or the relevant Option Closing Date, as the case may be. The certificates for
the Initial Securities and the Option Securities, if any, will be made available for
examination and packaging by the Representatives in The City of New York not later than noon
(Eastern Time) on the business day prior to the Closing Date or the relevant Option Closing
Date, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3 <U>Covenants of the Fund and the Adviser</U>. The Fund and the Adviser, jointly
and severally, covenant with each Underwriter as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Compliance with Securities Regulations and Commission Requests</U>. The Fund,
subject to Section&nbsp;3(a)(ii), will comply with the requirements of Rule&nbsp;430A and will notify
the Representatives immediately, and confirm the notice in writing, (i)&nbsp;when any
post-effective amendment to the Registration Statement shall become effective, or any
supplement to the Prospectus or any amended Prospectus shall have been filed, (ii)&nbsp;of the
receipt of any comments from the Commission, (iii)&nbsp;of any request by the Commission for any
amendment to the Registration Statement or any amendment or supplement to the Prospectus or
for additional information, (iv)&nbsp;of the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement or of any order preventing or
suspending the use of any preliminary prospectus, or of the suspension of the qualification
of the Securities for offering or sale in any jurisdiction, or of the initiation or
threatening of any proceedings for any of such purposes, or of any examination pursuant to
Section 8(e) of the 1940 Act concerning the Registration Statement and (v)&nbsp;if the Fund
becomes the subject of a proceeding under Section&nbsp;8A of the 1933 Act in connection with the
offering of the Securities. The Fund will use its best efforts in connection with the
offering of the Securities to prevent the issuance of any stop order or the suspension of
any such qualification and, if issued, to obtain as soon as possible the withdrawal thereof.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Filing of Amendments</U>. The Fund will give the Representatives notice of its
intention to file or prepare any amendment to the Registration Statement (including any
filing under Rule&nbsp;462(b)) or any amendment, supplement or revision to either the prospectus
included in the Registration Statement at the time it became effective or to the Prospectus,
whether pursuant to the 1933 Act or otherwise, or will furnish the Representatives with
copies of any such documents within a reasonable amount of time prior to such proposed
filing or use, as the case may be, and will not file or use any such document to which the
Representatives or counsel for the Underwriters shall object.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Delivery of Registration Statements</U>. The Fund has furnished or will
deliver to the Representatives and counsel for the Underwriters, without charge, signed
copies of the Registration Statement as originally filed and of each amendment thereto
(including exhibits filed therewith) and signed copies of all consents and certificates of
experts. The copies of the Registration Statement and each amendment thereto furnished to
the Underwriters will be identical to the electronically transmitted copies thereof filed
with the Commission pursuant to EDGAR, except to the extent permitted by Regulation&nbsp;S-T.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Delivery of Prospectuses</U>. The Fund has delivered to each Underwriter,
without charge, as many copies of each preliminary prospectus prepared prior to the date of
this Agreement as such Underwriter reasonably requested, and the Fund hereby consents to the
use of such copies for purposes permitted by the 1933 Act. The Fund will furnish to each
Underwriter, without charge, such number of copies of the documents constituting the General
Disclosure Package prepared on or after the date of this Agreement and the Prospectus (and
any amendments or supplements thereto) as such Underwriter may reasonably request. The
Preliminary Prospectus and the Prospectus and any amendments or supplements thereto
furnished to the Underwriters is or will be, as the case may be, identical to the
electronically transmitted copies thereof filed with the Commission pursuant to EDGAR,
except to the extent permitted by Regulation&nbsp;S-T.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Continued Compliance with Securities Laws</U>. The Fund will comply with the
1933 Act, the 1940 Act and the Rules and Regulations so as to permit the completion of the
distribution of the Securities as contemplated in this Agreement and in the Prospectus. If
at any time when a prospectus is required by the 1933 Act to be delivered in connection with
sales of the Securities (including, without limitation, pursuant to Rule&nbsp;172), any event
shall occur or condition shall exist as a result of which it is necessary, in the opinion of
counsel for the Underwriters or for the Fund, to amend the Registration Statement or amend
or supplement the Prospectus in order that the Prospectus will not include any untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in the light of the circumstances existing at the time it
is delivered to a purchaser, or if it shall be necessary, in the opinion of such counsel, at
any such time to amend the Registration Statement or amend or supplement the Prospectus in
order to comply with the requirements of the 1933 Act, the 1940 Act or the Rules and
Regulations, the Fund will promptly prepare and file with the Commission, subject to
Section 3(b) hereof, such amendment or supplement as may be necessary to correct such
statement or omission or to make the Registration Statement or the Prospectus comply with
such requirements, and the Fund will furnish to the
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Underwriters such number of copies of such amendment or supplement as the Underwriters
may reasonably request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Blue Sky Qualifications</U>. The Fund will use its best efforts, in
cooperation with the Underwriters, to qualify, if necessary, the Securities for offering and
sale under the applicable securities laws of states of the United States, the District of
Columbia, Guam, Puerto Rico and the U.S. Virgin Islands as the Representatives may designate
and to maintain such qualifications in effect for a period of not less than one year from
the date of this Agreement; provided, however, that the Fund shall not be obligated to file
any general consent to service of process or to qualify as a foreign corporation or as a
dealer in securities in any jurisdiction in which it is not so qualified or to subject
itself to taxation in respect of doing business in any jurisdiction in which it is not
otherwise so subject.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Rule&nbsp;158</U>. The Fund will timely file such reports pursuant to the 1934 Act
as are necessary in order to make generally available to its security holders as soon as
practicable an earnings statement for the purposes of, and to provide to the Underwriters
the benefits contemplated by, the last paragraph of Section 11(a) of the 1933 Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Use of Proceeds</U>. The Fund will use the net proceeds received by it from
the sale of the Securities in the manner specified in the Prospectus under &#147;Use of
Proceeds.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Reporting Requirements</U>. The Fund, during the period when the Prospectus is
required to be delivered under the 1933 Act, the 1940 Act or the Rules and Regulations, will
file all documents required to be filed with the Commission pursuant to the 1933 Act, the
1940 Act or the Rules and Regulations within the time periods required by the 1934 Act, the
1940 Act or the Rules and Regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>Subchapter M</U>. The Fund will comply with the requirements of Subchapter M
of the Code to qualify as a regulated investment company under the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>Absence of Manipulation</U>. Except as stated in this Agreement and the
Preliminary Prospectus and Prospectus, the Fund and the Adviser have not taken and will not
take, directly or indirectly, any action designed to or that would constitute or that might
reasonably be expected to cause or result in the stabilization or manipulation of the price
of any security to facilitate the sale or resale of the Securities, and the Fund and the
Adviser are not aware of any such action taken or to be taken by any affiliates of the Fund
or the Adviser, other than such actions as taken by the Underwriters that are affiliates of
the Fund or the Adviser, so long as such actions are in compliance with all applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <U>Restriction on Sale of Securities</U>. The Fund will not, without the prior
written consent of &#091;Underwriter&#093;, offer, sell, contract to sell, pledge, or otherwise
dispose of, or enter into any transaction which is designed to, or might reasonably be
expected to, result in the disposition (whether by actual disposition or effective economic
disposition due to cash settlement or otherwise) by the Fund or any affiliate of the Fund or
any
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">person in privity with the Fund, directly or indirectly, including the filing (or
participation in the filing) of a registration statement with the Commission in respect of,
or establish or increase a put equivalent position or liquidate or decrease a call
equivalent position within the meaning of Section&nbsp;16 of the Exchange Act, any other
Securities or any securities convertible into, or exercisable, or exchangeable for,
Securities; or publicly announce an intention to effect any such transaction for a period of
180&nbsp;days following the Execution Time, provided, however, that the Fund may issue and sell
Securities pursuant to any dividend reinvestment plan of the Fund in effect at the Execution
Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4 <U>Payment of Expenses</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Expenses</U>. The Fund will pay all expenses incident to the performance of
its obligations under this Agreement, including (i)&nbsp;the preparation, printing and filing of
the Registration Statement (including financial statements and exhibits) as originally filed
and of each amendment thereto, (ii)&nbsp;the word processing, printing and delivery to the
Underwriters of this Agreement, any Agreement among Underwriters and such other documents as
may be required in connection with the offering, purchase, sale, issuance or delivery of the
Securities, (iii)&nbsp;the preparation, issuance and delivery of the certificates for the
Securities to the Underwriters, including any stock or other transfer taxes and any stamp or
other duties payable upon the sale, issuance or delivery of the Securities to the
Underwriters, (iv)&nbsp;the fees and disbursements of the counsel, accountants and other advisors
to the Fund, (v)&nbsp;the qualification of the Securities under securities laws in accordance
with the provisions of Section 3(f) hereof, including filing fees and the reasonable fees
and disbursements of counsel for the Underwriters in connection therewith and in connection
with the preparation of the Blue Sky Survey and any supplements thereto, (vi)&nbsp;the printing
and delivery to the Underwriters of copies of each preliminary prospectus, the documents
constituting the General Disclosure Package, the Prospectus and the 1940 Act Notification,
any sales material and any amendments or supplements thereto, (vii)&nbsp;the preparation,
printing and delivery to the Underwriters of copies of the Blue Sky Survey and any
supplements thereto, (viii)&nbsp;the fees and expenses of the custodian and the transfer agent
and registrar for the Securities, (ix)&nbsp;the filing fees incident to, and the reasonable fees
and disbursements of counsel to the Underwriters in connection with, the review by FINRA of
the terms of the sale of the Securities, (x)&nbsp;the transportation and other expenses incurred
in connection with presentations to prospective purchasers of the Securities, (xi)&nbsp;the fees
and expenses incurred in connection with the listing of the Securities on the NYSE and
(xii)&nbsp;all other costs and expenses incident to the performance by the Fund of its
obligations hereunder. To the extent that the foregoing costs and expenses incidental to
the performance of the obligations of the Fund under this Agreement exceed $&#091;0.03&#093; per
share, the Adviser will pay all such costs and expenses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Termination of Agreement</U>. If this Agreement is terminated by the
Representatives in accordance with the provisions of Section&nbsp;5 or Section&nbsp;9(a)(i) hereof,
the Fund and the Adviser, jointly and severally, agree that they shall reimburse the
Underwriters for all of their out of pocket expenses, including the reasonable fees and
disbursements of counsel for the Underwriters.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5 <U>Conditions of Underwriters&#146; Obligations</U>. The obligations of the
Underwriters to purchase the Initial Securities and the Option Securities, as the case may be,
shall be subject to the accuracy of the representations and warranties on the part of the Fund and
the Adviser contained herein as of the Applicable Time, the Closing Date and any Option Closing
Date pursuant to Section&nbsp;4 hereof, to the accuracy of the statements of the Fund and the Adviser
made in any certificates pursuant to the provisions hereof, to the performance by the Fund and the
Adviser of their respective covenants and other obligations hereunder and to the following
additional conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Effectiveness of Registration Statement</U>. The Registration Statement,
including any Rule 462(b) Registration Statement, has become effective and at Closing Date
(or the applicable Option Closing Date, as the case may be) no stop order suspending the
effectiveness of the Registration Statement shall have been issued under the 1933 Act or any
notice objecting to its use or order pursuant to Section 8(e) of the 1940 Act shall have
been issued and proceedings therefor initiated or, to the knowledge of the Fund, threatened
by the Commission, and any request on the part of the Commission for additional information
shall have been complied with to the reasonable satisfaction of counsel to the Underwriters.
A prospectus containing the Rule&nbsp;430A Information shall have been filed with the Commission
in accordance with Rule&nbsp;497 or a post-effective amendment providing such information shall
have been filed and declared effective in accordance with the requirements of Rule&nbsp;430A.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Opinion of Counsel for Fund</U>. At the Closing Date, the Representatives
shall have received the favorable opinion, dated as of the Closing Date, of Vedder Price
P.C., counsel for the Fund (&#147;<U>Fund Counsel</U>&#148;), in form and substance satisfactory to
counsel for the Underwriters, together with signed or reproduced copies of such letter for
each of the other Underwriters, to the effect set forth in Exhibit&nbsp;B hereto and to such
further effect as counsel to the Underwriters may reasonably request. Insofar as the
opinion expressed above relates to or is dependent upon matters governed by Delaware law,
Vedder Price P.C. will be permitted to rely on the opinion of Morris, Nichols, Arsht &#038;
Tunnell.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Opinion of Counsel for Underwriters</U>. At Closing Date, the Representatives
shall have received the favorable opinion, dated as of Closing Date, of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, counsel for the Underwriters, together with signed or reproduced
copies of such letter for each of the other Underwriters, in form and substance satisfactory
to the Representatives. Insofar as the opinion expressed above relates to or is dependent
upon matters governed by Delaware law, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> will be permitted to rely on the
opinion of Morris, Nichols, Arsht &#038; Tunnell.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Certificate of the Fund</U>. At the Closing Date or the applicable Option
Closing Date, as the case may be, there shall not have been, since the date hereof or since
the respective dates as of which information is given in the Prospectus or the General
Disclosure Package (exclusive of any amendments or supplements thereto subsequent to the
date of this Agreement), any Fund Material Adverse Effect, and, at the Closing Date, the
Representatives shall have received a certificate of the Chairman, the President, the Chief
Executive Officer or an Executive Vice President or Senior Vice President of the
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Fund and of the Chief Financial Officer or Chief Accounting Officer of the Fund, dated
as of the Closing Date, to the effect that (i)&nbsp;there has been no such Fund Material Adverse
Effect, (ii)&nbsp;the representations and warranties of the Fund in this Agreement are true and
correct with the same force and effect as though expressly made at and as of the Closing
Date, (iii)&nbsp;the Fund has complied with all agreements and satisfied all conditions on its
part to be performed or satisfied at or prior to the Closing Date under or pursuant to this
Agreement, and (iv)&nbsp;no stop order suspending the effectiveness of the Registration Statement
or order of suspension or revocation of registration pursuant to Section 8(e) of the 1940
Act has been issued, and no proceedings for that purpose have been instituted or are pending
or, to their knowledge, are contemplated by the Commission.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Opinion of Counsel for the Adviser</U>. At the Closing Date, the
Representatives shall have received the favorable opinion, dated as of the Closing Date, of
Vedder Price P.C., counsel for the Adviser, in form and substance satisfactory to counsel
for the Underwriters, together with signed or reproduced copies of such letter for each of
the other Underwriters, to the effect set forth in Exhibit&nbsp;C hereto and to such further
effect as counsel to the Underwriters may reasonably request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Certificate of the Adviser</U>. At the Closing Date or the applicable Option
Closing Date, as the case may be, there shall not have been, since the date hereof or since
the respective dates as of which information is given in the Prospectus or the General
Disclosure Package (exclusive of any amendments or supplements thereto subsequent to the
date of this Agreement), any Adviser Material Adverse Effect, and, at the Closing Date, the
Representatives shall have received a certificate of the Chairman, the President, the Chief
Executive Officer or an Executive Vice President or Senior Vice President of the Adviser and
of the Chief Financial Officer or Chief Accounting Officer of the Adviser, dated as of the
Closing Date, to the effect that (i)&nbsp;there has been no such Adviser Material Adverse Effect,
(ii)&nbsp;the representations and warranties of the Adviser in this Agreement are true and
correct with the same force and effect as though expressly made at and as of the Closing
Date, (iii)&nbsp;the Adviser has complied with all agreements and satisfied all conditions on its
part to be performed or satisfied at or prior to the Closing Date under or pursuant to this
Agreement, and (iv)&nbsp;no stop order suspending the effectiveness of the Registration Statement
or order of suspension or revocation of registration pursuant to Section 8(e) of the 1940
Act has been issued and no proceedings for that purpose have been instituted or are pending
or, to their knowledge, are contemplated by the Commission.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Accountant&#146;s Comfort Letter</U>. At the time of the execution of this
Agreement, the Representatives shall have received from Deloitte &#038; Touche LLP a letter,
dated the date of this Agreement and in form and substance satisfactory to the
Representatives, together with signed or reproduced copies of such letter for each of the
other Underwriters, containing statements and information of the type ordinarily included in
accountants&#146; &#147;comfort letters&#148; to underwriters with respect to the financial statements and
certain financial information of the Fund contained in the Registration Statement or the
Prospectus.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Bring-down Comfort Letter</U>. At the Closing Date, the Representatives shall
have received from Deloitte &#038; Touche LLP a letter, dated as of the Closing Date and in form
and substance satisfactory to the Representatives, to the effect that they reaffirm the
statements made in the letter furnished pursuant to subsection (g)&nbsp;of this Section, except
that the specified date referred to shall be a date not more than three business days prior
to the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>No Objection</U>. Prior to the date of this Agreement, FINRA shall have
confirmed that it has no objection with respect to the fairness and reasonableness of the
underwriting terms and arrangements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>Conditions to Purchase of Option Securities</U>. In the event that the
Underwriters exercise their option provided in Section 2(b) hereof to purchase all or any
portion of the Option Securities on any Option Closing Date that is after the Closing Date,
the obligations of the several Underwriters to purchase the applicable Option Securities
shall be subject to the conditions specified in the introductory paragraph of this Section&nbsp;5
and to the further condition that, at the applicable Option Closing Date, the
Representatives shall have received:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <U>Officers&#146; Certificate</U>. A certificate, dated such Option Closing
Date, to the effect set forth in, and signed by two of the officers specified in,
Section 5(d) hereof, except that the references in such certificate to the Closing
Date shall be changed to refer to such Option Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <U>Opinion of Counsel for Fund</U>. The favorable opinion of Fund Counsel
in form and substance satisfactory to counsel for the Underwriters, dated such
Option Closing Date, relating to the Option Securities to be purchased on such
Option Closing Date and otherwise to the same effect as the opinion required by
Section 5(b) hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <U>Opinion of Counsel for Underwriters</U>. The favorable opinion of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, counsel for the Underwriters, dated such Option Closing Date,
relating to the Option Securities to be purchased on such Option Closing Date and
otherwise to the same effect as the opinion required by Section 5(c) hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <U>Opinion of Counsel for the Adviser</U>. The favorable opinion of
Vedder Price P.C., counsel for the Adviser, dated such Option Closing Date, relating
to the Option Securities to be purchased on such Option Closing Date and otherwise
to the same effect as the opinion required by Section 5(e) hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <U>Certificate of the Adviser</U>. A certificate, dated such Option
Closing Date, to the effect set forth in, and signed by two of the officers
specified in, Section 5(f) hereof, except that the references in such certificate to
the Closing Date shall be changed to refer to such Option Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <U>Bring-down Comfort Letter</U>. A letter from Deloitte &#038; Touche LLP, in
form and substance satisfactory to the Representatives and dated such
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Option Closing Date, substantially in the same form and substance as the letter
furnished to the Representatives pursuant to Section 5(j) hereof, except that the
&#147;specified date&#148; in the letter furnished pursuant to this paragraph shall be a date
not more than five days prior to such Option Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>Additional Documents</U>. At the Closing Date and at each Option Closing Date,
counsel for the Underwriters shall have been furnished with such documents and opinions as
they may require for the purpose of enabling them to pass upon the issuance and sale of the
Securities as herein contemplated, or in order to evidence the accuracy of any of the
representations or warranties, or the fulfillment of any of the conditions, contained in
this Agreement; and all proceedings taken by the Fund and the Adviser in connection with the
issuance and sale of the Securities as herein contemplated and in connection with the other
transactions contemplated by this Agreement shall be satisfactory in form and substance to
the Representatives and counsel for the Underwriters.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <U>Delivery of Documents</U>. The documents required to be delivered by this
Section&nbsp;5 shall be delivered at the office of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, counsel for the
Underwriters, at <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, on the Closing Date and at each Option
Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <U>Termination of Agreement</U>. If any condition specified in this Section&nbsp;5
shall not have been fulfilled when and as required to be fulfilled, this Agreement, or, in
the case of any condition to the purchase of Option Securities on an Option Closing Date
which is after the Closing Date, the obligations of the several Underwriters to purchase the
relevant Option Securities, may be terminated by the Representatives by notice to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6 <U>Indemnification</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Indemnification by the Fund and the Adviser</U>. The Fund and the Adviser,
jointly and severally, agree to indemnify and hold harmless each Underwriter and each
person, if any, who controls any Underwriter within the meaning of Section&nbsp;15 of the 1933
Act or Section&nbsp;20 of the 1934 Act as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, arising out of any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement
(or any amendment thereto), or the omission or alleged omission therefrom of
a material fact required to be stated therein or necessary to make the
statements therein not misleading, or arising out of any untrue statement or
alleged untrue statement of a material fact included in any preliminary
prospectus, any sales material, the Preliminary Prospectus or the Prospectus
(or any amendment or supplement thereto), or the omission or alleged
omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 6(e)
below) any such settlement is effected with the written consent of the Fund
and the Adviser; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) against any and all expense whatsoever, as incurred (including
the fees and disbursements of counsel chosen by &#091;Underwriter&#093;), reasonably
incurred in investigating, preparing or defending against any litigation, or
any investigation or proceeding by any governmental agency or body,
commenced or threatened, or any claim whatsoever based upon any such untrue
statement or omission, or any such alleged untrue statement or omission, to
the extent that any such expense is not paid under (i)&nbsp;or (ii)&nbsp;above,
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>provided</U>, <U>however</U>, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Fund or the Adviser by any Underwriter through &#091;Underwriter&#093; expressly
for use in the Registration Statement (or any amendment thereto), or in any preliminary prospectus,
any sales material, the Preliminary Prospectus or the Prospectus (or any amendment or supplement
thereto).
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Indemnification by the Underwriters</U>. Each Underwriter severally agrees to
indemnify and hold harmless each of the Fund and the Adviser, each of their directors,
trustees, members, each of their officers who signed the Registration Statement, and each
person, if any, who controls the Fund or the Adviser within the meaning of Section&nbsp;15 of the
1933 Act or Section&nbsp;20 of the 1934 Act against any and all loss, liability, claim, damage
and expense described in the indemnity contained in subsection (a)&nbsp;of this Section&nbsp;6, as
incurred, but only with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Registration Statement (or any amendment thereto), or
any preliminary prospectus, any sales material, the Preliminary Prospectus or the Prospectus
(or any amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Fund or the Adviser by such Underwriter through &#091;Underwriter&#093;
expressly for use in the Registration Statement (or any amendment thereto) or such
preliminary prospectus, any sales material, the Preliminary Prospectus or the Prospectus (or
any amendment or supplement thereto). The Fund and the Adviser acknowledge that the
statements set forth (i)&nbsp;in the last paragraph of the cover page regarding delivery of the
Securities, (ii)&nbsp;under the heading &#147;Underwriting&#148;, (iii)&nbsp;the list of Underwriters and their
respective participation in the sale of the Securities, (iv)&nbsp;the sentences related to
concessions and reallowances and (v)&nbsp;the paragraph related to prospectuses in electronic
format in any Preliminary Prospectus and the Prospectus constitute the only information
furnished in writing by or on behalf of the several Underwriters for inclusion in any
Preliminary Prospectus or the Prospectus.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Actions against Parties; Notification</U>. Each indemnified party shall give
notice as promptly as reasonably practicable to each indemnifying party of any action
commenced against it in respect of which indemnity may be sought hereunder, but failure to
so notify an indemnifying party shall not relieve such indemnifying party from any liability
hereunder to the extent it is not materially prejudiced as a result thereof and in any event
shall not relieve it from any liability which it may have otherwise than on account of this
indemnity agreement. Counsel to the indemnified parties shall be selected as follows:
counsel to the Underwriters and each person, if any, who controls any Underwriter within the
meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act shall be selected by
&#091;Underwriter&#093;; counsel to the Fund, its directors, trustees, members, each of its officers
who signed the Registration Statement and each person, if any, who controls the Fund within
the meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act shall be selected by
the Fund; and counsel to the Adviser and each person, if any, who controls such Adviser
within the meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act shall be
selected by such Adviser. An indemnifying party may participate at its own expense in the
defense of any such action; provided, however, that counsel to the indemnifying party shall
not (except with the consent of the indemnified party) also be counsel to the indemnified
party. In no event shall the indemnifying parties be liable for the fees and expenses of
more than one counsel (in addition to any local counsel) separate from their own counsel for
the Underwriters and each person, if any, who controls any Underwriter within the meaning of
Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act, the fees and expenses of more than
one counsel (in addition to any local counsel) separate from their own counsel for the Fund,
each of their directors, trustees, members, each of its officers who signed the Registration
Statement and each person, if any, who controls the Fund within the meaning of Section&nbsp;15 of
the 1933 Act or Section&nbsp;20 of the 1934 Act, the fees and expenses of more than one counsel
(in addition to any local counsel) separate from their own counsel for the Adviser, and the
fees and expenses of more than one counsel, in each case in connection with any one action
or separate but similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances. No indemnifying party shall, without the prior
written consent of the indemnified parties, settle or compromise or consent to the entry of
any judgment with respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in respect of
which indemnification or contribution could be sought under this Section&nbsp;6 or Section&nbsp;7
hereof (whether or not the indemnified parties are actual or potential parties thereto),
unless such settlement, compromise or consent (i)&nbsp;includes an unconditional release of each
indemnified party from all liability arising out of such litigation, investigation,
proceeding or claim and (ii)&nbsp;does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Settlement Without Consent if Failure to Reimburse</U>. If at any time an
indemnified party shall have requested an indemnifying party to reimburse the indemnified
party for fees and expenses of counsel, such indemnifying party agrees that it shall be
liable for any settlement of the nature contemplated by Section&nbsp;6(a)(ii) effected without
its written consent if (i)&nbsp;such settlement is entered into more than 45&nbsp;days after receipt
by such indemnifying party of the aforesaid request, (ii)&nbsp;such indemnifying party
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">shall have received notice of the terms of such settlement at least 30&nbsp;days prior to
such settlement being entered into and (iii)&nbsp;such indemnifying party shall not have
reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Other Agreements with Respect to Indemnification and Contribution</U>. The
provisions of this Section&nbsp;6 and in Section&nbsp;7 hereof shall not affect any agreements among
the Fund and the Adviser with respect to indemnification of each other or contribution
between themselves.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7 <U>Contribution</U>. If the indemnification provided for in Section&nbsp;6 hereof is
for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, (i)&nbsp;in such proportion as is appropriate
to reflect the relative benefits received by the Fund and the Adviser on the one hand and the
Underwriters on the other hand from the offering of the Securities pursuant to this Agreement or
(ii)&nbsp;if the allocation provided by clause (i)&nbsp;is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Fund and the Adviser on the one hand and of the
Underwriters on the other hand in connection with the statements or omissions which resulted in
such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable
considerations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The relative benefits received by the Fund and the Adviser on the one hand and the
Underwriters on the other hand in connection with the offering of the Securities pursuant to this
Agreement shall be deemed to be in the same respective proportions as the total net proceeds from
the offering of the Securities pursuant to this Agreement (before deducting expenses) received by
the Fund and the Adviser and the total underwriting discounts and commissions received by the
Underwriters, in each case as set forth on the cover of the Prospectus, bear to the aggregate
initial public offering price of the Securities as set forth on such cover.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The relative fault of the Fund and the Adviser on the one hand and the Underwriters on the
other hand shall be determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Fund, by the Adviser or by the Underwriters and the
parties&#146; relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund, the Adviser and the Underwriters agree that it would not be just and equitable if
contribution pursuant to this Section&nbsp;7 were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to above in this Section&nbsp;7.
The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an
indemnified party and referred to above in this Section&nbsp;7 shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any governmental agency
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or body, commenced or threatened, or any claim whatsoever based upon any such untrue or
alleged untrue statement or omission or alleged omission.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the provisions of this Section&nbsp;7, no Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which the Securities
underwritten by it and distributed to the public were offered to the public exceeds the amount of
any damages which such Underwriter has otherwise been required to pay by reason of any such untrue
or alleged untrue statement or omission or alleged omission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Section&nbsp;7, each person, if any, who controls an Underwriter within the
meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act and each director, trustee,
member, officer, employee and agent of an Underwriter shall have the same rights to contributions
as such Underwriters, and each person who controls the Fund or the Adviser within the meaning of
Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act, each officer of the Fund and the Adviser
and each trustee, director or member of the Fund and the Adviser shall have the same rights to
contribution as the Fund and the Adviser. The Underwriters&#146; respective obligations to contribute
pursuant to this Section&nbsp;7 are several in proportion to the number of Initial Securities set forth
opposite their respective names in Exhibit&nbsp;A hereto and not joint.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8 <U>Representations, Warranties and Agreements to Survive Delivery</U>. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Fund or signed by or on behalf of the Adviser submitted pursuant hereto, shall
remain operative and in full force and effect, regardless of any investigation made by or on behalf
of any Underwriter or controlling person, or by or on behalf of the Fund, or by or on behalf of the
Adviser, and shall survive delivery of the Securities to the Underwriters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9 <U>Termination of Agreement</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Termination; General</U>. The Representatives may terminate this Agreement, by
notice to the Fund or the Adviser, at any time on or prior to the Closing Date (and, if any
Option Securities are to be purchased on an Option Closing Date which occurs after the
Closing Date, the Representatives may terminate the obligations of the several Underwriters
to purchase such Option Securities, by notice to the Fund, at any time on or prior to such
Option Closing Date) (i)&nbsp;if there has been, since the time of execution of this Agreement or
since the respective dates as of which information is given in the Prospectus or the General
Disclosure Package, any Fund Material Adverse Effect or Adviser Material Adverse Effect, or
(ii)&nbsp;if there has occurred any material adverse change in the financial markets in the
United States or the international financial markets, any outbreak of hostilities or
escalation thereof or other calamity or crisis or any change or development involving a
prospective change in national or international political, financial or economic conditions,
in each case the effect of which is such as to make it, in the judgment of the
Representatives, impracticable or inadvisable to market the Securities or to enforce
contracts for the sale of the Securities, or (iii)&nbsp;if trading in any
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">securities of the Fund has been suspended or materially limited by the Commission or
the NYSE, or if trading generally on the NYSE or in the Nasdaq National Market has been
suspended or materially limited, or minimum or maximum prices for trading have been fixed,
or maximum ranges for prices have been required, by any of said exchanges or by such system
or by order of the Commission, FINRA or any other governmental authority, or a material
disruption has occurred in commercial banking or securities settlement or clearance services
in the United States or (iv)&nbsp;if a banking moratorium has been declared by either Federal or
New York authorities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Liabilities</U>. If this Agreement is terminated pursuant to this Section&nbsp;9,
such termination shall be without liability of any party to any other party except as
provided in Section&nbsp;4 hereof, and provided further that Sections&nbsp;1, 6, 7 and 8 hereof shall
survive such termination and remain in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 10 <U>Default by One or More of the Underwriters</U>. If one or more of the
Underwriters shall fail at the Closing Date or an Option Closing Date to purchase the Securities
which it or they are obligated to purchase under this Agreement (the &#147;<U>Defaulted
Securities</U>&#148;), the Representatives shall have the right, within 24 hours thereafter, to make
arrangements for one or more of the non defaulting Underwriters, or any other underwriters, to
purchase all, but not less than all, of the Defaulted Securities in such amounts as may be agreed
upon and upon the terms herein set forth; if, however, the Representatives shall not have completed
such arrangements within such 24 hour period, then:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the number of Defaulted Securities does not exceed 10% of the number of
Securities to be purchased on such date, each of the non defaulting Underwriters shall be
obligated, severally and not jointly, to purchase the full amount thereof in the proportions
that their respective underwriting obligations hereunder bear to the underwriting
obligations of all non defaulting Underwriters; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the number of Defaulted Securities exceeds 10% of the number of Securities to be
purchased on such date, this Agreement or, with respect to any Option Closing Date which
occurs after the Closing Date, the obligation of the Underwriters to purchase and of the
Fund to sell the Option Securities that were to have been purchased and sold on such Option
Closing Date, shall terminate without liability on the part of any non defaulting
Underwriter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No action taken pursuant to this Section&nbsp;10 shall relieve any defaulting Underwriter from
liability in respect of its default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any such default which does not result in a termination of this Agreement or,
in the case of an Option Closing Date which is after the Closing Date, which does not result in a
termination of the obligation of the Underwriters to purchase and the Fund to sell the relevant
Option Securities, as the case may be, the Representatives shall have the right to postpone Closing
Date or the relevant Option Closing Date, as the case may be, for a period not exceeding seven days
in order to effect any required changes in the Registration Statement or Prospectus or in any other
documents or arrangements. As used herein, the term &#147;Underwriter&#148; includes any person substituted
for an Underwriter under this Section&nbsp;10.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 11 <U>Notices</U>. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Underwriters shall be directed to the Representatives at
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>; notices to the Fund and the Adviser shall be
directed to them at c/o Calamos Advisors LLC, 2020 Calamos Court, Naperville, Illinois 60563,
Attention: General Counsel (fax no.: (630)&nbsp;245-6343).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 12 <U>Parties</U>. This Agreement shall inure to the benefit of and be binding upon
the Underwriters, the Fund and the Adviser and their respective successors. Nothing expressed or
mentioned in this Agreement is intended or shall be construed to give any person, firm or
corporation, other than the Underwriters, the Fund and the Adviser and their respective successors
and the controlling persons and directors, officers, members and trustees referred to in Sections&nbsp;6
and 7 and their heirs and legal representatives, any legal or equitable right, remedy or claim
under or in respect of this Agreement or any provision herein contained. This Agreement and all
conditions and provisions hereof are intended to be for the sole and exclusive benefit of the
Underwriters, the Fund and the Adviser and their respective successors, and said controlling
persons and officers and directors and their heirs and legal representatives, and for the benefit
of no other person, firm or corporation. No purchaser of Securities from any Underwriter shall be
deemed to be a successor by reason merely of such purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 13 <U>GOVERNING LAW</U>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 14 <U>Effect of Headings</U>. The Section and Exhibit headings herein are for
convenience only and shall not affect the construction hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 15 <U>Definitions</U>. As used in this Agreement, the following terms have the
respective meanings set forth below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Advisers Act</U>&#148; means the Investment Advisers Act of 1940, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Advisers Act Rules and Regulations</U>&#148; means the rules and regulations of the Commission
under the Advisers Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Adviser Material Adverse Effect</U>&#148; means a material adverse change in the condition,
financial or otherwise, or in the earnings, business affairs or business prospects of the Adviser,
whether or not arising in the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Applicable Time</U>&#148; means the date and time that this Agreement is executed and
delivered by the parties hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commission</U>&#148; means the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Declaration of Trust</U>&#148; means the Agreement and Declaration of Trust of Calamos &#091;Closed
End&#093; Fund dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, and any amendments thereto.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>EDGAR</U>&#148; means the Commission&#146;s Electronic Data Gathering, Analysis and Retrieval
System.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Fund Material Adverse Effect</U>&#148; means a material adverse change in the condition,
financial or otherwise, or in the earnings, business affairs or business prospects of the Fund,
whether or not arising in the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148; means generally accepted accounting principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Initial Registration Statement</U>&#148; means the Fund&#146;s registration statement (File Nos.
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>) on Form N-2 (including the statement of additional information
incorporated by reference therein), as amended (if applicable), at the time it became effective,
including the Rule&nbsp;430A Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>NYSE</U>&#148; means the New York Stock Exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Organizational Documents</U>&#148; means (a)&nbsp;in the case of a corporation, its charter and by
laws; (b)&nbsp;in the case of a limited or general partnership, its partnership certificate, certificate
of formation or similar organizational document and its partnership agreement; (c)&nbsp;in the case of a
limited liability company, its articles of organization, certificate of formation or similar
organizational documents and its operating agreement, limited liability company agreement,
membership agreement or other similar agreement; (d)&nbsp;in the case of a trust, its certificate of
trust, certificate of formation or similar organizational document and its trust agreement or other
similar agreement; and (e)&nbsp;in the case of any other entity, the organizational and governing
documents of such entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>preliminary prospectus</U>&#148; means any prospectus (including the statement of additional
information incorporated by reference therein) used in connection with the offering of the
Securities that was used before the Initial Registration Statement became effective, or that was
used after such effectiveness and prior to the execution and delivery of this Agreement, or that
omitted the Rule&nbsp;430A Information or that was captioned &#147;Subject to Completion&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Preliminary Prospectus</U>&#148; shall mean the preliminary prospectus (including the
statement of additional information incorporated by reference therein) dated <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and any
preliminary prospectus (including the statement of additional information incorporated by reference
therein) included in the Registration Statement at the Applicable Time that omits Rule&nbsp;430A
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Prospectus</U>&#148; shall mean the prospectus (including the statement of additional
information incorporated by reference therein) relating to the Securities that is first filed
pursuant to Rule&nbsp;497 after the Applicable Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registration Statement</U>&#148; means the Initial Registration Statement; provided that, if a
Rule 462(b) Registration Statement is filed with the Commission, then the term &#147;Registration
Statement&#148; shall also include such Rule 462(b) Registration Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rule&nbsp;172</U>,&#148; &#147;<U>Rule&nbsp;497</U>,&#148; &#147;<U>Rule&nbsp;430A</U>,&#148; &#147;<U>Rule&nbsp;433</U>&#148; and &#147;<U>Rule
462(b)</U>&#148; refer to such rules under the 1933 Act.
</DIV>


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</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rule&nbsp;430A Information</U>&#148; means the information included in the Prospectus that was
omitted from the Initial Registration Statement at the time it became effective but that is deemed
to be a part of the Initial Registration Statement at the time it became effective pursuant to Rule
430A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rule&nbsp;462(b) Registration Statement</U>&#148; means a registration statement filed by the Fund
pursuant to Rule 462(b) for the purpose of registering any of the Securities under the 1933 Act,
including the Rule&nbsp;430A Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rules and Regulations</U>&#148; means, collectively, the 1933 Act Rules and Regulations and
the 1940 Act Rules and Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Sarbanes-Oxley Act</U>&#148; means the Sarbanes-Oxley Act of 2002 and the rules and
regulations promulgated thereunder or implementing the provisions thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1933 Act</U>&#148; means the Securities Act of 1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1933 Act Rules and Regulations</U>&#148; means the rules and regulations of the Commission
under the 1933 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1934 Act</U>&#148; means the Securities Exchange Act of 1934, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1934 Act Rules and Regulations</U>&#148; means the rules and regulations of the Commission
under the 1934 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1940 Act</U>&#148; means the Investment Company Act of 1940, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1940 Act Notification</U>&#148; means a notification of registration of the Fund as an
investment company under the 1940 Act on Form N-8A, as the 1940 Act Notification may be amended
from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1940 Act Rules and Regulations</U>&#148; means the rules and regulations of the Commission
under the 1940 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All references in this Agreement to the Registration Statement, the Initial Registration
Statement, any Rule 462(b) Registration Statement, any preliminary prospectus, the Preliminary
Prospectus, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed
to include the copy filed with the Commission pursuant to EDGAR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 16 <U>Absence of Fiduciary Relationship</U>. Each of the Fund and the Adviser
acknowledges and agrees that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Underwriters is acting solely as an underwriter in connection with the
public offering of the Securities and no fiduciary, advisory or agency relationship between
the Fund or the Adviser, on the one hand, and any of the Underwriters, on the other hand,
has been or will be created in respect of any of the transactions contemplated by this
Agreement, irrespective of whether or not any of the Underwriters have advised or is
advising the Fund or the Adviser on other matters and
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">none of the Underwriters has any obligation to the Fund or the Adviser with respect to
the transactions contemplated by this Agreement except the obligations expressly set forth
in this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the public offering price of the Securities and the price to be paid by the
Underwriters for the Securities set forth in this Agreement were established by the Fund
following discussions and arms-length negotiations with the Representatives;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it is capable of evaluating and understanding, and understands and accepts, the
terms, risks and conditions of the transactions contemplated by this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in connection with each transaction contemplated by this Agreement and the process
leading to such transactions, each Underwriter is and has been acting solely as principal
and not as fiduciary, advisor or agent of the Fund or the Adviser or any of their respective
affiliates;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) none of the Underwriters has provided any legal, accounting, regulatory or tax
advice to the Fund or the Adviser with respect to the transactions contemplated by this
Agreement and it has consulted its own legal, accounting, regulatory and tax advisers to the
extent it has deemed appropriate;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) it is aware that the Underwriters and their respective affiliates are engaged in a
broad range of transactions which may involve interests that differ from those of the Fund
and the Adviser, and that none of the Underwriters has any obligation to disclose such
interests and transactions to the Fund or the Adviser by virtue of any fiduciary, advisory
or agency relationship; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) it waives, to the fullest extent permitted by law, any claims it may have against
any of the Underwriters for breach of fiduciary duty or alleged breach of fiduciary duty and
agrees that none of the Underwriters shall have any liability (whether direct or indirect,
in contract, tort or otherwise) to it in respect of such a fiduciary duty claim or to any
person asserting a fiduciary duty claim on its behalf or on behalf of the Fund or the
Adviser.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;Signature Page Follows&#093;</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->30<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Fund and the Adviser a counterpart hereof, whereupon this instrument, along with all
counterparts, will become a binding agreement among the Underwriters, the Fund and the Adviser in
accordance with its terms.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
<BR>
<BR>
<B>CALAMOS &#091;CLOSED END&#093; FUND</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="2" valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>CALAMOS ADVISORS LLC</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="2" valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CONFIRMED AND ACCEPTED, as of the date first<BR>
above written:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;UNDERWRITER&#093;

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">By: &#091;UNDERWRITER&#093;

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Authorized Signatory
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For themselves and as Representatives of the Underwriters named in Exhibit&nbsp;A hereto.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->31<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT A</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of Initial</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name of Underwriter</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#091;Underwriter&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#091;Underwriter&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#091;Underwriter&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#091;Underwriter&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#091;Underwriter&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->A-1 <!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT B</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>FORM OF OPINION OF VEDDER PRICE P.C.</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Fund has been duly formed and is validly existing in good standing as a statutory trust
under the Delaware Act, with full power and authority to own, lease and operate its properties and
to conduct its business as described in the Registration Statement, the Preliminary Prospectus and
the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Fund is duly registered with the Commission pursuant to Section&nbsp;8 of the 1940 Act as a
closed-end, diversified management investment company and the 1940 Act Notification has been duly
filed with the Commission; all action has been taken by the Fund as required by the 1933 Act, the
1940 Act, and the Rules and Regulations to permit the Fund to issue and sell the Securities to make
the public offering and consummate the sale of the Securities as contemplated by the Underwriting
Agreement; the Underwriting Agreement and each of the Fund Agreements complies in all material
respects with all applicable provisions of the 1933 Act, the 1940 Act, the Advisers Act, the Rules
and Regulations, and the Advisers Act Rules and Regulations; and the Fund has not received any
notice from the Commission pursuant to Section 8(e) of the 1940 Act with respect to the 1940 Act
Notification or the Registration Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Fund&#146;s Declaration of Trust and by-laws comply in all material respects with the 1940
Act and the 1940 Act Rules and Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Fund has full power and authority to enter into the Underwriting Agreement and the Fund
Agreements; the execution and delivery of, and the performance by the Fund of its obligations under
the Underwriting Agreement and the Fund Agreements have been duly and validly authorized by the
Fund; the Underwriting Agreement and the Fund Agreements constitute valid and legally binding
agreements of the Fund, enforceable against the Fund in accordance with their terms, except as
rights to indemnity and contribution thereunder may be limited by federal or state securities laws
and subject to the qualification that the enforceability of the Fund&#146;s obligations hereunder and
thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance and other laws relating to or affecting creditors&#146; rights generally and by general
equitable principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Neither the issuance and sale of the Securities in accordance with the Underwriting
Agreement, the execution, delivery or performance of the Underwriting Agreement or any of the Fund
Agreements by the Fund, nor the consummation by the Fund of the transactions contemplated herein or
therein or the adoption of the Fund&#146;s Dividend Reinvestment Plan (i)&nbsp;conflicts or will conflict
with or constitutes or will constitute a breach of the Declaration of Trust or by-laws of the Fund,
(ii)&nbsp;conflicts or will conflict with or constitutes or will constitute a breach of or a default
under, any material contract of the Fund, as set forth on Schedule&nbsp;I hereto, or (iii)&nbsp;violates or
will violate any existing United States of America or State of Illinois statute, law or regulation
(assuming compliance with all applicable state securities and blue sky laws, and except that, in
the published opinion of the Commission, the indemnification provisions in the Underwriting
Agreement and the Fund Agreements, insofar as they relate to indemnification for liabilities
arising under the 1933 Act, are against public policy as expressed
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-1 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in the 1933 Act and therefore unenforceable) or violates any filing or judgment, injunction,
order or decree known to us to be applicable to the Fund or any of its properties or will result in
the creation or imposition of any security interest, lien, charge or encumbrance upon any property
or assets of the Fund pursuant to the terms of any agreement or instrument to which the Fund is a
party or by which the Fund may be bound or to which any of the property or assets of the Fund is
subject (except in each case for such conflicts, violations, breaches or defaults of liens, charges
or encumbrances that would not have a material adverse effect on the ability of the Fund to perform
its obligations under the Underwriting Agreement and the Fund Agreements).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;None of the offering, issuance, sale or delivery of the Securities pursuant to the
Underwriting Agreement, or the consummation of any of the other transactions contemplated by the
Underwriting Agreement or the Fund Agreements, in each case on the terms contemplated by the
Registration Statement, the Preliminary Prospectus and the Prospectus, requires any consent,
approval, authorization or other order of or registration or filing with, the Commission, the
National Association of Securities Dealers, Inc., or any national securities exchange, or
governmental body or agency of the United States of America, or State of Illinois or State of
Delaware or, based solely on a review of our litigation docket and based solely on the Docket
Search (as that term is defined in the Morris Nichols Opinion), an order of any court or arbitrator
of the United States of America or State of Illinois or any Delaware Court (as that term is defined
in the Morris Nichols Opinion), except (1)&nbsp;the absence of which, either individually or in the
aggregate, would not have a material adverse effect on the Fund or the offering of the Securities
as contemplated in the Underwriting Agreement; (2)&nbsp;such as may have been obtained prior to the date
hereof; and (3)&nbsp;such as may be required for compliance with state securities or blue sky laws of
various jurisdictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;The Fund has an authorized, issued and outstanding capitalization as set forth in the
Preliminary Prospectus and the Prospectus and the authorized capitalization of the Fund conforms to
the description thereof contained in the Registration Statement, the Preliminary Prospectus and the
Prospectus; all of the outstanding common shares of beneficial interest have been duly authorized
and validly issued, and are fully paid and non-assessable; the Securities have been duly authorized
by all necessary action of the Fund under the Delaware Act and, when issued to, and paid for by,
the Underwriters in accordance with the Underwriting Agreement, will be validly issued, fully paid
and non-assessable representing undivided beneficial ownership interests in the assets of the Fund;
the Securities are duly listed, and admitted and authorized for trading, subject to official notice
of issuance and evidence of satisfactory distribution, on the NYSE; the form of certificate that
may be used to evidence the common shares of beneficial interest complies in all material respects
with the applicable requirements of the Fund&#146;s Declaration of Trust, the bylaws, the Delaware Act
and the rules of the NYSE, in each case as in effect on the date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;No holders of outstanding common shares of beneficial interest are entitled as such to any
preemptive or other rights to subscribe for any common shares of beneficial interest under any
applicable contract, under the Fund&#146;s Declaration of Trust or the by-laws or under the Delaware
Act; and, except as set forth in each Preliminary Prospectus and the Prospectus, no options,
warrants or other rights to purchase, agreements or other obligations to issue, or rights to
convert any obligations into or exchange any securities for, shares of capital stock of or
ownership interests in the Fund are outstanding.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-2 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;The statements set forth under the headings &#147;Description of Shares&#148; in the Preliminary
Prospectus and the Prospectus, &#147;Certain Provisions of the Agreement and Declaration of Trust and
By-Laws&#148; and &#147;U.S. Federal Income Tax Matters&#148; in the Preliminary Prospectus, the Prospectus and
Statement of Additional Information, insofar as such statements purport to summarize certain
provisions of the 1940 Act, the Delaware Act, the common shares of beneficial interest or the
Fund&#146;s Declaration of Trust, United States federal income tax law and regulations or legal
conclusions with respect thereto, fairly and accurately summarize such provisions in all material
respects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;To the knowledge of such counsel, there is no pending or threatened action, suit or
proceeding by or before any court or governmental agency, authority or body or any arbitrator
involving the Fund or its property of a character required to be disclosed in the Registration
Statement which is not adequately disclosed in the Preliminary Prospectus and the Prospectus, and
there are no agreements, franchises, contracts, indentures, mortgages, loan agreements, notes,
leases, permits or other instruments that are required to be described in the Registration
Statement, the Preliminary Prospectus or the Prospectus, or to be filed as an exhibit thereto,
which is not described or filed as required by the 1933 Act, the 1940 Act or the Rules and
Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;The Registration Statement has become effective under the Act; any required filing of the
Prospectus, and any supplements thereto, pursuant to Rule&nbsp;497 have been made in the manner and
within the time period required by Rule&nbsp;497; to the knowledge of such counsel, no stop order
suspending the effectiveness of the Registration Statement has been issued, no proceedings for that
purpose have been instituted or threatened by the Commission, and the Registration Statement, the
Preliminary Prospectus and the Prospectus (other than the financial statements and other financial
and statistical information contained therein, as to which such counsel need express no statement)
comply as to form in all material respects with the applicable requirements of the Act, the 1940
Act and the Rules and Regulations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nothing has come to such counsel&#146;s attention that would lead it to believe that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the Registration Statement, at the time it became effective, contained an untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary
to make the statements therein not misleading (other than the financial statements and schedules
and any other financial or statistical information or calculations contained therein or
incorporated therein by reference and other than any exhibits, schedules or appendices included or
incorporated by reference therein, as to which such counsel expresses no opinion), or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the documents included in the General Disclosure Package, all considered together, as of
the Applicable Time, contained any untrue statement of a material fact or omitted to state any
material fact required to be stated therein or necessary in order to make the statements therein,
in the light of circumstances under which they were made, not misleading (other than the financial
statements and schedules and any other financial or statistical information or calculations
contained therein or incorporated therein by reference and other than any exhibits, schedules or
appendices included or incorporated by reference therein, as to which such counsel expresses no
opinion), or
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->B-3 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;the Prospectus, as of its date and as of the Closing Date, contained or contains an
untrue statement of a material fact or omitted or omits to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not
misleading (other than the financial statements and schedules and any other financial or
statistical information or calculations contained therein or incorporated therein by reference and
other than any exhibits, schedules or appendices included or incorporated by reference therein, as
to which such counsel expresses no opinion).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In rendering such opinion, such counsel may rely (A)&nbsp;as to matters involving the application
of the laws of any jurisdiction other than the State of Delaware (other than the Delaware Statutory
Trust Act), State of Illinois, State of New York or the Federal laws of the United States to the
extent they deem proper and specified in such opinion, upon the opinion of other counsel of good
standing whom they believe to be reliable and who are satisfactory to counsel for the Underwriters,
(B)&nbsp;as to matters involving the application of the Delaware Statutory Trust Act to the extent they
deem proper and specified in such opinion, upon the opinion of Morris, Nichols, Arsht &#038; Tunnell or
other counsel of good standing whom they believe to be reliable and who are satisfactory to counsel
for the Underwriters and (C)&nbsp;as to matters of fact, to the extent they deem proper, on
certificates of responsible officers of the Fund and public officials. References to the
Preliminary Prospectus and the Prospectus shall also include any supplements thereto at the Closing
Date.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->B-4 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT C</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>FORM OF OPINION OF VEDDER PRICE P.C.</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Adviser has been duly formed and is validly existing in good standing as a limited
liability company under the Delaware Limited Liability Company Act, with full power and authority
to own, lease and operate its properties and to conduct its business as described in the
Registration Statement, the Preliminary Prospectus and the Prospectus. The Adviser is duly
qualified to do business and is in good standing under the laws of the State of Illinois.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Adviser is duly registered with the Commission as an investment adviser under the
Advisers Act, and is not prohibited by the Advisers Act, the 1940 Act or the Advisers Act Rules and
Regulations or the 1940 Act Rules and Regulations from acting under the Advisory Agreement, the
Accounting Agreement, the Structuring Fee Agreements and the Incentive Fee Agreements and, to the
best of such counsel&#146;s knowledge after reasonable inquiry, there does not exist any proceeding
which should reasonably be expected to adversely affect the registration of the Adviser with the
Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Adviser has full power and authority to enter into the Underwriting Agreement, the
Advisory Agreement, the Accounting Agreement, the Structuring Fee Agreements and the Incentive Fee
Agreements; the execution and delivery of, and the performance by the Adviser of its obligations
under the Underwriting Agreement, the Advisory Agreement, the Accounting Agreement, the Structuring
Fee Agreements and the Incentive Fee Agreements have been duly and validly authorized by the
Adviser; the Underwriting Agreement, the Advisory Agreement, the Accounting Agreement, the
Structuring Fee Agreements and the Incentive Fee Agreements constitute valid and legally binding
agreements of the Adviser, enforceable against the Adviser in accordance with their terms, except
as rights to indemnity and contribution thereunder may be limited by federal or state securities
laws and subject to the qualification that the enforceability of the Adviser&#146;s obligations
hereunder and thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance and other laws relating to or affecting creditors&#146; rights generally and by
general equitable principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Underwriting Agreement, the Advisory Agreement, the Accounting Agreement, the
Structuring Fee Agreements and the Incentive Fee Agreements comply in all material respects with
all applicable provisions of the Advisers Act, the 1940 Act and the Advisers Act Rules and
Regulations and the 1940 Act Rules and Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Neither the execution, delivery or performance of the Underwriting Agreement, the Advisory
Agreement, the Accounting Agreement, the Structuring Fee Agreements or the Incentive Fee Agreements
to which the Adviser is a party nor the consummation by the Adviser of the transactions therein
contemplated herein or therein (i)&nbsp;conflicts or will conflict with or constitutes or will
constitute a breach of the charter or by-laws of the Adviser, (ii)&nbsp;conflicts or will conflict with
or constitutes or will constitute a breach of or a default under, any material contract of the
Adviser, as set forth on Schedule&nbsp;I hereto, or (iii)&nbsp;violates or will violate any applicable
federal or State of Illinois law, statute, rule or regulation or the Delaware Limited Liability
Company Act or any judgment, order, writ or decree known to us, of any governmental authority or
administrative agency of the United States of America or the State of Illinois or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->C-1 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">under the Delaware Limited Liability Company Act or will result in the creation or imposition
of any security interest, lien, charge or encumbrance upon any property or assets of the Adviser
pursuant to the terms of any agreement or instrument to which the Adviser is a party or by which
the Adviser may be bound or to which any of the property or assets of the Adviser is subject
(except in each case for such conflicts, violations, breaches or defaults or liens, charges of
encumbrances that would not have a material adverse effect on the ability of the Adviser to perform
its obligations under the Underwriting Agreement and the Adviser Agreements).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;The description of the Adviser and its business in the Preliminary Prospectus and the
Prospectus complies in all material respects with all requirements of the 1933 Act, the 1940 Act
and the Rules and Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;(A)&nbsp;No filing with, or authorization, approval, consent, license, order, registration,
qualification or decree of, any court or governmental authority or agency, domestic or foreign, and
(B)&nbsp;no authorization, approval, vote or other consent of any other person or entity, is necessary
or required for the performance by the Adviser of its obligations under the Underwriting Agreement,
the Advisory Agreement, the Accounting Agreement, the Structuring Fee Agreements or the Incentive
Fee Agreements, for the offering, issuance, sale or delivery of the Securities hereunder, or for
the consummation of any of the other transactions contemplated by the Underwriting Agreement, the
Advisory Agreement, the Accounting Agreement, the Structuring Fee Agreements or the Incentive Fee
Agreements, in each case on the terms contemplated by the Registration Statement, the Preliminary
Prospectus and the Prospectus, except such as have been already obtained under the 1933 Act, the
1940 Act, the Rules and Regulations, the rules and regulations of the NASD and the NYSE and such as
may be required under state securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;To the knowledge of such counsel, there is no pending or threatened action, suit or
proceeding by or before any court or governmental agency, authority or body or any arbitrator
involving the Adviser or its property of a character required to be disclosed in the Registration
Statement which is not adequately disclosed in the Preliminary Prospectus and the Prospectus, and
there are no agreements, franchises, contracts, indentures, mortgages, loan agreements, notes,
leases, permits or other instruments that are required to be described in the Registration
Statement, the Preliminary Prospectus or the Prospectus, or to be filed as an exhibit thereto,
which is not described or filed as required by the 1933 Act, the 1940 Act or the Rules and
Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nothing has come to such counsel&#146;s attention that would lead it to believe that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Registration Statement, at the time it became effective,
contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the
statements therein not misleading (other than the financial statements and
schedules and any other financial or statistical information or calculations
contained therein or incorporated therein by reference and other than any
exhibits, schedules or appendices included or incorporated by reference
therein, as to which such counsel expresses no opinion), or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->C-2 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the documents included in the General Disclosure Package, all
considered together, as of the Applicable Time, contained any untrue
statement of a material fact or omitted to state any material fact required
to be stated therein or necessary in order to make the statements therein,
in the light of circumstances under which they were made, not misleading
(other than the financial statements and schedules and any other financial
or statistical information or calculations contained therein or incorporated
therein by reference and other than any exhibits, schedules or appendices
included or incorporated by reference therein, as to which such counsel
expresses no opinion), or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Prospectus, as of its date and as of the Closing Date,
contained or contains an untrue statement of a material fact or omitted or
omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading (other than the financial statements and schedules and any other
financial or statistical information or calculations contained therein or
incorporated therein by reference and other than any exhibits, schedules or
appendices included or incorporated by reference therein, as to which such
counsel expresses no opinion).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In rendering such opinion, such counsel may rely (A)&nbsp;as to matters involving the application
of laws of any jurisdiction other than the State of Delaware, State of Illinois, State of New York
or the Federal laws of the United States, to the extent they deem proper and specified in such
opinion, upon the opinion of other counsel of good standing whom they believe to be reliable and
who are satisfactory to counsel for the Underwriters and (B)&nbsp;as to matters of fact, to the extent
they deem proper, on certificates of responsible officers of the Fund and public officials.
References to the Preliminary Prospectus and the Prospectus shall also include any supplements
thereto at the Closing Date.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->C-3 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT D</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>FORM OF OPINION OF MORRIS, NICHOLS, ARSHT &#038; TUNNELL</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Fund has been duly formed and is validly existing in good standing as a statutory trust
under the Delaware Act. The Fund has the statutory trust power and authority to own property and
conduct its business as described in the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Under the Delaware Act and the Governing Instrument, the execution and delivery of the
Underwriting Agreement and each of the Fund Agreements by the Fund, and the performance by the Fund
of its obligations thereunder, have been duly authorized by all requisite statutory trust action on
the part of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Investment Advisor Shares are the only Shares currently issued and outstanding other
than any Common Shares issued and sold pursuant to the Underwriting Agreement. The Investment
Advisor Shares have been duly authorized for issuance by the Fund, are validly issued and, subject
to the qualifications below, fully paid and non-assessable beneficial interests in the Series. The
holder of the Investment Advisor Shares will be, subject to the terms of the Governing Instrument,
entitled to the same limitation of personal liability extended to stockholders of private
corporations for profit organized under the General Corporation Law of the State of Delaware.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Common Shares have been duly authorized for issuance by the Fund and, when issued and
delivered against payment therefor in accordance with the terms, conditions, requirements and
procedures set forth in the Underwriting Agreement, will be validly issued and, subject to the
qualifications below, fully paid and non-assessable beneficial interests in the Series. The
holders of Common Shares will be, subject to the terms of the Governing Instrument, entitled to the
same limitation of personal liability extended to stockholders of private corporations for profit
organized under the General Corporation Law of the State of Delaware.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Under the Governing Instrument and the Delaware Act, the issuance of the Common Shares is
not subject to preemptive rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;The form of Common Shares Certificate complies with all applicable requirements of the
Delaware Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;No authorization, approval, consent or order of any governmental authority or agency of the
State of Delaware or an order of any Delaware Court, is required to be obtained by the Fund solely
as a result of the issuance and sale of the Common Shares, the consummation by the Fund of the
transactions contemplated by the Underwriting Agreement and the Fund Agreements or the performance
by the Fund of its obligations thereunder, or the adoption of the Automatic Dividend Reinvestment
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;The execution and delivery by the Fund of the Underwriting Agreement and the Fund
Agreements, the consummation by the Fund of the transactions contemplated by the Underwriting
Agreement and the Fund Agreements, the performance by the Fund of its obligations thereunder, the
issuance and sale by the Fund of the Common Shares and the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->D-1 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">adoption of the Automatic Dividend Reinvestment Plan will not violate (i)&nbsp;the Certificate or
the Governing Instrument or (ii)&nbsp;any applicable Delaware law or administrative regulation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;There is not in any Delaware Court any action, suit or proceeding pending against the Fund.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->D-2 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT E</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PRICE-RELATED INFORMATION</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CALAMOS &#091;CLOSED END&#093; FUND</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Public offering price: $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Underwriting discounts and commissions: $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>per share
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Proceeds, before expenses to the Fund: $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>per share
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Shares offered: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Over-allotment option: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->E-1 <!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(H)(4)
<SEQUENCE>6
<FILENAME>c19483a2exv99wxhyx4y.htm
<DESCRIPTION>FORM OF UNDERWRITING AGREEMENT RELATING TO PREFERRED SHARES
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxhyx4y</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit
h.4</DIV>

<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt; margin-top:6pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>





<DIV align="center" style="font-size: 10pt; margin-top: 18pt">CALAMOS &#091;CLOSED-END&#093; FUND
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Auction Rate Cumulative Preferred Shares

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#95;&#95;&#95;&#95;&#95;&#95; Shares, Series &#95;&#95;&#95;

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Liquidation Preference $25,000 Per Share

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><u>UNDERWRITING AGREEMENT</u>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated: &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200 &#95;&#95;&#95;

</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">








<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Table of Contents</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="96%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 1. Representations and Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 2. Sale and Delivery to Underwriters; Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 3. Covenants of the Fund and the Adviser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 4. Payment of Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 5. Conditions of Underwriters&#146; Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 6. Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 7. Contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 8. Representations, Warranties and Agreements to Survive Delivery</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 9. Termination of Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 10. Default by One or More of the Underwriters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 11. Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 12. Parties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 13. GOVERNING LAW</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 14. Effect of Headings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 15. Definitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SECTION 16. Absence of Fiduciary Relationship</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBITS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Auction Rate Cumulative Preferred Shares to be Sold</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;B
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Opinion of Fund Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;C
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Opinion of Adviser Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;D
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Opinion of Delaware Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;E
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Price-Related Information</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS &#091;CLOSED-END&#093; FUND</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Auction Rate Cumulative Preferred Shares

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#95;&#95;&#95;&#95;&#95;&#95; Shares, Series &#95;&#95;&#95;

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Liquidation Preference $25,000 Per Share

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>UNDERWRITING AGREEMENT</U>

</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">______________, 200__
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#091;Underwriters&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As Representatives of the several Underwriters<BR>
listed on Exhibit&nbsp;A hereto
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#091;Address&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ladies and Gentlemen:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calamos &#091;Closed-End&#093; Fund, a Delaware statutory trust (the &#147;<U>Fund</U>&#148;), and Calamos
Advisors LLC, a Delaware limited liability company (the &#147;<U>Adviser</U>&#148;), confirm their
respective agreements with &#091;Underwriter&#093; (&#147;<U>Underwriter</U>&#148;) and each of the other Underwriters
named in Exhibit&nbsp;A hereto (collectively, the &#147;<U>Underwriters</U>,&#148; which term shall also include
any underwriter substituted as hereinafter provided in Section&nbsp;10 hereof), for whom &#091;Underwriter&#093;
is acting as representatives (in such capacity, the &#147;<U>Representatives</U>&#148;), with respect to the
issue and sale by the Fund of a total of &#95;&#95;&#95;&#95;&#95;&#95; shares of Series &#95;&#95;&#95; Auction Rate Cumulative
Preferred Shares, no par value per share, with a liquidation preference of $25,000 per share (the
&#147;<U>Preferred Shares</U>&#148;), and the purchase by the Underwriters, acting severally and not
jointly, of the respective numbers of Preferred Shares set forth in said Exhibit&nbsp;A hereto. The
Preferred Shares will be authorized by, and subject to the terms and conditions of, the Statement
of Preferences of Auction Rate Cumulative Preferred Shares (the &#147;Statement&#148;) and the Agreement and
Declaration of Trust dated &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200&#95;&#95;&#95;, as it may be amended (the &#147;Agreement and Declaration of
Trust&#148;) in substantially the forms filed as exhibits or otherwise included in the Registration
Statement referred to in Section&nbsp;1 of this Underwriting Agreement (the &#147;Agreement&#148;). Certain terms
used in this Agreement are defined in Section&nbsp;15 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund understands that the Underwriters propose to make a public offering of the Preferred
Shares as soon as the Representatives deem advisable after this Agreement has been executed and
delivered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund
has entered into (i)&nbsp;an Investment Management Agreement with the Adviser dated as of
&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200&#95;&#95;&#95;, (ii)&nbsp;a Custody Agreement with The Bank of New York dated as
of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200&#95;&#95;&#95;, (iii)
a Foreign Custody Agreement with The Bank of New York dated as of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200&#95;&#95;&#95;, (iv)&nbsp;a Stock
Transfer Agency Agreement with The Bank of New York dated as of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200&#95;&#95;&#95;, (v)&nbsp;an Amended and
Restated Financial Accounting Services Agreement with
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Adviser
dated as of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;,
200&#95;&#95;&#95;, as effective with respect to the Fund as of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;,
200&#95;&#95;&#95;, (vi)&nbsp;a Master Services Agreement with State Street Bank and
Trust Company dated as of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200&#95;&#95;&#95;, as
effective with respect to the Fund as of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;,
200&#95;&#95;&#95; and (vii)&nbsp;an Auction
Agency Agreement (including the form of Broker-Dealer Agreement) with The Bank of New York dated
&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200
&#95;&#95;&#95;, as effective with respect to the Fund as of
&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200&#95;&#95;&#95; and such agreements are
herein referred to as the &#147;<U>Advisory Agreement</U>,&#148; the &#147;<U>Custodian Agreement,</U>&#148; the
&#147;<U>Foreign Custody Agreement</U>,&#148; the &#147;<U>Transfer Agency Agreement,</U>&#148; the &#147;<U>Accounting
Agreement</U>,&#148; the &#147;<U>Administration Agreement</U>&#148; and the &#147;<U>Auction Agency Agreement</U>&#148;
respectively. Collectively, the Advisory Agreement, the Custodian Agreement, the Foreign Custody
Agreement, the Transfer Agency Agreement, the Accounting Agreement, the Administration Agreement
and the Auction Agency Agreement are herein referred to as the &#147;Fund Agreements.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has prepared and filed with the Commission a registration statement (file numbers
333-&#95;&#95;&#95;&#95;&#95;&#95; and 811-&#95;&#95;&#95;&#95;&#95;&#95;) on Form N-2, including a related preliminary prospectus (including the
statement of additional information incorporated by reference therein), for registration under the
1933 Act and the 1940 Act of the offering and sale of the Preferred Shares. The Fund may have filed
one or more amendments thereto, including a related preliminary prospectus (including the statement
of additional information incorporated by reference therein), each of which has previously been
furnished to you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will next file with the Commission one of the following: either (1)&nbsp;prior to the
effective date of the registration statement, a further amendment to the registration statement
(including the form of final prospectus (including the statement of additional information
incorporated by reference therein)) or (2)&nbsp;after the effective date of the registration statement,
a final prospectus (including the statement of additional information incorporated by reference
therein) in accordance with Rules&nbsp;430A and 497. In the case of clause (2), the Fund has included or
incorporated by reference in the Registration Statement, as amended at the effective date, all
information (other than Rule&nbsp;430A Information) required by the 1933 Act and the 1940 Act and the
Rules and Regulations to be included in the registration statement and the Prospectus. As filed,
such amendment and form of final prospectus (including the statement of additional information
incorporated by reference therein), or such final prospectus (including the statement of additional
information incorporated by reference therein), shall contain all Rule&nbsp;430A Information, together
with all other such required information, and, except to the extent the Representatives shall agree
in writing to a modification, shall be in all substantive respects in the form furnished to you
prior to the Applicable Time or, to the extent not completed at the Applicable Time, shall contain
only such specific additional information and other changes (beyond that contained in the latest
preliminary prospectus) as the Fund has advised you, prior to the Applicable Time, will be included
or made therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.&nbsp;&nbsp; <U>Representations and Warranties</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Representations and Warranties by the Fund and the Adviser. </I>The Fund and the Adviser,
jointly and severally, represent and warrant to each Underwriter as of the date hereof, as
of the Applicable Time, as of the Closing Date referred to in Section 2(b) hereof, and agree
with each Underwriter, as follows:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <U>Compliance with Registration Requirements</U>. The Preferred Shares have been
duly registered under the 1933 Act pursuant to the Registration Statement. Each of the
Initial Registration Statement and any Rule 462(b) Registration Statement has become
effective under the 1933 Act, and no stop order suspending the effectiveness of the Initial
Registration Statement or any Rule 462(b) Registration Statement has been issued under the
1933 Act, and no proceedings for that purpose have been instituted or are pending or, to the
knowledge of the Fund or the Adviser, are contemplated by the Commission, and any request on
the part of the Commission for additional information has been complied with. The
Preliminary Prospectus and the Prospectus complied when filed with the Commission in all
material respects with the requirements of the 1933 Act, the 1940 Act and the Rules and
Regulations. The Preliminary Prospectus and the Prospectus and any amendments or supplements
thereto delivered to the Underwriters for use in connection with the offering of the
Preferred Shares each was identical to the electronically transmitted copy thereof filed
with the Commission pursuant to EDGAR, except to the extent permitted by Regulation&nbsp;S-T.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the respective times the Initial Registration Statement, any Rule 462(b)
Registration Statement and any post-effective amendments thereto became or become effective
and at the Closing Date, the Initial Registration Statement, any Rule 462(b) Registration
Statement will, and the 1940 Act Notification when originally filed with the Commission and
any amendments and supplements thereto did or will, comply in all material respects with the
requirements of the 1933 Act, the 1940 Act and the Rules and Regulations and did not and
will not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading.
Neither the Prospectus nor any amendments or supplements thereto, as of its date, at the
Closing Date and at any time when a prospectus is required by applicable law to be delivered
in connection with sales of Preferred Shares, included or will include an untrue statement
of a material fact or omitted or will omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made,
not misleading. The Preliminary Prospectus and the information included on Exhibit&nbsp;E
hereto, all considered together (collectively, the &#147;<U>General Disclosure Package</U>&#148;) did
not or will not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; <U>provided</U>, <U>however</U>,
that the Fund makes no representations or warranties as to the information contained in or
omitted from the Preliminary Prospectus or the Prospectus in reliance upon and in conformity
with information furnished in writing to the Fund by or on behalf of any Underwriter
specifically for inclusion therein, it being understood and agreed that the only such
information furnished by any Underwriter consists of the information described as such in
Section 6(b) hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <U>Independent Accountants</U>. Deloitte &#038; Touche LLP who certified and audited
the financial statements and supporting schedules included in the Registration
Statement, the Preliminary Prospectus and the Prospectus are independent public
accountants as required by the 1933 Act, the 1940 Act and the Rules and Regulations.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <U>Financial Statements</U>. The financial statements of the Fund included in the
Registration Statement, the Preliminary Prospectus and the Prospectus, together with the
related schedules (if any) and notes, present fairly the financial position of the Fund at
the dates indicated and the results of operations and cash flows of the Fund for the periods
specified; and all such financial statements have been prepared in conformity with GAAP
applied on a consistent basis throughout the periods involved and comply with all applicable
accounting requirements under the 1933 Act, the 1940 Act and the Rules and Regulations. The
supporting schedules, if any, included in the Registration Statement present fairly, in
accordance with GAAP, the information required to be stated therein, and the other financial
and statistical information and data included in the Registration Statement, the Preliminary
Prospectus and the Prospectus are accurately derived from such financial statements and the
books and records of the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <U>No Material Adverse Change in Business or Distribution</U>. Since the
respective dates as of which information is given in the Preliminary Prospectus and the
Prospectus, except as otherwise stated therein, (A)&nbsp;there has been no Fund Material Adverse
Effect, (B)&nbsp;there have been no transactions entered into by the Fund which are material with
respect to the Fund other than those in the ordinary course of its business as described in
the Preliminary Prospectus and the Prospectus and (C)&nbsp;there has been no dividend or
distribution of any kind declared, paid or made by the Fund on any class of its Common
Shares except with respect to the distributions declared for the months of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <U>Good Standing of the Fund</U>. The Fund has been duly formed and is validly
existing in good standing as a statutory trust under the laws of the State of Delaware and
has power and authority to own, lease and operate its properties and to conduct its business
as described in the Registration Statement, the Preliminary Prospectus and the Prospectus
and to enter into and perform its obligations under this Agreement and the Fund Agreements;
and the Fund is duly qualified to transact business and is in good standing under the laws
of each jurisdiction which requires qualification.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <U>No Subsidiaries</U>. The Fund has no subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <U>Investment Company Status.</U> The Fund is duly registered under the 1940 Act
as a closed-end, diversified management investment company under the 1940 Act and the Rules
and Regulations, and the 1940 Act Notification has been duly filed with the Commission. The
Fund has not received any notice from the Commission pursuant to Section 8(e) of the 1940
Act with respect to the 1940 Act Notification or the Registration Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <U>Officers and Trustees</U>. No person is serving or acting as an officer,
trustee or investment adviser of the Fund except in accordance with the provisions of the
1940 Act and the Rules and Regulations and the Advisers Act. Except as disclosed in the
Registration Statement, the Preliminary Prospectus and the Prospectus, no trustee of the
Fund is (A)&nbsp;an &#147;interested person&#148; (as defined in the 1940 Act) of the Fund or (B)&nbsp;an
&#147;affiliated person&#148; (as defined in the 1940 Act) of any Underwriter. For purposes of this
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Section&nbsp;1(a)(8), the Fund and the Adviser shall be entitled to rely on representations from
such officers and trustees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) <U>Capitalization</U>. The Fund&#146;s authorized capitalization is as set forth in
the Preliminary Prospectus and in the Prospectus; the capital stock of the Fund conforms in
all material respects to the description thereof contained in the Preliminary Prospectus and
the Prospectus; all outstanding common shares of beneficial interest, no par value per share
(the &#147;Common Shares&#148;), have been duly and validly authorized and issued and are fully paid
and, except as described in the Preliminary Prospectus and the Prospectus, nonassessable;
the Preferred Shares have been duly and validly authorized, and, when issued and delivered
to and paid for by the Underwriters pursuant to this Agreement, will be fully paid and,
except as described in the Preliminary Prospectus and the Prospectus, nonassessable and free
of any preemptive or similar rights that entitle or will entitle any person to acquire any
Preferred Shares upon issuance thereof by the Fund; the certificates for the Preferred
Shares are in valid and sufficient form; the holders of outstanding Common Shares are not
entitled to preemptive or other rights to subscribe for the Preferred Shares; and, except as
set forth in the Preliminary Prospectus and the Prospectus, no options, warrants or other
rights to purchase, agreements or other obligations to issue, or rights to convert any
obligations into or exchange any securities for, shares of capital stock of, or ownership
interests in, the Fund are outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <U>Power and Authority</U>. The Fund has full power and authority to enter into
this Agreement and the Fund Agreements; the execution and delivery of, and the performance
by the Fund of its obligations under this Agreement and the Fund Agreements have been duly
and validly authorized by the Fund; and this Agreement and the Fund Agreements have been
duly executed and delivered by the Fund and constitute the valid and legally binding
agreements of the Fund, enforceable against the Fund in accordance with their terms, except
as rights to indemnity and contribution may be limited by federal or state securities laws
and subject to the qualification that the enforceability of the Fund&#146;s obligations hereunder
and thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance and other laws relating to or affecting creditors&#146; rights generally
and by general equitable principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) <U>Agreements&#146; Compliance with Law</U>. This Agreement and each of the Fund
Agreements comply in all material respects with all applicable provisions of the 1940 Act,
the 1940 Act Rules and Regulations, the Advisers Act and the Advisers Act Rules and
Regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) <U>Absence of Defaults and Conflicts</U>. The Fund is not (i)&nbsp;in violation of
its Statement, Agreement and Declaration of Trust or bylaws, (ii)&nbsp;in breach or default in
the performance of the terms of any indenture, contract, lease, mortgage, declaration of
trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or
instrument to which it is a party or bound or to which its property is subject or (iii)&nbsp;in
violation of any law, ordinance, administrative or governmental rule or regulation
applicable to the Fund or of any decree of the Commission, FINRA, any state securities
commission, any foreign securities commission, any national securities exchange, any
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">arbitrator, any court or any other governmental, regulatory, self-regulatory or
administrative agency or any official having jurisdiction over the Fund, except in the case
of (ii)&nbsp;and (iii)&nbsp;for such breaches, defaults or violations which would not have a Fund
Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) <U>Absence of Proceedings</U>. There is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or body, domestic or
foreign, now pending, or, to the knowledge of the Fund, threatened, against or affecting the
Fund which is required to be disclosed in the Preliminary Prospectus and Prospectus (other
than as disclosed therein), or that could reasonably be expected to result in a Fund
Material Adverse Effect, or that could reasonably be expected to materially and adversely
affect the properties or assets of the Fund or the consummation of the transactions
contemplated in this Agreement or the performance by the Fund of its obligations under this
Agreement or the Fund Agreements; the aggregate of all pending legal or governmental
proceedings to which the Fund is a party or of which any of its property or assets is the
subject which are not described in the Preliminary Prospectus or the Prospectus or to be
filed as an exhibit to the Registration Statement that are not described or filed as
required by the 1933 Act, the 1940 Act or the Rules and Regulations, including ordinary
routine litigation incidental to the business, could not reasonably be expected to result in
a Fund Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) <U>Accuracy of Descriptions and Exhibits</U>. The statements set forth under the
headings &#147;Description of Preferred Shares,&#148; &#147;The Auction,&#148; &#147;Certain Provisions of the
Agreement and Declaration of Trust and By-Laws&#148; and &#147;U.S. Federal Income Tax Matters&#148; in the
Preliminary Prospectus and the Prospectus and &#147;Additional Information Concerning the
Auctions for Preferred Shares&#148; and &#147;U.S. Federal Income Tax Matters&#148; in the Statement of
Additional Information, insofar as such statements purport to summarize certain provisions
of the 1940 Act, the Delaware Statutory Trust Act, the Preferred Shares, the Fund&#146;s
Statement and Agreement and Declaration of Trust, U.S. federal income tax law and
regulations or legal conclusions with respect thereto, fairly and accurately summarize such
provisions in all material respects; all descriptions in the Registration Statement, the
Preliminary Prospectus and the Prospectus of any Fund documents are accurate in all material
respects; and there are no franchises, contracts, indentures, mortgages, deeds of trust,
loan or credit agreements, bonds, notes, debentures, evidences of indebtedness, leases or
other instruments or agreements required to be described or referred to in the Registration
Statement, the Preliminary Prospectus or the Prospectus or to be filed as exhibits to the
Registration Statement that are not described or filed as required by the 1933 Act, the 1940
Act or the Rules and Regulations which have not been so described and filed as required.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) <U>Absence of Further Requirements</U>. (A)&nbsp;No filing with, or authorization,
approval, consent, license, order, registration, qualification or decree of, any court or
governmental authority or agency, domestic or foreign, and (B)&nbsp;no authorization, approval,
vote or other consent of any other person or entity, is necessary or required for the
performance by the Fund of its obligations under this Agreement or the Fund
Agreements, for the offering, issuance, sale or delivery of the Preferred Shares
hereunder, or for the consummation of any of the other transactions contemplated by this
Agreement
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">or the Fund Agreements, in each case on the terms contemplated by the Registration
Statement, the Preliminary Prospectus and the Prospectus, except such as have been already
obtained and under the 1933 Act, the 1940 Act, the Rules and Regulations, the rules and
regulations of the FINRA and such as may be required under state securities laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) <U>Non-Contravention</U>. Neither the execution or delivery of this Agreement
and the Fund Agreements, each as of their respective date of execution and delivery, or the
performance of this Agreement and the Fund Agreements nor the consummation by the Fund of
the transactions herein or therein contemplated (i)&nbsp;conflicts or will conflict with or
constitutes or will constitute a breach of the Statement, Agreement and Declaration of Trust
or bylaws of the Fund, (ii)&nbsp;conflicts or will conflict with or constitutes or will
constitute a breach of or a default under, any agreement, indenture, lease or other
instrument to which the Fund is a party or by which it or any of its properties may be bound
or (iii)&nbsp;violates or will violate any statute, law, regulation or filing or judgment,
injunction, order or decree applicable to the Fund or any of its properties or will result
in the creation or imposition of any lien, charge or encumbrance upon any property or assets
of the Fund pursuant to the terms of any agreement or instrument to which the Fund is a
party or by which the Fund may be bound or to which any of the property or assets of the
Fund is subject.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) <U>Possession of Licenses and Permits</U>. The Fund has such licenses, permits,
and authorizations of governmental or regulatory authorities (&#147;permits&#148;) as are necessary to
own its property and to conduct its business in the manner described in the Preliminary
Prospectus and the Prospectus; the Fund has fulfilled and performed all its material
obligations with respect to such permits and no event has occurred which allows or, after
notice or lapse of time, would allow, revocation or termination thereof or results in any
other material impairment of the rights of the Fund under any such permit, subject in each
case to such qualification as may be set forth in the Preliminary Prospectus and the
Prospectus; and, except as described in the Preliminary Prospectus and the Prospectus, none
of such permits contains any restriction that is materially burdensome to the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) <U>Distribution of Offering Material</U>. The Fund has not distributed and,
prior to the later to occur of (i)&nbsp;the Closing Date and (ii)&nbsp;completion of the distribution
of the Preferred Shares, will not distribute any offering material in connection with the
offering and sale of the Preferred Shares other than the Registration Statement, the
Preliminary Prospectus, the Prospectus, any sales material or other materials permitted by
the Act, the 1940 Act or the Rules and Regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) <U>Absence of Registration Rights</U>. There are no persons with registration
rights or other similar rights to have any securities (debt or equity) (A)&nbsp;registered
pursuant to the Registration Statement or included in the offering contemplated by this
Agreement or (B)&nbsp;otherwise registered by the Fund under the 1933 Act or the 1940 Act. There
are no persons with tag-along rights or other similar rights to have any securities
(debt or equity) included in the offering contemplated by this Agreement or sold in
connection with the sale of Preferred Shares by the Fund pursuant to this Agreement.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) <U>FINRA Matters</U>. All of the information provided to the Underwriters or to
counsel for the Underwriters by the Fund, its officers and Trustees in connection with
letters, filings or other supplemental information provided to Financial Industry Regulatory
Authority, Inc. pursuant to the FINRA&#146;s conduct rules is true, complete and correct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) <U>Tax Returns</U>. The Fund has filed all tax returns that are required to be
filed and has paid all taxes required to be paid by it and any other assessment, fine or
penalty levied against it, to the extent that any of the foregoing is due and payable,
except for any such tax, assessment, fine or penalty that is currently being contested in
good faith by appropriate actions and except for such taxes, assessments, fines or penalties
the nonpayment of which would not, individually or in the aggregate, have a Fund Material
Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) <U>Subchapter M</U>. The Fund is currently in compliance with the requirements
of Subchapter M of the Internal Revenue Code of 1986, as amended (the &#147;<U>Code</U>&#148;) to
qualify as a regulated investment company under the Code and intends to direct the
investment of the net proceeds of the offering of the Preferred Shares in such a manner as
to comply with the requirements of Subchapter M of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) <U>Insurance</U>. The Fund&#146;s trustees and officers/errors and omissions
insurance policy and its fidelity bond required by Rule&nbsp;17g-1 of the 1940 Act Rules and
Regulations are in full force and effect; the Fund is in compliance with the terms of such
policy and fidelity bond in all material respects; and there are no claims by the Fund under
any such policy or fidelity bond as to which any insurance company is denying liability or
defending under a reservation of rights clause; the Fund has not been refused any insurance
coverage sought or applied for; and the Fund has no reason to believe that it will not be
able to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business at a
cost that would not have a Fund Material Adverse Effect, except as set forth in or
contemplated in the Preliminary Prospectus and Prospectus (exclusive of any supplement
thereto).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) <U>Accounting Controls and Disclosure Controls</U>. The Fund maintains a system
of internal accounting controls sufficient to provide reasonable assurances that (A)
transactions are executed in accordance with management&#146;s general or specific authorizations
and with the investment objectives, policies and restrictions of the Fund and the applicable
requirements of the 1940 Act, the 1940 Act Rules and Regulations and the Code; (B)
transactions are recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset accountability to calculate net asset value and
to maintain material compliance with the books and records requirements under the 1940 Act
and the 1940 Act Rules and Regulations; (C)&nbsp;access to assets is permitted only in accordance
with management&#146;s general or specific authorization; and (D)&nbsp;the recorded accountability for
assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any differences.
The Fund employs &#147;disclosure controls and procedures&#148; (as such term is defined in Rule
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">30a-3
under the 1940 Act); such disclosure controls and procedures are currently in effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) <U>Compliance with the Sarbanes-Oxley Act.</U> There is and has been no failure
on the part of the Fund or any of the Fund&#146;s trustees or officers, in their capacities as
such, to comply with any provision of the Sarbanes-Oxley Act and the rules and regulations
promulgated in connection therewith, including Sections&nbsp;302 and 906 related to
certifications.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26) <U>Fund Compliance with Policies and Procedures</U>. The Fund has adopted and
implemented written policies and procedures reasonably designed to prevent violation of the
Federal Securities Laws (as that term is defined in Rule&nbsp;38a-1 under the 1940 Act) by the
Fund, including policies and procedures that provide oversight of compliance for each
investment adviser, administrator and transfer agent of the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27) <U>Absence of Manipulation</U>. The Fund has not taken and will not take,
directly or indirectly, any action designed to or that would constitute or that might
reasonably be expected to cause or result in the stabilization or manipulation of the price
of any security to facilitate the sale or resale of the Preferred Shares, and the Fund is
not aware of any such action taken or to be taken by any affiliates of the Fund, other than
such actions as taken by the Underwriters that are affiliates of the Fund, so long as such
actions are in compliance with all applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28) <U>Statistical, Demographic or Market-Related Data</U>. Any statistical,
demographic or market-related data included in the Registration Statement, the Preliminary
Prospectus or the Prospectus is based on or derived from sources that the Fund believes to
be reliable and accurate and all such data included in the Registration Statement, the
Preliminary Prospectus or the Prospectus accurately reflects the materials upon which it is
based or from which it was derived.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29) <U>Advertisements</U>. All advertising, sales literature or other promotional
material (including &#147;prospectus wrappers&#148;, &#147;broker kits&#148;, &#147;road show slides&#148; and &#147;road show
scripts&#148;), whether in printed or electronic form, authorized in writing by or prepared by or
at the direction of the Fund or the Adviser for use in connection with the offering and sale
of the Preferred Shares (collectively, &#147;sales material&#148;) complied and comply in all material
respects with the applicable requirements of the 1933 Act, the 1933 Act Rules and
Regulations and the rules and interpretations of the FINRA and if required to be filed with
the FINRA under the FINRA&#146;s conduct rules were provided to &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, counsel for the
Underwriters, for filing. No sales material contained or contains an untrue statement of a
material fact or omitted or omits to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Representations and Warranties by the Adviser</I>. The Adviser represents and warrants to
each Underwriter as of the date hereof, as of the Applicable Time, as of the Closing Date, and
agrees with each Underwriter, as follows:
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <U>Investment Manager Status</U>. The Adviser is duly registered as an investment
adviser under the Advisers Act and it not prohibited by the Advisers Act, the 1940 Act, the
Advisers Act Rules and Regulations or the 1940 Act Rules and Regulations from acting under
the Advisory Agreement or the Accounting Agreement as contemplated by the Preliminary
Prospectus and the Prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <U>Capitalization</U>. The Adviser has the financial resources available to it
necessary for the performance of its services and obligations as contemplated in the
Preliminary Prospectus and the Prospectus and under this Agreement and the Advisory
Agreement and the Accounting Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <U>No Material Adverse Change in Business</U>. Since the respective dates as of
which information is given in the Preliminary Prospectus and the Prospectus, except as
otherwise stated therein, (A)&nbsp;there has been no Adviser Material Adverse Effect and (B)
there have been no transactions entered into by the Adviser which are material with respect
to the Adviser other than those in the ordinary course of its business as described in the
Preliminary Prospectus and the Prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <U>Good Standing</U>. The Adviser has been duly formed and is validly existing in
good standing as a limited liability company under the laws of the State of Delaware and has
power and authority to own, lease and operate its properties and to conduct its business as
described in the Registration Statement, the Preliminary Prospectus and the Prospectus and
to enter into and perform its obligations under this Agreement and the Fund Agreements to
which it is a party; and the Adviser is duly qualified to transact business and is in good
standing under the laws of each jurisdiction which requires qualification.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <U>Power and Authority</U>. The Adviser has full power and authority to enter
into this Agreement, the Advisory Agreement and the Accounting Agreement; the execution and
delivery of, and the performance by the Adviser of its obligations under this Agreement, the
Advisory Agreement and the Accounting Agreement have been duly and validly authorized by the
Adviser; and this Agreement, the Advisory Agreement and the Accounting Agreement have been
duly executed and delivered by the Adviser and constitute the valid and legally binding
agreements of the Adviser, enforceable against the Adviser in accordance with their terms,
except as rights to indemnity and contribution may be limited by federal or state securities
laws and subject to the qualification that the enforceability of the Adviser&#146;s obligations
hereunder and thereunder may be limited by bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance and other laws relating to or affecting creditors&#146; rights
generally and by general equitable principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <U>Description of the Adviser</U>. The description of the Adviser and its
business and the statements attributable to the Adviser in the Preliminary Prospectus and
Prospectus complied and comply in all material respects with the provisions of the 1933
Act, the 1940 Act, the Advisers Act, the 1940 Act Rules and Regulations and the Advisers Act
Rules and Regulations and did not and will not contain an untrue statement
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">of a material
fact or omit to state a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <U>Non-Contravention</U>. Neither the execution, delivery or performance of this
Agreement, the Advisory Agreement or the Accounting Agreement nor the consummation by the
Fund or the Adviser of the transactions herein or therein contemplated (i)&nbsp;conflicts or will
conflict with or constitutes or will constitute a breach of the Organizational Documents of
the Adviser, (ii)&nbsp;conflicts or will conflict with or constitutes or will constitute a breach
of or a default under, any agreement, indenture, lease or other instrument to which the
Adviser is a party or by which it or any of its properties may be bound or (iii)&nbsp;violates or
will violate any statute, law, regulation or filing or judgment, injunction, order or decree
applicable to the Adviser or any of its properties or will result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the Adviser
pursuant to the terms of any agreement or instrument to which the Adviser is a party or by
which the Adviser may be bound or to which any of the property or assets of the Adviser is
subject.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <U>Agreements&#146; Compliance with Laws</U>. This Agreement, the Advisory Agreement
and the Accounting Agreement comply in all material respects with all applicable provisions
of the 1940 Act, the 1940 Act Rules and Regulations, the Advisers Act, and the Advisers Act
Rules and Regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) <U>Absence of Proceedings</U>. There is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or body, domestic or
foreign, now pending, or, to the knowledge of the Adviser, threatened, against or affecting
the Adviser which is required to be disclosed in the Preliminary Prospectus and Prospectus
(other than as disclosed therein), or that could reasonably be expected to result in an
Adviser Material Adverse Effect, or that could reasonably be expected to materially and
adversely affect the properties or assets thereof or the consummation of the transactions
contemplated in this Agreement or the performance by the Adviser of its obligations under
this Agreement, the Advisory Agreement or the Accounting Agreement; the aggregate of all
pending legal or governmental proceedings to which the Adviser is a party or of which any of
its property or assets is the subject which are not described in the Preliminary Prospectus
or the Prospectus, including ordinary routine litigation incidental to the business, could
not reasonably be expected to result in an Adviser Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <U>Absence of Further Requirements</U>. (A)&nbsp;No filing with, or authorization,
approval, consent, license, order, registration, qualification or decree of, any court or
governmental authority or agency, domestic or foreign, and (B)&nbsp;no authorization, approval,
vote or other consent of any other person or entity, is necessary or required for the
performance by the Adviser of its obligations under this Agreement, the Advisory Agreement
or the Accounting Agreement, except such as have been already obtained
under the 1933 Act, the 1940 Act, the Rules and Regulations, the rules and regulations
of the FINRA and such as may be required under state securities laws.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) <U>Possession of Permits</U>. The Adviser has such licenses, permits and
authorizations of governmental or regulatory authorities (&#147;permits&#148;) as are necessary to own
its property and to conduct its business in the manner described in the Preliminary
Prospectus and the Prospectus; the Adviser has fulfilled and performed all its material
obligations with respect to such permits and no event has occurred which allows, or after
notice or lapse of time would allow, revocation or termination thereof or results in any
other material impairment of the rights of the Adviser under any such permit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) <U>Adviser Compliance with Policies and Procedures</U>. The Adviser has adopted
and implemented written policies and procedures under Rule&nbsp;206(4)-7 of the Advisers Act
reasonably designed to prevent violation of the Advisers Act and the Advisers Act Rules by
the Adviser and its supervised persons.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) <U>Absence of Manipulation</U>. The Adviser has not taken and will not take,
directly or indirectly, any action designed to or that would constitute or that might
reasonably be expected to cause or result in the stabilization or manipulation of the price
of any security to facilitate the sale or resale of the Preferred Shares, and the Adviser is
not aware of any such action taken or to be taken by any affiliates of the Adviser, other
than such actions as taken by the Underwriters that are affiliates of the Adviser, so long
as such actions are in compliance with all applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<I>Certificates. </I>Any certificate signed by any officer of the Fund or the Adviser and
delivered to the Representatives or to counsel for the Underwriters shall be deemed a
representation and warranty by the Fund or the Adviser, as the case may be, to each Underwriter as
to the matters covered thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.&nbsp;&nbsp; <U>Sale and Delivery to Underwriters; Closing</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Preferred Shares. </I>On the basis of the representations and warranties herein contained
and subject to the terms and conditions herein set forth, the Fund agrees to sell to each
Underwriter, severally and not jointly, and each Underwriter, severally and not jointly, agrees to
purchase from the Fund, at a purchase price of $&#95;&#95;&#95;&#95;&#95;&#95; per share, the amount of the Preferred Shares
set forth opposite such Underwriter&#146;s name in Exhibit&nbsp;A hereto. The Fund is advised that the
Underwriters intend to (i)&nbsp;make a public offering of their respective portions of the Preferred
Shares as soon after the Applicable Time as is advisable and (ii)&nbsp;initially to offer the Preferred
Shares upon the terms set forth in the Preliminary Prospectus and the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Payment. </I>Payment of the purchase price for the Preferred Shares, and delivery of the
related closing certificates therefor, shall be made at the offices of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, or at such other
place as shall be agreed upon by the Representatives and the Fund, at 10:00&nbsp;A.M. (Eastern time) on
&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200&#95;&#95;&#95; (unless postponed in accordance with the provisions of Section&nbsp;10), or such other
time not later than ten business days after such date as shall be agreed upon by the
Representatives and the Fund (such time and date of payment and delivery being herein called
&#147;<U>Closing Date</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delivery of the Preferred Shares shall be made to the Representatives for the respective
accounts of the several Underwriters against payment by the several Underwriters through the
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Representatives of the purchase price thereof to or upon the order of the Fund by Federal Funds
wire transfer payable in same-day funds to an account specified by the Fund. Delivery of the
Preferred Shares shall be made through the facilities of The Depository Trust Company unless the
Representatives shall otherwise instruct. Underwriter, individually and not as Representative of
the Underwriters, may (but shall not be obligated to) make payment of the purchase price for the
Preferred Shares to be purchased by any Underwriter whose funds have not been received by the
Closing Date, but such payment shall not relieve such Underwriter from its obligations hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<I>Denominations; Registration. </I>Certificates for the Preferred Shares shall be in such
denominations and registered in such names as the Representatives may request in writing at least
one full business day before the Closing Date. The certificates for the Preferred Shares will be
made available for examination and packaging by the Representatives in The City of New York not
later than noon (Eastern Time) on the business day prior to the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.&nbsp;&nbsp; <U>Covenants of the Fund and the Adviser</U>. The Fund and the Adviser, jointly
and severally, covenant with each Underwriter as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <I>Compliance with Securities Regulations and Commission Requests. </I>The Fund, subject
to Section&nbsp;3(a)(ii), will comply with the requirements of Rule&nbsp;430A and will notify the
Representatives immediately, and confirm the notice in writing, (i)&nbsp;when any post-effective
amendment to the Registration Statement shall become effective, or any supplement to the
Prospectus or any amended Prospectus shall have been filed, (ii)&nbsp;of the receipt of any
comments from the Commission, (iii)&nbsp;of any request by the Commission for any amendment to
the Registration Statement or any amendment or supplement to the Prospectus or for
additional information, (iv)&nbsp;of the issuance by the Commission of any stop order suspending
the effectiveness of the Registration Statement or of any order preventing or suspending the
use of any preliminary prospectus, or of the suspension of the qualification of the
Preferred Shares for offering or sale in any jurisdiction, or of the initiation or
threatening of any proceedings for any of such purposes, or of any examination pursuant to
Section 8(e) of the 1940 Act concerning the Registration Statement and (v)&nbsp;if the Fund
becomes the subject of a proceeding under Section&nbsp;8A of the 1933 Act in connection with the
offering of the Preferred Shares. The Fund will use its best efforts in connection with the
offering of the Preferred Shares to prevent the issuance of any stop order or the suspension
of any such qualification and, if issued, to obtain as soon as possible the withdrawal
thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <I>Filing of Amendments. </I>The Fund will give the Representatives notice of its
intention to file or prepare any amendment to the Registration Statement (including any
filing under Rule&nbsp;462(b)) or any amendment, supplement or revision to either the
prospectus included in the Registration Statement at the time it became effective or to
the Prospectus, whether pursuant to the 1933 Act or otherwise, or will furnish the
Representatives with copies of any such documents within a reasonable amount of time prior
to such proposed filing or use, as the case may be, and will not file or use any such
document to which the Representatives or counsel for the Underwriters shall object.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <I>Delivery of Registration Statements. </I>The Fund has furnished or will deliver to the
Representatives and counsel for the Underwriters, without charge, signed copies of the
Registration Statement as originally filed and of each amendment thereto (including exhibits
filed therewith) and signed copies of all consents and certificates of experts. The copies
of the Registration Statement and each amendment thereto furnished to the Underwriters will
be identical to the electronically transmitted copies thereof filed with the Commission
pursuant to EDGAR, except to the extent permitted by Regulation&nbsp;S-T.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <I>Delivery of Prospectuses. </I>The Fund has delivered to each Underwriter, without
charge, as many copies of the Preliminary Prospectus prepared prior to the date of this
Agreement as such Underwriter reasonably requested, and the Fund hereby consents to the use
of such copies for purposes permitted by the 1933 Act. The Fund will furnish to each
Underwriter, without charge, such number of copies of the documents constituting the General
Disclosure Package prepared on or after the date of this Agreement and the Prospectus (and
any amendments or supplements thereto) as such Underwriter may reasonably request. The
Preliminary Prospectus and the Prospectus and any amendments or supplements thereto
furnished to the Underwriters is or will be, as the case may be, identical to the
electronically transmitted copies thereof filed with the Commission pursuant to EDGAR,
except to the extent permitted by Regulation&nbsp;S-T.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <I>Continued Compliance with Securities Laws. </I>The Fund will comply with the 1933 Act,
the 1940 Act and the Rules and Regulations so as to permit the completion of the
distribution of the Preferred Shares as contemplated in this Agreement and in the
Prospectus. If at any time when a prospectus is required by the 1933 Act to be delivered in
connection with sales of the Preferred Shares (including, without limitation, pursuant to
Rule&nbsp;172), any event shall occur or condition shall exist as a result of which it is
necessary, in the opinion of counsel for the Underwriters or for the Fund, to amend the
Registration Statement or amend or supplement the Prospectus in order that the Prospectus
will not include any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein not misleading in the light of the
circumstances existing at the time it is delivered to a purchaser, or if it shall be
necessary, in the opinion of such counsel, at any such time to amend the Registration
Statement or amend or supplement the Prospectus in order to comply with the requirements of
the 1933 Act, the 1940 Act or the Rules and Regulations, the Fund will promptly prepare and
file with the Commission, subject to Section 3(b) hereof, such amendment or supplement as
may be necessary to correct such statement or omission or to make the Registration Statement
or the Prospectus comply with such requirements, and the Fund will furnish to the
Underwriters such number of copies of such amendment or supplement as the Underwriters may
reasonably request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <I>Blue Sky Qualifications. </I>The Fund will use its best efforts, in cooperation with
the Underwriters, to qualify, if necessary, the Preferred Shares for offering and sale under
the applicable securities laws of states of the United States, the District of Columbia,
Guam, Puerto Rico and the U.S. Virgin Islands as the Representatives may designate and to
maintain such qualifications in effect for a period of not less than one year from the date
of this Agreement; provided, however, that the Fund shall not be
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">obligated to file any
general consent to service of process or to qualify as a foreign corporation or as a dealer
in securities in any jurisdiction in which it is not so qualified or to subject itself to
taxation in respect of doing business in any jurisdiction in which it is not otherwise so
subject.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <I>Rule&nbsp;158. </I>The Fund will timely file such reports pursuant to the 1934 Act as are
necessary in order to make generally available to its security holders as soon as
practicable an earnings statement for the purposes of, and to provide to the Underwriters
the benefits contemplated by, the last paragraph of Section 11(a) of the 1933 Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <I>Use of Proceeds</I>. The Fund will use the net proceeds received by it from the sale
of the Preferred Shares in the manner specified in the Prospectus under &#147;Use of Proceeds.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <I>Reporting Requirements. </I>The Fund, during the period when the Prospectus is
required to be delivered under the 1933 Act, the 1940 Act or the Rules and Regulations, will
file all documents required to be filed with the Commission pursuant to the 1933 Act, the
1940 Act or the Rules and Regulations within the time periods required by the 1934 Act, the
1940 Act or the Rules and Regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <I>Subchapter M. </I>The Fund will comply with the requirements of Subchapter M of the
Code to qualify as a regulated investment company under the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <I>Absence of Manipulation</I>. Except as stated in this Agreement and the Preliminary
Prospectus and Prospectus, the Fund and the Adviser have not taken and will not take,
directly or indirectly, any action designed to or that would constitute or that might
reasonably be expected to cause or result in the stabilization or manipulation of the price
of any security to facilitate the sale or resale of the Preferred Shares, and the Fund and
the Adviser are not aware of any such action taken or to be taken by any affiliates of the
Fund or the Adviser, other than such actions as taken by the Underwriters that are
affiliates of the Fund or the Adviser, so long as such actions are in compliance with all
applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <I>Restriction on Sale of Securities. </I>The Fund will not, without the prior written
consent of Underwriter, offer, sell, contract to sell, pledge, or otherwise dispose of, or
enter into any transaction which is designed to, or might reasonably be expected to, result
in the disposition (whether by actual disposition or effective economic disposition due to
cash settlement or otherwise) by the Fund or any affiliate of the Fund or any person in
privity with the Fund, directly or indirectly, including the filing (or participation in the
filing) of a registration statement with the Commission in respect of, or establish or
increase a put equivalent position or liquidate or decrease a call equivalent
position within the meaning of Section&nbsp;16 of the Exchange Act, any senior securities
other than the Preferred Shares or any securities convertible into, or exercisable, or
exchangeable for, any senior securities other than the Preferred Shares; or publicly
announce an intention to effect any such transaction for a period of 180&nbsp;days following the
Execution Time
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <I>Ratings. </I>The Fund will use its reasonable best efforts to cause the Preferred
Shares, prior to the Closing Date, to be assigned a rating of &#145;AAA&#146; by Fitch Ratings
(&#147;Fitch&#148;) and &#145;AAA&#146; by Standard &#038; Poors (&#147;S&#038;P&#148;, and together with Fitch, the &#147;Rating
Agencies&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <I>Asset Coverage and Basic Maintenance Report. </I>The Fund will furnish to you (i)&nbsp;a
report showing compliance with the asset coverage requirements of the 1940 Act as of the
Closing Date and (ii)&nbsp;a Preferred Shares Basic Maintenance Certificate (as defined in the
Statement) as of a date within seven business days after the Closing Date, each in form and
substance satisfactory to you. Each such report shall assume the receipt of the net
proceeds from the sale of the Preferred Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.&nbsp;&nbsp; <U>Payment of Expenses</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Expenses. </I>The Fund will pay all expenses incident to the performance of its obligations
under this Agreement, including (i)&nbsp;the preparation, printing and filing of the Registration
Statement (including financial statements and exhibits) as originally filed and of each amendment
thereto, (ii)&nbsp;the word processing, printing and delivery to the Underwriters of this Agreement, any
Agreement among Underwriters and such other documents as may be required in connection with the
offering, purchase, sale, issuance or delivery of the Preferred Shares, (iii)&nbsp;the preparation,
issuance and delivery of the certificates for the Preferred Shares to the Underwriters, including
any stock or other transfer taxes and any stamp or other duties payable upon the sale, issuance or
delivery of the Preferred Shares to the Underwriters, (iv)&nbsp;the fees and disbursements of the
counsel, accountants and other advisors to the Fund, (v)&nbsp;the qualification of the Preferred Shares
under securities laws in accordance with the provisions of Section 3(f) hereof, including filing
fees and the reasonable fees and disbursements of counsel for the Underwriters in connection
therewith and in connection with the preparation of the Blue Sky Survey and any supplements
thereto, (vi)&nbsp;the printing and delivery to the Underwriters of copies of the Preliminary
Prospectus, the documents constituting the General Disclosure Package, the Prospectus and the 1940
Act Notification, any sales material and any amendments or supplements thereto, (vii)&nbsp;the
preparation, printing and delivery to the Underwriters of copies of the Blue Sky Survey and any
supplements thereto, (viii)&nbsp;the fees and expenses of the custodian, auction agent and
broker-dealers for the Preferred Shares, (ix)&nbsp;the filing fees incident to, and the reasonable fees
and disbursements of counsel to the Underwriters in connection with, the review by the FINRA of the
terms of the sale of the Preferred Shares, (x)&nbsp;the transportation and other expenses incurred in
connection with presentations to prospective purchasers of the Preferred Shares, (xi)&nbsp;any expenses
and fees for the cost of Rating Agencies and (xii)&nbsp;all other costs and expenses incident to the
performance by the Fund of its obligations hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Termination of Agreement. </I>If this Agreement is terminated by the Representatives in
accordance with the provisions of Section&nbsp;5 or Section&nbsp;9(a)(i) hereof, the Fund and the Adviser,
jointly and severally, agree that they shall reimburse the Underwriters for all of their
out-of-pocket expenses, including the reasonable fees and disbursements of counsel for the
Underwriters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.&nbsp;&nbsp; <U>Conditions of Underwriters&#146; Obligations</U>. The obligations of the
Underwriters to purchase the Preferred Shares shall be subject to the accuracy of the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">representations and warranties on the part of the Fund and the Adviser contained herein as of the
Applicable Time and the Closing Date pursuant to Section&nbsp;4 hereof, to the accuracy of the
statements of the Fund and the Adviser made in any certificates pursuant to the provisions hereof,
to the performance by the Fund and the Adviser of their respective covenants and other obligations
hereunder and to the following additional conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <I>Effectiveness of Registration Statement. </I>The Registration Statement, including any
Rule 462(b) Registration Statement, has become effective and at Closing Date no stop order
suspending the effectiveness of the Registration Statement shall have been issued under the
1933 Act or any notice objecting to its use or order pursuant to Section 8(e) of the 1940
Act shall have been issued and proceedings therefor initiated or, to the knowledge of the
Fund, threatened by the Commission, and any request on the part of the Commission for
additional information shall have been complied with to the reasonable satisfaction of
counsel to the Underwriters. A prospectus containing the Rule&nbsp;430A Information shall have
been filed with the Commission in accordance with Rule&nbsp;497 or a post-effective amendment
providing such information shall have been filed and declared effective in accordance with
the requirements of Rule&nbsp;430A.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <I>Opinion of Counsel for Fund. </I>At the Closing Date, the Representatives shall have
received the favorable opinion, dated as of the Closing Date, of Vedder Price P.C., counsel
for the Fund (&#147;<U>Fund Counsel</U>&#148;), in form and substance satisfactory to counsel for the
Underwriters, together with signed or reproduced copies of such letter for each of the other
Underwriters, to the effect set forth in Exhibit&nbsp;B hereto and to such further effect as
counsel to the Underwriters may reasonably request. Insofar as the opinion expressed above
relates to or is dependent upon matters governed by Delaware law, Vedder Price P.C. will be
permitted to rely on the opinion of Morris, Nichols, Arsht &#038; Tunnell.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <I>Opinion of Counsel for Underwriters. </I>At Closing Date, the Representatives shall
have received the favorable opinion, dated as of Closing Date, of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, counsel for
the Underwriters, together with signed or reproduced copies of such letter for each of the
other Underwriters, in form and substance satisfactory to the Representatives. Insofar as
the opinion expressed above relates to or is dependent upon matters governed by Delaware
law, &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95; will be permitted to rely on the opinion of Morris, Nichols, Arsht &#038; Tunnell.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <I>Certificate of the Fund. </I>At the Closing Date there shall not have been, since the
date hereof or since the respective dates as of which information is given in the
Prospectus or the General Disclosure Package (exclusive of any amendments or
supplements thereto subsequent to the date of this Agreement), any Fund Material Adverse
Effect, and, at the Closing Date, the Representatives shall have received a certificate of
the Chairman, the President, the Chief Executive Officer or an Executive Vice President or
Senior Vice President of the Fund and of the Chief Financial Officer or Chief Accounting
Officer of the Fund, dated as of the Closing Date, to the effect that (i)&nbsp;there has been no
such Fund Material Adverse Effect, (ii)&nbsp;the representations and warranties of the Fund in
this Agreement are true and correct with the same force and effect as though expressly made
at and as of the Closing Date, (iii)&nbsp;the Fund has complied
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">with all agreements and satisfied
all conditions on its part to be performed or satisfied at or prior to the Closing Date
under or pursuant to this Agreement, and (iv)&nbsp;no stop order suspending the effectiveness of
the Registration Statement or order of suspension or revocation of registration pursuant to
Section 8(e) of the 1940 Act has been issued, and no proceedings for that purpose have been
instituted or are pending or, to their knowledge, are contemplated by the Commission.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <I>Opinion of Counsel for the Adviser. </I>At the Closing Date, the Representatives shall
have received the favorable opinion, dated as of the Closing Date, of Vedder Price P.C.,
counsel for the Adviser, in form and substance satisfactory to counsel for the Underwriters,
together with signed or reproduced copies of such letter for each of the other Underwriters,
to the effect set forth in Exhibit&nbsp;C hereto and to such further effect as counsel to the
Underwriters may reasonably request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <I>Certificate of the Adviser</I>. At the Closing Date there shall not have been, since
the date hereof or since the respective dates as of which information is given in the
Prospectus or the General Disclosure Package (exclusive of any amendments or supplements
thereto subsequent to the date of this Agreement), any Adviser Material Adverse Effect, and,
at the Closing Date, the Representatives shall have received a certificate of the Chairman,
the President, the Chief Executive Officer or an Executive Vice President or Senior Vice
President of the Adviser and of the Chief Financial Officer or Chief Accounting Officer of
the Adviser, dated as of the Closing Date, to the effect that (i)&nbsp;there has been no such
Adviser Material Adverse Effect, (ii)&nbsp;the representations and warranties of the Adviser in
this Agreement are true and correct with the same force and effect as though expressly made
at and as of the Closing Date, (iii)&nbsp;the Adviser has complied with all agreements and
satisfied all conditions on its part to be performed or satisfied at or prior to the Closing
Date under or pursuant to this Agreement, and (iv)&nbsp;no stop order suspending the
effectiveness of the Registration Statement or order of suspension or revocation of
registration pursuant to Section 8(e) of the 1940 Act has been issued and no proceedings for
that purpose have been instituted or are pending or, to their knowledge, are contemplated by
the Commission<I>. </I>At the Closing Date, the Representatives shall have received a certificate
of the Chief Compliance Officer of the Adviser, dated as of the Closing Date, to the effect
that, to such officer&#146;s knowlede, there does not exist any proceedings which should
reasonably be expected to adversely affect the registration of the Adviser with the
Commission.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <I>Accountant&#146;s Comfort Letter. </I>At the time of the execution of this Agreement, the
Representatives shall have received from Deloitte &#038; Touche LLP a letter,
dated the date of this Agreement and in form and substance satisfactory to the
Representatives, together with signed or reproduced copies of such letter for each of the
other Underwriters, containing statements and information of the type ordinarily included in
accountants&#146; &#147;comfort letters&#148; to underwriters with respect to the financial statements and
certain financial information of the Fund contained in the Registration Statement or the
Prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <I>Bring-down Comfort Letter. </I>At the Closing Date, the Representatives shall have
received from Deloitte &#038; Touche LLP a letter, dated as of the Closing Date
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">and in form and
substance satisfactory to the Representatives, to the effect that they reaffirm the
statements made in the letter furnished pursuant to subsection (g)&nbsp;of this Section, except
that the specified date referred to shall be a date not more than three business days prior
to the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <I>Asset Coverage and Basic Maintenance Report</I>. The Fund shall have furnished to the
Representatives a report showing compliance with the asset coverage requirements of the 1940
Act as of the Closing Date and a Preferred Share Basic Maintenance Report (as defined in the
Statement) as of a date within seven business days after the Closing Date, each in form and
substance reasonably satisfactory to the Representatives. Each such report shall assume the
receipt of the net proceeds from the sale of the Preferred Shares and shall be delivered
within seven business days after the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <I>Ratings. </I>The Fund shall have delivered and the Representatives shall have received
evidence satisfactory to the Representatives that the Preferred Shares are rated &#145;AAA&#146; by
Fitch and &#145;AAA&#146; by S&#038;P as of the Closing Date, and there shall not have been given any
notice of any intended or potential downgrading or of any review for a potential
downgrading, in the rating accorded to the Preferred Shares by either Rating Agency.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <I>Additional Documents. </I>At the Closing Date, counsel for the Underwriters shall have
been furnished with such documents and opinions as they may require for the purpose of
enabling them to pass upon the issuance and sale of the Preferred Shares as herein
contemplated, or in order to evidence the accuracy of any of the representations or
warranties, or the fulfillment of any of the conditions, contained in this Agreement; and
all proceedings taken by the Fund and the Adviser in connection with the issuance and sale
of the Preferred Shares as herein contemplated and in connection with the other transactions
contemplated by this Agreement shall be satisfactory in form and substance to the
Representatives and counsel for the Underwriters.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <I>Delivery of Documents</I>. The documents required to be delivered by this Section&nbsp;5
shall be delivered at the office of &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, counsel for the Underwriters, at
&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, on the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <I>Termination of Agreement. </I>If any condition specified in this Section&nbsp;5 shall not
have been fulfilled when and as required to be fulfilled, this Agreement may be terminated
by the Representatives by notice to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.&nbsp;&nbsp; <U>Indemnification</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Indemnification by the Fund and the Adviser. </I>The Fund and the Adviser, jointly and
severally, agree to indemnify and hold harmless each Underwriter and each person, if any, who
controls any Underwriter within the meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934
Act as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">fact
contained in the Registration Statement (or any amendment thereto), or the omission or
alleged omission therefrom of a material fact required to be stated therein or necessary to
make the statements therein not misleading, or arising out of any untrue statement or
alleged untrue statement of a material fact included in any preliminary prospectus, any
sales material, the Preliminary Prospectus or the Prospectus (or any amendment or supplement
thereto), or the omission or alleged omission therefrom of a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they
were made, not misleading;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 6(e) below) any such
settlement is effected with the written consent of the Fund and the Adviser; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by Underwriter), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue statement or omission, or any such alleged untrue statement or omission, to the
extent that any such expense is not paid under (i)&nbsp;or (ii)&nbsp;above,
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>provided</U>, <U>however</U>, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Fund or the Adviser by any Underwriter through Underwriter expressly
for use in the Registration Statement (or any amendment thereto), or in any preliminary prospectus,
any sales material, the Preliminary Prospectus or the Prospectus (or any amendment or supplement
thereto).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Indemnification by the Underwriters</I>. Each Underwriter severally agrees to indemnify and
hold harmless each of the Fund and the Adviser, each of their directors, trustees, members, each of
their officers who signed the Registration Statement, and each person, if any,
who controls the Fund or the Adviser within the meaning of Section&nbsp;15 of the 1933 Act or
Section&nbsp;20 of the 1934 Act against any and all loss, liability, claim, damage and expense described
in the indemnity contained in subsection (a)&nbsp;of this Section&nbsp;6, as incurred, but only with respect
to untrue statements or omissions, or alleged untrue statements or omissions, made in the
Registration Statement (or any amendment thereto), or any preliminary prospectus, any sales
material, the Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto) in
reliance upon and in conformity with written information furnished to the Fund or the Adviser by
such Underwriter through Underwriter expressly for use in the Registration Statement (or any
amendment thereto) or such preliminary prospectus, any sales material, the Preliminary Prospectus
or the Prospectus (or any amendment or supplement thereto). The Fund and the Adviser acknowledge
that the statements set forth in the last paragraph of the cover page
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">regarding delivery of the
Preferred Shares and, under the heading &#147;Underwriting&#148;, (i)&nbsp;the list of Underwriters and their
respective participation in the sale of the Preferred Shares, (ii)&nbsp;the sentences related to
concessions and reallowances and (iii)&nbsp;the paragraph related to prospectuses in electronic format
in any Preliminary Prospectus and the Prospectus constitute the only information furnished in
writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus or
the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<I>Actions against Parties; Notification. </I>Each indemnified party shall give notice as
promptly as reasonably practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party
shall not relieve such indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it from any liability
which it may have otherwise than on account of this indemnity agreement. Counsel to the
indemnified parties shall be selected as follows: counsel to the Underwriters and each person, if
any, who controls any Underwriter within the meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of
the 1934 Act shall be selected by Underwriter; counsel to the Fund, its directors, trustees,
members, each of its officers who signed the Registration Statement and each person, if any, who
controls the Fund within the meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act
shall be selected by the Fund; and counsel to the Adviser and each person, if any, who controls
such Adviser within the meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act shall
be selected by such Adviser. An indemnifying party may participate at its own expense in the
defense of any such action; provided, however, that counsel to the indemnifying party shall not
(except with the consent of the indemnified party) also be counsel to the indemnified party. In no
event shall the indemnifying parties be liable for the fees and expenses of more than one counsel
(in addition to any local counsel) separate from their own counsel for the Underwriters and each
person, if any, who controls any Underwriter within the meaning of Section&nbsp;15 of the 1933 Act or
Section&nbsp;20 of the 1934 Act, the fees and expenses of more than one counsel (in addition to any
local counsel) separate from their own counsel for the Fund, each of their directors, trustees,
members, each of its officers who signed the Registration Statement and each person, if any, who
controls the Fund within the meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act,
the fees and expenses of more than one counsel (in addition to any local counsel) separate from
their own counsel for the Adviser, and the fees and expenses of more than one counsel, in each case
in connection with any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances. No indemnifying party
shall, without the prior written consent of the indemnified parties, settle or compromise or
consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or body, commenced
or threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section&nbsp;6 or Section&nbsp;7 hereof (whether or not the indemnified parties are actual
or potential parties thereto), unless such settlement, compromise or consent (i)&nbsp;includes an
unconditional release of each indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii)&nbsp;does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<I>Settlement Without Consent if Failure to Reimburse. </I>If at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses
of counsel, such indemnifying party agrees that it shall be liable for any
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">settlement of the nature
contemplated by Section&nbsp;6(a)(ii) effected without its written consent if (i)&nbsp;such settlement is
entered into more than 45&nbsp;days after receipt by such indemnifying party of the aforesaid request,
(ii)&nbsp;such indemnifying party shall have received notice of the terms of such settlement at least 30
days prior to such settlement being entered into and (iii)&nbsp;such indemnifying party shall not have
reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<I>Other Agreements with Respect to Indemnification and Contribution</I>. The provisions of this
Section&nbsp;6 and in Section&nbsp;7 hereof shall not affect any agreements among the Fund and the Adviser
with respect to indemnification of each other or contribution between themselves.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.&nbsp;&nbsp; <U>Contribution</U>. If the indemnification provided for in Section&nbsp;6 hereof is
for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, (i)&nbsp;in such proportion as is appropriate
to reflect the relative benefits received by the Fund and the Adviser on the one hand and the
Underwriters on the other hand from the offering of the Preferred Shares pursuant to this Agreement
or (ii)&nbsp;if the allocation provided by clause (i)&nbsp;is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Fund and the Adviser on the one hand and of the
Underwriters on the other hand in connection with the statements or omissions which resulted in
such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable
considerations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The relative benefits received by the Fund and the Adviser on the one hand and the
Underwriters on the other hand in connection with the offering of the Preferred Shares pursuant to
this Agreement shall be deemed to be in the same respective proportions as the total net proceeds
from the offering of the Preferred Shares pursuant to this Agreement (before deducting expenses)
received by the Fund and the Adviser and the total sales load received by the Underwriters, in each
case as set forth on the cover of the Prospectus, bear to the aggregate initial public offering
price of the Preferred Shares as set forth on such cover.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The relative fault of the Fund and the Adviser on the one hand and the Underwriters on the
other hand shall be determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Fund, by the Adviser or by the Underwriters and the
parties&#146; relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund, the Adviser and the Underwriters agree that it would not be just and equitable if
contribution pursuant to this Section&nbsp;7 were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to above in this Section&nbsp;7.
The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an
indemnified party and referred to above in this Section&nbsp;7 shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in investigating, preparing or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">defending against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the provisions of this Section&nbsp;7, no Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which the Preferred
Shares underwritten by it and distributed to the public were offered to the public exceeds the
amount of any damages which such Underwriter has otherwise been required to pay by reason of any
such untrue or alleged untrue statement or omission or alleged omission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Section&nbsp;7, each person, if any, who controls an Underwriter within the
meaning of Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act and each director, trustee,
member, officer, employee and agent of an Underwriter shall have the same rights to contributions
as such Underwriters, and each person who controls the Fund or the Adviser within the meaning of
Section&nbsp;15 of the 1933 Act or Section&nbsp;20 of the 1934 Act, each officer of the Fund and the Adviser
and each trustee, director or member of the Fund and the Adviser shall have the same rights to
contribution as the Fund and the Adviser. The Underwriters&#146; respective obligations to contribute
pursuant to this Section&nbsp;7 are several in proportion to the number of Preferred Shares set forth
opposite their respective names in Exhibit&nbsp;A hereto and not joint.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.&nbsp;&nbsp; <U>Representations, Warranties and Agreements to Survive Delivery</U>. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Fund or signed by or on behalf of the Adviser submitted pursuant hereto, shall
remain operative and in full force and effect, regardless of any investigation made by or on behalf
of any Underwriter or controlling person, or by or on behalf of the Fund, or by or on behalf of the
Adviser, and shall survive delivery of the Preferred Shares to the Underwriters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.&nbsp;&nbsp; <U>Termination of Agreement</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<I>Termination; General. </I>The Representatives may terminate this Agreement, by notice to the
Fund or the Adviser, at any time on or prior to the Closing Date (i)&nbsp;if there has been, since the
time of execution of this Agreement or since the respective dates as of which information is given
in the Prospectus or the General Disclosure Package, any Fund Material Adverse Effect or Adviser
Material Adverse Effect, or (ii)&nbsp;if there has occurred any material adverse change in the financial
markets in the United States or the international financial markets, any outbreak of hostilities or
escalation thereof or other calamity or crisis or any change or development involving a prospective
change in national or international political, financial or economic conditions, in each case the
effect of which is such as to make it, in the judgment of the Representatives, impracticable or
inadvisable to market the Preferred Shares or to enforce contracts for the sale of the Preferred
Shares, or (iii)&nbsp;if trading in any securities of the Fund has been suspended or materially limited
by the Commission or the NYSE, or if trading generally on the NYSE or in the Nasdaq National Market
has been suspended or materially limited, or minimum or maximum prices for trading have been fixed,
or maximum ranges for prices have
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">been required, by any of said exchanges or by such system or by order of the Commission, the FINRA
or any other governmental authority, or a material disruption has occurred in commercial banking or
securities settlement or clearance services in the United States or (iv)&nbsp;if a banking moratorium
has been declared by either Federal or New York authorities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<I>Liabilities. </I>If this Agreement is terminated pursuant to this Section&nbsp;9, such termination
shall be without liability of any party to any other party except as provided in Section&nbsp;4 hereof,
and provided further that Sections&nbsp;1, 6, 7 and 8 hereof shall survive such termination and remain
in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 10. <U>Default by One or More of the Underwriters</U>. If one or more of the
Underwriters shall fail at the Closing Date to purchase the Preferred Shares which it or they are
obligated to purchase under this Agreement (the &#147;<U>Defaulted Shares</U>&#148;), the Representatives
shall have the right, within 24 hours thereafter, to make arrangements for one or more of the
non-defaulting Underwriters, or any other underwriters, to purchase all, but not less than all, of
the Defaulted Shares in such amounts as may be agreed upon and upon the terms herein set forth; if,
however, the Representatives shall not have completed such arrangements within such 24-hour period,
then:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the number of Defaulted Shares does not exceed 10% of the number of Preferred
Shares to be purchased on such date, each of the non-defaulting Underwriters shall be
obligated, severally and not jointly, to purchase the full amount thereof in the proportions
that their respective underwriting obligations hereunder bear to the underwriting
obligations of all non-defaulting Underwriters; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the number of Defaulted Shares exceeds 10% of the number of Preferred Shares to
be purchased on such date, this Agreement shall terminate without liability on the part of
any non-defaulting Underwriter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No action taken pursuant to this Section&nbsp;10 shall relieve any defaulting Underwriter from
liability in respect of its default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any such default which does not result in a termination of this Agreement, the
Representatives shall have the right to postpone the Closing Date for a period not exceeding seven
days in order to effect any required changes in the Registration Statement or Prospectus or in any
other documents or arrangements. As used herein, the term &#147;Underwriter&#148; includes any person
substituted for an Underwriter under this Section&nbsp;10.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 11. <U>Notices</U>. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Underwriters shall be directed to the Representatives at
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, Attention: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>; notices to the Fund and the Adviser shall be directed to
them at c/o Calamos Advisors LLC, 2020 Calamos Court, Naperville, Illinois 60563, Attention:
General Counsel (fax no.: (630)&nbsp;245-6343).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 12. <U>Parties</U>. This Agreement shall inure to the benefit of and be binding
upon the Underwriters, the Fund and the Adviser and their respective successors. Nothing expressed
or mentioned in this Agreement is intended or shall be construed to give any person, firm or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">corporation, other than the Underwriters, the Fund and the Adviser and their respective successors
and the controlling persons and directors, officers, members and trustees referred to in Sections&nbsp;6
and 7 and their heirs and legal representatives, any legal or equitable right, remedy or claim
under or in respect of this Agreement or any provision herein contained. This Agreement and all
conditions and provisions hereof are intended to be for the sole and exclusive benefit of the
Underwriters, the Fund and the Adviser and their respective successors, and said controlling
persons and officers and directors and their heirs and legal representatives, and for the benefit
of no other person, firm or corporation. No purchaser of Preferred Shares from any Underwriter
shall be deemed to be a successor by reason merely of such purchase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 13. <U>GOVERNING LAW</U>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 14. <U>Effect of Headings</U>. The Section and Exhibit headings herein are for
convenience only and shall not affect the construction hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 15. <U>Definitions</U>. As used in this Agreement, the following terms have the
respective meanings set forth below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Advisers Act</U>&#148; means the Investment Advisers Act of 1940, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Advisers Act Rules and Regulations</U>&#148; means the rules and regulations of the Commission
under the Advisers Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Adviser Material Adverse Effect</U>&#148; means a material adverse change in the condition,
financial or otherwise, or in the earnings, business affairs or business prospects of the Adviser,
whether or not arising in the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement and Declaration of Trust</U>&#148; means the Agreement and Declaration of Trust of
the Fund dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 200<u>&nbsp;&nbsp;</u> and any amendments thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Applicable Time</U>&#148; means the date and time that this Agreement is executed and
delivered by the parties hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commission</U>&#148; means the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>EDGAR</U>&#148; means the Commission&#146;s Electronic Data Gathering, Analysis and Retrieval
System.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FINRA</U>&#148; means the Financial Industry Regulatory Authority, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Fund Material Adverse Effect</U>&#148; means a material adverse change in the condition,
financial or otherwise, or in the earnings, business affairs or business prospects of the Fund,
whether or not arising in the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148; means generally accepted accounting principles.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Initial Registration Statement</U>&#148; means the Fund&#146;s registration statement (File Nos.
333-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and 811-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>) on Form N-2 (including the statement of additional information
incorporated by reference therein), as amended (if applicable), at the time it became effective,
including the Rule&nbsp;430A Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>NYSE</U>&#148; means the New York Stock Exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Organizational Documents</U>&#148; means (a)&nbsp;in the case of a corporation, its charter and
by-laws; (b)&nbsp;in the case of a limited or general partnership, its partnership certificate,
certificate of formation or similar organizational document and its partnership agreement; (c)&nbsp;in
the case of a limited liability company, its articles of organization, certificate of formation or
similar organizational documents and its operating agreement, limited liability company agreement,
membership agreement or other similar agreement; (d)&nbsp;in the case of a trust, its certificate of
trust, certificate of formation or similar organizational document and its trust agreement or other
similar agreement; and (e)&nbsp;in the case of any other entity, the organizational and governing
documents of such entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>preliminary prospectus</U>&#148; means any prospectus (including the statement of additional
information incorporated by reference therein) publicly distributed in connection with the offering
of the Preferred Shares that was used before the Initial Registration Statement became effective,
or that was publicly distributed after such effectiveness and prior to the execution and delivery
of this Agreement, or that omitted the Rule&nbsp;430A Information or that was captioned &#147;Subject to
Completion&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Preliminary Prospectus</U>&#148; shall mean the preliminary prospectus (including the
statement of additional information incorporated by reference therein)
dated &#95;&#95;&#95;&#95;&#95;&#95;&#95;, 200&#95;&#95; and any
preliminary prospectus (including the statement of additional information incorporated by reference
therein) included in the Registration Statement at the Applicable Time that omits Rule&nbsp;430A
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Prospectus</U>&#148; shall mean the prospectus (including the statement of additional
information incorporated by reference therein) relating to the Preferred Shares that is first filed
pursuant to Rule&nbsp;497 after the Applicable Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registration Statement</U>&#148; means the Initial Registration Statement; provided that, if a
Rule 462(b) Registration Statement is filed with the Commission, then the term &#147;Registration
Statement&#148; shall also include such Rule 462(b) Registration Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rule&nbsp;172</U>,&#148; &#147;<U>Rule&nbsp;497</U>,&#148; &#147;<U>Rule&nbsp;430A</U>,&#148; &#147;<U>Rule&nbsp;433</U>&#148; and &#147;<U>Rule
462(b)</U>&#148; refer to such rules under the 1933 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rule&nbsp;430A Information</U>&#148; means the information included in the Prospectus that was
omitted from the Initial Registration Statement at the time it became effective but that is deemed
to be a part of the Initial Registration Statement at the time it became effective pursuant to Rule
430A.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rule&nbsp;462(b) Registration Statement</U>&#148; means a registration statement filed by the Fund
pursuant to Rule 462(b) relating to the offering covered by the registration statement referred to
in Section&nbsp;1(a)(1) hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rules and Regulations</U>&#148; means, collectively, the 1933 Act Rules and Regulations and
the 1940 Act Rules and Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Sarbanes-Oxley Act</U>&#148; means the Sarbanes-Oxley Act of 2002 and the rules and
regulations promulgated thereunder or implementing the provisions thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1933 Act</U>&#148; means the Securities Act of 1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1933 Act Rules and Regulations</U>&#148; means the rules and regulations of the Commission
under the 1933 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1934 Act</U>&#148; means the Securities Exchange Act of 1934, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1934 Act Rules and Regulations</U>&#148; means the rules and regulations of the Commission
under the 1934 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1940 Act</U>&#148; means the Investment Company Act of 1940, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1940 Act Notification</U>&#148; means a notification of registration of the Fund as an
investment company under the 1940 Act on Form N-8A, as the 1940 Act Notification may be amended
from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>1940 Act Rules and Regulations</U>&#148; means the rules and regulations of the Commission
under the 1940 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All references in this Agreement to the Registration Statement, the Initial Registration
Statement, any Rule 462(b) Registration Statement, any preliminary prospectus, the Preliminary
Prospectus, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed
to include the copy filed with the Commission pursuant to EDGAR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 16. <U>Absence of Fiduciary Relationship</U>. Each of the Fund and the Adviser
acknowledges and agrees that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each of the Underwriters is acting solely as an underwriter in connection with the
offering of the Preferred Shares and no fiduciary, advisory or agency relationship between the
Fund or the Adviser, on the one hand, and any of the Underwriters, on the other hand, has been
or will be created in respect of any of the transactions contemplated by this Agreement,
irrespective of whether or not any of the Underwriters have advised or is advising the Fund or the
Adviser on other matters and none of the Underwriters has any obligation to the Fund or the Adviser
with respect to the transactions contemplated by this Agreement except the obligations expressly
set forth in this Agreement;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the public offering price of the Preferred Shares and the price to be paid by the
Underwriters for the Preferred Shares set forth in this Agreement were established by the Fund
following discussions and arms-length negotiations with the Representatives;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;it is capable of evaluating and understanding, and understands and accepts, the terms,
risks and conditions of the transactions contemplated by this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;in connection with each transaction contemplated by this Agreement and the process leading
to such transactions, each Underwriter is and has been acting solely as principal and not as
fiduciary, advisor or agent of the Fund or the Adviser or any of their respective affiliates;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;none of the Underwriters has provided any legal, accounting, regulatory or tax advice to
the Fund or the Adviser with respect to the transactions contemplated by this Agreement and it has
consulted its own legal, accounting, regulatory and tax advisers to the extent it has deemed
appropriate;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;it is aware that the Underwriters and their respective affiliates are engaged in a broad
range of transactions which may involve interests that differ from those of the Fund and the
Adviser, and that none of the Underwriters has any obligation to disclose such interests and
transactions to the Fund or the Adviser by virtue of any fiduciary, advisory or agency
relationship; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;it waives, to the fullest extent permitted by law, any claims it may have against any of
the Underwriters for breach of fiduciary duty or alleged breach of fiduciary duty and agrees that
none of the Underwriters shall have any liability (whether direct or indirect, in contract, tort or
otherwise) to it in respect of such a fiduciary duty claim or to any person asserting a fiduciary
duty claim on its behalf or on behalf of the Fund or the Adviser.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;Signature Page Follows&#093;</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Fund and the Adviser a counterpart hereof, whereupon this instrument, along with all
counterparts, will become a binding agreement among the Underwriters, the Fund and the Adviser in
accordance with its terms.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
<BR>
<B>CALAMOS &#091;CLOSED-END&#093; FUND</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>CALAMOS ADVISORS LLC</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">CONFIRMED AND ACCEPTED, as of the date<BR>
first above written:<BR>
<BR>
UNDERWRITER<BR>
&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">UNDERWRITER
&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Authorized Signatory&nbsp;</TD>
     <TD align="left">&nbsp;</TD>
   <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For themselves and as Representatives of the Underwriters named in Exhibit&nbsp;A hereto.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT A
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Series</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name of Underwriter</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Underwriter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Underwriter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Underwriter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->A-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT B
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">FORM OF OPINION OF VEDDER PRICE P.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Fund has been duly formed and is validly existing in good standing as a statutory trust
under the Delaware Act. The Fund has the statutory trust power and authority to own property and
to conduct its business as described in the Registration Statement, the Preliminary Prospectus and
the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Fund is duly registered with the Commission pursuant to Section&nbsp;8 of the 1940 Act as a
closed-end, diversified management investment company and the 1940 Act Notification has been duly
filed with the Commission; all action has been taken by the Fund as required by the 1933 Act, the
1940 Act, and the Rules and Regulations to permit the Fund to issue and sell the Preferred Shares
to make the public offering and consummate the sale of the Preferred Shares as contemplated by the
Underwriting Agreement; and the Fund has not received any notice from the Commission pursuant to
Section 8(e) of the 1940 Act with respect to the 1940 Act Notification or the Registration
Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Fund&#146;s Agreement and Declaration of Trust and by-laws comply in all material respects
with the 1940 Act and the 1940 Act Rules and Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Underwriting Agreement and each of the Fund Agreements complies in all material
respects with all applicable provisions of the 1940 Act, the Advisers Act, the 1940 Act Rules and
Regulations, and the Advisers Act Rules and Regulations;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;The Fund has statutory trust power and authority to enter into the Underwriting Agreement
and the Fund Agreements; under the Delaware Act, the Agreement and Declaration of Trust and the
Statement, the execution and delivery of the Underwriting Agreement and each of the Fund Agreements
by the Fund, and the performance by the Fund of its obligations thereunder have been duly
authorized by all requisite statutory trust action on the part of the Fund; the Underwriting
Agreement and the Fund Agreements constitute valid and legally binding agreements of the Fund,
enforceable against the Fund in accordance with their terms, except as rights to indemnity and
contribution thereunder may be limited by federal or state securities laws and subject to the
qualification that the enforceability of the Fund&#146;s obligations hereunder and thereunder may be
limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other laws
relating to or affecting creditors&#146; rights generally and by general equitable principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Neither the issuance and sale of the Preferred Shares in accordance with the Underwriting
Agreement, the execution or delivery of the Underwriting Agreement or any of the Fund Agreements,
each as of their respective date of execution and delivery, or the performance of the Underwriting
Agreement and the Fund Agreements by the Fund, nor the consummation by the Fund of the transactions
contemplated thereunder (i)&nbsp;violates or will violate with or constitutes or will constitute a
breach or violation of the Statement, Agreement and Declaration of Trust or by-laws of the Fund,
(ii)&nbsp;violates or will violate with or constitutes or will constitute a breach of or a default
under, any material contract of the Fund, as set forth on <U>Schedule&nbsp;I</U> hereto (&#147;<U>Material
Contract</U>&#148;), or (iii)&nbsp;violates any existing United States of America or State of Illinois
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">statute, law or regulation (assuming compliance with all applicable state securities and blue
sky laws, and except that, in the published opinion of the Commission, the indemnification
provisions in the Underwriting Agreement and the Fund Agreements, insofar as they relate to
indemnification for liabilities arising under the 1933 Act, are against public policy as expressed
in the 1933 Act and therefore unenforceable) or violates any judgment, injunction, order or decree
known to us to be applicable to the Fund or any of its properties or will result in the creation or
imposition of any security interest, lien, charge or encumbrance upon any property or assets of the
Fund pursuant to the terms of any Material Contract (except in each case for such conflicts,
violations, breaches or defaults of liens, charges or encumbrances that would not have a material
adverse effect on the ability of the Fund to perform its obligations under the Underwriting
Agreement and the Fund Agreements).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;None of the offering, issuance, sale or delivery of the Preferred Shares pursuant to the
Underwriting Agreement, or the consummation of any of the other transactions contemplated by the
Underwriting Agreement or the Fund Agreements, in each case on the terms contemplated by the
Registration Statement, the Preliminary Prospectus and the Prospectus, requires any consent,
approval, authorization or other order of or registration or filing with, the Commission, or any
national securities exchange, or governmental body or agency of the United States of America, or
State of Illinois or State of Delaware or, based solely on a review of our litigation docket and
based solely on the Docket Search (as that term is defined in the Morris Nichols Opinion), an order
of any court or arbitrator of the United States of America or State of Illinois or any Delaware
Court (as that term is defined in the Morris Nichols Opinion), except (1)&nbsp;the absence of which,
either individually or in the aggregate, would not have a material adverse effect on the Fund or
the offering of the Preferred Shares as contemplated in the Underwriting Agreement; (2)&nbsp;such as may
have been obtained prior to the date hereof; or (3)&nbsp;such as may be required for compliance with
state securities or blue sky laws of various jurisdictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;The Common Shares have been duly authorized for issuance by the Fund, are validly issued
and, subject to the qualifications below, fully paid and non-assessable beneficial interests in the
Series. The holder of the Common Shares will be, subject to the terms of the Agreement and
Declaration of Trust, entitled to the same limitation of personal liability extended to
stockholders of private corporations for profit organized under the General Corporation Law of the
State of Delaware.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;The Preferred Shares have been duly authorized by all necessary action of the Fund and,
when issued and delivered against payment therefor in accordance with the terms, conditions,
requirements and procedures set forth in the Underwriting Agreement, will be validly issued, fully
paid and non-assessable beneficial interests in the Fund; the form of certificate that may be used
to evidence the Preferred Shares complies in all material respects with the applicable requirements
of the Delaware Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;The issuance of the Preferred Shares is not subject to preemptive rights under the
Delaware Act, the Agreement and Declaration of Trust and the Statement or, to our knowledge, under
any other agreement or instrument to which the Fund is a party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;The descriptions of the authorized Preferred Shares contained under the captions
&#147;Description of Preferred Shares&#148; and &#147;The Auction&#148; and the description of the authorized
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Common Shares contained under the caption &#147;Description of Common Shares&#148; in the Preliminary
Prospectus and the Prospectus, and the caption &#147;Additional Information Concerning the Auctions for
Preferred Shares&#148; in the Statement of Additional Information, conform in all material respects as
to legal matters to the terms thereof contained in the Trust&#146;s Declaration of Trust and Statement;
the statements made in the Preliminary Prospectus and the Prospectus under the caption &#147;U.S.
Federal Income Tax Matters,&#148; and the caption &#147;U.S. Federal Income Tax Matters&#148; in the Statement of
Additional Information, insofar as they constitute matters of law or legal conclusions, have been
reviewed by us and constitute accurate statements of any such matters of law or legal conclusions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;To the knowledge of such counsel, based solely on a review of its litigation docket and an
officer&#146;s certificate, there are no legal or governmental proceedings pending or threatened against
the Fund, or to which the Fund or any of its properties is subject, that are required to be
described in the Registration Statement, the Preliminary Prospectus or the Prospectus, but are not
described therein as required; to the knowledge of such counsel, there are no material agreements,
contracts, indentures, leases or other instruments that are required to be described in the
Registration Statement, the Preliminary Prospectus or the Prospectus, or to be filed as an exhibit
to the Registration Statement that are not described or filed as required by the 1933 Act, the 1940
Act or the Rules and Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;The Registration Statement has become effective under the Act; any required filing of the
Prospectus, and any supplements thereto, pursuant to Rule&nbsp;497 have been made in the manner and
within the time period required by Rule&nbsp;497; to the knowledge of such counsel, no stop order
suspending the effectiveness of the Registration Statement has been issued, no proceedings for that
purpose have been instituted or threatened by the Commission, and the Registration Statement, the
Preliminary Prospectus and the Prospectus (other than the financial statements and schedules and
any other financial or statistical information or calculations contained therein or incorporated
therein by reference and other than any exhibits, schedules or appendices included or incorporated
by reference therein, as to which we express no opinion) comply as to form in all material respects
with the applicable requirements of the 1933 Act, the 1940 Act and the Rules and Regulations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nothing has come to such counsel&#146;s attention that would lead it to believe that:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Registration Statement, at the time it became effective, contained an untrue
statement of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading (other than the financial
statements and schedules and any other financial or statistical information or calculations
contained therein or incorporated therein by reference and other than any exhibits,
schedules or appendices included or incorporated by reference therein, as to which such
counsel expresses no comment), or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the documents included in the General Disclosure Package, all considered together,
as of the Applicable Time, contained any untrue statement of a material fact or omitted to
state any material fact required to be stated therein or necessary in order to make the
statements therein, in the light of circumstances under which they were made, not misleading
(other than the financial statements and schedules and any other financial
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">or statistical information or calculations contained therein or incorporated therein by
reference and other than any exhibits, schedules or appendices included or incorporated by
reference therein, as to which such counsel expresses no comment), or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Prospectus, as of its issue date and as of the Closing Date, contained or
contains an untrue statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading (other than the financial statements and schedules and
any other financial or statistical information or calculations contained therein or
incorporated therein by reference and other than any exhibits, schedules or appendices
included or incorporated by reference therein, as to which such counsel expresses no
comment).
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In rendering such opinions, such counsel may state their opinion is limited to matters
governed by the federal laws of the United States of America and the laws of the States of
Illinois, Delaware (solely with respect to the Delaware Trust Act) and New York (solely with
respect to the execution and delivery of the Underwriting Agreement). In rendering such opinions,
such counsel may rely (A)&nbsp;as to matters involving the application of the Delaware Statutory Trust
Act to the extent they deem proper and specified in such opinion, upon the opinion of Morris,
Nichols, Arsht &#038; Tunnell or other counsel of good standing whom they believe to be reliable and who
are satisfactory to counsel for the Underwriters and (B)&nbsp;as to matters of fact, to the extent they
deem proper, on certificates of responsible officers of the Fund and public officials. References
to the Preliminary Prospectus and the Prospectus shall also include any supplements thereto at the
Closing Date.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT C
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">FORM OF OPINION OF VEDDER PRICE P.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Adviser has been duly formed and is validly existing in good standing as a limited
liability company under the Delaware Limited Liability Company Act, with full limited liability
company power and authority to own, lease and operate its properties and to conduct its business as
described in the Registration Statement, the Preliminary Prospectus and the Prospectus. The
Adviser is duly qualified to do business and is in good standing under the laws of the State of
Illinois.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Adviser is registered with the Commission as an investment adviser under the Advisers
Act, and is not prohibited by the Advisers Act, the 1940 Act or the Advisers Act Rules and
Regulations or the 1940 Act Rules and Regulations from acting under the Advisory Agreement and the
Accounting Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Adviser has full limited liability company power and authority to enter into the
Underwriting Agreement, the Advisory Agreement and the Accounting Agreement; the execution and
delivery of, and the performance by the Adviser of its obligations under the Underwriting
Agreement, the Advisory Agreement and the Accounting Agreement have been duly and validly
authorized by the Adviser; the Underwriting Agreement, the Advisory Agreement and the Accounting
Agreement constitute valid and legally binding agreements of the Adviser, enforceable against the
Adviser in accordance with their terms, except as rights to indemnity and contribution thereunder
may be limited by federal or state securities laws and subject to the qualification that the
enforceability of the Adviser&#146;s obligations hereunder and thereunder may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance and other laws relating to or
affecting creditors&#146; rights generally and by general equitable principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Neither the execution, delivery or performance of the Underwriting Agreement, the Advisory
Agreement and the Accounting Agreement to which the Adviser is a party nor the consummation by the
Adviser of the transactions therein contemplated thereunder (i)&nbsp;constitutes or will constitute a
breach or violation of the charter or by-laws of the Adviser, (ii)&nbsp;constitutes or will constitute a
breach or violation of or a default under, any material contract of the Adviser, as set forth on
<U>Schedule&nbsp;I</U> hereto (&#147;<U>Material Contracts</U>&#148;), or (iii)&nbsp;violates or will violate any
applicable federal or State of Illinois law, statute, rule or regulation or the Delaware Limited
Liability Company Act or any judgment, order, writ or decree known to us, of any governmental
authority or administrative agency of the United States of America or the State of Illinois or
under the Delaware Limited Liability Company Act or will result in the creation or imposition of
any security interest, lien, charge or encumbrance upon any property or assets of the Adviser
pursuant to the terms of any Material Contract (except in each case for such conflicts, violations,
breaches or defaults or liens, charges of encumbrances that would not have a material adverse
effect on the ability of the Adviser to perform its obligations under the Underwriting Agreement,
the Advisory Agreement and the Accounting Agreement).
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;The description of the Adviser and its business in the Preliminary Prospectus and the
Prospectus complies in all material respects with all requirements of the 1933 Act, the 1940 Act
and the Rules and Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;(A)&nbsp;No filing with, or authorization, approval, consent, license, order, registration,
qualification or decree of, any court or governmental authority or agency of the United States of
America, or the States of Illinois or Delaware (solely with respect to the Delaware Limited
Liability Company Act) (other than (i)&nbsp;under the 1933 Act, the 1940 Act and the Rules and
Regulations; (ii)&nbsp;such as have been obtained; and (iii)&nbsp;as may be required under the securities or
blue sky laws of the various states, as to each of which we express no opinion) is necessary or
required for the performance by the Adviser of its obligations under the Underwriting Agreement,
the Advisory Agreement and the Accounting Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;To the knowledge of such counsel, based solely on a review of its litigation docket and an
officer&#146;s certificate, there is no pending or threatened action, suit or proceeding by or before
any court or governmental agency, authority or body or any arbitrator involving the Adviser or its
property of a character required to be disclosed in the Registration Statement which is not
adequately disclosed in the Preliminary Prospectus and the Prospectus, and to the knowledge of such
counsel, there are no agreements, franchises, contracts, indentures, mortgages, loan agreements,
notes, leases, permits or other instruments that are required to be described in the Registration
Statement, the Preliminary Prospectus or the Prospectus, or to be filed as an exhibit thereto,
which is not described or filed as required by the 1933 Act, the 1940 Act or the Rules and
Regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In rendering such opinions, such counsel may state their opinion is limited to matters
governed by the federal laws of the United States of America and the laws of the States of
Illinois, Delaware (solely with respect to the Delaware Trust Act) and New York (solely with
respect to the execution and delivery of the Underwriting Agreement). In rendering such opinions,
such counsel may rely (A)&nbsp;as to matters involving the application of laws of any jurisdiction
other than the State of Delaware and State of Illinois or the Federal laws of the United States, to
the extent they deem proper and specified in such opinion, upon the opinion of other counsel of
good standing whom they believe to be reliable and who are satisfactory to counsel for the
Underwriters and (B)&nbsp;as to matters of fact, to the extent they deem proper, on certificates of
responsible officers of the Fund and public officials. References to the Preliminary Prospectus
and the Prospectus shall also include any supplements thereto at the Closing Date.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT D
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">FORM OF OPINION OF MORRIS, NICHOLS, ARSHT &#038; TUNNELL

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Fund has been duly formed and is validly existing in good standing as a statutory trust
under the Delaware Act. The Fund has the statutory trust power and authority to own property and
conduct its business as described in the Registration Statement, the Preliminary Prospectus and the
Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Under the Delaware Act, the Agreement and Declaration of Trust (the &#147;Governing
Instrument&#148;), the execution and delivery of the Underwriting Agreement and each of the Fund
Agreements by the Fund, and the performance by the Fund of its obligations thereunder, have been
duly authorized by all requisite statutory trust action on the part of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Common Shares have been duly authorized for issuance by the Fund and are validly issued
and, subject to the qualifications below, fully paid and non-assessable beneficial interests in the
Common Series. The holder of the Common Shares will be, subject to the terms of the Governing
Instrument, entitled to the same limitation of personal liability extended to stockholders of
private corporations for profit organized under the General Corporation Law of the State of
Delaware; provided, however, that we express no opinion with respect to the liability of any holder
of Common Shares who is, was or may become a named Trustee of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Preferred Shares have been duly authorized for issuance by the Fund and, when issued
and delivered against payment therefor in accordance with the terms, conditions, requirements and
procedures set forth in the Underwriting Agreement, will be validly issued and, subject to the
qualifications below, fully paid and non-assessable beneficial interests in the Preferred Series.
The holders of Preferred Shares will be, subject to the terms of the Governing Instrument and the
Statement, entitled to the same limitation of personal liability extended to stockholders of
private corporations for profit organized under the General Corporation Law of the State of
Delaware; provided, however, that we express no opinion with respect to the liability of any holder
of Preferred Shares who is, was or may become a named Trustee of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Under the Government Instrument, the Statement and the Delaware Act, the issuance of the
Preferred Shares is not subject to preemptive rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;The form of Preferred Shares Certificate complies with all applicable requirements of the
Delaware Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;No authorization, approval, consent or order of any governmental authority or agency of the
State of Delaware or, based solely on the docket search of the Superior Court of the State of
Delaware, New Castle County, the Court of Chancery of the State of Delaware, New Castle County, the
United States District Court for the District of Delaware and the United States Bankruptcy Court
for the District of Delaware, order of any Delaware Court (the &#147;Docket Search&#148;), is required to be
obtained by the Fund solely as a result of the issuance and sale of the Preferred Shares, the
consummation by the Fund of the transactions contemplated by the Underwriting Agreement and the
Fund Agreements or the performance by the Fund of its obligations thereunder.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;The execution and delivery by the Fund of the Underwriting Agreement and the Fund
Agreements, the consummation by the Fund of the transactions contemplated by the Underwriting
Agreement and the Fund Agreements, the performance by the Fund of its obligations thereunder and
the issuance and sale by the Fund of the Preferred Shares will not violate (i)&nbsp;the Certificate of
Trust, the Governing Instrument or the Statement, or (ii)&nbsp;any applicable Delaware law or
administrative regulation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;Baseed solely on the Docket Search, there is not in any Delaware Court any action, suit or
proceeding pending against the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to the opinions expressed in paragraphs 3 and 4 above, such counsel shall note
that, pursuant to Section&nbsp;2 of Article&nbsp;VIII of the Governing Instrument, the Trustees have the
power to cause each Shareholder, or each Shareholder of any particular Series, to pay directly, in
advance or arrears, for charges of the Fund&#146;s custodian or transfer, shareholder servicing or
similar agent, an amount fixed from time to time by the Trustees, by setting off such charges due
from such Shareholder from declared but unpaid dividends owed such Shareholder and/or by reducing
the number of Shares in the account of such Shareholder by that number of full and/or fractional
Shares which represents the outstanding amount of such charges due from such Shareholder.
</DIV>

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</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT E
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>PRICE-RELATED INFORMATION</U>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">CALAMOS &#091;CLOSED-END&#093; FUND
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Final Term Sheet</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Liquidation preference: $25,000, plus any accumulated unpaid dividends
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Initial Dividend</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Initial Dividend</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Series</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Rate</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Period</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:15px; text-indent:-15px">&#95;&#95;&#95;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#95;&#95;&#95;%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#95;&#95;&#95; days</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->E-1<!-- /Folio -->
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<DOCUMENT>
<TYPE>EX-99.(J)(1)
<SEQUENCE>7
<FILENAME>c19483a2exv99wxjyx1y.htm
<DESCRIPTION>CUSTODY AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxjyx1y</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit j.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CUSTODY AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AGREEMENT, dated as of June&nbsp;15, 2007, between the Calamos closed-end funds listed on Schedule
II hereto, as such Schedule may be amended from time to time to add additional funds managed by
Calamos Advisors LLC (each such existing fund, and any additional fund, the &#147;Fund&#148;), each a
business trust organized and existing under the laws of the State of Delaware having its principal
office and place of business at c/o Calamos Advisors LLC, 2020 Calamos Court, Naperville, Illinois,
60563-2787 and The Bank of New York, a New York corporation authorized to do a banking business
having its principal office and place of business at One Wall Street, New York, New York 10286
(&#147;Custodian&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>W I T N E S S E T H:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">that for and in consideration of the mutual promises hereinafter set forth the Fund and Custodian
agree as follows:
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ARTICLE I<BR>
DEFINITIONS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever used in this Agreement, the following words shall have the meanings set forth below:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<B>&#147;Authorized Person&#148; </B>shall be any person, whether or not an officer or employee of the Fund,
duly authorized by the Fund&#146;s board to execute any Certificate or to give any Oral Instruction with
respect to one or more Accounts, such persons to be designated in a Certificate annexed hereto as
Schedule&nbsp;I hereto or such other Certificate as may be received by Custodian from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<B>&#147;BNY Affiliate&#148; </B>shall mean any office, branch or subsidiary of The Bank of New York
Company, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<B>&#147;Book-Entry System&#148; </B>shall mean the Federal Reserve/Treasury book-entry system for receiving
and delivering securities, its successors and nominees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<B>&#147;Business Day&#148; </B>shall mean any day on which Custodian and relevant Depositories are open for
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<B>&#147;Certificate&#148; </B>shall mean any notice, instruction, or other instrument in writing,
authorized or required by this Agreement to be given to Custodian, which is actually received by
Custodian by letter or facsimile transmission and signed on behalf of the Fund by an Authorized
Person or a person reasonably believed by Custodian to be an Authorized Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<B>&#147;Composite Currency Unit&#148; </B>shall mean the Euro or any other composite currency unit
consisting of the aggregate of specified amounts of specified currencies, as such unit may be
constituted from time to time.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<B>&#147;Depository&#148; </B>shall include (a)&nbsp;the Book-Entry System, (b)&nbsp;the Depository Trust Company, (c)
any other clearing agency or securities depository registered with the Securities and Exchange
Commission identified to the Fund from time to time, and (d)&nbsp;the respective successors and nominees
of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<B>&#147;Foreign Depository&#148; </B>shall mean (a)&nbsp;Euroclear, (b)&nbsp;Clearstream Banking, societe anonyme,
(c)&nbsp;each Eligible Securities Depository as defined in Rule&nbsp;17f-7 under the Investment Company Act
of 1940, as amended, identified to the Fund from time to time, and (d)&nbsp;the respective successors
and nominees of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<B>&#147;Instructions&#148; </B>shall mean communications transmitted by electronic or telecommunications
media, including S.W.I.F.T., computer-to-computer interface, or dedicated transmission lines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<B>&#147;Oral Instructions&#148; </B>shall mean verbal instructions received by Custodian from an
Authorized Person or from a person reasonably believed by Custodian to be an Authorized Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<B>&#147;Series&#148; </B>shall mean the various portfolios, if any, of the Fund listed on Schedule&nbsp;II
hereto, and if none are listed references to Series shall be references to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<B>&#147;Securities&#148; </B>shall include, without limitation, any common stock and other equity
securities, bonds, debentures and other debt securities, notes, mortgages or other obligations, and
any instruments representing rights to receive, purchase, or subscribe for the same, or
representing any other rights or interests therein (whether represented by a certificate or held in
a Depository or by a Subcustodian).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<B>&#147;Subcustodian&#148; </B>shall mean a bank (including any branch thereof) or other financial
institution (other than a Foreign Depository) located outside the U.S. which is utilized by
Custodian in connection with the purchase, sale or custody of Securities hereunder and
identified to the Fund from time to time, and their respective successors and nominees.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ARTICLE II<BR>
APPOINTMENT OF CUSTODIAN; ACCOUNTS;<BR>
REPRESENTATIONS, WARRANTIES, AND COVENANTS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;(a)&nbsp;The Fund hereby appoints Custodian as custodian of all Securities and cash at any time
delivered to Custodian during the term of this Agreement, and authorizes Custodian to hold
Securities in registered form in its name or the name of its nominees. Custodian hereby accepts
such appointment and agrees to establish and maintain one or more securities accounts and cash
accounts for each Series in which Custodian will hold Securities and cash as provided herein.
Custodian shall maintain books and records segregating the assets of each Series from the assets of
any other Series. Such accounts (each, an &#147;Account&#148;; collectively, the &#147;Accounts&#148;) shall be in the
name of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Custodian may from time to time establish on its books and records such sub-accounts
within each Account as the Fund and Custodian may agree upon (each a &#147;Special
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Account&#148;), and
Custodian shall reflect therein such assets as the Fund may specify in a Certificate or
Instructions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Custodian may from time to time establish pursuant to a written agreement with and for the
benefit of a broker, dealer, future commission merchant or other third party identified in a
Certificate or Instructions such accounts on such terms and conditions as the Fund and Custodian
shall agree, and Custodian shall transfer to such account such Securities and money as the Fund may
specify in a Certificate or Instructions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Fund hereby represents and warrants, which representations and warranties shall be
continuing and shall be deemed to be reaffirmed upon each delivery of a Certificate or each giving
of Oral Instructions or Instructions by the Fund, that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;It is duly organized and existing under the laws of the jurisdiction of its organization,
with full power to carry on its business as now conducted, to enter into this Agreement, and to
perform its obligations hereunder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;This Agreement has been duly authorized, executed and delivered by the Fund, approved by a
resolution of its board, constitutes a valid and legally binding obligation of the Fund,
enforceable in accordance with its terms, and there is no statute, regulation, rule, order or
judgment binding on it, and no provision of its charter or by-laws, nor of any mortgage, indenture,
credit agreement or other contract binding on it or affecting its property, which would prohibit
its execution or performance of this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;It is conducting its business in substantial compliance with all applicable laws and
requirements, both state and federal, and has obtained all regulatory licenses, approvals and
consents necessary to carry on its business as now conducted;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;It will not use the services provided by Custodian hereunder in any manner that is, or
will result in, a violation of any law, rule or regulation applicable to the Fund;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Its board or its foreign custody manager, as defined in Rule&nbsp;17f-5 under the Investment
Company Act of 1940, as amended (the &#147;&#145;40 Act&#148;), has determined that use of each Subcustodian
(including any Replacement Custodian) which Custodian is authorized to utilize in accordance with
Section 1(a) of Article&nbsp;III hereof satisfies the applicable requirements of the &#145;40 Act and Rule
17f-5 thereunder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Fund or its investment adviser has determined that the custody arrangements of each
Foreign Depository provide reasonable safeguards against the custody risks associated with
maintaining assets with such Foreign Depository within the meaning of Rule&nbsp;17f-7 under the &#145;40 Act;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;It is fully informed of the protections and risks associated with various methods of
transmitting Instructions and Oral Instructions and delivering Certificates to Custodian, shall,
and shall cause each Authorized Person, to safeguard and treat with extreme care any user and
authorization codes, passwords and/or authentication keys, understands that there may be more
secure methods of transmitting or delivering the same than the methods
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">selected by the Fund, agrees
that the security procedures (if any) to be utilized provide a commercially reasonable degree of
protection in light of its particular needs and circumstances, and acknowledges and agrees that
Instructions need not be reviewed by Custodian, may conclusively be presumed by Custodian to have
been given by person(s) duly authorized, and may be acted upon as given;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;It shall manage its borrowings, including, without limitation, any advance or overdraft
(including any day-light overdraft) in the Accounts, so that the aggregate of its total borrowings
for each Series does not exceed the amount such Series is permitted to borrow under the &#145;40 Act;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Its transmission or giving of, and Custodian acting upon and in reliance on, Certificates,
Instructions, or Oral Instructions pursuant to this Agreement shall at all times comply with the
&#145;40 Act;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;It shall impose and maintain restrictions on the destinations to which cash may be
disbursed by Instructions to ensure that each disbursement is for a proper purpose; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;It has the right to make the pledge and grant the security interest and security
entitlement to Custodian contained in Section&nbsp;1 of Article&nbsp;V hereof, free of any right of
redemption or prior claim of any other person or entity, such pledge and such grants shall have a
first priority subject to no setoffs, counterclaims, or other liens or grants prior to or on a
parity therewith, and it shall take such additional steps as Custodian may require to assure such
priority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Fund hereby covenants that it shall from time to time complete and execute and deliver
to Custodian upon Custodian&#146;s request a Form&nbsp;FR U-1 (or successor form) whenever the Fund borrows
from Custodian any money to be used for the purchase or carrying of margin stock as defined in
Federal Reserve Regulation&nbsp;U.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ARTICLE III<BR>
CUSTODY AND RELATED SERVICES</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;(a)&nbsp;Subject to the terms hereof, the Fund hereby authorizes Custodian to hold any
Securities received by it from time to time for the Fund&#146;s account. Custodian shall be entitled to
utilize, subject to subsection (c)&nbsp;of this Section&nbsp;1, Depositories, Subcustodians, and, subject to
subsection (d)&nbsp;of this Section&nbsp;1, Foreign Depositories, to the extent possible in connection with
its performance hereunder. Securities and cash held in a Depository or Foreign Depository will be
held subject to the rules, terms and conditions of such entity. Securities and cash held through
Subcustodians shall be held subject to the terms and conditions of Custodian&#146;s agreements with such
Subcustodians. Subcustodians may be authorized to hold Securities in Foreign Depositories in which
such Subcustodians participate. Unless otherwise required by local law or practice or a particular
subcustodian agreement, Securities deposited with a Subcustodian, a Depositary or a Foreign
Depository will be held in a commingled account, in the name of Custodian, holding only Securities
held by Custodian as custodian for its customers. Custodian shall identify on its books and
records the Securities and cash belonging to the Fund, whether held directly or indirectly through
Depositories, Foreign Depositories, or Subcustodians.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Custodian shall, directly or indirectly
through Subcustodians, Depositories, or Foreign Depositories, endeavor, to the extent feasible, to
hold Securities in the country or other jurisdiction in which the principal trading market for such
Securities is located, where such Securities are to be presented for cancellation and/or payment
and/or registration, or where such Securities are acquired. Custodian at any time may cease
utilizing any Subcustodian and/or may replace a Subcustodian with a different Subcustodian (the
&#147;Replacement Subcustodian&#148;). In the event Custodian selects a Replacement Subcustodian, Custodian
shall not utilize such Replacement Subcustodian until after the Fund&#146;s board or foreign custody
manager has determined that utilization of such Replacement Subcustodian satisfies the requirements
of the &#145;40 Act and Rule&nbsp;17f-5 thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Unless Custodian has received a Certificate or Instructions to the contrary, Custodian
shall hold Securities indirectly through a Subcustodian only if (i)&nbsp;the Securities are not subject
to any right, charge, security interest, lien or claim of any kind in favor of such Subcustodian or
its creditors or operators, including a receiver or trustee in bankruptcy or similar authority,
except for a claim of payment for the safe custody or administration of Securities on behalf of the
Fund by such Subcustodian, and (ii)&nbsp;beneficial ownership of the Securities is freely transferable
without the payment of money or value other than for safe custody or administration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;With respect to each Depository, Custodian (i)&nbsp;shall exercise due care in accordance with
reasonable commercial standards in discharging its duties as a securities intermediary to obtain
and thereafter maintain Securities or financial assets deposited or held in such Depository, and
(ii)&nbsp;will provide, promptly upon request by the Fund, such reports as are available concerning the
internal accounting controls and financial strength of Custodian.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;With respect to each Foreign Depository, Custodian shall exercise reasonable care,
prudence, and diligence (i)&nbsp;to provide the Fund with an analysis of the custody risks associated
with maintaining assets with the Foreign Depository, and (ii)&nbsp;to monitor such custody risks on a
continuing basis and promptly notify the Fund of any material change in such risks. The Fund
acknowledges and agrees that such analysis and monitoring shall be made on the basis
of, and limited by, information gathered from Subcustodians or through publicly available
information otherwise obtained by Custodian, and shall not include any evaluation of Country Risks.
As used herein the term &#147;Country Risks&#148; shall mean with respect to any Foreign Depository: (a)
the financial infrastructure of the country in which it is organized, (b)&nbsp;such country&#146;s prevailing
custody and settlement practices, (c)&nbsp;nationalization, expropriation or other governmental actions,
(d)&nbsp;such country&#146;s regulation of the banking or securities industry, (e)&nbsp;currency controls,
restrictions, devaluations or fluctuations, and (f)&nbsp;market conditions which affect the order
execution of securities transactions or affect the value of securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Custodian shall furnish the Fund with an advice of daily transactions (including a
confirmation of each transfer of Securities) and a monthly summary of all transfers to or from the
Accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;With respect to all Securities held hereunder, Custodian shall, unless otherwise instructed
to the contrary:
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Receive all income and other payments and advise the Fund as promptly as practicable of
any such amounts due but not paid;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Present for payment and receive the amount paid upon all Securities which may mature and
advise the Fund as promptly as practicable of any such amounts due but not paid;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Forward to the Fund copies of all information or documents that it may actually receive
from an issuer of Securities which, in the opinion of Custodian, are intended for the beneficial
owner of Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Execute, as custodian, any certificates of ownership, affidavits, declarations or other
certificates under any tax laws now or hereafter in effect in connection with the collection of
bond and note coupons;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Hold directly or through a Depository, a Foreign Depository, or a Subcustodian all rights
and similar Securities issued with respect to any Securities credited to an Account hereunder; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Endorse for collection checks, drafts or other negotiable instruments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;(a)&nbsp;Custodian shall notify the Fund of rights or discretionary actions with respect to
Securities held hereunder, and of the date or dates by when such rights must be exercised or such
action must be taken, provided that Custodian has actually received, from the issuer or the
relevant Depository (with respect to Securities issued in the United States) or from the relevant
Subcustodian, Foreign Depository, or a nationally or internationally recognized bond or corporate
action service to which Custodian subscribes, timely notice of such rights or discretionary
corporate action or of the date or dates such rights must be exercised or such action must be
taken. Absent actual receipt of such notice, Custodian shall have no liability for failing to so
notify the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Whenever Securities (including, but not limited to, warrants, options, tenders, options to
tender or non-mandatory puts or calls) confer discretionary rights on the Fund or provide for
discretionary action or alternative courses of action by the Fund, the Fund shall be responsible
for making any decisions relating thereto and for directing Custodian to act. In order for
Custodian to act, it must receive the Fund&#146;s Certificate or Instructions at Custodian&#146;s offices,
addressed as Custodian may from time to time request, not later than noon (New York time) at least
two (2)&nbsp;Business Days prior to the last scheduled date to act with respect to such Securities (or
such earlier date or time as Custodian may specify to the Fund). Absent Custodian&#146;s timely receipt
of such Certificate or Instructions, Custodian shall not be liable for failure to take any action
relating to or to exercise any rights conferred by such Securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;All voting rights with respect to Securities, however registered, shall be exercised by the
Fund or its designee. For Securities issued in the United States, Custodian&#146;s only duty shall be
to mail to the Fund any documents (including proxy statements, annual reports and signed proxies)
actually received by Custodian relating to the exercise of such voting rights. With respect to
Securities issued outside of the United States, Custodian&#146;s only duty shall be to
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provide the Fund
with access to a provider of global proxy services at the Fund&#146;s request. The Fund shall be
responsible for all costs associated with its use of such services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Custodian shall promptly advise the Fund upon Custodian&#146;s actual receipt of notification of
the partial redemption, partial payment or other action affecting less than all Securities of the
relevant class. If Custodian, any Subcustodian, any Depository, or any Foreign Depository holds
any Securities in which the Fund has an interest as part of a fungible mass, Custodian, such
Subcustodian, Depository, or Foreign Depository may select the Securities to participate in such
partial redemption, partial payment or other action in any non-discriminatory manner that it
customarily uses to make such selection.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Custodian shall not under any circumstances accept bearer interest coupons which have been
stripped from United States federal, state or local government or agency securities unless
explicitly agreed to by Custodian in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;The Fund shall be liable for all taxes, assessments, duties and other governmental charges,
including any interest or penalty with respect thereto (&#147;Taxes&#148;), with respect to any cash or
Securities held on behalf of the Fund or any transaction related thereto. The Fund shall indemnify
Custodian and each Subcustodian for the amount of any Tax that Custodian, any such Subcustodian or
any other withholding agent is required under applicable laws (whether by assessment or otherwise)
to pay on behalf of, or in respect of income earned by or payments or distributions made to or for
the account of the Fund (including any payment of Tax required by reason of an earlier failure to
withhold). Custodian shall, or shall instruct the applicable Subcustodian or other withholding
agent to, withhold the amount of any Tax which is required to be withheld under applicable law upon
collection of any dividend, interest or other distribution made with respect to any Security and
any proceeds or income from the sale, loan or other transfer of any Security. In the event that
Custodian or any Subcustodian is required under applicable law to pay any Tax on behalf of the
Fund, Custodian is hereby authorized to withdraw cash from any cash account in the amount required
to pay such Tax and to use such cash, or to remit such cash to the appropriate Subcustodian or
other withholding agent, for the timely payment of such Tax in the manner required by applicable
law. If the aggregate amount of cash
in all cash accounts is not sufficient to pay such Tax, Custodian shall promptly notify the
Fund of the additional amount of cash (in the appropriate currency) required, and the Fund shall
directly deposit such additional amount in the appropriate cash account promptly after receipt of
such notice, for use by Custodian as specified herein. In the event that Custodian reasonably
believes that Fund is eligible, pursuant to applicable law or to the provisions of any tax treaty,
for a reduced rate of, or exemption from, any Tax which is otherwise required to be withheld or
paid on behalf of the Fund under any applicable law, Custodian shall, or shall instruct the
applicable Subcustodian or withholding agent to, either withhold or pay such Tax at such reduced
rate or refrain from withholding or paying such Tax, as appropriate; <U>provided</U> that
Custodian shall have received from the Fund all documentary evidence of residence or other
qualification for such reduced rate or exemption required to be received under such applicable law
or treaty. In the event that Custodian reasonably believes that a reduced rate of, or exemption
from, any Tax is obtainable only by means of an application for refund, Custodian and the
applicable Subcustodian shall have no responsibility for the accuracy or validity of any forms or
documentation provided by the Fund to Custodian hereunder. The Fund hereby agrees
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to indemnify and
hold harmless Custodian and each Subcustodian in respect of any liability arising from any
underwithholding or underpayment of any Tax which results from the inaccuracy or invalidity of any
such forms or other documentation, and such obligation to indemnify shall be a continuing
obligation of the Fund, its successors and assigns notwithstanding the termination of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;(a)&nbsp;For the purpose of settling Securities and foreign exchange transactions, the Fund
shall provide Custodian with sufficient immediately available funds for all transactions by such
time and date as conditions in the relevant market dictate. As used herein, &#147;sufficient immediately
available funds&#148; shall mean either (i)&nbsp;sufficient cash denominated in U.S. dollars to purchase the
necessary foreign currency, or (ii)&nbsp;sufficient applicable foreign currency, to settle the
transaction. Custodian shall provide the Fund with immediately available funds each day which
result from the actual settlement of all sale transactions, based upon advices received by
Custodian from Subcustodians, Depositories, and Foreign Depositories. Such funds shall be in U.S.
dollars or such other currency as the Fund may specify to Custodian.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any foreign exchange transaction effected by Custodian in connection with this Agreement
may be entered with Custodian or a BNY Affiliate acting as principal or otherwise through customary
banking channels. The Fund may issue a standing Certificate or Instructions with respect to
foreign exchange transactions, but Custodian may establish rules or limitations concerning any
foreign exchange facility made available to the Fund. The Fund shall bear all risks of investing
in Securities or holding cash denominated in a foreign currency.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;To the extent that Custodian has agreed to provide pricing or other information services
in connection with this Agreement, Custodian is authorized to utilize any vendor (including brokers
and dealers of Securities) reasonably believed by Custodian to be reliable to provide such
information. The Fund understands that certain pricing information with respect to complex
financial instruments (<U>e.g.</U>, derivatives) may be based on calculated amounts rather than
actual market transactions and may not reflect actual market values, and that the variance between
such calculated amounts and actual market values may or may not be material. Where vendors do not
provide information for particular Securities or other property, an Authorized Person may advise
Custodian in a Certificate regarding the fair market value of, or
provide other information with respect to, such Securities or property as determined by it in
good faith. Custodian shall not be liable for any loss, damage or expense incurred as a result of
errors or omissions with respect to any pricing or other information utilized by Custodian
hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;Custodian shall promptly send to the Fund (a)&nbsp;any reports it receives from a Depository on
such Depository&#146;s system of internal accounting control, and (b)&nbsp;such reports on its own system of
internal accounting control as the Fund may reasonably request from time to time.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;Until such time as Custodian receives a certificate to the contrary with respect to a
particular Security, Custodian may release the identity of the Fund to an issuer which requests
such information pursuant to the Shareholder Communications Act of 1985 for the specific purpose of
direct communications between such issuer and shareholder.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IV<BR>
PURCHASE AND SALE OF SECURITIES;<BR>
CREDITS TO ACCOUNT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Promptly after each purchase or sale of Securities by the Fund, the Fund shall deliver to
Custodian a Certificate or Instructions, or with respect to a purchase or sale of a Security
generally required to be settled on the same day the purchase or sale is made, Oral Instructions
specifying all information Custodian may reasonably request to settle such purchase or sale.
Custodian shall account for all purchases and sales of Securities on the actual settlement date
unless otherwise agreed by Custodian.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Fund understands that when Custodian is instructed to deliver Securities against
payment, delivery of such Securities and receipt of payment therefor may not be completed
simultaneously. Notwithstanding any provision in this Agreement to the contrary, settlements,
payments and deliveries of Securities may be effected by Custodian or any Subcustodian in
accordance with the customary or established securities trading or securities processing practices
and procedures in the jurisdiction in which the transaction occurs, including, without limitation,
delivery to a purchaser or dealer therefor (or agent) against receipt with the expectation of
receiving later payment for such Securities. The Fund assumes full responsibility for all risks,
including, without limitation, credit risks, involved in connection with such deliveries of
Securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Custodian may, as a matter of bookkeeping convenience or by separate agreement with the
Fund, credit the Account with the proceeds from the sale, redemption or other disposition of
Securities or interest, dividends or other distributions payable on Securities prior to its actual
receipt of final payment therefor. All such credits shall be conditional until Custodian&#146;s actual
receipt of final payment and may be reversed by Custodian to the extent that final payment is not
received. Payment with respect to a transaction will not be &#147;final&#148; until Custodian shall have
received immediately available funds which under applicable local law, rule and/or practice are
irreversible and not subject to any security interest, levy or other encumbrance, and which are
specifically applicable to such transaction.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE V<BR>
OVERDRAFTS OR INDEBTEDNESS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;If Custodian should in its sole discretion advance funds on behalf of any Series which
results in an overdraft (including, without limitation, any day-light overdraft) because the money
held by Custodian in an Account for such Series shall be insufficient to pay the total amount
payable upon a purchase of Securities specifically allocated to such Series, as set forth in a
Certificate, Instructions or Oral Instructions, or if an overdraft arises in the separate account
of a Series for some other reason, including, without limitation, because of a reversal of a
conditional credit or the purchase of any currency, or if the Fund is for any other reason indebted
to Custodian with respect to a Series, including any indebtedness to The Bank of New York under the
Fund&#146;s Cash Management and Related Services Agreement (except a borrowing for investment or for
temporary or emergency purposes using Securities as collateral pursuant to a separate agreement and
subject to the provisions of Section&nbsp;2 of this Article), such overdraft or indebtedness shall be
deemed to be a loan made by Custodian to the Fund for such Series
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">payable on demand and shall bear
interest from the date incurred at a rate per annum ordinarily charged by Custodian to its
institutional customers, as such rate may be adjusted from time to time. In addition, the Fund
hereby agrees that Custodian shall to the maximum extent permitted by law have a continuing lien,
security interest, and security entitlement in and to any property, including, without limitation,
any investment property or any financial asset, of such Series at any time held by Custodian for
the benefit of such Series or in which such Series may have an interest which is then in
Custodian&#146;s possession or control or in possession or control of any third party acting in
Custodian&#146;s behalf. The Fund authorizes Custodian, in its sole discretion, at any time to charge
any such overdraft or indebtedness together with interest due thereon against any balance of
account standing to such Series&#146; credit on Custodian&#146;s books.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;If the Fund borrows money from any bank (including Custodian if the borrowing is pursuant
to a separate agreement) for investment or for temporary or emergency purposes using Securities
held by Custodian hereunder as collateral for such borrowings, the Fund shall deliver to Custodian
a Certificate specifying with respect to each such borrowing: (a)&nbsp;the Series to which such
borrowing relates; (b)&nbsp;the name of the bank, (c)&nbsp;the amount of the borrowing, (d)&nbsp;the time and
date, if known, on which the loan is to be entered into, (e)&nbsp;the total amount payable to the Fund
on the borrowing date, (f)&nbsp;the Securities to be delivered as collateral for such loan, including
the name of the issuer, the title and the number of shares or the principal amount of any
particular Securities, and (g)&nbsp;a statement specifying whether such loan is for investment purposes
or for temporary or emergency purposes and that such loan is in conformance with the &#145;40 Act and
the Fund&#146;s prospectus. Custodian shall deliver on the borrowing date specified in a Certificate
the specified collateral against payment by the lending bank of the total amount of the loan
payable, provided that the same conforms to the total amount payable as set forth in the
Certificate. Custodian may, at the option of the lending bank, keep such collateral in its
possession, but such collateral shall be subject to all rights therein given the lending bank by
virtue of any promissory note or loan agreement. Custodian shall deliver such Securities as
additional collateral as may be specified in a Certificate to collateralize further any transaction
described in this Section. The Fund shall cause all Securities released from collateral status to
be returned directly to Custodian, and Custodian shall receive from time to time such return of
collateral as may be tendered to it. In the event that the Fund fails to specify in a Certificate
the Series, the name of the issuer, the title and number of shares or the principal amount of any
particular Securities to be delivered as collateral by Custodian, Custodian shall not be under
any obligation to deliver any Securities.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VI<BR>
SALE AND REDEMPTION OF SHARES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Whenever the Fund shall sell any shares issued by the Fund (&#147;Shares&#148;) it shall deliver to
Custodian a Certificate or Instructions specifying the amount of money and/or Securities to be
received by Custodian for the sale of such Shares and specifically allocated to an Account for such
Series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Upon receipt of such money, Custodian shall credit such money to an Account in the name of
the Series for which such money was received.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-10-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Except as provided hereinafter, whenever the Fund desires Custodian to make payment out of
the money held by Custodian hereunder in connection with a redemption of any Shares, it shall
furnish to Custodian (a)&nbsp;a resolution of the Fund&#146;s board directing the Fund&#146;s transfer agent to
redeem the Shares, and (b)&nbsp;a Certificate or Instructions specifying the total amount to be paid for
such Shares. Custodian shall make payment of such total amount to the transfer agent specified in
such Certificate or Instructions out of the money held in an Account of the appropriate Series.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VII<BR>
PAYMENT OF DIVIDENDS OR DISTRIBUTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Whenever the Fund shall determine to pay a dividend or distribution on Shares it shall
furnish to Custodian Instructions or a Certificate setting forth with respect to the Series
specified therein the date of the declaration of such dividend or distribution, the total amount
payable, and the payment date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Upon the payment date specified in such Instructions or Certificate, Custodian shall pay
out of the money held for the account of such Series the total amount payable to the dividend agent
of the Fund specified therein.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VIII<BR>
CONCERNING CUSTODIAN</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;(a)&nbsp;Except as otherwise expressly provided herein, Custodian shall not be liable for any costs,
expenses, damages, liabilities or claims, including attorneys&#146; and accountants&#146; fees (collectively,
&#147;Losses&#148;), incurred by or asserted against the Fund, except those Losses arising out of Custodian&#146;s
own negligence or willful misconduct. Custodian shall have no liability whatsoever for the action
or inaction of any Depositories or of any Foreign Depositories, except in each case to the extent
such action or inaction is a direct result of the Custodian&#146;s failure to fulfill its duties
hereunder. With respect to any Losses incurred by the Fund as a result of the acts or any failures
to act by any Subcustodian (other than a BNY Affiliate), Custodian shall take appropriate action to
recover such Losses from such Subcustodian; and Custodian&#146;s sole responsibility and liability to
the Fund shall be limited to amounts so received from such Subcustodian (exclusive of costs and
expenses incurred by Custodian). In no event shall
Custodian be liable to the Fund or any third party for special, indirect or consequential damages,
or lost profits or loss of business, arising in connection with this Agreement, nor shall BNY or
any Subcustodian be liable: (<U>i</U>) for acting in accordance with any Certificate or Oral
Instructions actually received by Custodian and reasonably believed by Custodian to be given by an
Authorized Person; (<U>ii</U>) for acting in accordance with Instructions without reviewing the
same; (<U>iii</U>) for conclusively presuming that all Instructions are given only by person(s)
duly authorized; (<U>iv</U>) for conclusively presuming that all disbursements of cash directed by
the Fund, whether by a Certificate, an Oral Instruction, or an Instruction, are in accordance with
Section 2(i) of Article&nbsp;II hereof; (<U>v</U>) for holding property in any particular country,
including, but not limited to, Losses resulting from nationalization, expropriation or other
governmental actions; regulation of the banking or securities industry; exchange or currency
controls or restrictions, devaluations or fluctuations; availability of cash or Securities or
market conditions which prevent the transfer of property or execution of Securities transactions or
affect the value of property; (<U>vi</U>) for any
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-11-<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Losses due to forces beyond the control of Custodian, including without limitation strikes, work
stoppages, acts of war or terrorism, insurrection, revolution, nuclear or natural catastrophes or
acts of God, or interruptions, loss or malfunctions of utilities, communications or computer
(software and hardware) services; (vii)&nbsp;for the insolvency of any Subcustodian (other than a BNY
Affiliate), any Depository, or, except to the extent such action or inaction is a direct result of
the Custodian&#146;s failure to fulfill its duties hereunder, any Foreign Depository; or (<U>viii</U>)
for any Losses arising from the applicability of any law or regulation now or hereafter in effect,
or from the occurrence of any event, including, without limitation, implementation or adoption of
any rules or procedures of a Foreign Depository, which may affect, limit, prevent or impose costs
or burdens on, the transferability, convertibility, or availability of any currency or Composite
Currency Unit in any country or on the transfer of any Securities, and in no event shall Custodian
be obligated to substitute another currency for a currency (including a currency that is a
component of a Composite Currency Unit) whose transferability, convertibility or availability has
been affected, limited, or prevented by such law, regulation or event, and to the extent that any
such law, regulation or event imposes a cost or charge upon Custodian in relation to the
transferability, convertibility, or availability of any cash currency or Composite Currency Unit,
such cost or charge shall be for the account of the Fund, and Custodian may treat any account
denominated in an affected currency as a group of separate accounts denominated in the relevant
component currencies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Custodian may enter into subcontracts, agreements and understandings with any BNY
Affiliate, whenever and on such terms and conditions as it deems necessary or appropriate to
perform its services hereunder. No such subcontract, agreement or understanding shall discharge
Custodian from its obligations hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Fund agrees to indemnify Custodian and hold Custodian harmless from and against any
and all Losses sustained or incurred by or asserted against Custodian by reason of or as a result
of any action or inaction, or arising out of Custodian&#146;s performance hereunder, including
reasonable fees and expenses of counsel incurred by Custodian in a successful defense of claims by
the Fund; provided however, that the Fund shall not indemnify Custodian for those Losses arising
out of Custodian&#146;s own negligence or willful misconduct. This indemnity shall be a continuing
obligation of the Fund, its successors and assigns, notwithstanding the termination of this
Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Without limiting the generality of the foregoing, Custodian shall be under no obligation to
inquire into, and shall not be liable for:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any Losses incurred by the Fund or any other person as a result of the receipt or
acceptance of fraudulent, forged or invalid Securities, or Securities which are otherwise not
freely transferable or deliverable without encumbrance in any relevant market;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The validity of the issue of any Securities purchased, sold, or written by or for the
Fund, the legality of the purchase, sale or writing thereof, or the propriety of the amount paid or
received therefor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The legality of the sale or redemption of any Shares, or the propriety of the amount to be
received or paid therefor;
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->-12 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The legality of the declaration or payment of any dividend or distribution by the Fund;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The legality of any borrowing by the Fund;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The legality of any loan of portfolio Securities, nor shall Custodian be under any duty or
obligation to see to it that any cash or collateral delivered to it by a broker, dealer or
financial institution or held by it at any time as a result of such loan of portfolio Securities is
adequate security for the Fund against any loss it might sustain as a result of such loan, which
duty or obligation shall be the sole responsibility of the Fund. In addition, Custodian shall be
under no duty or obligation to see that any broker, dealer or financial institution to which
portfolio Securities of the Fund are lent makes payment to it of any dividends or interest which
are payable to or for the account of the Fund during the period of such loan or at the termination
of such loan, provided, however that Custodian shall promptly notify the Fund in the event that
such dividends or interest are not paid and received when due;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The sufficiency or value of any amounts of money and/or Securities held in any Special
Account in connection with transactions by the Fund; whether any broker, dealer, futures commission
merchant or clearing member makes payment to the Fund of any variation margin payment or similar
payment which the Fund may be entitled to receive from such broker, dealer, futures commission
merchant or clearing member, or whether any payment received by Custodian from any broker, dealer,
futures commission merchant or clearing member is the amount the Fund is entitled to receive, or to
notify the Fund of Custodian&#146;s receipt or non-receipt of any such payment; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Whether any Securities at any time delivered to, or held by it or by any Subcustodian, for
the account of the Fund and specifically allocated to a Series are such as properly may be held by
the Fund or such Series under the provisions of its then current prospectus and statement of
additional information, or to ascertain whether any transactions by the Fund, whether or not
involving Custodian, are such transactions as may properly be engaged in by the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Custodian may, with respect to questions of law specifically regarding an Account, obtain
the advice of counsel and shall be fully protected with respect to anything done or omitted by it
in good faith in conformity with such advice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Custodian shall be under no obligation to take action to collect any amount payable on
Securities in default, or if payment is refused after due demand and presentment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Custodian shall have no duty or responsibility to inquire into, make recommendations,
supervise, or determine the suitability of any transactions affecting any Account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;The Fund shall pay to Custodian the fees and charges as may be specifically agreed upon
from time to time and such other fees and charges at Custodian&#146;s standard rates for such services
as may be applicable. The Fund shall reimburse Custodian for all costs associated with the
conversion of the Fund&#146;s Securities hereunder and the transfer of Securities and records kept
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-13 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in
connection with this Agreement. The Fund shall also reimburse Custodian for out-of-pocket expenses
which are a normal incident of the services provided hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Custodian has the right to debit any cash account for any amount payable by the Fund in
connection with any and all obligations of the Fund to Custodian. In addition to the rights of
Custodian under applicable law and other agreements, at any time when the Fund shall not have
honored any of its obligations to Custodian, Custodian shall have the right without notice to the
Fund to retain or set-off, against such obligations of the Fund, any Securities or cash Custodian
or a BNY Affiliate may directly or indirectly hold for the account of the Fund, and any obligations
(whether matured or unmatured) that Custodian or a BNY Affiliate may have to the Fund in any
currency or Composite Currency Unit. Any such asset of, or obligation to, the Fund may be
transferred to Custodian and any BNY Affiliate in order to effect the above rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;The Fund agrees to forward to Custodian a Certificate or Instructions confirming Oral
Instructions by the close of business of the same day that such Oral Instructions are given to
Custodian. The Fund agrees that the fact that such confirming Certificate or Instructions are not
received or that a contrary Certificate or contrary Instructions are received by Custodian shall in
no way affect the validity or enforceability of transactions authorized by such Oral Instructions
and effected by Custodian. If the Fund elects to transmit Instructions through an on-line
communications system offered by Custodian, the Fund&#146;s use thereof shall be subject to the Terms
and Conditions attached as Appendix&nbsp;I hereto, and Custodian shall provide user and authorization
codes, passwords and authentication keys only to an Authorized Person or a person reasonably
believed by Custodian to be an Authorized Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;The books and records pertaining to the Fund which are in possession of Custodian shall be
the property of the Fund. Such books and records shall be prepared and maintained as required by
the &#145;40 Act and the rules thereunder. The Fund, or its authorized representatives, shall have
access to such books and records during Custodian&#146;s normal business hours. Upon the reasonable
request of the Fund, copies of any such books and records shall be provided by Custodian to the
Fund or its authorized representative. Upon the reasonable request of the Fund, Custodian shall
provide in hard copy or on computer disc any records included in any such delivery which are
maintained by Custodian on a computer disc, or are similarly maintained.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;It is understood that Custodian is authorized to supply any information regarding the
Accounts which is required by any law, regulation or rule now or hereafter in effect. The
Custodian shall provide the Fund with any report obtained by the Custodian on the system of
internal accounting control of a Depository, and with such reports on its own system of internal
accounting control as the Fund may reasonably request from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;Custodian shall have no duties or responsibilities whatsoever except such duties and
responsibilities as are specifically set forth in this Agreement, and no covenant or obligation
shall be implied against Custodian in connection with this Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-14 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE
IX<BR>
TERMINATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Either of the parties hereto may terminate this Agreement by giving to the other party a
notice in writing specifying the date of such termination, which shall be not less than sixty (60)
days after the date of giving of such notice.&nbsp; In the event such notice is given by the Fund, it
shall be accompanied by a copy of a resolution of the board of the Fund, certified by the Secretary
or any Assistant Secretary, electing to terminate this Agreement and designating a successor
custodian or custodians, each of which shall be a bank or trust company having not less than
$2,000,000 aggregate capital, surplus and undivided profits.&nbsp; In the event such notice is given by
Custodian, the Fund shall, on or before the termination date, deliver to Custodian a copy of a
resolution of the board of the Fund, certified by the Secretary or any Assistant Secretary,
designating a successor custodian or custodians.&nbsp; In the absence of such designation by the Fund,
Custodian may designate a successor custodian which shall be a bank or trust company having not
less than $2,000,000 aggregate capital, surplus and undivided profits.&nbsp; Upon the date set forth in
such notice this Agreement shall terminate, and Custodian shall upon receipt of a notice of
acceptance by the successor custodian on that date deliver directly to the successor custodian all
Securities and money then owned by the Fund and held by it as Custodian, after deducting all fees,
expenses and other amounts for the payment or reimbursement of which it shall then be entitled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;If a successor custodian is not designated by the Fund or Custodian in accordance with the
preceding Section, the Fund shall upon the date specified in the notice of termination of this
Agreement and upon the delivery by Custodian of all Securities (other than Securities which cannot
be delivered to the Fund) and money then owned by the Fund be deemed to be its own custodian and
Custodian shall thereby be relieved of all duties and responsibilities pursuant to this Agreement,
other than the duty with respect to Securities which cannot be delivered to the Fund to hold such
Securities hereunder in accordance with this Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE
X<BR>
MISCELLANEOUS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Fund agrees to furnish to Custodian a new Certificate of Authorized Persons in the
event of any change in the then present Authorized Persons. Until such new Certificate is
received, Custodian shall be fully protected in acting upon Certificates or Oral Instructions of
such present Authorized Persons.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;This Agreement represents the entire understanding of the parties hereto with regard to the
subject matter contained herein and may not be amended or modified in any manner except by a
written agreement executed by both parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Any notice or other instrument in writing, authorized or required by this Agreement to be
given to Custodian, shall be sufficiently given if addressed to Custodian and received by it at its
offices at 1 Wall Street, New York, New York 10286, or at such other place as Custodian may from
time to time designate in writing.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-15-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Any notice or other instrument in writing, authorized or required by this Agreement to be
given to the Fund shall be sufficiently given if addressed to the Fund and received by it at its
offices at 2020 Calamos Court&nbsp;, Naperville, Illinois, 60563-2787, Attention: James&nbsp;S. Hamman, Jr.,
Secretary, or at such other place as the Fund may from time to time designate in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Each and every right granted to either party hereunder or under any other document
delivered hereunder or in connection herewith, or allowed it by law or equity, shall be cumulative
and may be exercised from time to time. No failure on the part of either party to exercise, and no
delay in exercising, any right will operate as a waiver thereof, nor will any single or partial
exercise by either party of any right preclude any other or future exercise thereof or the exercise
of any other right.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;In case any provision in or obligation under this Agreement shall be invalid, illegal or
unenforceable in any exclusive jurisdiction, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected thereby. This Agreement may not be amended
or modified in any manner except by a written agreement executed by both parties, except that any
amendment to the Schedule&nbsp;I hereto need be signed only by the Fund and any amendment to Appendix&nbsp;I
hereto need be signed only by Custodian. This Agreement shall extend to and shall be binding upon
the parties hereto, and their respective successors and assigns; provided, however, that this
Agreement shall not be assignable by either party without the written consent of the other.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;This Agreement shall be construed in accordance with the substantive laws of the State of
New York, without regard to conflicts of laws principles thereof. The Fund and Custodian hereby
consent to the jurisdiction of a state or federal court situated in New York City, New York in
connection with any dispute arising hereunder. The Fund hereby irrevocably waives, to the fullest
extent permitted by applicable law, any objection which it may now or hereafter have to the laying
of venue of any such proceeding brought in such a court and any claim that such proceeding brought
in such a court has been brought in an inconvenient forum. The Fund and Custodian each hereby
irrevocably waives any and all rights to trial by jury in any legal proceeding arising out of or
relating to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;This Agreement may be executed in any number of counterparts, each of which shall be deemed
to be an original, but such counterparts shall, together, constitute only one instrument.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-16-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the Fund and Custodian have caused this Agreement to be executed by their
respective officers, thereunto duly authorized, as of the day and year first above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EACH FUND, as identified on Schedule&nbsp;II as such may be amended from time to time</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CALAMOS ADVISORS LLC, as investment manager of
such Fund
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 0px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">James S. Hamman, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: &nbsp;&nbsp;Executive Vice President, General Counsel and</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Secretary and Secretary of each Fund, as identified</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">on Schedule&nbsp;II as such may be amended form time to time</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">THE BANK OF NEW YORK</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-17-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE I<BR>
CERTIFICATE OF AUTHORIZED PERSONS<BR>
(The Fund &#151; Written Instructions)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby certifies that he/she is the duly elected and acting Assistant
Secretary of the funds and/or trusts listed below (each a &#147;Fund&#148; and collectively, the &#147;Funds&#148;),
and further certifies that the following individuals have been duly authorized by the Fund to
deliver the following procedures, as indicated, by written instructions to The Bank of New York, as
custodian (&#147;Custodian&#148;) in connection with the services provided to the Funds by the Custodian
pursuant to the Custody Agreement, as amended from time to time, between each Fund and the
Custodian, and that the signatures appearing opposite their names are true and correct:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Signatures for Cash Movement: Any action relating to the transfer or payment of money or
other assets to or from the Fund account, including, without limitation, (a)&nbsp;the withdrawal or
other transfer of cash or cash equivalents to or from any Fund account, (b)&nbsp;any establishment
of a payee or modification of payee information, and (c)&nbsp;any modification of settlement
instructions, shall require authorization by either (i)&nbsp;one signature from Group A and one
signature from Group B set forth below, or (ii)&nbsp;two signatures from Group A set forth below.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Cash Movement &#150; Group A</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Cash Movement &#150; Group B</B></U>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Decision Making Authority: All Authorized Persons listed above, together with
persons listed below, shall have non-monetary decision making authority pursuant to the
Custody Agreement between each Fund and the Custodian, including, without limitation,
authority to resolve failed transactions and corporate action decisions.</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>List of Funds:</B></U><BR>
Calamos Convertible Opportunities and Income Fund<BR>
Calamos Convertible and High Income Fund<BR>
Calamos Strategic Total Return Fund<BR>
Calamos Global Total Return Fund<BR>
Calamos Global Dynamic Income Fund

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-7-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, this Certificate of Authorized Persons is executed by the Assistant
Secretary of the Funds and hereby supersedes any previous Certificate of Authorized Persons or
similar authorization provided to the Custodian by the Funds you may currently have on file.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;seal&#093;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-8-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE II</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LIST OF INVESTMENT COMPANIES</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CALAMOS CONVERTIBLE OPPORTUNITIES AND INCOME FUND

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CALAMOS CONVERTIBLE AND HIGH INCOME FUND

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CALAMOS STRATEGIC TOTAL RETURN FUND

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CALAMOS GLOBAL TOTAL RETURN FUND

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CALAMOS GLOBAL DYNAMIC INCOME FUND

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>APPENDIX I</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>THE BANK OF NEW YORK</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ON-LINE COMMUNICATIONS SYSTEM (THE &#147;SYSTEM&#148;)</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>TERMS AND CONDITIONS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>License; Use</U>. Upon delivery to an Authorized Person or a person reasonably
believed by Custodian to be an Authorized Person the Fund of software enabling the Fund to obtain
access to the System (the &#147;Software&#148;), Custodian grants to the Fund a personal, nontransferable and
nonexclusive license to use the Software solely for the purpose of transmitting Written
Instructions, receiving reports, making inquiries or otherwise communicating with Custodian in
connection with the Account(s). The Fund shall use the Software solely for its own internal and
proper business purposes and not in the operation of a service bureau. Except as set forth herein,
no license or right of any kind is granted to the Fund with respect to the Software. The Fund
acknowledges that Custodian and its suppliers retain and have title and exclusive proprietary
rights to the Software, including any trade secrets or other ideas, concepts, know-how,
methodologies, or information incorporated therein and the exclusive rights to any copyrights,
trademarks and patents (including registrations and applications for registration of either), or
other statutory or legal protections available in respect thereof. The Fund further acknowledges
that all or a part of the Software may be copyrighted or trademarked (or a registration or claim
made therefor) by Custodian or its suppliers. The Fund shall not take any action with respect to
the Software inconsistent with the foregoing acknowledgments, nor shall you attempt to decompile,
reverse engineer or modify the Software. The Fund may not copy, sell, lease or provide, directly
or indirectly, any of the Software or any portion thereof to any other person or entity without
Custodian&#146;s prior written consent. The Fund may not remove any statutory copyright notice or other
notice included in the Software or on any media containing the Software. The Fund shall reproduce
any such notice on any reproduction of the Software and shall add any statutory copyright notice or
other notice to the Software or media upon Custodian&#146;s request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Equipment</U>. The Fund shall obtain and maintain at its own cost and expense all
equipment and services, including but not limited to communications services, necessary for it to
utilize the Software and obtain access to the System, and Custodian shall not be responsible for
the reliability or availability of any such equipment or services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Proprietary Information</U>. The Software, any data base and any proprietary data,
processes, information and documentation made available to the Fund (other than which are or become
part of the public domain or are legally required to be made available to the public)
(collectively, the &#147;Information&#148;), are the exclusive and
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">confidential property of Custodian or its
suppliers. The Fund shall keep the Information confidential by using the same care and discretion that the Fund uses with respect to its own
confidential property and trade secrets, but not less than reasonable care. Upon termination of
the Agreement or the Software license granted herein for any reason, the Fund shall return to
Custodian any and all copies of the Information which are in its possession or under its control.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Modifications</U>. Custodian reserves the right to modify the Software from time to
time and the Fund shall install new releases of the Software as Custodian may direct. The Fund
agrees not to modify or attempt to modify the Software without Custodian&#146;s prior written consent.
The Fund acknowledges that any modifications to the Software, whether by the Fund or Custodian and
whether with or without Custodian&#146;s consent, shall become the property of Custodian.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>NO REPRESENTATIONS OR WARRANTIES</U>. CUSTODIAN AND ITS MANUFACTURERS AND SUPPLIERS
MAKE NO WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE SOFTWARE, SERVICES OR ANY DATABASE,
EXPRESS OR IMPLIED, IN FACT OR IN LAW, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE. THE FUND ACKNOWLEDGES THAT THE SOFTWARE, SERVICES AND ANY
DATABASE ARE PROVIDED &#147;AS IS.&#148; IN NO EVENT SHALL CUSTODIAN OR ANY SUPPLIER BE LIABLE FOR ANY
DAMAGES, WHETHER DIRECT, INDIRECT SPECIAL, OR CONSEQUENTIAL, WHICH THE FUND MAY INCUR IN CONNECTION
WITH THE SOFTWARE, SERVICES OR ANY DATABASE, EVEN IF CUSTODIAN OR SUCH SUPPLIER HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL CUSTODIAN OR ANY SUPPLIER BE LIABLE FOR ACTS OF
GOD, MACHINE OR COMPUTER BREAKDOWN OR MALFUNCTION, INTERRUPTION OR MALFUNCTION OF COMMUNICATION
FACILITIES, LABOR DIFFICULTIES OR ANY OTHER SIMILAR OR DISSIMILAR CAUSE BEYOND THEIR REASONABLE
CONTROL.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Security; Reliance; Unauthorized Use</U>. The Fund will cause all persons utilizing
the Software and System to treat all applicable user and authorization codes, passwords and
authentication keys with extreme care, and it will establish internal control and safekeeping
procedures to restrict the availability of the same to persons duly authorized to give
Instructions. Custodian is hereby irrevocably authorized to act in accordance with and rely on
Instructions received by it through the System. The Fund acknowledges that it is its sole
responsibility to assure that only persons duly authorized use the System and that Custodian shall
not be responsible nor liable for any unauthorized use thereof.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>System Acknowledgments</U>. Custodian shall acknowledge through the System its receipt
of each transmission communicated through the System, and in the absence of such acknowledgment
Custodian shall not be liable for any failure to act in accordance with such transmission and the
Fund may not claim that such transmission was received by Custodian.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>EXPORT RESTRICTIONS</U>. EXPORT OF THE SOFTWARE IS PROHIBITED BY UNITED STATES LAW.
THE FUND MAY NOT UNDER ANY CIRCUMSTANCES RESELL, DIVERT, TRANSFER, TRANSSHIP OR OTHERWISE DISPOSE
OF THE SOFTWARE (IN ANY FORM) IN OR TO ANY OTHER COUNTRY. IF CUSTODIAN DELIVERED THE SOFTWARE TO
THE FUND OUTSIDE OF THE UNITED STATES, THE SOFTWARE WAS EXPORTED FROM THE UNITED STATES IN
ACCORDANCE WITH THE EXPORTER ADMINISTRATION REGULATIONS. DIVERSION CONTRARY TO U.S. LAW IS
PROHIBITED. The Fund hereby authorizes Custodian to report its name and address to government
agencies to which Custodian is required to provide such information by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U>ENCRYPTION</U>. The Fund acknowledges and agrees that encryption may not be available
for every communication through the System, or for all data. The Fund agrees that Custodian may
deactivate any encryption features at any time, without notice or liability to the Fund, for the
purpose of maintaining, repairing or troubleshooting the System or the Software.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(J)(2)
<SEQUENCE>8
<FILENAME>c19483a2exv99wxjyx2y.htm
<DESCRIPTION>FOREIGN CUSTODY MANAGER AGREEMENT
<TEXT>
<HTML>
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<TITLE>exv99wxjyx2y</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit j.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FOREIGN CUSTODY MANAGER AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>AGREEMENT </B>made as of June&nbsp;15, 2007 between the Calamos closed-end funds listed on Schedule&nbsp;II
hereto, as such Schedule may be amended from time to time to add additional funds managed by
Calamos Advisors LLC (each such existing fund, and any additional fund, the &#147;Fund&#148;), each a
business trust organized and existing under the laws of the State of Delaware having its principal
office and place of business at c/o Calamos Advisors LLC, 2020 Calamos Court, Naperville, Illinois,
60563-2787, and The Bank of New York, a New York corporation authorized to do a banking business
having its principal office and place of business at One Wall Street, New&nbsp;York, New York 10286
(&#147;BNY&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>W I T N E S S E T H:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Fund desires to appoint BNY as a Foreign Custody Manager on the terms and
conditions contained herein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, BNY desires to serve as a Foreign Custody Manager and perform the duties set forth
herein on the terms and conditions contained herein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW THEREFORE</B>, in consideration of the mutual promises hereinafter contained in this
Agreement, the Fund and BNY hereby agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE I.<BR>
<B>DEFINITIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever used in this Agreement, the following words and phrases, unless the context otherwise
requires, shall have the following meanings:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<B>&#147;Board&#148; </B>shall mean the board of directors or board of trustees, as the case may be, of the
Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<B>&#147;Eligible Foreign Custodian&#148; </B>shall have the meaning provided in the Rule.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<B>&#147;Monitoring System&#148; </B>shall mean a system established by BNY to fulfill the Responsibilities
specified in clauses (d)&nbsp;and (e)&nbsp;of Section&nbsp;1 of Article&nbsp;III of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<B>&#147;Responsibilities&#148; </B>shall mean the responsibilities delegated to BNY under the Rule as a
Foreign Custody Manager with respect to each Specified Country and each Eligible Foreign Custodian
selected by BNY, as such responsibilities are more fully described in Article&nbsp;III of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<B>&#147;Rule&#148; </B>shall mean Rule&nbsp;17f-5 under the Investment Company Act of 1940, as amended on June
12, 2000.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<B>&#147;Specified Country&#148; </B>shall mean each country listed on Schedule&nbsp;I attached hereto and each
country, other than the United States, constituting the primary market for a security with respect
to which the Fund has given settlement instructions to The Bank of New York as custodian (the
&#147;Custodian&#148;) under its Custody Agreement with the Fund.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE II.<BR>
<B>BNY AS A FOREIGN CUSTODY MANAGER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Fund on behalf of its Board hereby delegates to BNY with respect to each Specified
Country the Responsibilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;BNY accepts the Board&#146;s delegation of Responsibilities with respect to each Specified
Country and agrees in performing the Responsibilities as a Foreign Custody Manager to exercise
reasonable care, prudence and diligence such as a person having responsibility for the safekeeping
of the Fund&#146;s assets would exercise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;BNY shall provide to the Board at such times as the Board deems reasonable and appropriate
based on the circumstances of the Fund&#146;s foreign custody arrangements written reports notifying the
Board of the placement of assets of the Fund with a particular Eligible Foreign Custodian within a
Specified Country and of any material change in the arrangements (including the contract governing
such arrangements) with respect to assets of the Fund with any such Eligible Foreign Custodian.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE III.<BR>
<B>RESPONSIBILITIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Subject to the provisions of this Agreement, BNY shall with respect to each Specified
Country select an Eligible Foreign Custodian. In connection therewith, BNY shall: (a)&nbsp;determine
that assets of the Fund held by such Eligible Foreign Custodian will be subject to reasonable care,
based on the standards applicable to custodians in the relevant market in which such Eligible
Foreign Custodian operates, after considering all factors relevant to the safekeeping of such
assets, including, without limitation, those contained in paragraph (c)(1) of the Rule; (b)
determine that the Fund&#146;s foreign custody arrangements with each Eligible Foreign Custodian are
governed by a written contract with the Custodian which will provide reasonable care for the Fund&#146;s
assets based on the standards specified in paragraph (c)(1) of the Rule; (c)&nbsp;determine that each
contract with an Eligible Foreign Custodian shall include the provisions specified in paragraph
(c)(2)(i)(A) through (F)&nbsp;of the Rule or, alternatively, in lieu of any or all of such (c)(2)(i)(A)
through (F)&nbsp;provisions, such other provisions as BNY determines will provide, in their entirety,
the same or a greater level of care and protection for the assets of the Fund as such specified
provisions; (d)&nbsp;monitor pursuant to the Monitoring System the appropriateness of maintaining the
assets of the Fund with a particular Eligible Foreign Custodian pursuant to paragraph (c)(1) of the
Rule and the performance of the contract governing such arrangement; and (e)&nbsp;advise the Fund
whenever BNY determines under the Monitoring System that an arrangement (including, any material
change in the contract governing such arrangement) described in preceding clause (d)&nbsp;no longer
meets the requirements of the Rule.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;For purposes of preceding Section&nbsp;1 of this Article, BNY&#146;s determination of appropriateness
shall not include, nor be deemed to include, any evaluation of Country Risks associated with
investment in a particular country. For purposes hereof, &#147;Country Risks&#148; shall mean systemic risks
of holding assets in a particular country including but not limited to (a)&nbsp;an Eligible Foreign
Custodian&#146;s use of any depositories that act as or operate a system or a transnational system for
the central handling of securities or any equivalent book-entries; (b)&nbsp;such country&#146;s financial
infrastructure; (c)&nbsp;such country&#146;s prevailing custody and settlement practices; (d)
nationalization, expropriation or other governmental actions; (e)&nbsp;regulation of the banking or
securities industry; (f)&nbsp;currency controls, restrictions, devaluations or fluctuations; and (g)
market conditions which affect the orderly execution of securities transactions or affect the value
of securities.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE IV.<BR>
<B>REPRESENTATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Fund hereby represents that: (a)&nbsp;this Agreement has been duly authorized, executed and
delivered by the Fund, constitutes a valid and legally binding obligation of the Fund enforceable
in accordance with its terms, and no statute, regulation, rule, order, judgment or contract binding
on the Fund prohibits the Fund&#146;s execution or performance of this Agreement; (b)&nbsp;this Agreement has
been approved and ratified by the Board at a meeting duly called and at which a quorum was at all
times present, and (c)&nbsp;the Board or the Fund&#146;s investment advisor has considered the Country Risks
associated with investment in each Specified Country and will have considered such risks prior to
any settlement instructions being given to the Custodian with respect to any other country.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;BNY hereby represents that: (a)&nbsp;BNY is duly organized and existing under the laws of the
State of New York, with full power to carry on its businesses as now conducted, and to enter into
this Agreement and to perform its obligations hereunder; (b)&nbsp;this Agreement has been duly
authorized, executed and delivered by BNY, constitutes a valid and legally binding obligation of
BNY enforceable in accordance with its terms, and no statute, regulation, rule, order, judgment or
contract binding on BNY prohibits BNY&#146;s execution or performance of this Agreement; and (c)&nbsp;BNY has
established the Monitoring System.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE V.<BR>
<B>CONCERNING BNY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;BNY shall not be liable for any costs, expenses, damages, liabilities or claims, including
attorneys&#146; and accountants&#146; fees, sustained or incurred by, or asserted against, the Fund except to
the extent the same arises out of the failure of BNY to exercise the care, prudence and diligence
required by Section&nbsp;2 of Article&nbsp;II hereof. In no event shall BNY be liable to the Fund, the
Board, or any third party for special, indirect or consequential damages, or for lost profits or
loss of business, arising in connection with this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Fund shall indemnify BNY and hold it harmless from and against any and all costs,
expenses, damages, liabilities or claims, including attorneys&#146; and accountants&#146; fees, sustained or incurred by, or asserted against, BNY by reason or as a result of any action
or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">inaction, or arising out of BNY&#146;s performance hereunder, provided that the Fund shall not indemnify
BNY to the extent any such costs, expenses, damages, liabilities or claims arises out of BNY&#146;s
failure to exercise the reasonable care, prudence and diligence required by Section&nbsp;2 of Article&nbsp;II
hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;For its services hereunder, the Fund agrees to pay to BNY such compensation and
out-of-pocket expenses as shall be mutually agreed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;BNY shall have only such duties as are expressly set forth herein. In no event shall BNY
be liable for any Country Risks associated with investments in a particular country.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE VI.<BR>
<B>MISCELLANEOUS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;This Agreement constitutes the entire agreement between the Fund and BNY as a foreign
custody manager, and no provision in the Custody Agreement between the Fund and the Custodian shall
affect the duties and obligations of BNY hereunder, nor shall any provision in this Agreement
affect the duties or obligations of the Custodian under the Custody Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Any notice or other instrument in writing, authorized or required by this Agreement to be
given to BNY, shall be sufficiently given if received by it at its offices at 1 Wall Street, 25th
Floor, New York, New York 10286, or at such other place as BNY may from time to time designate in
writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Any notice or other instrument in writing, authorized or required by this Agreement to be
given to the Fund shall be sufficiently given if received by it at its offices at c/o Calamos Asset
Management, Inc., 2020 Calamos Court, Naperville, Illinois, 60563-2787, Attention: James&nbsp;S. Hamman,
Jr., Secretary, or at such other place as the Fund may from time to time designate in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;In case any provision in or obligation under this Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected thereby. This Agreement may not be amended or modified
in any manner except by a written agreement executed by both parties. This Agreement shall extend
to and shall be binding upon the parties hereto, and their respective successors and assigns;
provided however, that this Agreement shall not be assignable by either party without the written
consent of the other.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;This Agreement shall be construed in accordance with the substantive laws of the State of
New York, without regard to conflicts of laws principles thereof. The Fund and BNY hereby consent
to the jurisdiction of a state or federal court situated in New York City, New York in connection
with any dispute arising hereunder. The Fund hereby irrevocably waives, to the fullest extent
permitted by applicable law, any objection which it may now or hereafter have to the laying of
venue of any such proceeding brought in such a court and any claim that such proceeding brought in
such a court has been brought in an inconvenient forum. The Fund and BNY each hereby irrevocably waives any and all rights to trial by jury in any legal proceeding
arising out of or relating to this Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;The parties hereto agree that in performing hereunder, BNY is acting solely on behalf of
the Fund and no contractual or service relationship shall be deemed to be established hereby
between BNY and any other person by reason of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;This Agreement may be executed in any number of counterparts, each of which shall be deemed
to be an original, but such counterparts shall, together, constitute only one instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;This Agreement shall terminate simultaneously with the termination of the Custody Agreement
between the Fund and the Custodian, and may otherwise be terminated by either party giving to the
other party a notice in writing specifying the date of such termination, which shall be not less
than thirty (30)&nbsp;days after the date of such notice.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the Fund and BNY have caused this Agreement to be executed by their
respective officers, thereunto duly authorized, as of the date first above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EACH FUND, as identified on Schedule&nbsp;II as such may be amended from time to time</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CALAMOS ADVISORS LLC, as investment manager of such Fund</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 0px solid #000000">&nbsp;</DIV>

</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">James S. Hamman, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: &nbsp;&nbsp;Executive Vice President, General Counsel and</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Secretary and Secretary of each Fund, as identified</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">on Schedule&nbsp;II as such may be amended from time to time</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>THE BANK OF NEW YORK</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SCHEDULE II</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>LIST OF INVESTMETN COMPANIES</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CALAMOS CONVERTIBLE OPPORTUNITIES AND INCOME FUND<BR>
CALAMOS CONVERTIBLE AND HIGH INCOME FUND<BR>
CALAMOS STRATEGIC TOTAL RETURN FUND<BR>
CALAMOS GLOBAL TOTAL RETURN FUND<BR>
CALAMOS GLOBAL DYNAMIC INCOME FUND

</DIV>
</DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(K)(1)
<SEQUENCE>9
<FILENAME>c19483a2exv99wxkyx1y.htm
<DESCRIPTION>STOCK TRANSFER AGENCY AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxkyx1y</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;k.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">STOCK TRANSFER AGENCY AGREEMENT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AMENDED AND RESTATED AGREEMENT, made as of June&nbsp;15, 2007, by and between EACH ENTITY SET FORTH
IN <U><B><I>SCHEDULE II</I></B></U> HERETO, as such Schedule may be amended from time to time to add additional
funds managed by Calamos Advisors LLC (each such existing fund, and any additional fund,
hereinafter referred to as the &#147;Customer&#148;), each a business trust organized and existing under the
laws of the State of Delaware, and THE BANK OF NEW YORK, a New York trust company (hereinafter
referred to as the &#147;Bank&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">W I T N E S S E T H:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That for and in consideration of the mutual promises hereinafter set forth, the parties hereto
covenant and agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE I</B><BR>
<U><B>DEFINITIONS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever used in this Agreement, the following words and phrases shall have the following
meanings:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&#147;Business Day&#148; shall be deemed to be each day on which the Bank is open for business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&#147;Certificate&#148; shall mean any notice, instruction, or other instrument in writing,
authorized or required by this Agreement to be given to the Bank by the Customer which is signed by
any Officer, as hereinafter defined, and actually received by the Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&#147;Officer&#148; shall be deemed to be the Customer&#146;s Chief Executive Officer, President, any Vice
President, the Secretary, the Treasurer, the Controller, any Assistant Treasurer, and any Assistant
Secretary duly authorized by the Board of Directors of the Customer
to execute any Certificate, instruction, notice or other instrument on behalf of the Customer
and named in a Certificate, as such Certificate may be amended from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&#147;Shares&#148; shall mean all or any part of each class of the shares of capital stock of the
Customer which from time to time are authorized and/or issued by the Customer and identified in a
Certificate of the Secretary of the Customer under corporate seal, as such Certificate may be
amended from time to time, with respect to which the Bank is to act hereunder.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE II</B><BR>
<U><B>APPOINTMENT OF BANK</B></U>
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Customer hereby constitutes and appoints the Bank as its agent to perform the services
described herein and as more particularly described in Schedule&nbsp;I attached hereto (the &#147;Services&#148;),
and the Bank hereby accepts appointment as such agent and agrees to perform the Services in
accordance with the terms hereinafter set forth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;In connection with such appointment, the Customer shall deliver the following documents to
the Bank:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certified copy of the Certificate of Incorporation or other document
evidencing the Customer&#146;s form of organization (the &#147;Charter&#148;) and all amendments
thereto;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certified copy of the By-Laws of the Customer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certified copy of a resolution of the Board of Directors of the Customer
appointing the Bank to perform the Services and authorizing the execution and delivery
of this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Certificate signed by the Secretary of the Customer specifying: the number of
authorized Shares, the number of such authorized Shares issued and currently
outstanding, and the names and specimen signatures of all persons duly authorized by
the Board of Directors of the Customer to execute any Certificate on behalf of the
Customer, as such Certificate may be amended from time to time;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Specimen Share certificate for each class of Shares in the form approved by
the Board of Directors of the Customer, together with a Certificate signed by the
Secretary of the Customer as to such approval and covenanting to supply a new such
Certificate and specimen whenever such form shall change;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An opinion of counsel for the Customer, in a form satisfactory to the Bank,
with respect to the validity of the authorized and outstanding Shares, the obtaining of
all necessary governmental consents, whether such Shares are fully paid and non-
assessable and the status of such Shares under the Securities Act of 1933, as
amended, and any other applicable law or regulation (<U>i.e.</U>, if subject to
registration, that they have been registered and that the Registration Statement
has become effective or, if exempt, the specific grounds therefor);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A list of the name, address, social security or taxpayer identification number
of each Shareholder, number of Shares owned, certificate numbers, and whether any
&#147;stops&#148; have been placed; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An opinion of counsel for the Customer, in a form satisfactory to the Bank,
with respect to the due authorization by the Customer and the validity and
effectiveness of the use of facsimile signatures by the Bank in connection with the
countersigning and registering of Share certificates of the Customer.</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-3-<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Customer shall furnish the Bank with a sufficient supply of blank Share certificates
and from time to time will renew such supply upon request of the Bank. Such blank Share
certificates shall be properly signed, by facsimile or otherwise, by Officers of the Customer
authorized by law or by the By-Laws to sign Share certificates, and, if required, shall bear the
corporate seal or a facsimile thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Customer acknowledges that the Bank is subject to the customer identification program
(&#147;Customer Identification Program&#148;) requirements under the USA PATRIOT Act and its implementing
regulations, and that the Bank must obtain, verify and record information that allows the Bank to
identify Customer. Accordingly, prior to opening an account hereunder the Bank may request
information (including but not limited to the Customer&#146;s name, physical address, tax identification
number and other information) that will help the Bank to identify the organization such as
organizational documents, certificate of good standing, license to do business, or any other
information that will allow the Bank to identify Customer. Customer agrees that the Bank cannot
open an account hereunder unless and until the Bank verifies Customer&#146;s identity in accordance with
its Customer Identification Program.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE III</B><BR>
<U><B>AUTHORIZATION AND ISSUANCE OF SHARES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Customer shall deliver to the Bank the following documents on or before the effective
date of any increase, decrease or other change in the total number of Shares authorized to be
issued:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certified copy of the amendment to the Charter giving effect to such
increase, decrease or change;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An opinion of counsel for the Customer, in a form satisfactory to the Bank,
with respect to the validity of the Shares, the obtaining of all necessary governmental
consents, whether such Shares are fully paid and non-assessable and the status of such
Shares under the Securities Act of 1933, as amended, and any other
applicable federal law or regulations (<U>i.e.</U>, if subject to registration,
that they have been registered and that the Registration Statement has become
effective or, if exempt, the specific grounds therefor); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the case of an increase, if the appointment of the Bank was theretofore
expressly limited, a certified copy of a resolution of the Board of Directors of the
Customer increasing the authority of the Bank.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Prior to the issuance of any additional Shares pursuant to stock dividends, stock splits or
otherwise, and prior to any reduction in the number of Shares outstanding, the Customer shall
deliver the following documents to the Bank:
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-4-<!-- /Folio -->

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certified copy of the resolutions adopted by the Board of Directors and/or
the shareholders of the Customer authorizing such issuance of additional Shares of the
Customer or such reduction, as the case may be;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certified copy of the order or consent of each governmental or regulatory
authority required by law as a prerequisite to the issuance or reduction of such
Shares, as the case may be, and an opinion of counsel for the Customer that no other
order or consent is required; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An opinion of counsel for the Customer, in a form satisfactory to the Bank,
with respect to the validity of the Shares, the obtaining of all necessary governmental
consents, whether such Shares are fully paid and non-assessable and the status of such
Shares under the Securities Act of 1933, as amended, and any other applicable law or
regulation (<U>i.e.</U>, if subject to registration, that they have been registered
and that the Registration Statement has become effective, or, if exempt, the specific
grounds therefor).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IV</B><BR>
<U><B>RECAPITALIZATION OR CAPITAL ADJUSTMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;In the case of any negative stock split, recapitalization or other capital adjustment
requiring a change in the form of Share certificates, the Bank will issue Share certificates in the
new form in exchange for, or upon transfer of, outstanding Share certificates in the old form, upon
receiving:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Certificate authorizing the issuance of Share certificates in the new form;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certified copy of any amendment to the Charter with respect to the change;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Specimen Share certificates for each class of Shares in the new form approved
by the Board of Directors of the Customer, with a Certificate signed by the Secretary
of the Customer as to such approval;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certified copy of the order or consent of each governmental or regulatory
authority required by law as a prerequisite to the issuance of the Shares in the new
form, and an opinion of counsel for the Customer that the order or consent of no other
governmental or regulatory authority is required; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An opinion of counsel for the Customer, in a form satisfactory to the Bank,
with respect to the validity of the Shares in the new form, the obtaining of all
necessary governmental consents, whether such Shares are fully paid and non-assessable
and the status of such Shares under the Securities Act of 1933, as amended, and any
other applicable law or regulation (<U>i.e.</U>, if subject to registration, that the
Shares have been registered and that the Registration Statement has become effective
or, if exempt, the specific grounds therefor).</TD>
</TR>

</TABLE>
</DIV></DIV>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Customer shall furnish the Bank with a sufficient supply of blank Share certificates in
the new form, and from time to time will replenish such supply upon the request of the Bank. Such
blank Share certificates shall be properly signed, by facsimile or otherwise, by Officers of the
Customer authorized by law or by the By-Laws to sign Share certificates and, if required, shall
bear the corporate seal or a facsimile thereof.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE V</B><BR>
<U><B>ISSUANCE AND TRANSFER OF SHARES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Bank will issue and transfer Shares in certificated form as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Bank will issue Share certificates upon receipt of a Certificate from an Officer, but
shall not be required to issue Share certificates after it has received from an appropriate federal
or state authority written notification that the sale of Shares has been suspended or discontinued,
and the Bank shall be entitled to rely upon such written notification. The Bank shall not be
responsible for the payment of any original issue or other taxes required to be paid by the
Customer in connection with the issuance of any Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Shares will be transferred upon presentation to the Bank of Share certificates in form
deemed by the Bank properly endorsed for transfer, accompanied by such documents as the Bank deems
necessary to evidence the authority of the person making such transfer, and bearing satisfactory
evidence of the payment of applicable stock transfer taxes. In the case of small estates where no
administration is contemplated, the Bank may, when furnished with an appropriate surety bond, and
without further approval of the Customer, transfer Shares registered in the name of the decedent
where the current market value of the Shares being transferred does not exceed such amount as may
from time to time be prescribed by the various states. The Bank reserves the right to refuse to
transfer Shares until it is satisfied that the endorsements on Share certificates are valid and
genuine, and for that purpose it may require, unless otherwise instructed by an Officer of the
Customer, a guaranty of signature by an &#147;eligible guarantor institution&#148; meeting the requirements
of the Bank, which requirements include membership or participation in STAMP or such other
&#147;signature guarantee program&#148; as may be determined by the Bank in addition to, or in substitution
for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bank also reserves the right to refuse to transfer Shares until it is
satisfied that the requested transfer is legally authorized, and it shall incur no liability for
the refusal in good faith to make transfers which the Bank, in its judgment, deems improper or
unauthorized, or until it is satisfied that there is no basis to any claims adverse to such
transfer. The Bank may, in effecting transfers of Shares, rely upon those provisions of the
Uniform Act for the Simplification of Fiduciary Security Transfers or the Uniform Commercial Code,
as the same may be amended from time to time, applicable to the transfer of securities, and the
Customer shall indemnify the Bank for any act done or omitted by it in good faith in reliance upon
such laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All certificates representing Shares that are subject to restrictions on transfer
(<U>e.g.</U>, securities acquired pursuant to an investment representation, securities held by
controlling persons, securities subject to stockholders&#146; agreement, etc.), shall be stamped with a
legend describing the extent and conditions of the restrictions or referring to the source of such
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">restrictions. The Bank assumes no responsibility with respect to the transfer of restricted
securities where counsel for the Customer advises that such transfer may be properly effected.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Bank will issue and transfer Shares in book-entry form as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Shares may be maintained by the Bank in book-entry form known as the &#147;Direct Registration
System&#148; (&#147;DRS&#148;) through the Profile Modification System (&#147;Profile&#148;). DRS is the system
administered by DTC pursuant to which the Bank may register the ownership of uncertificated Shares,
which ownership shall be evidenced by periodic statements issued by the Bank to the Registered
Owners entitled thereto. Upon issuance of Shares, the Shares of each Registered Owner will be
credited to the account of each such Registered Owner. The Registered Owner of Shares is referred
to herein as, or, if there are more than one Registered Owner of the same Shares, such Registered
Owners are collectively referred to herein as, the &#147;Registered Owner&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Customer understands that Profile is a required feature of DRS. Profile allows a DTC
participant claiming to act on behalf of the Registered Owner of Shares, to direct the Bank to
register a transfer of such Shares to such DTC participant or its nominee without receipt by the
Bank of such prior written authorization from the Registered Owner to register such transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Customer understands the Bank will not verify, determine or otherwise ascertain that the
DTC participant which is claiming to be acting on behalf of a Registered Owner in requesting
registration of transfer and delivery described in subsection (b)&nbsp;has the actual authority to act
on behalf of the Registered Owner (notwithstanding any requirements under the Uniform Commercial
Code). For the avoidance of doubt, the provisions of Article&nbsp;VIII, Sections&nbsp;5 and 6 shall apply to
the matters arising from the use of DRS/Profile System. The parties agree that the Bank&#146;s reliance
on and compliance with instructions received by the Bank through the DRS/Profile System in
accordance with this Agreement, shall not constitute negligence or willful misconduct on the part
of the Bank.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VI</B><BR>
<U><B>DIVIDENDS AND DISTRIBUTIONS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Customer shall furnish to the Bank a copy of a resolution of its Board of Directors,
certified by the Secretary or any Assistant Secretary, either (i)&nbsp;setting forth the date of the
declaration of a dividend or distribution, the date of accrual or payment, as the case may be, the
record date as of which shareholders entitled to payment, or accrual, as the case may be, shall be
determined, the amount per Share of such dividend or distribution, the payment date on which all
previously accrued and unpaid dividends are to be paid, and the total amount, if any, payable to
the Bank on such payment date, or (ii)&nbsp;authorizing the declaration of dividends and distributions
on a periodic basis and authorizing the Bank to rely on a Certificate setting forth the information
described in subsection (i)&nbsp;of this paragraph.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Prior to the payment date specified in such Certificate or resolution, as the case may be,
the Customer shall, in the case of a cash dividend or distribution, pay to the Bank an amount of
cash, sufficient for the Bank to make the payment, specified in such Certificate or
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-7-<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">resolution, to the shareholders of record as of such payment date. The Bank will, upon receipt of any such cash,
(i)&nbsp;in the case of shareholders who are participants in a dividend reinvestment and/or cash
purchase plan of the Customer, reinvest such cash dividends or distributions in accordance with the
terms of such plan, and (ii)&nbsp;in the case of shareholders who are not participants in any such plan,
make payment of such cash dividends or distributions to the shareholders of record as of the record
date by mailing a check, payable to the registered shareholder, to the address of record or
dividend mailing address. The Bank shall not be liable for any improper payment made in accordance
with a Certificate or resolution described in the preceding paragraph. If the Bank shall not
receive sufficient cash prior to the payment date to make payments of any cash dividend or
distribution pursuant to subsections (i)&nbsp;and (ii)&nbsp;above to all shareholders of the Customer as of
the record date, the Bank shall, upon notifying the Customer, withhold payment to all shareholders
of the Customer as of the record date until sufficient cash is provided to the Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;It is understood that the Bank shall in no way be responsible for the determination of the
rate or form of dividends or distributions due to the shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;It is understood that the Bank shall file such appropriate information returns concerning
the payment of dividends and distributions with the proper federal, state and local authorities as
are required by law to be filed by the Customer but shall in no way be responsible for the
collection or withholding of taxes due on such dividends or distributions due to shareholders,
except and only to the extent required of it by applicable law.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VII</B><BR>
<U><B>CONCERNING THE CUSTOMER</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Customer shall promptly deliver to the Bank written notice of any change in the
Officers authorized to sign Share certificates, Certificates, notifications or requests, together
with a specimen signature of each new Officer. In the event any Officer who shall have signed
manually or whose facsimile signature shall have been affixed to
blank Share certificates shall die, resign or be removed prior to issuance of such Share certificates, the Bank may issue
such Share certificates as the Share certificates of the Customer notwithstanding such death,
resignation or removal, and the Customer shall promptly deliver to the Bank such approvals,
adoptions or ratifications as may be required by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Each copy of the Charter of the Customer and copies of all amendments thereto shall be
certified by the Secretary of State (or other appropriate official) of the state of incorporation,
and if such Charter and/or amendments are required by law also to be filed with a county or other
officer or official body, a certificate of such filing shall be filed with a certified copy
submitted to the Bank. Each copy of the By-Laws and copies of all amendments thereto, and copies
of resolutions of the Board of Directors of the Customer, shall be certified by the Secretary or an
Assistant Secretary of the Customer under the corporate seal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Customer hereby represents and warrants:
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-8-<!-- /Folio -->

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is a business trust duly organized and validly existing under the laws of
Delaware.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement has been duly authorized, executed and delivered on its behalf
and constitutes the legal, valid and binding obligation of Customer. The execution,
delivery and performance of this Agreement by Customer do not and will not violate any
applicable law or regulation and do not require the consent of any governmental or
other regulatory body except for such consents and approvals as have been obtained and
are in full force and effect.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VIII</B><BR>
<U><B>CONCERNING THE BANK</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Bank shall not be liable and shall be fully protected in acting upon any oral
instruction, writing or document reasonably believed by it to be genuine and to have been given,
signed or made by the proper person or persons and shall not be held to have any notice of any
change of authority of any person until receipt of written notice thereof from an Officer of the
Customer. It shall also be protected in processing Share certificates which it reasonably believes
to bear the proper manual or facsimile signatures of the duly authorized Officer or Officers of the
Customer and the proper countersignature of the Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Bank may establish such additional procedures, rules and regulations governing the
transfer or registration of Share certificates as it may deem advisable and consistent with such
rules and regulations generally adopted by bank transfer agents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Bank may keep such records as it deems advisable but not inconsistent with resolutions
adopted by the Board of Directors of the Customer. The Bank may deliver to the Customer from time
to time at its discretion, for safekeeping or disposition by the Customer in accordance with law,
such records, papers, Share certificates which have been cancelled in transfer or exchange and
other documents accumulated in the execution of its duties hereunder as the Bank may deem expedient, other than those which the Bank is itself required to maintain
pursuant to applicable laws and regulations, and the Customer shall assume all responsibility for
any failure thereafter to produce any record, paper, cancelled Share certificate or other document
so returned, if and when required. The records maintained by the Bank pursuant to this paragraph
which have not been previously delivered to the Customer pursuant to the foregoing provisions of
this paragraph shall be considered to be the property of the Customer, shall be made available upon
request for inspection by the Officers, employees and auditors of the Customer, and shall be
delivered to the Customer upon request and in any event upon the date of termination of this
Agreement, as specified in Article&nbsp;IX of this Agreement, in the form and manner kept by the Bank on
such date of termination or such earlier date as may be requested by the Customer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Bank may employ agents or attorneys-in-fact at the expense of the Customer, and shall
not be liable for any loss or expense arising out of, or in connection with, the actions or
omissions to act of its agents or attorneys-in-fact, so long as the Bank acts in good faith and
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">without negligence or willful misconduct in connection with the selection of such agents or
attorneys-in-fact.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;The Bank shall only be liable for any loss or damage arising out of its own negligence or
willful misconduct; provided, however, that the Bank shall not be liable for any indirect, special,
punitive or consequential damages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;The Customer shall indemnify and hold harmless the Bank from and against any and all claims
(whether with or without basis in fact or law), costs, demands, expenses and liabilities, including
reasonable attorney&#146;s fees, which the Bank may sustain or incur or which may be asserted against
the Bank except for any liability which the Bank has assumed pursuant to the immediately preceding
section. The Bank shall be deemed not to have acted with negligence and not to have engaged in
willful misconduct by reason of or as a result of any action taken or omitted to be taken by the
Bank without its own negligence or willful misconduct in reliance upon (i)&nbsp;any provision of this
Agreement, (ii)&nbsp;any instrument, order or Share certificate reasonably believed by it to be genuine
and to be signed, countersigned or executed by any duly authorized Officer of the Customer, (iii)
any Certificate or other instructions of an Officer, (iv)&nbsp;any opinion of legal counsel for the
Customer or the Bank, or (v)&nbsp;any law, act, regulation or any interpretation of the same even though
such law, act, or regulation may thereafter have been altered, changed, amended or repealed.
Nothing contained herein shall limit or in any way impair the right of the Bank to indemnification
under any other provision of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Specifically, but not by way of limitation, the Customer shall indemnify and hold harmless
the Bank from and against any and all claims (whether with or without basis in fact or law), costs,
demands, expenses and liabilities, including reasonable attorney&#146;s fees, of any and every nature
which the Bank may sustain or incur or which may be asserted against the Bank in connection with
the genuineness of a Share certificate, the Bank&#146;s due authorization by the Customer to issue
Shares and the form and amount of authorized Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;The Bank shall not incur any liability hereunder if by reason of any act of God or war or
other circumstances beyond its control, it, or its employees, officers or directors shall be
prevented, delayed or forbidden from, or be subject to any civil or criminal penalty on account of,
doing or performing any act or thing which by the terms of this Agreement it is provided shall be
done or performed or by reason of any nonperformance or delay, caused as aforesaid, in the
performance of any act or thing which by the terms of this Agreement it is provided shall or may be
done or performed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;In connection with the provision of services under this Agreement, the Customer may direct
the Bank to release information, including non &#151; public personal information (&#147;NPPI&#148;), as defined
in Title V of the Gramm Leach Bliley Act and the regulations issued thereunder, including but not
limited to Regulation&nbsp;P of the Board of Governors of the Federal Reserve, to agents or other third
party service providers, including, without limitation, broker/dealers, custodians, and
depositories. In addition to the foregoing, Customer consents to the release of information,
including NPPI, to one or more providers of escheatment services for the purpose of escheatment of
unclaimed funds in accordance with the laws of the various states.
</DIV>
</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-10-<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank shall not incur any liability for the release of information in accordance with the foregoing provisions; and to the
extent the Bank incurs any liability as a result of such release of information, the Customer shall
indemnify and hold the Bank harmless in accordance with Article&nbsp;VIII, Section&nbsp;6, it being
understood that the release of such information shall not constitute negligence or willful
misconduct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;At any time the Bank may apply to an Officer of the Customer for written instructions with
respect to any matter arising in connection with the Bank&#146;s duties and obligations under this
Agreement, and the Bank shall not be liable for any action taken or omitted to be taken by the Bank
in good faith in accordance with such instructions. Such application by the Bank for instructions
from an Officer of the Customer may, at the option of the Bank, set forth in writing any action
proposed to be taken or omitted to be taken by the Bank with respect to its duties or obligations
under this Agreement and the date on and/or after which such action shall be taken, and the Bank
shall not be liable for any action taken or omitted to be taken in accordance with a proposal
included in any such application on or after the date specified therein unless, prior to taking or
omitting to take any such action, the Bank has received written instructions in response to such
application specifying the action to be taken or omitted. The Bank may consult counsel to the
Customer or its own counsel, at the expense of the Customer, and shall be fully protected with
respect to anything done or omitted by it in good faith in accordance with the advice or opinion of
such counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;When mail is used for delivery of non-negotiable Share certificates, the value of which
does not exceed the limits of the Bank&#146;s Mail Insurance coverage, the Bank shall send such
non-negotiable Share certificates by first class mail, and such deliveries will be covered while in
transit. Non-negotiable Share certificates, the value of which exceed the limits of the Bank&#146;s
Mail Insurance policy, will be sent by registered courier and will be covered by either the Bank&#146;s
Mail Insurance policy or the Blanket Bond while in transit. Negotiable Share certificates will be
sent by insured registered mail. The Bank shall advise the Customer of any Share certificates
returned as undeliverable after being mailed as herein provided for.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;The Bank may issue new Share certificates in place of Share certificates represented to
have been lost, stolen or destroyed upon receiving instructions in writing from an Officer and
indemnity satisfactory to the Bank. Such instructions from the Customer shall be in such form as
approved by the Board of Directors of the Customer in accordance with applicable law or the By-Laws
of the Customer governing such matters. If the Bank receives written notification from the owner
of the lost, stolen or destroyed Share certificate within a reasonable time after he has notice of
it, the Bank shall promptly notify the Customer and shall act pursuant to written instructions
signed by an Officer. If the Customer receives such written notification from the owner of the
lost, stolen or destroyed Share certificate within a reasonable time after he has notice of it, the
Customer shall promptly notify the Bank and the Bank shall act pursuant to written instructions
signed by an Officer. The Bank shall not be liable for any act done or omitted by it pursuant to
the written instructions described herein. The Bank may issue new Share certificates in exchange
for, and upon surrender of, mutilated Share certificates.
</DIV>
</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-11-<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;The Bank will issue and mail subscription warrants for Shares, Shares representing stock
dividends, exchanges or splits, or act as conversion agent upon receiving written instructions from
an Officer and such other documents as the Bank may deem necessary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;The Bank will supply shareholder lists to the Customer from time to time upon receiving a
request therefor from an Officer of the Customer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;In case of any requests or demands for the inspection of the shareholder records of the
Customer, the Bank will notify the Customer and endeavor to secure instructions from an Officer as
to such inspection. The Bank reserves the right, however, to exhibit the shareholder records to
any person whenever it is advised by its counsel that there is a reasonable likelihood that the
Bank will be held liable for the failure to exhibit the shareholder records to such person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;At the request of an Officer, the Bank will address and mail such appropriate notices to
shareholders as the Customer may direct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;Notwithstanding any provisions of this Agreement to the contrary, the Bank shall be under
no duty or obligation to inquire into, and shall not be liable for:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The legality of the issue, sale or transfer of any Shares, the sufficiency of
the amount to be received in connection therewith, or the authority of the Customer to
request such issuance, sale or transfer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The legality of the purchase of any Shares, the sufficiency of the amount to be
paid in connection therewith, or the authority of the Customer to request such
purchase;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The legality of the declaration of any dividend by the Customer, or the
legality of the issue of any Shares in payment of any stock dividend; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The legality of any recapitalization or readjustment of the Shares.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;The Bank shall be entitled to receive and the Customer hereby agrees to pay to the Bank
for its performance hereunder (i)&nbsp;Other Services expenses (as defined in Schedule&nbsp;I) (including
legal expenses and attorney&#146;s fees) incurred in connection with this Agreement and its performance
hereunder, and (ii)&nbsp;the compensation for services as set forth in Schedule&nbsp;I.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;The Bank shall not be responsible for any money, whether or not represented by any check,
draft or other instrument for the payment of money, received by it on behalf of the Customer, until
the Bank actually receives and collects such funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;The Bank shall have no duties or responsibilities whatsoever except such duties and
responsibilities as are specifically set forth in this Agreement, and no covenant or obligation
shall be implied against the Bank in connection with this Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IX</B>
</DIV>

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-12-<!-- /Folio -->



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>TERMINATION</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Either of the parties hereto may terminate this Agreement by giving to the other party a
notice in writing specifying the date of such termination, which shall be not less than 60&nbsp;days
after the date of receipt of such notice. In the event such notice is given by the Customer, it
shall be accompanied by a copy of a resolution of the Board of Directors of the Customer, certified
by its Secretary, electing to terminate this Agreement and designating a successor transfer agent
or transfer agents. In the event such notice is given by the Bank, the Customer shall, on or
before the termination date, deliver to the Bank a copy of a resolution of its Board of Directors
certified by its Secretary designating a successor transfer agent or transfer agents. In the
absence of such designation by the Customer, the Bank may designate a successor transfer agent. If
the Customer fails to designate a successor transfer agent and if the Bank is unable to find a
successor transfer agent, the Customer shall, upon the date specified in the notice of termination
of this Agreement and delivery of the records maintained hereunder, be deemed to be its own
transfer agent and the Bank shall thereafter be relieved of all duties and responsibilities
hereunder. Upon termination hereof, the Customer shall pay to the Bank such compensation as may be
due to the Bank as of the date of such termination, and shall reimburse the Bank for any
disbursements and expenses made or incurred by the Bank and payable or reimbursable hereunder.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE X</B><BR>
<U><B>MISCELLANEOUS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The indemnities contained herein shall be continuing obligations of the Customer, its
successors and assigns, notwithstanding the termination of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Any notice or other instrument in writing, authorized or required by this Agreement to be
given to the Customer shall be sufficiently given if addressed to the Customer and mailed or
delivered to it at <U>2020 Calamos Court, Naperville, Illinois 60563</U>, or at such other place
as the Customer may from time to time designate in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Any notice or other instrument in writing, authorized or required by this Agreement to be
given to the Bank shall be sufficiently given if addressed to the Bank and mailed or delivered to
it at its office at 101 Barclay Street (11E), New York, New York 10286 or at such other place as
the Bank may from time to time designate in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;This Agreement may not be amended or modified in any manner except by a written agreement
duly authorized and executed by both parties. Any duly authorized Officer may amend any
Certificate naming individuals authorized to execute and deliver Certificates, instructions,
notices or other instruments (as attached hereto as Schedule&nbsp;I), and the Secretary or any Assistant
Secretary may amend any Certificate listing the Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;This Agreement shall extend to and shall be binding upon the parties hereto and their
respective successors and assigns; provided, however, that this Agreement shall not be assignable
by either party without the prior written consent of the other party; and provided, further, that
(a)&nbsp;the foregoing proviso shall not apply to assignments by the Bank to an affiliate
</DIV>
</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-13-<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or subsidiary of the Bank and (b)&nbsp;any reorganization, merger, consolidation, sale of assets or other form of
business combination by the Bank shall not be deemed to constitute an assignment of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;This Agreement shall be governed by and construed in accordance with the laws of the State
of New York. The parties agree that, all actions and proceedings arising out of this Agreement or
any of the transactions contemplated hereby, shall be brought in the United States District Court
for the Southern District of New York or in a New York State Court in the County of New York and
that, in connection with any such action or proceeding, submit to the jurisdiction of, and venue
in, such court. Each of the parties hereto also irrevocably waives all right to trial by jury in
any action, proceeding or counterclaim arising out of this Agreement or the transactions
contemplated hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;This Agreement may be executed in any number of counterparts each of which shall be deemed
to be an original; but such counterparts, together, shall constitute only one instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;The provisions of this Agreement are intended to benefit only the Bank and the Customer,
and no rights shall be granted to any other person by virtue of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective corporate officers, thereunto duly authorized and their respective corporate seals to be
hereunto affixed, as of the day and year first above written.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Signature Page Follows&#093;
</DIV>

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-14-<!-- /Folio -->


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EACH FUND, as identified on Schedule&nbsp;II as</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">such may be amended from time to time</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">By: CALAMOS ADVISORS LLC, as</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">investment manager of such Fund</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attest:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">Patrick H. Dudasik, Executive</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: James Vice President S. Hamman, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">Vice President, Chief Financial</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: Executive Vice President, General</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">Officer and Treasurer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Counsel and Secretary and Secretary of each</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Fund, as identified on Schedule&nbsp;II as such</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">may be amended from time to time</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">Attest:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>

    <TD colspan="6" valign="top" align="left">THE BANK OF NEW YORK</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE I<BR>
CERTIFICATE OF AUTHORIZED PERSONS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>(The Fund &#151; Oral and Written Instructions)</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby certifies that &#091;he/she&#093; is the duly elected and acting Assistant
Secretary of the funds and/or trusts listed below (each a &#147;<U>Fund</U>&#148; and collectively, the
&#147;<U>Funds</U>&#148;), and further certifies that the following individuals have been duly authorized by
the Funds to deliver the following procedures, as indicated, by either written or oral instructions
to The Bank of New York, as transfer agent (&#147;<U>Transfer Agent</U>&#148;) in connection with the
services provided to the Funds by the Transfer Agent pursuant to the Transfer Agent Agreement, as
amended from time to time, between each Fund and the Transfer Agent, and that the signatures
appearing opposite their names are true and correct.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Title
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Signature
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Funds:</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Advisors Trust

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Calamos Investment Trust

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Calamos Convertible Opportunities and Income Fund

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Calamos Convertible and High Income Fund

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Calamos Strategic Total Return Fund

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Calamos Global Total Return Fund

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Calamos Global Dynamic Income Fund

</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&#091;SIGNATURE PAGE FOLLOWS&#093;
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, this Certificate of Authorized Persons is executed by the Assistant
Secretary of the Funds and hereby supersedes any previous Certificate of Authorized Persons or
similar authorization provided to the Custodian by the Funds.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Assistant Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>SCHEDULE II</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">with respect to the

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMENDED AND RESTATED STOCK TRANSFER AGENCY AGREEMENT</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">between

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE FUNDS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">and

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE BANK OF NEW YORK</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Type of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>State of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Taxpayer</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Customer Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Organization</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Organization</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>I.D. No.</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Calamos Convertible
Opportunities and
Income Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business Trust
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">03-0426532</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Calamos Strategic <BR>
Total Return Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business Trust
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">04-3785941</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Calamos Convertible and
High Income Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business Trust
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">02-0683363</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Calamos Global Total <BR>
Return Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business Trust
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">20-3377281</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Calamos Global <BR>
Dynamic Income Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Business Trust
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">20-8819776</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="c19483a2c1954004.gif" alt="(THE BANK OF NEW YORK LOGO)">
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">AMENDED AND RESTATED STOCK TRANSFER AGENCY AGREEMENT
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">between

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EACH ENTITY LISTED ON <U><B><I>SCHEDULE II </I></B></U>HERETO
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">and

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">THE BANK OF NEW YORK
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Dated as of June&nbsp;15, 2007

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ACCOUNT NUMBER(S)<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(K)(2)
<SEQUENCE>10
<FILENAME>c19483a2exv99wxkyx2y.htm
<DESCRIPTION>FINANCIAL ACCOUNTING SERVICES AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxkyx2y</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;k.2
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Amended and Restated<BR>
<U>Financial Accounting Services Agreement</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS AGREEMENT is made as of December&nbsp;13, 2004 among the parties listed in Schedule&nbsp;I, as it
may be amended from time to time (singularly &#147;Party&#148; and collectively &#147;Parties&#148;) and Calamos
Advisors LLC, a Delaware limited liability company (&#147;Calamos&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>Recitals</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party is registered under the Investment Company Act of 1940, as amended
(the &#147;1940 Act&#148;), as a management investment company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calamos has the resources to provide accounting services to investment
companies; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Parties desire to retain Calamos to provide certain accounting services.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>Agreement</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties agree as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Appointment of Calamos as Fund Accountant</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party appoints Calamos as one of its respective accountants on the terms and conditions
set forth in this Agreement, and Calamos accepts such appointment and agrees to perform the
services and duties set forth in this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Services and Duties of Calamos</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calamos shall provide the following accounting services to each Party, including but not
limited to:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Manage the Party&#146;s expenses and expense payment processing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monitor the calculation of expense accrual amounts for each Party and make any
necessary modifications.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Coordinate any expense reimbursement calculations and payment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate yields on a Party in accordance with rules and regulations of the
Securities and Exchange Commission (the &#147;SEC&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">E.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate net investment income dividends and capital gain distributions.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate, track and report tax adjustments on all assets of
each Party, including but not limited to contingent debt and preferred trust
obligations.
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare excise tax and fiscal year distribution schedules.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare tax information required for financial statement
footnotes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare state and federal income tax returns.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare specialized calculations of amortization on convertible
securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare year-end dividend disclosure information.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Coordinate the audits for each Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare financial reporting statements for each Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare regulatory filing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate asset coverage test for CHI, CHY, CSQ and CGO</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare and distribute press releases for CHI CHY, CSQ and CGO.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">F.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate trustee deferred compensation plan accruals and valuations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">G.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare Form&nbsp;1099 information statements for Board members and service
providers.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Compensation</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Party shall compensate Calamos for providing the services set forth in this Agreement
in accordance with the fee schedule set forth on Exhibit&nbsp;A hereto (as amended from time to
time by written agreement of the parties). Each Party shall pay all fees and reimbursable
expenses within 30 calendar days following receipt of the billing notice, except for any fee
or expense subject to a good faith dispute. Notwithstanding anything to the contrary,
amounts owed by a Party to Calamos shall only be paid out of the assets and property of the
particular Party involved.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Indemnification; Limitation of Liability</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calamos shall exercise reasonable care in the performance of its duties under
this Agreement. Calamos shall not be liable for any error of judgment or mistake of
law or for any loss suffered by a Party in connection with matters to which this
Agreement relates, including losses resulting from mechanical breakdowns or the failure
of communication or power supplies beyond Calamos&#146; control, except a loss arising out
of or relating to Calamos&#146; refusal or failure to comply with the terms of this
Agreement or from bad faith, negligence, or willful misconduct on its part in the
performance of its duties under this Agreement. Notwithstanding any other provision of
this Agreement, if Calamos has exercised reasonable care in the performance of its
duties under this Agreement, each Party shall indemnify and hold harmless Calamos, its
directors, officers, employees and agents from and
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>against any and all claims, demands,
losses, expenses, and liabilities of any and
every nature (including reasonable attorneys&#146; fees) that Calamos, its directors,
officers, employees and agents may sustain or incur or that may be asserted against
Calamos by any person arising out of any action taken or omitted to be taken by it
in performing the services hereunder, (i)&nbsp;in accordance with the standard of care
set forth herein, or (ii)&nbsp;in reliance upon any written or oral instruction provided
to Calamos by any duly authorized officer of a Party, such duly authorized officer
to be included in a list of authorized officers furnished to Calamos and as amended
from time to time in writing by resolution of a Party&#146;s Board of Trustees, except
for any and all claims, demands, losses, expenses, and liabilities arising directly
or indirectly out of or relating to Calamos&#146; refusal or failure to comply with the
terms of this Agreement or from bad faith, negligence or from willful misconduct on
its part in performance of its duties under this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calamos shall indemnify and hold each Party, its officers, trustees and employees
harmless from and against any and all claims, demands, losses, expenses, and
liabilities of any and every nature (including reasonable attorneys&#146; fees) that such
Party may sustain or incur or that may be asserted against such Party by any person
arising directly or indirectly out of any action taken or omitted to be taken by
Calamos as a result of Calamos&#146; refusal or failure to comply with the terms of this
Agreement, its bad faith, negligence, or willful misconduct.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a mechanical breakdown or failure of communication or power supplies
beyond its control, Calamos shall take all reasonable steps to minimize service
interruptions for any period that such interruption continues beyond Calamos&#146;
control. Calamos will make every reasonable effort to restore any lost or damaged
data and correct any errors resulting from such a breakdown at the expense of
Calamos. Calamos agrees that it shall, at all times, have reasonable contingency
plans with appropriate parties, making reasonable provision for emergency use of
electrical data processing equipment to the extent appropriate equipment is
available. Representatives of each Party shall be entitled to inspect Calamos&#146;
premises and operating capabilities at any time during regular business hours of
Calamos, upon reasonable notice to Calamos.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding the above, Calamos reserves the right to reprocess and correct
administrative errors at its own expense.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In order that the indemnification provisions contained in this section shall
apply, it is understood that if in any case the indemnitor may be asked to indemnify or
hold the indemnitee harmless, the indemnitor shall be fully and promptly advised of all
pertinent facts concerning the situation in question, and it is further understood that
the indemnitee will use all reasonable care to notify the indemnitor promptly
concerning any situation that presents or appears likely to present the probability of
a claim for indemnification. The indemnitor shall have the option to defend the
indemnitee against any claim that may be the subject of
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>this indemnification with
counsel reasonably satisfactory to indemnitee unless the legal rights and defenses
available to indemnitor and indemnitee present a conflict for joint counsel. In the
event that the indemnitor so elects to defend indemnitee, it will so notify the
indemnitee and thereupon the indemnitor shall take over complete defense of the
claim, and the indemnitee shall in such situation initiate no further legal or other
expenses for which it shall seek indemnification under this section provided,
however, if a conflict of interest arises after the election to defend, indemnitee
may select its own counsel and shall be entitled to seek indemnification for
expenses. Indemnitee shall in no case confess any claim or make any compromise in
any case in which the indemnitor will be asked to indemnify the indemnitee except
with the indemnitor&#146;s prior written consent; provided however, that the indemnitor
shall not settle a claim that results in any admission of wrongdoing by indemnitee
without indemnitee&#146;s prior written consent.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Proprietary and Confidential Information</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Calamos agrees on behalf of itself and its directors, officers, and employees to treat
confidentially and as proprietary information of each Party all records and other
information relative to such Party and prior, present, or potential shareholders of such
Party (and clients of said shareholders) including all shareholder trading information, and
not to use such records and information for any purpose other than the performance of its
responsibilities and duties hereunder, except after prior notification to and approval in
writing by the Party, which approval shall not be unreasonably withheld when requested to
divulge such information by duly constituted authorities, or when so requested by such
Party. Calamos acknowledges that it may come into possession of material nonpublic
information with respect to a Party and confirms that it has in place effective procedures
to prevent the use of such information in violation of applicable insider trading laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Further, Calamos will adhere to the privacy policies adopted by each Party pursuant to
Title&nbsp;V of the Gramm-Leach-Bliley Act, as it may be modified from time to time (the &#147;Act&#148;).
Notwithstanding the foregoing, Calamos will not share any nonpublic personal information
concerning any Party&#146;s shareholders with any third party unless specifically directed by
such Party or allowed under one of the exceptions noted under the Act.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Term of Agreement; Amendment</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">This Agreement shall become effective as of the date first written above and will continue
in effect until July&nbsp;31, 2005, and from year-to-year thereafter; this Agreement may be
terminated by either party upon giving 60&nbsp;days prior written notice to the other party or
such shorter period as is mutually agreed upon by the parties. This Agreement may be
amended by mutual written agreement of the parties.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Records</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Calamos shall keep records relating to the services to be performed hereunder in the form
and manner, and for such period, as it may deem advisable and is agreeable to the Parties,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">but not inconsistent with the rules and regulations of appropriate government authorities,
in particular, Section&nbsp;31 of the 1940 Act and the rules thereunder. Calamos agrees that all
such records prepared or maintained by Calamos relating to the services to be performed by
Calamos hereunder are the property of each respective Party and will be preserved,
maintained, and made available in accordance with such applicable sections and rules of the
1940 Act and will be promptly surrendered to such Party on and in accordance with its
request. Calamos agrees to provide any records necessary for each Party to comply with its
disclosure controls and procedures adopted in accordance with the Sarbanes-Oxley Act.
Without limiting the generality of the foregoing, the Calamos shall cooperate with each
Party and assist such Party as necessary by providing information to enable the appropriate
officers of such Party to execute any certification required under that Act.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Governing Law</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">This Agreement shall be construed in accordance with the laws of the State of Illinois,
without regard to conflicts of law principles. To the extent that the applicable laws of
the State of Illinois, or any of the provisions herein, conflict with the applicable
provisions of the 1940 Act, the latter shall control, and nothing herein shall be construed
in a manner inconsistent with the 1940 Act or any rule or order of the SEC thereunder.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>9.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Duties in the Event of Termination</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In the event that, in connection with termination of this Agreement, a successor to any of
Calamos&#146; duties or responsibilities hereunder is designated by the Parties by written notice
to Calamos, Calamos will promptly, upon such termination and at the expense of each Party,
transfer to such successor all relevant books, records, correspondence and other data
established or maintained by Calamos under this Agreement in a form reasonably acceptable to
the Parties (if such form differs from the form in which Calamos has maintained the same,
each Party shall pay any expenses associated with transferring the same to such form), and
will cooperate in the transfer of such duties and responsibilities, including provision for
assistance from Calamos&#146; personnel in the establishment of books, records and other data by
such successor.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Agency Relationship</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Nothing herein contained shall be deemed to authorize or empower Calamos to act as agent for
the Trust party to this Agreement, nor to conduct business in the name, or for the account,
of the other party to this Agreement.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Data Necessary to Perform Services</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Parties or their agent shall furnish to Calamos the data necessary to perform the
services described herein at such times and in such form as mutually agreed upon. If
Calamos is also acting in another capacity for such Party, nothing herein shall be deemed to
relieve Calamos of any of its obligations in such capacity.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Assignment</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">This Agreement may not be assigned by either party without the prior written consent of the
other party.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Notices</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Any notice required or permitted to be given by either party to the other shall be in
writing and shall be deemed to have been given on the date delivered personally or by
courier service, or upon delivery after sent by registered or certified mail, postage
prepaid, return receipt requested, or on the date sent and confirmed received by facsimile
transmission to the other party&#146;s address set forth below:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Notice to Calamos shall be sent to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Calamos Asset Management, Inc.<BR>
Attention: General Counsel<BR>
1111 East Warrenville Road,<BR>
Naperville, IL 60563-1493
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">and notice to the Parties shall be sent to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">&#091;<B>Name of Party</B>&#093;<BR>
Attention: Treasurer<BR>
1111 East Warrenville Road,<BR>
Naperville, IL 60563-1493
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Entire Agreement</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">This Agreement constitutes the entire agreement of the parties with respect to the subject
matter hereof and supersedes all prior agreements, arrangements and understandings, whether
written or oral.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by a duly
authorized officer on one or more counterparts as of the date first above written.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>CALAMOS INVESTMENT TRUST, on behalf of
itself and each series thereunder</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>CALAMOS ADVISORS LLC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>CALAMOS ADVISORS TRUST, on behalf of
itself and each series thereunder</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>CALAMOS CONVERTIBLE OPPORTUNITIES <BR>
AND INCOME FUND</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left" nowrap><B>CALAMOS CONVERTIBLE AND HIGH
INCOME FUND</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>CALAMOS STRATEGIC TOTAL RETURN FUND</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>CALAMOS GLOBAL TOTAL RETRUN FUND</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;A<BR>
to the<BR>
Financial Accounting Services Agreement</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Fee Schedule</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Party shall pay to Calamos for the services contemplated hereunder the following annual
rate based on the daily average net assets of all Parties:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">0.0175% on the first $1&nbsp;billion<br><BR>
0.0150% on the next $1&nbsp;billion<br><BR>
0.0110% on average net assets in excess of $2&nbsp;billion<br>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Schedule&nbsp;I</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Investment Trust, a Massachusetts business trust
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Calamos Convertible Fund<BR>
Calamos Growth and Income Fund<BR>
Calamos Market Neutral Fund<BR>
Calamos Growth Fund<BR>
Calamos Global Growth and Income Fund<BR>
Calamos High Yield Fund<BR>
Calamos Value Fund<BR>
Calamos Blue Chip Fund<BR>
Calamos International Growth Fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Advisors Trust, a Massachusetts business trust
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Calamos Growth and Income Portfolio
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Convertible Opportunities and Income Fund, a Delaware statutory trust
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Convertible and High Income Fund, a Delaware statutory trust
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Strategic Total Return Fund, a Delaware statutory trust
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Global Total Return Fund, a Delaware statutory trust
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Amendment to the<BR>
Amended and Restated Financial Accounting Services Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This is an amendment (the &#147;Amendment&#148;) to the Amended and Restated Financial Accounting
Services Agreement, dated December&nbsp;13, 2004 (the &#147;Agreement&#148;) entered into among Calamos Advisors
LLC and the parties listed in Schedule&nbsp;I thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the mutual agreements and covenants contained herein, the parties agree to
the following amendments to the Agreement:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Schedule&nbsp;I of the Agreement is hereby deleted and replaced with
the attached Schedule&nbsp;I; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All other terms of the Agreement shall remain in full force and
effect. If the terms of the Agreement and this Amendment conflict, then the
terms of the Amendment shall control.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment shall be effective as of June&nbsp;15, 2007.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>CALAMOS ADVISORS LLC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>CALAMOS INVESTMENT TRUST, on behalf
of itself and each series thereunder</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Name: Patrick H. Dudasik</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: James S. Hamman, Jr.</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Title: Executive Vice President,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: Secretary</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Chief Financial Officer, Chief</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Operating Officer and Treasurer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>CALAMOS ADVISORS TRUST, on behalf of
itself and each series thereunder</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>CALAMOS CONVERTIBLE OPPORTUNITIES<BR>
AND INCOME FUND</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Name: James S. Hamman, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: James S. Hamman, Jr.</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Title: Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: Secretary</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>CALAMOS CONVERTIBLE AND HIGH INCOME <BR>
FUND</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>CALAMOS STRATEGIC TOTAL RETURN FUND</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Name: James S. Hamman, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: James S. Hamman, Jr.</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Title: Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: Secretary</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>CALAMOS GLOBAL TOTAL RETURN FUND</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>CALAMOS GLOBAL DYNAMIC INCOME FUND</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Name: James S. Hamman, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: James S. Hamman, Jr.</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Title: Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: Secretary</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE I</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Calamos Investment Trust, a Massachusetts business trust</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Calamos Convertible Fund<BR>
Calamos Growth and Income Fund<BR>
Calamos Market Neutral Income Fund<BR>
Calamos Growth Fund<BR>
Calamos Global Growth and Income Fund<BR>
Calamos High Yield Fund<BR>
Calamos Value Fund<BR>
Calamos Blue Chip Fund<BR>
Calamos International Growth Fund<BR>
Calamos Multi-Fund Blend<BR>
Calamos Global Equity Fund<BR>
Calamos Government Money Market Fund<BR>
Calamos Total Return Bond Fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Calamos Advisors Trust, a Massachusetts business trust<br></B>
Calamos Growth and Income Portfolio
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Calamos Convertible Opportunities and Income Fund, a Delaware statutory trust</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Calamos Convertible and High Income Fund, a Delaware statutory trust</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Calamos Strategic Total Return Fund, a Delaware statutory trust</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Calamos Global Total Return Fund, a Delaware statutory trust</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Calamos Global Dynamic Income Fund, a Delaware statutory trust</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(K)(3)
<SEQUENCE>11
<FILENAME>c19483a2exv99wxkyx3y.htm
<DESCRIPTION>MASTER SERVICES AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxkyx3y</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit k.3
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">MASTER SERVICES AGREEMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This AGREEMENT is made as of March&nbsp;15, 2004 by and among each registered
management investment company identified on Appendix&nbsp;A hereto (each such
management investment company and each management investment company made
subject to this Agreement in accordance with Section&nbsp;8.5 below shall hereinafter
be referred to as a &#147;FUND&#148; and are sometimes collectively hereinafter referred
to as the &#147;FUNDS&#148;), and STATE STREET BANK AND TRUST COMPANY, a Massachusetts trust company, having
its principal place of business at 225 Franklin Street, Boston, Massachusetts 02110 (the &#147;AGENT&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, each Fund desires to retain the Agent to perform certain services;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, each Fund may or may not be authorized to issue common stock or
shares of beneficial interest (&#147;SHARES&#148;) in separate series, with each such
series representing interests in a separate portfolio of securities and other
assets;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, each Fund so authorized intends that this Agreement be applicable
to its series of Shares (as identified on Appendix&nbsp;A hereto (such series
together with all other series subsequently established by such Fund and made
subject to this Agreement in accordance with Section&nbsp;8.6 below, shall
hereinafter be referred to as the &#147;PORTFOLIO(S)&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, each Fund not so authorized intends that this Agreement be
applicable to it and that all references hereinafter to one or more
&#147;Portfolio(s)&#148; shall be deemed to refer to such Fund(s); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Agent is willing to perform such services upon the terms and
conditions hereinafter set forth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Now, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter contained, the parties hereto agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 1. DUTIES OF THE AGENT.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.1 BOOKS OF ACCOUNT.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent shall maintain the books of account of each Fund and shall
perform the following duties in the manner prescribed by such Fund&#146;s currently
effective prospectus, statement of additional information or other governing
document, certified copies of which have been supplied to the Agent (a
&#147;GOVERNING DOCUMENT&#148;):
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

 <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintain each Portfolio&#146;s general ledger and such other accounts,
books and financial records of such Portfolio as the parties may agree
upon from time to time, and as may be required by the Investment
Company Act of 1940, as amended (the &#147;1940 ACT&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
</table>
</div>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintain each Portfolio&#146;s portfolio security transaction records
utilizing trade date provided to the Agent by such Portfolio&#146;s duly<BR>
authorized investment adviser (each, an &#147;INVESTMENT ADVISER&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For each valuation date, post each Portfolio&#146;s transactions to such
Portfolio&#146;s general ledger including, but not limited to:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>-</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate unrealized appreciation and depreciation regarding
portfolio securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>-</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amortize premiums and discounts regarding portfolio securities,
as applicable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>-</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate fee-based expenses and set-up expense accruals as
directed by the applicable Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>-</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Record payments of Portfolio expenses upon written instructions
of a Fund or duly authorized agent thereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>-</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate interest and dividend income and reset interest accrual
for variable rate securities, as applicable</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reconcile cash, foreign currency and portfolio security holding
positions with each Portfolio&#146;s custodian (each, a &#147;CUSTODIAN&#148;) daily,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Post each Portfolio&#146;s corporate actions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">f.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate the net asset value of each Portfolio and report same to the
Fund or such other entities or persons as the Fund may instruct from
time to time;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">g.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare and transmit to the Fund, or such other entities or persons as
the Fund may instruct from time to time, such periodic reports of Fund
data as may be mutually agreed upon by the parties hereto; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">h.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Post shareholder reinvestment activity and reconcile share balances
with each Portfolio&#146;s transfer agent (each, a &#147;TRANSFER AGENT&#148;) in
conjunction with Portfolio distributions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund shall provide timely prior notice to the Agent of any
modification in the manner in which such calculations are to be performed as
prescribed in any revision to such Fund&#146;s governing document and shall supply
the Agent with certified copies of all amendments and/or supplements to the
governing documents in a timely manner. For purposes of calculating the net
asset value of a Fund, the Agent shall value each Fund&#146;s portfolio securities
utilizing prices obtained from sources designated by such Fund (collectively,
the &#147;AUTHORIZED PRICE SOURCES&#148;) on a Price Source Authorization substantially in the form attached
hereto as Exhibit&nbsp;A, as the same may be amended from time to
time, or otherwise designated by means of Proper Instructions (as such term is
defined in Section&nbsp;2.2 below) (the &#147;PRICE SOURCE AUTHORIZATION&#148;). The Agent
shall not be responsible for any revisions to the methods of calculation unless
and until such revisions are communicated in writing to the Agent.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2.<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.2 ADDITIONAL SERVICES.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent shall provide the following services, as applicable, in each
case, subject to the control, supervision and direction of each Fund and subject
to any necessary review and comments by the Fund&#146;s auditors and legal counsel
and in accordance with procedures or policies that maybe established from time
to time by and between the Agent and the Fund:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare and distribute daily total return calculations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare monthly distribution analysis;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Complete monthly preferred shares &#147;asset coverage&#148; test (as that term
is defined in Section 18(h) of the 1940 Act following agreed-upon
compliance procedures (the &#147;COMPLIANCE PROCEDURES&#148;); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Complete monthly (or more frequently as reasonably requested by the
applicable rating agency) preferred shares basic maintenance test for
applicable rating agency(ies) and preferred rate auction following the
Compliance Procedures.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.3 RECORDS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent shall create and maintain all records relating to its activities
and obligations under this Agreement in such a manner as will meet the
obligations of each Fund under the 1940 Act, specifically Section&nbsp;31 thereof and
Rules&nbsp;31a-l and 31a-2 thereunder. All such records shall be the property of the
applicable Fund and shall at all times during the regular business hours of the
Agent be open for inspection by duly authorized officers, employees or agents of
the applicable Fund and employees and agents of the Securities and Exchange
Commission. Subject to Section&nbsp;3 below, the Agent shall preserve for the period
required by law the records required to be maintained thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.4 APPOINTMENT OF AGENTS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent may at its own expense employ agents in the performance of its
duties and the exercise of its rights under this Agreement, provided that the
employment of such agents shall not reduce the Agent&#146;s obligations or
liabilities hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 2. DUTIES OF EACH FUND.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.1 DELIVERY OF INFORMATION.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund shall provide, or shall cause a third party to provide, timely
notice to the Agent of certain data as a condition to the Agent&#146;s performance
described in Section&nbsp;1 above. The data required to be provided pursuant to this
section is set forth on Schedule&nbsp;A hereto, which schedule may be separately
amended or supplemented by the parties from time to time.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3.<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent is authorized and instructed to rely upon the information it
receives from the Fund or any third party. The Agent shall have no
responsibility to review, confirm or otherwise assume any duty with respect to
the accuracy or completeness of any data supplied to it by or on behalf of any
Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.2 PROPER INSTRUCTIONS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund or any other person duly authorized by the Fund shall communicate
to the Agent by means of Proper Instructions. Proper Instructions shall mean (i)
a writing signed or initialed by one or more persons as the Board of Directors
or Board of Trustees of a Fund shall have from time to time authorized or (ii)
communication effected directly between a Fund or its third-party agents (each,
a &#147;THIRD PARTY AGENT&#148;) and the Agent by electro-mechanical or electronic
devices, provided that such Fund and the Agent agree to security procedures. The
Agent may rely upon any Proper Instruction believed by it to be genuine and to
have been properly issued by or on behalf of the applicable Fund. Oral
instructions shall be considered Proper Instructions if the Agent reasonably
believes them to have been given by a person authorized to give such
instructions. The Fund shall cause all oral instructions to be confirmed in
accordance with clauses (i)&nbsp;or (ii)&nbsp;above, as appropriate. The Fund shall give
timely Proper Instructions to the Agent in regard to matters affecting
accounting practices and the Agent&#146;s performance pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 3. STANDARD OF CARE: LIMITATION OF LIABILITY: EXCLUSIVE REMEDY.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent shall be held to the exercise of reasonable care in carrying out
the provisions of this Agreement, but shall be kept indemnified by the Funds,
and shall be without liability for any action taken or omitted by it (including,
without limitation, acting in accordance with any Proper Instruction) in good
faith without willful misconduct or negligence. The Agent shall be entitled to
rely on and may act upon the advice of counsel (who may be counsel for the Fund)
or the independent accountants for the Fund on all matters, and shall be without
liability for any action reasonably taken or omitted pursuant to such advice.
Nothing in this paragraph shall be construed as imposing upon the Agent any
obligation to seek such instructions or advice, or to act in accordance with
such advice when received. Without in any way limiting the generality of the
foregoing, the Agent shall in no event be liable for any loss or damage arising
from causes beyond its control including, without limitation, delay or cessation
of services hereunder or any damages resulting therefrom as a result of work
stoppage, power or other mechanical failure, natural disaster, governmental
action, communication disruption or other impossibility of performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent shall in no event be liable for any special, indirect,
incidental, or consequential damages of any kind whatsoever (including, without
limitation, attorney&#146;s fees) in any way due to a Fund&#146;s use of the
administration or accounting services or the performance of or failure to
perform the Agent&#146;s obligations under this Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund, any Third Party Agent or Authorized Price Sources from which the
Agent shall receive or obtain certain records, reports and other data utilized
or included in the services provided hereunder are solely responsible for the
contents of such information including, without limitation, the accuracy thereof
and each Fund agrees to make no claim against the Agent arising out of the
contents of such third-party data including, but not limited to, the accuracy
thereof. The Agent shall have no responsibility to review, confirm or otherwise
assume any duty with respect to the accuracy or completeness of any such
information and shall be without liability for any loss or damage suffered as a
result of the Agent&#146;s reasonable reliance on and utilization of such
information, except as otherwise required by the Price Source Authorization with
respect to the use of data obtained from Authorized Price Sources. The Agent
shall have no responsibility and shall be without liability for any loss or
damage caused by the failure of any Fund or any Third Party Agent to provide it
with the information required by Section&nbsp;2.1 above. Further, and without in any
way limiting the generality of the foregoing, the Agent shall have no liability
in respect of any loss, damage or expense suffered by the Fund or any third
party, insofar as such loss, damage or expense arises from the performance of
the Agent&#146;s duties hereunder by reason of the Agent&#146;s reliance upon records that
were maintained for any Fund by any entity other than the Agent prior to such
Fund&#146;s appointment of the Agent pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund agrees to indemnify and hold the Agent free and harmless from any
expense, loss, damage or claim, including reasonable attorney&#146;s fees, suffered
by the Agent and caused by or resulting from the acts or omissions of such Fund
or any third-party whose services the Agent must rely upon in performing
services hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund acknowledges and agrees that, with respect to investments it
maintains with an entity which may from time to time act as a transfer agent for
uncertificated shares of registered investment companies (the &#147;UNDERLYING
TRANSFER AGENT), such Underlying Transfer Agent is the sole source of
information on the number of shares held by it on behalf of a Fund and that the
Agent has the right to rely on holdings information furnished by the Underlying
Transfer Agent to the Agent in performing its duties under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 3A. PERFORMANCE GOALS.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Funds and the Agent may from time to time agree on the manner in which
they expect to deliver and receive the services contemplated by this Agreement.
The parties agree that such agreement(s) (hereinafter referred to as &#147;SERVICE
LEVEL DOCUMENTS)&#148;) reflect performance goals and any failure to perform in
accordance with the provisions thereof shall not be considered a breach of
contract that gives rise to contractual or other remedies. It is the intention
of the parties that the sole remedy for failure to perform in accordance with
the provisions of a Service Level Document, or any dispute relating to
performance goals set forth in a Service Level Document, will be a meeting of
the parties to resolve the failure pursuant to the consultation procedure
described in Sections&nbsp;3A.1 and 3A.2 below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3A.1. CONSULTATION PROCEDURE. If a party hereto is consistently
unable to meet the provisions of a Service Level Document, or in the
event that a dispute arises relating to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->5.<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">performance goals set forth in a Service Level Document, either party to this
Agreement shall address any concerns it may have by requiring a consultation
with the other party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3A.2 PURPOSE OF CONSULTATION PROCEDURE. The purpose of the
consultation procedure is to endeavor to resolve a consistent failure to meet
the provisions of a Service Level Document. If a consultation occurs under this
Section&nbsp;3A, all parties must negotiate in good faith to endeavor to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>implement changes which will enable the Service Level Document
provisions to be more regularly met;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>agree to alternative Service Level Document provisions which meet the
parties&#146; respective business requirements; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>otherwise find a solution such that within 30&nbsp;days after the
consultation, the inability to meet the Service Level Document<BR>
provisions may be less likely to occur in the future.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 4. REPRESENTATIONS AND WARRANTIES.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.1 REPRESENTATIONS AND WARRANTIES OP THE AGENT.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent represents and warrants to each Fund that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is a Massachusetts trust company, duly organized and existing under
the laws of The Commonwealth of Massachusetts; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The person executing this Agreement on its behalf has been duly
authorized to act on its behalf.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.2 REPRESENTATIONS AND WARRANTIES OF EACH FUND.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund represents and warrants to the Agent that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is duly organized, existing and in good standing under the laws of
the jurisdiction in which it was formed;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It has the power and authority under applicable laws and by its
organizational documents to enter into and perform this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All requisite proceedings have been taken to authorize it to enter
into and perform this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is an investment company properly registered under the 1940 Act;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A registration statement under the 1940 Act (and if Shares of the Fund
are offered publicly, under the Securities Act of 1933, as amended
(the &#147;1933 Act&#148;)) has been filed and will be effective and remain
effective during the term of this Agreement. Each Fund also warrants
that as of the effective date of this Agreement, all necessary filings</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->6.<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>under the securities laws of the states in which the Fund offers or
sells its Shares have been made.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 5. COMPENSATION OF AGENT.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Agent shall be entitled to reasonable compensation for its services,
expenses, out of pocket costs and disbursements as Agent hereunder, as agreed
upon from time to time between the Fund and the Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 6. TERM OF AGREEMENT.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall become effective as of its execution, shall continue
in full force and effect until terminated as hereinafter provided and may be
terminated by either party by an instrument in writing delivered or mailed,
postage prepaid to the other party, such termination to take effect not sooner
than sixty (60)&nbsp;days after the date of such delivery or mailing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination of this Agreement with respect to the coverage of any one
particular Fund or Portfolio shall in no way affect the rights and duties under
this Agreement with respect to any other Fund or Portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of the Agreement or termination of its coverage with
respect to any Fund, such Fund shall pay to the Agent such compensation as may
be due as of the date of such termination (or with respect to the applicable
Fund with respect to a coverage termination) and shall likewise reimburse the
Agent for its costs, expenses and disbursements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 7. SUCCESSOR AGENT.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a successor agent for any Fund shall be appointed by a Fund, the Agent
shall upon termination deliver to such successor agent at the office of the
Agent all properties of such Fund held by it hereunder. If no such successor
agent shall be appointed, the Agent shall at its office upon receipt of Proper
Instructions deliver such properties in accordance with such instructions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">SECTION 8. GENERAL.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.1 MASSACHUSETTS LAW TO APPLY. This Agreement shall be governed
by, construed and the provisions thereof interpreted under and in accordance
with laws of The Commonwealth of Massachusetts excluding that body of law
applicable to conflicts of law.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7.<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.2 PRIOR AGREEMENTS. This Agreement supersedes and terminates, as
of the date hereof, all prior agreements between any Fund and the Agent relating
to fund accounting and recordkeeping services regarding such Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.3 ASSIGNMENT. This Agreement may not be assigned by (a)&nbsp;a Fund
without the prior written consent of the Agent or (b)&nbsp;by the Agent without the
prior written consent of the Funds, except that either party may, without such
prior consent, assign to an entity controlling, controlled by or under common
control with such party or to a successor of all of or a substantial portion of
its business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.4 INTERPRETIVE AND ADDITIONAL PROVISIONS. In connection with the
operation of this Agreement, the Agent and the Funds may from time to time agree
on such provisions interpretive of or in addition to the provisions of this
Agreement as may in their joint opinion be consistent with the general tenor of
this Agreement. Any such interpretive or additional provisions shall be in a
writing signed by all parties and shall be annexed hereto, provided that no such
interpretive or additional provisions shall contravene any applicable federal or
state regulations or any provision of a Fund&#146;s governing documents. No
interpretive or additional provisions made as provided in the preceding sentence
shall be deemed to be an amendment of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.5 ADDITIONAL FUNDS. In the event that any management investment
company in addition to those listed on Appendix&nbsp;A hereto desires to have the
Agent render services as agent under the terms hereof, it shall so notify the
Agent in writing, and if the Agent agrees in writing to provide such services,
such management investment company shall become a Fund hereunder and be bound by
all terms and conditions and provisions hereof with respect to such Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.6 ADDITIONAL PORTFOLIOS. In the event that any Fund establishes
one or more series of Shares in addition to those set forth on Appendix&nbsp;A hereto
with respect to which it desires to have the Agent render services as agent
under the terms hereof, it shall so notify the Agent in writing, and if the
Agent agrees in writing to provide such services, such series of Shares shall
become a Portfolio hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.7 AMENDMENTS. NO amendment to this Agreement shall be effective
unless it is in writing and signed by a duly authorized representative or each
party. The term &#147;Agreement,&#148; as used herein, includes all schedules, addenda,
exhibits, appendices and attachments hereto and any future written amendments,
modifications, or supplements made in accordance herewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.8 REMOTE ACCESS SERVICES ADDENDUM. Each Fund and the Agent hereby
agree to the terms of the Remote Access Services Addendum hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.9 SERVICES NOT EXCLUSIVE. Each Fund hereby acknowledges that the
services of the Agent hereunder are not to be deemed exclusive to any Fund and
the Agent remains free to render similar services to others.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8.<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.10 NOTICES. Any notice, instruction or other instrument required
to be given hereunder may be delivered in person to the offices of the parties
as set forth herein during normal business hours or delivered prepaid registered
mail or by telex, cable or telecopy to the parties at the following addresses or
such other addresses as may be notified by any party from time to time.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">To any Fund:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c/o Calamos Asset Management, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">111 East Warrenville Road</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Naperville, Illinois 60563-1493</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, Treasurer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (630)&nbsp;577-2106</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopy: (630)955-6964</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">To the Agent:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">STATE STREET BANK AND TRUST COMPANY</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Joseph Palmer Building</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">One Heritage Drive, JPB3N</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">North Quincy, Massachusetts 02171</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Scott E. Johnson, Vice President</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: 617-985-6725</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopy: 617-985-9797</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Such notice, instruction or other instrument shall be deemed to have been served
in the case of a registered letter at the expiration of five business days after
posting, in the case of cable twenty-four hours after dispatch and, in the case
of telex, immediately on dispatch and if delivered outside normal business hours
it shall be deemed to have been received at the next time after delivery when
normal business hours commence and in the case of cable, telex or telecopy on
the business day after the receipt thereof. Evidence that the notice was
properly addressed, stamped and put into the post shall be conclusive evidence
of posting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.11 HEADINGS NOT CONTROLLING. Headings used in this Agreement are
for reference purposes only and shall not be deemed a part of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.12 SURVIVAL. All provisions regarding indemnification, warranty,
liability and limits thereon shall survive the expiration or termination of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.13 COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original, and all such
counterparts taken together shall constitute one and the same agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.14 SEVERABILITY. If any provision or provisions of this Agreement
shall be held to be invalid, unlawful or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9.<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.15 REPRODUCTION OF DOCUMENTS. This Agreement and all schedules,
addenda, exhibits, appendices, attachments and amendments hereto may be
reproduced by any photographic, photostatic, microfilm, micro-card, miniature
photographic or other similar process. The parties hereto all/each agree that
any such reproduction shall be admissible in evidence as the original itself in
any judicial or administrative proceeding, whether or not the original is in
existence and whether or not such reproduction was made by a party in the
regular course of business, and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->10.<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURE PAGE
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS WHEREOF, each of the parties has caused this instrument to be
executed in its name and behalf by its duly authorized representative and its
seal to be hereunder affixed as of the date first above-written.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">SIGNATURE ATTESTED TO BY:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EACH REGISTERED MANAGEMENT INVESTMENT<BR>
COMPANY SET FORTH ON APPENDIX A HERETO</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Ian J. McPheron
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Nimish Bhatt</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ian J. McPheron, Assistant Secretary
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nimish Bhatt, Treasurer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">SIGNATURE ATTESTED TO BY:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">STATE STREET BANK AND TRUST COMPANY</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Stephanie L. Poster
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Joseph L. Hooley</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stephanie L. Poster, Vice President
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Joseph L. Hooley, Executive
Vice President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">APPENDIX A<BR>
TO<BR>
MASTER ACCOUNTING SERVICES AGREEMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">MANAGEMENT INVESTMENT COMPANIES AND PORTFOLIOS THEREOF, IF ANY
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CALAMOS STRATEGIC TOTAL RETURN FUND
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->(i)<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT A<BR>
TO<BR>
MASTER ACCOUNTING SERVICES AGREEMENT
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">FORM OF PRICE SOURCE AUTHORIZATION

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->(i)<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To: State Street Bank and Trust Company
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">From: Fund Name: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fund Address: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Re: PRICE SOURCE AUTHORIZATION

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reference is made to that certain Master Administration and Accounting Services
Agreement dated March&nbsp;15, 2004 (as amended, restated, modified
or supplemented from time to time, the &#147;Agreement&#148;) by and among each Fund and the Agent.
Capitalized terms used in this Price Source Authorization or in any attachment
or supplement shall have the meanings provided in the Agreement unless otherwise
specified. Pursuant to the Agreement, each Fund hereby directs the Agent to
calculate the net asset value (&#147;NAV&#148;) of such Fund or, if applicable, its
Portfolios, in accordance with the terms of such Fund&#146;s or Portfolio&#146;s currently
effective prospectus. The Agent will perform the NAV calculation subject to the
terms and conditions of the Agreement and this Price Source Authorization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each Fund hereby authorizes the Agent to use the pricing sources specified on
the attached Authorization Matrix (as amended from time to time) as sources for
prices of assets in calculating the NAV of such Fund. Each Fund understands that
the Agent does not assume responsibility for the accuracy of the quotations
provided by the specified pricing sources and that the Agent shall have no
liability for any incorrect data provided by the pricing sources specified by
any Fund, except as may arise from the Agent&#146;s lack of reasonable care in
performing agreed upon tolerance checks as to the data furnished and calculating
the NAV of a Fund in accordance with the data furnished to the Agent. Each Fund
also acknowledges that prices supplied by such Fund or an affiliate may be
subject to approval of that Fund&#146;s Board of Trustees or Board of Directors, as
applicable, and are not the responsibility of the Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each Fund agrees to Indemnify and hold the Agent harmless from any claim, loss
or damage arising as a result of using prices furnished by any specified pricing
source.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Agent agrees that written notice of any change in the name of any specified
pricing source will be sent to affected Fund as such information is available to
the Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Kindly
acknowledge your acceptance of this authorization in the space provided below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">EACH FUND LISTED ON APPENDIX A HERETO
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">The foregoing authorization is hereby accepted.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">STATE STREET BANK AND TRUST COMPANY</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,Vice President
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">APPENDIX A
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#091;LIST OF FUNDS&#093;

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">SCHEDULE A<BR>
TO<BR>
MASTER ACCOUNTING SERVICES AGREEMENT

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">INFORMATION REQUIRED TO BE SUPPLIED</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">RESPONSIBLE PARTY</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Portfolio Trade Authorizations
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Currency Transactions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cash Transaction Report
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Custodian</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Portfolio Prices
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Third Party Vendors/Investment Adviser</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exchange Rates
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Third Party Vendors/Investment Adviser</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Capital Stock Activity Report
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfer Agent</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dividend/Distribution Schedule
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dividend/Distribution Declaration
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dividend Reconciliation/Confirmation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfer Agent</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Corporate Actions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Third Party Vendors/Custodian</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Service Provider Fee Schedules
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Expense Budget
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser/Administrator</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Amortization Policy
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Accounting Policy/Complex Investments
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Audit Management Letter
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Auditor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Annual Shareholder Letter
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Annual/Semi-Annual Reports
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser/Administrator</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Declaration of Trust or Articles
of incorporation, as amended
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser/Administrator</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By-Laws, as amended
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser/Administrator</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">Currently Effective Registration
Statement under the 1933 and 1940 Act
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser/Administrator</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Current Prospectus(es) and Statement(s)
of Additional Information
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser/Administrator</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">Such other certificates, documents or
opinions which the Agent may, in its
reasonable discretion, deem necessary
or appropriate in the proper
performance of its duties
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Adviser/Administrator</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->(i)<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">REMOTE ACCESS SERVICES ADDENDUM<BR>
TO<BR>
MASTER ADMINISTRATION AND ACCOUNTING SERVICES AGREEMENT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADDENDUM to that certain Master Administration and Accounting Services
Agreement dated as of March&nbsp;15, 2004 (the &#147;Agreement&#148;) by and among each
registered management investment company identified on Appendix&nbsp;A thereto and
made subject thereto pursuant to Section&nbsp;9.5 thereof (each, a &#147;Customer&#148;) and
State Street Bank and Trust Company, including its subsidiaries and affiliates
(&#147;State Street&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State Street has developed and utilizes proprietary accounting and other
systems in conjunction with the services which State Street provides to the
Customer. In this regard, State Street maintains certain information in
databases under its control and ownership which it makes available to its
customers (the &#147;Remote Access Services&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The Services
State Street agrees to provide the Customer, and its designated investment
advisors, consultants or other third parties authorized by State Street
(&#147;Authorized Designees&#148;) with access to In-Sight(SM) as described in Exhibit&nbsp;A
or such other systems as may be offered from time to time (the &#147;System&#148;) on a
remote basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Security Procedures
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Customer agrees to comply, and to cause its Authorized Designees to comply,
with remote access operating standards and procedures and with user
identification or other password control requirements and other security
procedures as may be issued from time to time by State Street for use of the
System and access to the Remote Access Services. The Customer agrees to advise
State Street immediately in the event that it learns or has reason to believe
that any person to whom it has given access to the System or the Remote Access
Services has violated or intends to violate the terms of this Addendum and the
Customer will cooperate with State Street in seeking injunctive or other
equitable relief. The Customer agrees to discontinue use of the System and
Remote Access Services, if requested, for any security reasons cited by State
Street.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Fees
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fees and
charges for the use of the System and the Remote Access Services and
related payment terms shall be as set forth in the fee schedule in effect from time to time between the parties. The Customer shall be responsible for any
tariffs, duties or taxes imposed or levied by any government or governmental
agency by reason of the transactions contemplated by this Addendum, including,
without limitation, federal, state and local taxes, use, value added and
personal property taxes (other than income, franchise or similar taxes which may
be imposed or assessed against State Street). Any claimed exemption from such
tariffs, duties or taxes shall be supported by proper documentary evidence
delivered to State Street.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Proprietary Information/Injunctive Relief
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The System and Remote Access Services described herein and the databases,
computer programs, screen formats, report formats, interactive design
techniques, formulae, processes, systems, software, know-how, algorithms,
programs, training aids, printed materials, methods, books, records, files,
documentation and other information made available to the Customer by State
Street as part of the Remote Access Services and through the use of the System
and all copyrights, patents, trade secrets and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">other proprietary rights of State Street related thereto are the exclusive,
valuable and confidential property of State Street and its relevant licensors
(the &#147;Proprietary Information&#148;). The Customer agrees on behalf of itself and its
Authorized Designees to keep the Proprietary Information confidential and to
limit access to its employees and Authorized Designees (under a similar duty of
confidentiality) who require access to the System for the purposes intended. The
foregoing shall not apply to Proprietary Information in the public domain or
required by law to be made public.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Customer agrees to use the Remote Access Services only in connection with
the proper purposes of this Addendum. The Customer will not, and will cause its
employees and Authorized Designees not to, (i)&nbsp;permit any third party to use the
System or the Remote Access Services, (ii)&nbsp;sell, rent, license or otherwise use
the System or the Remote Access Services in the operation of a service bureau or
for any purpose other than as expressly authorized under this Addendum, (iii)
use the System or the Remote Access Services for any fund, trust or other
investment vehicle without the prior written consent of State Street, or (iv)
allow or cause any information transmitted from State Street&#146;s databases,
including data from third party sources, available through use of the System or
the Remote Access Services, to be published, redistributed or retransmitted for
other than use for or on behalf of the Customer, as State Street&#146;s customer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Customer agrees that neither it nor its Authorized Designees will modify the
System in any way; enhance or otherwise create derivative works based upon the
System, nor will your or your Authorized Designees reverse engineer, decompile
or otherwise attempt to secure the source code for all or any part of the
System.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Customer acknowledges that the disclosure of any Proprietary Information, or
of any information which at law or equity ought to remain confidential, will
immediately give rise to continuing irreparable injury to State Street
inadequately compensable in damages at law and that State Street shall be
entitled to obtain immediate injunctive relief against the breach or threatened
breach of any of the foregoing undertakings, in addition to any other legal
remedies which may be available.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Limited Warranties
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">State Street represents and warrants that it is the owner of and has the right
to grant access to the System and to provide the Remote Access Services
contemplated herein. Because of the nature of computer information technology
including, but not limited to, the use of the Internet, and the necessity of
relying upon third party sources, and data and pricing information obtained from
third parties, the System and Remote Access Services are provided &#147;AS IS&#148;, and
the Customer and its Authorized Designees shall be solely responsible for the
investment decisions, results obtained, regulatory reports and statements
produced using the Remote Access Services. State Street and its relevant
licensors will not be liable to the Customer or its Authorized Designees for any
direct or indirect, special, incidental, punitive or consequential damages
arising out of or in any way connected with the System or the Remote Access
Services, nor shall either party be responsible for delays or nonperformance
under this Addendum arising out of any cause or event beyond such party&#146;s
control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">State Street will take reasonable steps to ensure that its products (and those
of its third-party suppliers) reflect the available state of the art technology
to offer products that are Year 2000 compliant, including, but not limited to,
century recognition of dates, calculations that correctly compute same century
and multi century formulas and date values, and interface values that reflect
the date issues arising between now and December&nbsp;31, 2099, and if any changes
are required, State Street will make the changes to its products at no cost to
you and in a commercially reasonable time frame and will require third-party
suppliers to do likewise. The Customer will do likewise for its systems.
</DIV>



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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EXCEPT AS EXPRESSLY SET FORTH IN THIS ADDENDUM, STATE STREET, FOR ITSELF AND ITS
RELEVANT LICENSORS, EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES CONCERNING THE
SYSTEM AND THE SERVICES TO BE RENDERED HEREUNDER, WHETHER EXPRESS OR IMPLIED
INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTIBILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Infringement
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">State Street will defend or, at our option, settle any claim or action brought
against the Customer to the extent that it is based upon an assertion that
access to the System or use of the Remote Access Services by the Customer under
this Addendum constitutes direct infringement of any patent or copyright or
misappropriation of a trade secret, provided that the Customer notifies State
Street promptly in writing of any such claim or proceeding and cooperates with
State Street in the defense of such claim or proceeding. Should the System or
the Remote Access Services or any part thereof become, or in State Street&#146;s
opinion be likely to become, the subject of a claim of infringement or the like
under any applicable patent or copyright or trade secret laws, State Street
shall have the right, at State Street&#146;s sole option, to (i)&nbsp;procure for the
Customer the right to continue using the System or the Remote Access Services,
(ii)&nbsp;replace or modify the System or the Remote Access Services so that the
System or the Remote Access Services becomes noninfringing, or (iii)&nbsp;terminate
this Addendum without further obligation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Termination
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Either party to the Agreement may terminate this Addendum (i)&nbsp;for any reason by
giving the other party at least one-hundred and eighty (180)&nbsp;days prior written
notice in the case of notice of termination by State Street to the Customer or
thirty (30)&nbsp;days notice in the case of notice from the Customer to State Street
of termination, or (ii)&nbsp;immediately for failure of the other party to comply
with any material term and condition of the Addendum by giving the other party
written notice of termination. This Addendum shall in any event terminate within
ninety (90)&nbsp;days after the termination of the Agreement. In the event of
termination, the Customer will return to State Street all copies of
documentation and other confidential information in its possession or in the
possession of its Authorized Designees. The foregoing provisions with respect to
confidentiality and infringement will survive termination for a period of three
(3)&nbsp;years.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Miscellaneous
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Addendum and the exhibit hereto constitute the entire understanding of the
parties to the Agreement with respect to access to the System and the Remote
Access Services. This Addendum cannot be modified or altered except in a writing
duly executed by each of State Street and the Customer and shall be governed by
and construed in accordance with the laws of The Commonwealth of Massachusetts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">By its execution of the Agreement, the Customer (a)&nbsp;confirms to State Street
that it informs all Authorized Designees of the terms of this Addendum; (b)
accepts responsibility for its and its Authorized Designees&#146; compliance with the
terms of this Addendum; and (c)&nbsp;indemnifies and holds State Street harmless from
and against any and all costs, expenses, losses, damages, charges, counsel fees,
payments and liabilities arising from any failure of the Customer or any of its
Authorized Designees to abide by the terms of this Addendum.
</DIV>



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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT A<BR>
TO<BR>
REMOTE ACCESS SERVICES ADDENDUM
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">IN-SIGHT (SM)<BR>
System Product Description

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In-Sight(SM) provides bilateral information delivery, interoperability, and
on-line access to State Street. In-Sight(SM) allows users a single point of
entry into State Street&#146;s diverse systems and applications. Reports and data
from systems such as Investment Policy Monitor(SM), Multicurrency Horizon(SM),
Securities Lending, Performance &#038; Analytics and Electronic Trade Delivery can be
accessed through In-Sight(SM). This Internet-enabled application is designed to
run from a Web browser and perform across low-speed data lines or corporate
high-speed backbones. In-Sight(SM) also offers users a flexible toolset,
including an ad-hoc query function, a custom graphics package, a report
designer, and a scheduling capability. Data and reports offered through
In-Sight(SM) will continue to increase in direct proportion with the customer
roll out, as it is viewed as the information delivery system will grow with
State Street&#146;s customers.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->iv<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(K)(8)
<SEQUENCE>12
<FILENAME>c19483a2exv99wxkyx8y.htm
<DESCRIPTION>FORM OF DTC REPRESENTATIONS LETTER
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wxkyx8y</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT k.8
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">THE DEPOSITORY TRUST COMPANY<BR>
A SUBSIDIARY OF THE DEPOSITORY TRUST &#038; CLEARING CORPORATION
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">BLANKET ISSUER LETTER OF REPRESENTATIONS<BR>
&#091;To be Completed by Issuer&#093;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Calamos
&#091;Closed-End&#093; Fund</DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 1pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt">&#091;Name of Issuer&#093;</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>,
<u>
</u>200<u>&nbsp;&nbsp;&nbsp;&nbsp;</U></DIV>

<DIV align="center" style="font-size: 10pt">&#091;Date&#093;</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#091;For Municipal Issues:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting Department-Eligibility; 50th Floor&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">&#091;For Corporate Issues:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General Counsel&#146;s Office; 49th Floor&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">THE DEPOSITORY TRUST COMPANY<BR>
55 Water Street<BR>
New York, NY 10041-0099

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ladies and Gentlemen:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This letter sets forth our understanding with respect to all issues
(the &#147;Securities&#148;) that Issuer shall request be made
eligible for deposit by The Depository Trust Company (&#147;DTC&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To induce DTC to accept the Securities as eligible for deposit at DTC,
and to act in accordance with DTC&#146;s Rules with respect to the Securities, Issuer
represents to DTC that Issuer will comply with the requirements stated in DTC&#146;s
Operational Arrangements, as they may be amended from time to time.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><U>Note:</U></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Very Truly yours,</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="3"><DIV style="margin-left:0px; text-indent:-0px">Schedule&nbsp;A contains statements that DTC believes accu-
rately describe DTC, the method of effecting book-entry
transfers of securities distributed through DTC, and certain related matters.</DIV></TD>


    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Calamos &#091;Closed-End&#093; Fund</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Issuer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">Received and Accepted:</DIV></TD>
<TD>&nbsp;</TD>

    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">THE DEPOSITORY TRUST COMPANY
</DIV></TD>
<TD>&nbsp;</TD>

    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Authorized Officer&#146;s Signature)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 0px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Print Name)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>




<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Calamos Advisors LLC</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Street Address)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2020 Calamos Court<BR>
Naperville, IL  &nbsp;&nbsp;&nbsp;USA &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60563</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(City) (State) (Country) (Zip Code)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">&#091;LOGO&#093; &nbsp;DTCC.
</DIV></TD>
<TD>&nbsp;</TD>

    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(630) 245-7200</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">The Depository Trust &#038;<BR>
Clearing Corporation
</DIV></TD>
<TD>&nbsp;</TD>

    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Phone Number)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(E-mail Address)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SCHEDULE A
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">(TO BLANKET ISSUER LETTER OF REPRESENTATIONS)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">SAMPLE OFFERING DOCUMENT LANGUAGE<BR>
DESCRIBING BOOK-ENTRY-ONLY ISSUANCE<BR>
<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt">(PREPARED BY DTC-BRACKETED MATERIAL MAY BE APPLICABLE ONLY TO CERTAIN ISSUES)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Depository Trust Company (&#147;DTC&#148;), New York, NY, will act as
securities depository for the securities (the &#147;Securities&#148;). The Securities will
be issued as fully-registered securities registered in the name of Cede &#038; Co.
(DTC&#146;s partnership nominee) or such other name as may be requested by an
authorized representative of DTC. One fully-registered Security certificate will
be issued for &#091;each issue of&#093; the Securities, &#091;each&#093; in the aggregate principal
amount of such issue, and will be deposited with DTC. &#091;If, however, the
aggregate principal amount of &#091;any&#093; issue exceeds $500&nbsp;million, one certificate
will be issued with respect to each $500&nbsp;million of principal amount, and an
additional certificate will be issued with respect to any remaining principal
amount of such issue.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;DTC, the world&#146;s largest securities depository, is a limited-purpose
trust company organized under the New York Banking Law, a &#147;banking organization&#148;
within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a &#147;clearing corporation&#148; within the meaning of the New York Uniform
Commercial Code, and a &#147;clearing agency&#148; registered pursuant to the provisions
of Section&nbsp;17A of the Securities Exchange Act of 1934. DTC holds and provides
asset servicing for over 2.2&nbsp;million issues of U.S. and non-U.S. equity issues,
corporate and municipal debt issues, and money market instruments from over 100
countries that DTC&#146;s participants (&#147;Direct Participants&#148;) deposit with DTC. DTC
also facilitates the post-trade settlement among Direct Participants of sales
and other securities transactions in deposited securities, through electronic
computerized book-entry transfers and pledges between Direct Participants&#146;
accounts. This eliminates the need for physical movement of securities
certificates. Direct Participants include both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, clearing corporations, and certain
other organizations. DTC is a wholly-owned subsidiary of The Depository Trust &#038;
Clearing Corporation (&#147;DTCC&#148;). DTCC, in turn, is owned by a number of Direct
Participants of DTC and Members of the National Securities Clearing Corporation,
Fixed Income Clearing Corporation and Emerging Markets Clearing Corporation
(NSCC, FICC, and EMCC, also subsidiaries of DTCC), as well as by the New York
Stock Exchange, Inc., the American Stock Exchange LLC, and the National
Association of Securities Dealers, Inc. Access to the DTC system is also
available to others such as both U.S. and non-U.S. securities brokers and
dealers, banks, trust companies, and clearing corporations that clear through or
maintain a custodial relationship with a Direct Participant, either directly or
indirectly (&#147;Indirect Participants&#148;). DTC has Standard &#038; Poor&#146;s highest rating:
AAA. The DTC Rules applicable to its Participants are on file with the
Securities and Exchange Commission. More information about DTC can be found at
www.dtcc.com and www.dtc.org.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Purchases of Securities under the DTC system must be made by or
through Direct Participants, which will receive a credit for the Securities on
DTCs records. The ownership interest of each actual purchaser of each Security
(&#147;Beneficial Owner&#148;) is in turn to be recorded on the Direct and Indirect
Participants&#146; records. Beneficial Owners will not receive written confirmation
from DTC of their purchase. Beneficial Owners are, however, expected to receive
written confirmations providing details of the transaction, as well as periodic
statements of their holdings, from the Direct or Indirect Participant through
which the Beneficial Owner entered into the transaction. Transfers of ownership
interests in the Securities are to be accomplished by entries made on the books
of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing their ownership
interests in Securities, except in the event that use of the book-entry system
for the Securities is discontinued.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;To facilitate subsequent transfers, all Securities deposited by
Direct Participants with DTC are registered in the name of DTC&#146;s partnership
nominee, Cede &#038; Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of Securities with DTC and their registration
in the name of Cede &#038; Co. or such other DTC nominee do not effect any change in
beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of
the Securities; DTC&#146;s records reflect only the identity
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of the Direct Participants to whose accounts such Securities are credited, which
may or may not be the Beneficial Owners. The Direct and Indirect Participants
will remain responsible for keeping account of their holdings on behalf of their
customers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Conveyance of notices and other communications by DTC to Direct
Participants, by Direct Participants to Indirect Participants, and by Direct
Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as
may be in effect from time to time. &#091;Beneficial Owners of Securities may wish to
take certain steps to augment the transmission to them of notices of significant
events with respect to the Securities, such as redemptions, tenders, defaults,
and proposed amendments to the Security documents. For example, Beneficial
Owners of Securities may wish to ascertain that the nominee holding the
Securities for their benefit has agreed to obtain and transmit notices to
Beneficial Owners. In the alternative, Beneficial Owners may wish to provide
their names and addresses to the registrar and request that copies of notices be
provided directly to them.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;6. Redemption notices shall be sent to DTC. If less than all of the
Securities within an issue are being redeemed, DTC&#146;s practice is to determine by
lot the amount of the interest of each Direct Participant in such issue to be
redeemed.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Neither DTC nor Cede &#038; Co. (nor any other DTC nominee) will consent
or vote with respect to Securities unless authorized by a Direct Participant in
accordance with DTC&#146;s Procedures. Under its usual procedures, DTC mails an
Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus
Proxy assigns Cede &#038; Co.&#146;s consenting or voting rights to those Direct
Participants to whose accounts Securities are credited on the record date
(identified in a listing attached to the Omnibus Proxy).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;Redemption proceeds, distributions, and dividend payments on the
Securities will be made to Cede &#038; Co., or such other nominee as may be requested
by an authorized representative of DTC. DTC&#146;s practice is to credit Direct
Participants&#146; accounts upon DTC&#146;s receipt of funds and corresponding detail
information from Issuer or Agent, on payable date in accordance with their
respective holdings shown on DTC&#146;s records. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary
practices, as is the case with securities held for the accounts of customers in
bearer form or registered in &#147;street name,&#148; and will be the responsibility of
such Participant and not of DTC, Agent, or Issuer, subject to any statutory or
regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede &#038; Co. (or such
other nominee as may be requested by an authorized representative of DTC) is the
responsibility of Issuer or Agent, disbursement of such payments to Direct
Participants will be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners will be the responsibility of Direct and
Indirect Participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;9. A Beneficial Owner shall give notice to elect to have its
Securities purchased or tendered, through its Participant, to
&#091;Tender/Remarketing&#093; Agent, and shall effect delivery of such Securities by
causing the Direct Participant to transfer the Participant&#146;s interest in the
Securities, on DTC&#146;s records, to &#091;Tender/Remarketing&#093; Agent. The requirement for
physical delivery of Securities in connection with an optional tender or a
mandatory purchase will be deemed satisfied when the ownership rights in the
Securities are transferred by Direct Participants on DTC&#146;s records and followed
by a book-entry credit of tendered Securities to &#091;Tender/Remarketing&#093; Agent&#146;s
DTC account.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;DTC may discontinue providing its services as depository with
respect to the Securities at any time by giving reasonable notice to Issuer or
Agent. Under such circumstances, in the event that a successor depository is not
obtained, Security certificates are required to be printed and delivered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;Issuer may decide to discontinue use of the system of
book-entry-only transfers through DTC (or a successor securities depository). In<BR>
that event, Security certificates will be printed and delivered to DTC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;The information in this section concerning DTC and DTC&#146;s book-entry
system has been obtained from sources that Issuer believes to be
reliable, but Issuer takes no responsibility for the accuracy thereof.
</DIV>


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<DOCUMENT>
<TYPE>EX-99.(L)
<SEQUENCE>13
<FILENAME>c19483a2exv99wxly.htm
<DESCRIPTION>OPINION OF MORRIS, NICHOLS, ARSHT & TUNNELL
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">

 <DIV align="right" style="font-size: 10pt; margin-top: 6pt">Exhibit l

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Letterhead of Morris, Nichols, Arsht &#038; Tunnell LLP&#093;
</DIV>

 <DIV align="Center" style="font-size: 10pt; margin-top: 6pt">

</DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 18pt">February&nbsp;22, 2008

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Global Total Return Fund<BR>
2020 Calamos Court<BR>
Naperville, Illinois 60563

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re:
<u>Calamos Global Total Return Fund</u>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have acted as special Delaware counsel to Calamos Global Total Return Fund, a Delaware
statutory trust (the &#147;Trust&#148;), in connection with certain matters of Delaware law relating to the
registration of the following securities: (i)&nbsp;common shares of beneficial interest, no par value
per share, of the Calamos Global Total Return Fund, a series of the Trust (the &#147;Fund&#148;) (the &#147;Common
Shares&#148;); (ii)&nbsp;preferred shares of beneficial interest, no par value per share, of the Fund (the
&#147;Preferred Shares&#148;); and (iii)&nbsp;debt securities of the Fund (the &#147;Debt Securities&#148; and together with
the Common Shares and the Preferred Shares, the &#147;Securities&#148;) under Registration Statement No.
333-146944 under the Securities Act of 1933 and No.&nbsp;811-21547 under the Investment Company Act of
1940 filed with the Securities and Exchange Commission (the &#147;Commission&#148;) on October&nbsp;26, 2007 (the
&#147;Initial Registration Statement&#148;), as amended by Pre-Effective Amendment No.&nbsp;1 thereto filed with
the Commission on January&nbsp;30, 2008 (&#147;Pre-Effective Amendment No.&nbsp;1&#148;) and as amended by
Pre-Effective Amendment No.&nbsp;2 thereto being filed with the Commission on or about the date hereof
(&#147;Pre-Effective Amendment No.&nbsp;2&#148;) (the Initial Registration Statement as amended by Pre-Effective
Amendment No.&nbsp;1 and Pre-Effective Amendment No.&nbsp;2, the &#147;Amended Registration Statement&#148; and the
Initial Registration Statement as amended from time to time, the &#147;Registration Statement&#148;).
Capitalized terms used herein and not otherwise herein defined are used as defined in the Amended
and Restated Agreement and Declaration of Trust of the Trust dated as of September&nbsp;13, 2006 (the
&#147;Governing Instrument&#148;).
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Global Total Return Fund<BR>
February&nbsp;22, 2008<BR>
Page 2

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In rendering this opinion, we have examined and relied on copies of the following documents in
the forms provided to us: the Amended Registration Statement, the Certificate of
Trust of the Trust as filed in the Office of the Secretary of State of the State of Delaware
(the &#147;State Office&#148;) on March&nbsp;30, 2004 (the &#147;Certificate&#148;); the Agreement and Declaration of Trust
of the Trust dated as of March&nbsp;12, 2004 (the &#147;Original Governing Instrument&#148;); the Governing
Instrument; Minutes of the Organizational Meeting of the Board of Trustees held on March&nbsp;12, 2004
(the &#147;Organizational Resolutions&#148;); Minutes of a meeting of the Board of Trustees of the Trust held
on October&nbsp;7, 2005 (the &#147;October&nbsp;2005 Resolutions&#148;); the By-laws of the Trust (the &#147;By-laws&#148; and,
together with the Governing Instrument, the Resolutions (as defined below) and the Registration
Statement, the &#147;Governing Documents&#148;); and a certification of good standing of the Trust obtained
as of a recent date from the State Office. In such examinations, we have assumed the genuineness
of all signatures, the conformity to original documents of all documents submitted to us as drafts
or copies or forms of documents to be executed and the legal capacity of natural persons to
complete the execution of documents. We have further assumed for purposes of this opinion: (i)
the due authorization, adoption, execution and delivery, as applicable, by, or on behalf of, each
of the parties thereto of the above-referenced instruments, certificates and other documents
(including the due adoption by the Trustees of the Resolutions), and of all documents contemplated
by either the Governing Documents or any applicable resolutions of the Trustees to be executed by
Persons desiring to become holders of Securities (including Persons desiring to become
Shareholders); (ii)&nbsp;that appropriate notation of the names and addresses of, the number of
Securities (including all Shares) held by, and the consideration paid by, all holders of Securities
(including all Shareholders) will be maintained in the appropriate registers and other books and
records of the Trust in connection with the issuance, redemption or transfer of Securities
(including all Shares); (iii)&nbsp;the taking of all appropriate action by the Trustees to designate
Series (including the Fund) and Classes of Securities (including all Shares) and the rights and
preferences attributable thereto as contemplated by the Governing Instrument; (iv)&nbsp;that the
activities of the Trust have been and will be conducted in accordance with the Original Governing
Instrument or the Governing Instrument, as applicable, and the Delaware Statutory Trust Act, 12
<U>Del.</U> <U>C.</U> &#167;&#167;&nbsp;3801 <U>et</U> <U>seq.</U> (the &#147;Delaware Act&#148;); (v)&nbsp;that no event has
occurred subsequent to the filing of the Certificate that would cause a termination or
reorganization of the Trust or a Series or Class of the Trust under Sections&nbsp;4 or 6 of Article&nbsp;IX
of the Original Governing Instrument or the Governing Instrument, as applicable; (vi)&nbsp;that the
Trust became or will become, in each case prior to or within 180&nbsp;days following the first issuance
of beneficial interests therein, a registered investment company under the Investment Company Act
of 1940; (vii)&nbsp;that in connection with the issuance of the Common Shares, the Board of Trustees
will duly adopt resolutions authorizing the issuance of the Common Shares and the relative rights
and preferences thereof, all in accordance with the Governing Instrument (the &#147;Common Shares
Resolutions&#148;); (viii)&nbsp;that in connection with the issuance of the Preferred Shares, the Board of
Trustees will duly adopt resolutions authorizing the issuance of the Preferred Shares and the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Global Total Return Fund<BR>
February&nbsp;22, 2008<BR>
Page 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">relative rights and preferences thereof, all in accordance with the Governing Instrument (the
&#147;Preferred Shares Resolutions&#148;); (ix)&nbsp;that in connection with the issuance of the Debt Securities,
the Board of Trustees will duly adopt resolutions authorizing the issuance of the Debt Securities
and the relative rights and preferences thereof, all in accordance with the Governing Instrument
(the &#147;Debt Securities Resolutions&#148; and together with the Organizational Resolutions, the October
2005 Resolutions, the Common Shares Resolutions and the Preferred Shares Resolutions, the
&#147;Resolutions&#148;); (x)&nbsp;that, if applicable, an underwriting or similar agreement setting forth the
terms and conditions under which the Common Shares will be issued will be duly entered into by the
Trust with respect to the issuance of the Common Shares (the &#147;Commons Shares Underwriting
Agreement&#148;); (xi)&nbsp;that, if applicable, an underwriting or similar agreement setting forth the terms
and conditions under which the Preferred Shares will be issued will be duly entered into by the
Trust with respect to the issuance of the Preferred Shares (the &#147;Preferred Shares Underwriting
Agreement&#148;); (xii)&nbsp;that, if applicable, an underwriting or similar agreement setting forth the
terms and conditions under which the Debt Securities will be issued will be duly entered into by
the Trust with respect to the issuance of the Debt Securities (the &#147;Debt Securities Underwriting
Agreement&#148; and together with the Common Shares Underwriting Agreement and the Preferred Shares
Underwriting Agreement, the &#147;Underwriting Agreements&#148;); (xiii)&nbsp;that the required consideration for
the Common Shares is paid in accordance with the terms, conditions, requirements and procedures set
forth in the Governing Documents and the Common Shares Underwriting Agreement and that the Common
Shares are otherwise issued in accordance with the terms, conditions, requirements and procedures
set forth in the Governing Documents, the Common Shares Underwriting Agreement and the Delaware
Act; (xiv)&nbsp;that the required consideration for the Preferred Shares is paid in accordance with the
terms, conditions, requirements and procedures set forth in the Governing Documents and the
Preferred Shares Underwriting Agreement and that the Preferred Shares are otherwise issued in
accordance with the terms, conditions, requirements and procedures set forth in the Governing
Documents, the Preferred Shares Underwriting Agreement and the Delaware Act; (xv)&nbsp;that the required
consideration for the Debt Securities is paid in accordance with the terms, conditions,
requirements and procedures set forth in the Governing Documents and the Debt Securities
Underwriting Agreement and that the Debt Securities are otherwise issued in accordance with the
terms, conditions, requirements and procedures set forth in the Governing Documents, the Debt
Securities Underwriting Agreement and the Delaware Act; (xvi)&nbsp;that, with respect to the Securities,
(A)&nbsp;there will be no changes in applicable law or the Governing Documents between the date of this
opinion and any date of issuance or delivery of any Securities, (B)&nbsp;at the time of delivery of any
Securities, all contemplated additional actions shall have been taken and the authorization of the
issuance of the Securities will not have been modified or rescinded and (C)&nbsp;the aggregate number of
Securities (including Shares) of the Fund that would be outstanding after the issuance of any of
the Securities and any other contemporaneously issued or reserved Securities (including Shares),
together with the number of Securities (including Shares) previously issued and outstanding and the
number of Securities (including Shares) previously reserved for issuance upon the conversion or
exchange of other securities issued by the Fund,
does not exceed the number of then-authorized Securities (including Shares) of the Fund; and (xvii)
that each of the documents examined by us is in full force and effect and has not been modified,
supplemented or otherwise amended, except as herein referenced. We have not reviewed any documents
other than those identified above in connection with this opinion, and
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Global Total Return Fund<BR>
February&nbsp;22, 2008<BR>
Page 4

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">we have assumed that there are no other documents that are contrary to or inconsistent with the
opinions expressed herein. No opinion is expressed with respect to the requirements of, or
compliance with, federal or state securities or blue sky laws. Further, we express no opinion with
respect to, and we assume no responsibility for, any offering documentation relating to the Trust,
the Fund or the Securities. As to any facts material to our opinion, other than those assumed, we
have relied without independent investigation on the above-referenced documents and on the
accuracy, as of the date hereof, of the matters therein contained.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on and subject to the foregoing, and limited in all respects to matters of Delaware law,
it is our opinion that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Trust is a duly formed and validly existing statutory trust in good standing under the
laws of the State of Delaware.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Common Shares, when issued to Shareholders in accordance with the terms, conditions,
requirements and procedures set forth in the Governing Documents, will constitute legally issued,
fully paid and non-assessable shares of beneficial interest in the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Preferred Shares, when issued to Shareholders in accordance with the terms, conditions,
requirements and procedures set forth in the Governing Documents, will constitute legally issued,
fully paid and non-assessable shares of beneficial interest in the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Debt Securities, when issued to Shareholders in accordance with the terms, conditions,
requirements and procedures set forth in the Governing Documents, will be duly authorized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to the opinions expressed in paragraphs 2, 3 and 4 above, we note that, pursuant
to Section&nbsp;2 of Article&nbsp;VIII of the Governing Instrument, the Trustees have the power to cause each
Shareholder, or each Shareholder of any particular Series, to pay directly, in advance or arrears,
for charges of the Trust&#146;s custodian or transfer, shareholder servicing or similar agent, an amount
fixed from time to time by the Trustees, by setting off such charges due from such Shareholder from
declared but unpaid dividends owed such Shareholder and/or by reducing the number of Shares in the
account of such Shareholder by that number of full and/or fractional Shares which represents the
outstanding amount of such charges due from such Shareholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the filing of a copy of this opinion with the Commission as an exhibit to
Pre-Effective Amendment No.&nbsp;2. In giving this consent, we do not thereby admit that we come within
the category of persons whose consent is required under Section&nbsp;7 of the Securities Act of 1933, as
amended, or the rules and regulations of the Commission thereunder. Except as provided in this
paragraph, the opinions set forth above are expressed solely for the benefit of the addressee
hereof and may not be relied on by any other person or entity, or for any
other purpose, without our prior written consent. This opinion speaks only as of the date hereof
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Global Total Return Fund<BR>
February&nbsp;22, 2008<BR>
Page 5

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and is based on our understandings and assumptions as to present facts and on our review of the
above-referenced documents and the application of Delaware law as the same exist on the date
hereof, and we undertake no obligation to update or supplement this opinion after the date hereof
for the benefit of any person or entity with respect to any facts or circumstances that may
hereafter come to our attention or any changes in facts or law that may hereafter occur or take
effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Very truly yours,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">MORRIS, NICHOLS, ARSHT &#038; TUNNELL LLP

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><I>/s/ Louis G. Hering</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Louis G. Hering

</DIV>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(N)
<SEQUENCE>14
<FILENAME>c19483a2exv99wxny.htm
<DESCRIPTION>CONSENT OF AUDITORS
<TEXT>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;N
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the inclusion in this Pre-Effective Amendment
No.&nbsp;2 to Registration Statement No.&nbsp;333-146944 on Form N-2/A of our report dated
December&nbsp;14, 2007, relating to the financial statements and financial highlights
of Calamos Global Total Return Fund, appearing in the Annual Report on
Form N-CSR for the year ended October&nbsp;31, 2007, and to the references to
us under the heading &#147;Financial Highlights&#148; in the Prospectus and under the heading
&#147;Independent Registered Public Accounting Firm&#148; in the Statement of Additional Information,
which are part of such Registration Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">DELOITTE &#038; TOUCHE LLP
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Chicago, Illinois<BR>
February&nbsp;21, 2008

</DIV>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(R)(1)
<SEQUENCE>15
<FILENAME>c19483a2exv99wxryx1y.htm
<DESCRIPTION>CODE OF ETHICS
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit r.1
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="c19483a2c1954000.gif" alt="(CALAMOS LOGO)">
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS ASSET MANAGEMENT, INC.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS ADVISORS LLC</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS FINANCIAL SERVICES LLC</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS PARTNERS LLC</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS WEALTH MANAGEMENT LLC</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS INVESTMENT TRUST</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS ADVISORS TRUST</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS CONVERTIBLE OPPORTUNITIES AND INCOME FUND</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS CONVERTIBLE AND HIGH INCOME FUND</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS STRATEGIC TOTAL RETURN FUND</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS GLOBAL TOTAL RETURN FUND</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALAMOS GLOBAL DYNAMIC INCOME FUND</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Code of Ethics</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>and</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Insider Trading Policy</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>December&nbsp;20, 2007</B><SUP style="font-size: 85%; vertical-align: text-top"><B>1</B></SUP>

</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

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    <TD width="96"></TD>
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<TR valign="top">
    <TD colspan="3"><SUP style="font-size: 85%; vertical-align: text-top"><B>1</B></SUP> Amends and Restates Code dated May&nbsp;16, 2007.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Table of Contents</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><u>Page</u></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>SUMMARY</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Frequently Asked Questions About the Code</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ask First</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>UNDERSTANDING AND APPLYING THE CODE</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purpose</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Scope</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Understanding the Terms</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Access Person&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Beneficial Ownership Interest&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Control&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Covered Security&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Fund&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Immediate Family&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Investment Person&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Material&#148; Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Material Nonpublic Information&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Nonpublic&#148; Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Outside Directors&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Outside Trustees&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Unaffiliated Trustees&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Pecuniary Interest&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Related Person&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&#147;Tipping&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consequences Of Failure To Comply With Code</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">External Penalties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Action By Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap colspan="3"><DIV style="margin-left:15px; text-indent:-15px"><B>RESTRICTIONS ON THE USE OF CONFIDENTIAL INFORMATION
BY CALAMOS PERSONNEL</B></DIV></TD>


    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">General Prohibitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Material Nonpublic Information About Other Companies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Material Nonpublic Information About Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Confidentiality of Nonpublic Information About Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Public Disclosure Of Information About Calamos And Its Closed-End Funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>REPORTING REQUIREMENTS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>10</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Initial Disclosure of Accounts and Covered Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Quarterly Transactions Reports</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Annual Holdings Reports</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Confirmations and Statements for all Brokerage and Investment Accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">General Rules of Reporting of Personal Securities Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-i-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><U>Page</U></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certification of Compliance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Annual Report to Fund Board</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>THE PURCHASE AND SALE OF SECURITIES BY CALAMOS PERSONNEL</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>13</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Trading Policies and Procedures for Non-CAM Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Pre-Clearance of Covered Securities Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:45px; text-indent:-15px">Open-End Mutual Funds Advised or Subadvised by Calamos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Calamos Closed-End Funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Trading Policies and Procedures for CAM Securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional Trading Restrictions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">No Conflicting Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Initial Public Offerings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Private Placements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Short-term Trading</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:30px; text-indent:-15px">Exceptions and Exemptions to Trading Policies, Procedures and Restrictions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Discretionary Accounts of Outside Trustees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px"><I>De Minimis </I>Exception</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Hardships</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Corporate Trading/Seed Money</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:30px; text-indent:-15px">Policies and Procedures Regarding Trading In Securities Of CAM by Personnel
and their Related Persons</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Blackout Periods and Trading Windows</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Quarterly Blackout Periods</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Retirement Plan Blackout Periods</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Event Specific Blackout Periods</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Trading Windows</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Certain Exceptions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Prohibitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:45px; text-indent:-15px">Additional Requirements for Directors and Executive Officers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Section&nbsp;16 Reporting and Prohibitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Rule&nbsp;144</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>OTHER REGULATORY REQUIREMENTS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>23</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Outside Employment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Service As A Director Or Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gifts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accepting Gifts and Entertainment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Presenting Gifts and Entertainment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Identifying Actual or Potential Conflicts of Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">YEARLY CERTIFICATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RECORD RETENTION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>ATTACHMENT A</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-ii-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SUMMARY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This summary of the Code of Ethics and Insider Trading Policy (the &#147;Code&#148;) is provided for your
convenience. It is not a substitute for reading and understanding the Code, and all personnel are
responsible for complying with the Code as a condition of continuing employment with Calamos Asset
Management, Inc. (&#147;CAM&#148;), its subsidiaries and affiliates (collectively, &#147;Calamos&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">One of the most important assets that Calamos has is its reputation. Clients would not retain
Calamos or invest in its products if they did not trust us, and the Code is designed to establish
certain standards and procedures that will ensure that their trust is well-placed. Most of the
provisions of the Code mirror requirements of federal securities laws, or those of agencies that
regulate our businesses, such as the Securities and Exchange Commission and the FINRA. These
provisions require Calamos to place the interests of its clients first at all times, and not to
take inappropriate advantage of the trust which our clients and others place in us. The Code also
is designed to assure that Calamos&#146; investment decisions remain independent and are not influenced
by personal considerations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Code addresses five main areas:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Restrictions on the use of Material Nonpublic Information;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Confidentiality of information obtained in the course of employment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Public disclosure of information about CAM;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The buying and selling of securities by Calamos personnel (including the buying and
selling of securities of CAM itself); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Specific limitations on activity of Calamos personnel imposed by various regulations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The first four of these areas focus on the legal and regulatory obligations of Calamos and its
personnel with respect to inside information and trading on or disclosing that information. The
final area deals with regulatory limitations on conduct by Calamos personnel that could potentially
harm Calamos or its customers in other ways.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Frequently Asked Questions About the Code</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>

<TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT> </B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provisions of the Code apply to all Calamos personnel, as well as to their &#147;Related
Persons,&#148; as defined below, which includes certain members of your immediate family and
certain accounts in which you have control or certain financial interests.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You may never buy or sell a security if you are aware of Material Nonpublic Information
that is relevant to the transaction. This prohibition applies to transactions that you may
authorize or advise for any Calamos customer or personal securities account that you own,
in whole or part, or have control or substantial influence over.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You may not buy or sell any security if that transaction could cause a conflict of
interest or an appearance of a conflict of interest in relation to your position with
Calamos.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->-1-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You must pre-clear personal transactions involving publicly traded Covered Securities of
individual companies not meeting the <I>de minimis </I>exception. In calculating the value of
options for purposes of the <I>de minimis </I>exception, the calculation is based on the value of
the shares underlying the option contract, and not the value of the option contract.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The <I>de minimis </I>exception does not exist for purchases and sales of CAM securities. All
transactions in CAM securities must be pre-cleared.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any investment in an open-end mutual fund advised or subadvised by Calamos must be held
for at least 30&nbsp;days. Exceptions must receive prior approval and will be limited to
hardship or other unusual circumstances.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You must pre-clear the purchase or sale of exchange traded funds as these securities are
deemed to be Covered Securities under the provisions of the Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Transactions and holdings reports are maintained in confidence, except to the extent
necessary to implement and enforce the provisions of the Code or to comply with requests
for information from government agencies.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Ask First</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If you have questions regarding the Code or any particular securities transaction, call a member of
the Legal and Compliance Department before acting.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>UNDERSTANDING AND APPLYING THE CODE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Purpose</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The investment management, mutual funds and financial services industries are highly regulated.
All are subject to a wide variety of laws and regulations designed to protect investors.
Similarly, publicly-traded companies are required to meet strict standards to protect the integrity
of the markets in which their securities trade.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos Asset Management, Inc. (&#147;CAM&#148;) is a publicly-traded company. Its subsidiaries and
affiliated companies are primarily involved in the investment management, mutual funds and
financial services industries. Predictably, CAM is subject to a wide variety of regulations.
Unless otherwise indicated in this Code of Ethics and Insider Trading Policy (the &#147;Code&#148;), the term
&#147;Calamos&#148; means CAM and its subsidiaries. The purpose of the Code is to explain certain of the
responsibilities of Calamos and its personnel, and to establish standards to which all Calamos
personnel are held. The Code supplements the CAM Code of Business Conduct and Ethics and the
Calamos Employee Handbook.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Scope</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Code applies to all directors, officers and employees of Calamos and other businesses
effectively controlled by Calamos, as well as to any outsiders, including agents and consultants,
that have access through Calamos to Material Nonpublic Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Code applies to all transactions in securities including but not limited to common stock,
options and other derivative instruments (e.g. futures contracts) for common stock, debt
securities, and any other securities that CAM or any other company may issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Questions regarding the Code or its application to specific transactions should be directed to the
Chief Compliance Officer of Calamos or General Counsel of Calamos.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Understanding the Terms</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Capitalized terms used in this Code have special meanings defined below. It is important for you
to read and become familiar with each definition used in the Code.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Access Person&#147;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Access Persons means any director, officer, employee of Calamos or an investment company managed by
Calamos with the exception of Outside Trustees, Unaffiliated Trustees or Outside Directors or as
otherwise provided under this Code.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Beneficial Ownership Interest&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Beneficial Ownership Interest shall be interpreted in the same manner as it would be under Rule
16a-1(a)(2) under the Securities Exchange Act of 1934, as amended, in determining whether a person
is a beneficial owner of a security for the purposes of Section&nbsp;16 of the Securities Exchange Act
of 1934, as amended, and rules and regulations thereunder. As a general matter, you have
Beneficial Ownership in a Covered Security if you have or share a direct or indirect Pecuniary
Interest in the security, including through any contract, arrangement, understanding, relationship
or otherwise. Although this list is not exhaustive, you generally would be the beneficial owner of
the following:
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securities held in your own name,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securities held with another in joint tenancy, as tenants in common, or in other joint
ownership arrangements,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securities held by a bank or broker as a nominee or custodian on your behalf or pledged
as collateral for a loan, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securities owned by a corporation which is directly or indirectly Controlled by, or
under common Control with, you.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Control&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Control means the power to exercise a controlling influence, which is intended to include
situations where there is less than absolute and complete domination and includes not only the
active exercise of power, but also the latent existence of power (e.g., the ability to exercise
power). Anyone who beneficially owns, either directly or through one or more controlled entities,
more than 25% of the voting securities of an entity is presumed to control that entity. In
interpreting &#147;Control,&#148; the Chief Compliance Officer will interpret the term consistent with
Section&nbsp;2(a)(9) of the 1940 Act.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Covered Security&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Covered Security means any stock, bond, future, investment contract, shares of closed-end funds,
shares of open-end mutual funds for which Calamos is the advisor or subadvisor, exchange traded
funds, or any other instrument that is considered a &#147;security&#148; of the Investment Company Act of
1940. The term &#147;Covered Security&#148; is very broad and includes items you might not ordinarily think
of as &#147;securities,&#148; such as: options on securities, on indexes, and on currencies; limited
partnership interests; interests in a foreign unit trust or foreign mutual fund; municipal
securities, interests in a private investment fund, hedge fund, or investment club; or any right to
acquire any security such as a warrant or convertible. In addition, purchases and sale
transactions in Covered Securities in any 401(k) plan, excluding percentage allocation changes or
payroll deduction percentages, are considered transactions in Covered Securities. The term Covered
Security does not include direct obligations of the U. S. government (U.S. treasury bills, notes
and bonds), money market instruments (including bank certificates of deposit, bankers&#146; acceptances,
commercial paper and repurchase agreements), shares of open-end mutual funds not advised or
subadvised by Calamos or units in 529 College Savings Plans.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Fund&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fund means an investment company, or series of an investment company, managed by Calamos.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Immediate Family&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Immediate Family means sharing the same household, which includes any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, and includes adoptive relationships.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-4-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Investment Person&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Investment Person means each person who makes, or participates in making, investment decisions or
recommendations for Calamos clients, or who, in connection with his or her regular functions or
duties with Calamos, makes, participates in, or obtains information regarding the purchase or sale
of securities by a client. Investment Person includes each Calamos portfolio manager, each
research analyst, each support staff member working directly with portfolio managers and analysts,
and each trader.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Material&#148; Information</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Information should be regarded as material if it could be important to decisions to buy, sell or
hold a company&#146;s securities. Any information that could reasonably be expected to affect the price
of company securities should be considered material. Material information can be positive or
negative, and can relate to historical facts, projections, or future events. Material information
can pertain to a company as a whole, or to divisions or subsidiaries of a company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the course of their employment, Calamos personnel can learn material information about many
companies, including CAM. Information dealing with the following subjects is likely to be found
material in particular situations:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">Financial Related Subjects:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial results</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Changes in earnings forecasts</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unusual significant gains, losses or charges</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Significant write-downs in assets</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Significant changes in revenues</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Significant liquidity issues</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Changes in dividends</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock splits</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock repurchases</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Changes in debt ratings</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Significant new equity or debt offerings</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">Corporate Developments:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Proposals, plans or agreements, even if preliminary in nature, involving
significant mergers, acquisitions, divestitures, recapitalizations, or
strategic alliances</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Major changes in directors or executive officers</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">Product Related Subjects:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Important new product offerings</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Significant developments related to a company&#146;s product offerings</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Significant developments related to a company&#146;s distribution relationships</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Significant developments related to intellectual property</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">Other Subjects:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Developments regarding significant litigation</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Developments regarding government agency actions</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Execution or termination of significant contracts</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This list is only illustrative, and certainly is not all-encompassing. Many other types of
information may be considered material. When in doubt about whether particular information about
CAM or another company is material, exercise caution and consult with the Chief Compliance Officer
or the General Counsel.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Material Nonpublic Information&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Material Nonpublic Information is information that is not known to the general public, that, if
known to the public, could reasonably be expected to affect the price of a company&#146;s securities, or
be considered important in deciding whether to buy, sell or hold a security. It is often referred
to as &#147;inside information.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Nonpublic&#148; Information</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Information about a company is considered nonpublic if it is not available to the general public.
In order for information to be considered available to the general public, it must have been widely
disseminated in a manner designed to reach investors. This is generally done by the company
issuing a national press release or making a publicly-available filing with the Securities and
Exchange Commission (&#147;SEC&#148;). The circulation of rumors, even if accurate and reported in the
media, does not constitute effective public dissemination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Even after public disclosure of material information regarding a company, an insider with knowledge
of the information must wait a period of two full trading days after the publication for the
information to be absorbed before that person can treat the information as public.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For purposes of the Code, a full trading day means from the opening of trading on NASDAQ to the
closing of trading on NASDAQ on that day. Accordingly, if an announcement is made before the
commencement of trading on a Tuesday, an employee in possession of such information may trade in
Company securities starting on Thursday of that week (subject to any applicable blackout period and
assuming the employee is not aware of other Material Nonpublic Information at that time), because
two full trading days would have elapsed by then (all of Tuesday and Wednesday). If the
announcement is made on Tuesday after trading has begun on NASDAQ, an employee in possession of the
information may not trade in Company securities until Friday. If the announcement is made on
Friday after trading begins, an employee may not trade in Company securities until Wednesday of the
following week. NASDAQ holidays do not count as trading days and will impact this schedule.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Outside Directors&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Outside Directors means those directors of Calamos Asset Management, Inc. who are not employees of
Calamos.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Outside Trustees &#147;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Outside Trustees means those trustees of a fund who are not &#147;interested persons&#148; of the fund, as
that term is defined in the Investment Company Act of 1940.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Pecuniary Interest&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pecuniary Interest in a security means the opportunity, directly or indirectly, to profit or share
in any profit derived from a transaction in the security. An indirect Pecuniary Interest includes:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Covered Securities held by a member of an Access Person&#146;s &#147;Immediate Family&#148;. For
example, you would be presumed to have an indirect Pecuniary Interest in Covered Securities
held by your minor child who lives with you but not in Covered Securities held by your
adult child who does not live with you. You may request that a member of your Immediate
Family be excluded from the Code&#146;s reach by contacting the Chief Compliance Officer and
demonstrating why it would be appropriate. For example, it may be appropriate to exclude
your adult uncle who lives with you from the Code&#146;s reach.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A general partner&#146;s proportionate interest in the portfolio Covered Securities held by
a general or limited partnership.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A person&#146;s right to dividends that is separated or separable from the Covered
Securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A beneficiary&#146;s pecuniary interest in Covered Securities holdings of a trust and any
pecuniary interest of any Immediate Family member of such beneficiary (such Pecuniary
Interest being to the extent of the person&#146;s pro rata interest in the trust).</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">Remainder interests do not create a pecuniary interest unless the person with such
interest has the power, directly or indirectly, to exercise or share investment Control
over the trust.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A settlor or grantor of a trust (i.e., you establish the trust) if you reserves the
right to revoke the trust without the consent of another person, unless you do not exercise
or share investment Control over the Covered Securities.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A shareholder will not be deemed to have a Pecuniary Interest in the portfolio Covered Securities
held by a corporation or similar entity in which the person owns Covered Securities if the
shareholder is not a controlling shareholder of the entity and does not have or share investment
Control over the entity&#146;s portfolio.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Related Person&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Related Person includes your spouse or equivalent domestic partner, minor children, relative living
in your home, and certain trusts under which you or a related party is a beneficiary or held under
other arrangements, including a sharing of financial interest. <B>Calamos personnel are responsible
for ensuring that their Related Persons comply with the provisions of the Code.</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Tipping&#148;</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Tipping is the disclosure of Material Nonpublic Information to another person for the purpose of
trading or other unauthorized purpose. Tipping can result in liability for both the tipper and
tippee.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Unaffiliated Trustees&#148;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unaffiliated Trustees means those Trustees of a fund who are not affiliated persons of Calamos but
are not Outside Trustees.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Consequences Of Failure To Comply With Code</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>External Penalties</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Legal penalties for trading on or tipping Material Nonpublic Information are severe. They include
criminal fines, civil fines of several times the profits gained or losses avoided, imprisonment and
private party damages. The penalties also may apply to anyone who directly or indirectly
controlled the person who committed the violation, including the employer and its management and
supervisory personnel. Significant penalties have been imposed even when the disclosing person did
not profit from the trading.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Action By Calamos</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition to these possible outside sanctions, Calamos personnel who violate prohibitions on
insider trading or tipping will face additional action from Calamos itself, up to and including
termination of employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Compliance with the provisions of the Code is a condition of employment of Calamos. Taking into
consideration all relevant circumstances, management of Calamos will determine what action is
appropriate for any breach of the provisions of the Code. Possible actions include disgorgement of
profits, letters of sanction, suspension of trading privileges, suspension or termination of
employment, or removal from office.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Trustees of any investment company for which Calamos Advisors LLC is the investment
adviser (each, a &#147;Fund&#148;) will determine what action is appropriate for any breach of the provisions
of the Code by an Outside Trustee or Unaffiliated Trustee, which may include removal from the
Board. The Board of Directors of CAM will determine what action is appropriate for any breach of
the provisions of the Code by an Outside Director, which may include removal from the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Transactions and reports filed pursuant to the Code will be maintained in confidence, except to the
extent necessary to implement and enforce the provisions of the Code or to comply with request for
information from government agencies. Additional information may be required to clarify the nature
of particular transactions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RESTRICTIONS ON THE USE OF CONFIDENTIAL INFORMATION BY CALAMOS PERSONNEL</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>General Prohibitions</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Material Nonpublic Information is an important type of confidential information, but it is only one
type of confidential information. Our customers and suppliers entrust Calamos with important
information relating to their personal and business matters. The nature of this relationship
requires strict confidentiality and trust. In safeguarding the information received, Calamos earns
the respect and further trust of our customers and suppliers. All employees will be required to
sign a Confidentiality Agreement at the time they are hired and this agreement carries an
obligation to maintain strict confidentiality, even after an employee&#146;s employment is terminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any violation of confidentiality seriously injures Calamos&#146; reputation and effectiveness.
Therefore, personnel are not to discuss confidential Calamos business with anyone who does not work
for Calamos, and should never discuss business transactions with anyone who does not have a direct
association with the transaction. Even casual remarks can be misinterpreted and repeated;
therefore, employees should develop the personal discipline necessary to maintain confidentiality.
If an employee becomes aware of anyone breaking this trust, they should report the incident to a
member of management immediately.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If someone outside Calamos or the employee&#146;s department asks questions regarding confidential
matters, you are not required to answer. Instead, you should refer the request to the department
supervisor or a member of senior management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">No one is permitted to remove or make copies of any Calamos records, reports or documents without
prior approval from management.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Material Nonpublic Information About Other Companies</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Calamos personnel may become aware of confidential information concerning another company. This
information may be Material Nonpublic Information and, as noted above, trading of securities,
including futures or options of the company based on this information is a violation of federal
securities law. An employee cannot trade on this information. Because of its seriousness, trading
on or tipping of confidential information about other companies will result in immediate
termination of employment. Trading in open-end mutual funds, like the Calamos Mutual Funds, is
generally permitted because the pricing of shares in these Funds is done daily, and has greater
transparency than the pricing of other securities. However, there may be times when such trading
would be improper based upon other information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Material Nonpublic Information About Calamos</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If a director, officer, employee, agent or consultant of Calamos has Material Nonpublic Information
relating to CAM or its securities, it is CAM&#146;s policy that neither that person nor any Related
Person may buy, sell or recommend securities of CAM. The prohibition applies to market purchases
and sales that are part of stock option exercises. It is the responsibility of each employee to
make sure that transactions in any Covered Security by any Related Person complies with the
provisions of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">No director, officer, employee, agent or consultant of Calamos may disclose (&#147;tip&#148;) Material
Nonpublic Information about CAM to any other person, including Related Persons, not authorized by
Calamos to have such information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, no director, officer, employee, agent or consultant of Calamos may make
recommendations or express opinions based on Material Nonpublic Information regarding trading in
CAM securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Confidentiality Of Nonpublic Information About Calamos</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nonpublic information relating to Calamos is the property of Calamos and the unauthorized
disclosure of such information is prohibited. Various laws and regulations govern the methods and
timing of announcements of information to the public. Unauthorized disclosures to select
individuals or groups could result in substantial liability for you and Calamos.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Public Disclosure Of Information About Calamos And Its Closed-End Funds</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event any director, officer, employee, agent, or consultant of Calamos receives any inquiry
from outside the company, such as from the media, a stock analyst or investors, for information
that may be nonpublic information (particularly financial results or projections), the inquiry must
be referred to the Calamos Investor Relations Department. Since Calamos&#146; closed-end funds are also
publicly traded, the same restrictions apply to disclosure of information about those products.
This department is responsible for coordinating and overseeing the release of such information to
the media, investing public, analysts and others in compliance with applicable laws and
regulations, including Regulation&nbsp;FD.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-9-<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In communicating with analysts and the general public, Calamos and CAM will observe the following
practices:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Communications to analysts or the general public regarding CAM should be made only by
John P. Calamos, Sr., Nick P. Calamos, the CAM Chief Financial Officer, or by the Calamos
Investor Relations Department of CAM.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CAM will not issue projections of, or comment on, future investment performance of
itself or any of its products, including the mutual funds.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All disclosure of material information made by CAM about itself and the closed-end funds
managed by Calamos will be broadly disseminated to the public.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ordinary communications of material information by and about CAM generally will be
through press release, through regular channels. CAM will not issue materials regarding
itself &#147;for broker-dealer use only&#148; or with similar restrictions; instead, any such
materials will be distributed as press releases. If conference telephone calls to discuss
material information are scheduled by CAM with analysts, CAM will provide adequate notice
of the calls, and permit investors to listen in by telephone or Internet web casting.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any Calamos employee inadvertently discloses Material Nonpublic Information to analysts or other
market professionals about CAM, or the closed-end funds managed by Calamos, CAM is obligated to
provide that information to the general public no later than 24 hours after the statement is made,
or the commencement of the next day&#146;s trading on NASDAQ. The Investor Relations and the Legal
Department must be notified immediately of any such inadvertent disclosure that comes to the
attention of any Calamos personnel.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>REPORTING REQUIREMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As part of its obligations under the securities laws, Calamos is required to maintain information
about the trading activity of its personnel.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Initial Disclosure of Accounts and Covered Securities</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When an Access Person begins employment with Calamos or becomes an Unaffiliated Trustee,
such person must within 10&nbsp;days disclose on an Initial Securities Holdings Form all
investment or brokerage accounts and Covered Securities in which he or she has a Beneficial
Ownership Interest, if any. This report must contain the following information which must
be current as of a date no more than 45&nbsp;days prior to the date the person became an Access
Person:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The title and type of security, and as applicable the exchange ticker symbol or
CUSIP number, number of shares and principal amount of each security in which you had
any direct or indirect Beneficial Ownership Interest when you became an Access Person</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The name of any broker, dealer or bank with whom you maintained an account in which
any Securities were held for your direct or indirect benefit as of the date you became
an Access Person, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The date that the report is submitted by you.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->-10-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">In addition, an Access Person must notify the Compliance Department in writing within 10
days of the opening of a new investment or brokerage account in which the Access Person has
a Beneficial Ownership.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Quarterly Transaction Reports</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Access Persons and Unaffiliated Trustees shall report all personal transactions in
Covered Securities in which he or she has a Beneficial Ownership Interest, including
transactions in shares of all mutual funds and closed-end funds, during a quarter to the
Compliance Department no later than 30&nbsp;days after the end of the calendar quarter. Quarterly
transaction reports shall include the following information for each individual transaction:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date of the transaction, title and number of shares or principal amount,
interest rate and maturity date (if applicable) of each Covered Security involved;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the nature of the transaction (i.e., purchase, sale, exchange, gift, or other type
of acquisition or disposition);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the price at which the transaction was effected;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the name of the broker, dealer or bank with or through which the transaction was
effected;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the account number; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date the report is submitted.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">In addition, for each account established by an Access Person or Unaffiliated Trustee in
which any securities were held during the quarter for the direct or indirect benefit of the
Access Person or Unaffiliated Trustee, the quarterly report shall include:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the name of the broker, dealer, custodian or bank with whom the account was
established;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date the account was established;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the account number; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date the report is submitted.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Note that an Access Person need not submit specific information relating to trading activity
with a quarterly transaction report under this section if it would duplicate information
contained in broker trade confirmations or account statements received by the Compliance
Department within the time periods described in this section. In addition, quarterly
transaction reports are not required to include transactions made pursuant to an automatic
investment plan contained in broker trade confirmations or account statements received by
the Compliance Department.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Annual Holdings Reports</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On an annual basis, you are required to provide an annual holdings report to the Chief
Compliance Officer that contains certain information which must be current as of a date no
more than 45&nbsp;days before the report is submitted. Annual reports shall be delivered to the
Compliance
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->-11-<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Department between January 2 and January&nbsp;30 of each year. This report must contain the
following information:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The title and type of security, and as applicable the exchange ticker symbol or
CUSIP number, number of shares and principal amount of each Covered Security in which
you had any direct or indirect Beneficial Ownership,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The name of any broker, dealer or bank with whom you maintained an account in which
any Securities were held for your direct or indirect benefit, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The date that the report is submitted by you.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Confirmations and Statements for all Brokerage and Investment Accounts</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Access Persons is required to direct brokers, dealers or banks to supply to the
Compliance Department, on a timely basis, duplicate copies of all confirmations of personal
securities transactions and copies of periodic statements for all securities accounts in
which he or she has a Beneficial Ownership Interest. Please instruct the applicable
brokerage firms to provide those copies to: Calamos Advisors LLC, Compliance Department,
2020 Calamos Court, Naperville, IL 60563. Upon request, the Compliance Department will send
a standard letter to a brokerage firm advising them of Calamos&#146; arrangements under this
Policy.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%"><B>You are responsible for ensuring initially that Compliance receives these confirmations and
statements and for following up subsequently if Compliance notifies you that they are not
being received. Compliance may direct you to close an account if the broker fails to
provide periodic confirmations or account statements on a timely basis.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>General Rules of Reporting of Personal Securities Transactions</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An <B>Outside Trustee</B>, <B>Unaffiliated Trustee, </B>or <B>Outside Director </B>shall report in
writing to the Chief Compliance Officer of Calamos, within 30&nbsp;days after the end of a
calendar quarter, any transaction by him or her or a Related Person of any of him or
her in a Covered Security if, at the time of the transaction he or she knew, or in the
ordinary course of fulfilling his or her duties as a Trustee or Director should have
known, that on the day of the transaction or within 15&nbsp;days before or after that day a
purchase or sale of that Covered Security was made by or considered for a Fund. Such
reporting shall contain the same information required for Access Persons (as described
in section 2).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An <B>Outside Trustee or Unaffiliated Trustee </B>shall also report in writing to the Chief
Compliance Officer of Calamos, <U><B>within one business day</B></U>, any personal securities
transaction by him or her or a Related Person of any of him or her in shares of Calamos
closed-end Funds. Such reporting is required to meet obligations under Section&nbsp;16 of
the Securities Exchange Act of 1934 and the rules thereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An <B>Outside Director </B>shall also report in writing to the General Counsel of Calamos
Asset Management, Inc., <U><B>within one business day</B></U>, any personal securities
transaction by him or her or a Related Person, including but not limited to automatic
dividend reinvestments in securities of Calamos Asset Management, Inc. (CLMS). Such
reporting is required to meet obligations under Section&nbsp;16 of the Securities Exchange
Act of 1934 and the rules thereunder.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->-12-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reports relating to the personal securities transactions of the Chief Compliance
Officer shall be reviewed by the General Counsel.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Certification of Compliance</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Access Person is required to certify annually that (i)&nbsp;he or she has read and
understands the Code, (ii)&nbsp;recognizes that he or she is subject to the Code, and (iii)&nbsp;he or
she has complied with the requirements of the Code and that he or she has disclosed or
reported all personal securities transactions required to be disclosed or reported under the
Code. The Chief Compliance Officer shall annually distribute a copy of the Code and require
certification by all covered persons and shall be responsible for ensuring that all
personnel comply with the certification requirement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Access Person who has not engaged in any personal securities transaction during the
preceding year for which a report was required to be filed pursuant to the Code shall
include a certification to that effect in his or her annual certification.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Annual Report to Fund Board</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The officers of each Fund shall prepare an annual report to the Board of Trustees of the Fund
that:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>summarizes existing procedures concerning personal investing and any changes in those
procedures during the past year;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>describes issues that arose during the previous year under the Code or procedures
concerning personal investing, including but not limited to information about material
violations of the Code and sanctions imposed;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certifies to the board that the Fund has adopted procedures reasonably necessary to
prevent its Access Persons from violating the Code; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>identifies any recommended changes in existing restrictions or procedures based upon
experience under the Code, evolving industry practices, or developments in applicable laws
or regulations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition, the officers of each Fund shall report to the Board of the Fund on a quarterly
basis any material violations of the Code.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>THE PURCHASE AND SALE OF SECURITIES BY CALAMOS PERSONNEL</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Persons involved in the financial services industry are subject to restrictions on the way in which
they can buy and sell securities for their own accounts. These restrictions are imposed by the SEC
and other regulators on the assumption that industry employees have a greater opportunity for
access to Material Nonpublic Information than do employees in other types of businesses and have a
fiduciary obligation with respect to trading vis-&#224;-vis client accounts. There are additional
restrictions imposed on the trading of Calamos personnel in securities of CAM. Calamos has long
had such restrictions on the personal securities trading activity of its personnel. Such
limitations are designed to prevent violations of the securities laws, as well as to avoid even the
appearance of impropriety in trading by Calamos personnel, and all personal trading must be done in
a manner consistent with the provisions of this Code.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->-13-<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Trading Policies and Procedures for Non-CAM Securities</I></B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Pre-Clearance of Covered Securities Transactions</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Except as expressly provided in this section, no Access Person shall engage in a Covered
Securities transaction in which he or she has a Beneficial Ownership Interest unless the
transaction has been approved in advance by any one of the CEO, Senior Executive Vice
President, Chief Compliance Officer or General Counsel, none of whom may approve his or her
own transactions. In addition, the personal securities transactions of the CEO and Senior
Executive Vice President must be approved in advance by the Chief Compliance Officer or
General Counsel. Each approval shall be in writing and shall be forwarded to the Compliance
Department to be filed in the employee&#146;s trading files and maintained for at least five
years after the end of the fiscal year in which it is made, the first two years in an easily
accessible place.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">The provisions of this Code are intended to limit the personal investment activities of
persons subject to the Code only to the extent necessary to accomplish the purposes of the
Code. Therefore, the pre-clearance provisions of the Code shall not apply to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases or sales effected in any account over which the persons subject to this
Code have no direct or indirect influence or control, including discretionary
accounts<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases or sales that are non-volitional on the part of either the person subject
to the Code or any client (including transactions pursuant to Rule&nbsp;10b5-1 plans,
discussed below);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases that are part of an automatic dividend reinvestment plan (additional
restrictions apply to CAM dividend reinvestment plan described below);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases effected upon the exercise of rights issued by an issuer <I>pro rata </I>to all
holders of a class of securities to the extent such rights were acquired from such
issuer, and sales of such rights so acquired;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases or sales of municipal securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchase of shares of open-end mutual funds advised or subadvised by Calamos.
Provided, however, that in order to prevent market timing in open-end funds advised or
subadvised by Calamos, pre-clearance is required for the redemption or exchange of such
mutual fund shares held for a period of less than 30 calendar days.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Open-End Mutual Funds Advised or Subadvised by Calamos</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Access Persons wishing to redeem or exchange any shares of open-end mutual funds advised or
subadvised by Calamos held for a period of less than 30 calendar days, must obtain written
approval from any one of the Chief Compliance Officer or General Counsel, neither of whom
may approve his or her own transactions.
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>In order for an account to be deemed discretionary,
approval must be received by the Chief Compliance Officer. Supporting
documentation must be provided in the form of a letter from the manager of the
discretionary account, a completed Request for Exclusion from the Code of
Ethics and Insider Trading Policy Form and a copy of the most recent account
statement.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->-14-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Calamos Closed-End Funds</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">In addition, officers and Trustees of Calamos closed-end Funds and Executive Officers of
Calamos Advisors LLC and Calamos Financial Services LLC must notify the General Counsel of
any purchases or sales of Calamos closed-end Funds, excluding dividend or capital gain
reinvestments, on the day such transaction was effected. Such notification is required to
meet reporting obligations under Section&nbsp;16 of the Securities Exchange Act of 1934 and the
rules thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Trading Policies and Procedures for CAM Securities</I></B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Outside Trustee nor Unaffiliated Trustee many own, directly or indirectly, a
Beneficial Ownership Interest in any CAM securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Outside Directors, officers and employees of Calamos must obtain prior clearance
from the Chief Compliance Officer or the General Counsel of CAM before he, she or a
Related Person engages in any transactions in CAM securities, including but not limited
to stock option exercises, gifts, or any other transfer of securities. Pre-clearance
is required even during a trading window.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If pre-clearance is granted, the individual must execute his or her trade within the
period of time indicated by the approving person on the pre-clearance form, which
period of time shall not exceed two business days from the day on which pre-clearance
is granted.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>For further discussion of the policies, procedures and restrictions relating to transactions in
CAM securities please see &#147;Policies and Procedures Regarding Trading in Securities of CAM&#148;
below.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Additional Trading Restrictions</I></B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Transactions with Clients</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">No Access Person or Outside Trustee shall knowingly sell to or purchase from a client any
security or other property except securities issued by that client.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Conflicting Transactions</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">No Access Person, Outside Director, Outside Trustee, Unaffiliated Trustee nor any Related
Person of any of them<B>, </B>shall purchase or sell, directly or indirectly, any Covered Security
in which such persons has, or by reason of such transaction acquires, any direct or indirect
Beneficial Ownership Interest (other than shares of an open-end fund advised or subadvised
by Calamos) that the person knows or has reason to believe is being purchased or sold or
considered for purchase or sale by a client, until the client&#146;s transactions have been
completed or consideration of such transactions has been abandoned. A purchase of a
security is being &#147;actively considered&#148; (a)&nbsp;when a recommendation to purchase or sell has
been made for the client and is pending or (b)&nbsp;with respect to the person making the
recommendation, when that person is seriously considering making the recommendation.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-15-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Absent extraordinary circumstances, a personal securities transaction shall not be executed
until the fifth business day after completion of any transaction for a client. The
purchase and sale of shares of any open-end fund advised or subadvised by Calamos by an
Investment Person, Access Person, Outside Trustee or Outside Director shall not be viewed as
a conflicting transaction for the purpose of this section.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Initial Public Offerings</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%"><B>No </B>Access Person shall acquire Beneficial Ownership Interest in any security in an initial
public offering.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Private Placements</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">No Access Person shall acquire a Beneficial Ownership Interest in any security in a private
placement without the express written prior approval of the President or Senior Executive
Vice President of Calamos. In deciding whether that approval should be granted,
consideration will be given to whether the investment opportunity should be reserved for
clients and whether the opportunity has been offered because of the person&#146;s relationship
with Calamos or its clients.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">An Investment Person who has been authorized to acquire a security in a private placement
must disclose that investment if he or she later participates in consideration of an
investment in that issuer for a client&#146;s account. Any investment decision for the client
relating to that security must be made by other Investment Persons.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Short-term Trading</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">No <B>Investment Person </B>may profit from the purchase and sale, or sale and purchase, of the
same (or equivalent) securities, other than shares of mutual funds, within 60&nbsp;days if the
same (or equivalent) securities have been held by a client during such 60-day period. Any
profit so realized will be required to be donated to a charitable organization acceptable to
Calamos.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Exceptions and Exemptions to Trading Policies, Procedures and Restrictions</I></B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Discretionary Accounts of Outside Trustees</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">A purchase or sale of securities in an account in which an Outside Trustee or a Related
Person of an Outside Trustee has a Beneficial Ownership Interest shall not be subject to the
prohibitions of the Code if the account is managed by someone other than the Outside Trustee
or the Related Person, and the Outside Trustee or Related Person did not have knowledge of
the transaction until after it had been executed, provided the Outside Trustee has
previously identified the account to Calamos&#146; Chief Compliance Officer.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><I>2.</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>De Minimis </I></B><B>Exception</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Purchases or sales in an amount less than $10,000 in a Covered Security of an issuer (other
than shares of mutual funds) that has a market capitalization of at least $5&nbsp;billion are
exempt from the prohibitions with respect to whether Calamos is trading the same security
for the accounts of its clients of this Code, and are exempt from the pre-clearance
requirements of the Code. However, please note that trades falling within this <I>de minimis</I>
exception must be reported pursuant to the requirements of this Code.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-16-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%"><B>This exception does not apply to transactions in securities of CAM regardless of the dollar
amount of the purchase or sale.</B>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Hardships</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Under unusual circumstances, such as a personal financial emergency, employee stock
ownership plans, stock option plans and certain personal trusts, or when it is determined
that no conflict of interest or other breach of duty is involved, application for an
exemption to make a transaction may be made to the Chief Compliance Officer, which
application may be denied or granted. To request consideration of an exemption, submit a
written request containing details on your circumstances, reasons for the exception and
exception requested.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">The Chief Compliance Officer may, in unusual circumstances, approve exceptions from the Code
of Ethics applicable to an individual, based on the unique circumstances of such individual
and based on a determination that the exceptions can be granted (i)&nbsp;consistent with the
individual&#146;s fiduciary obligations to clients and (ii)&nbsp;pursuant to procedures that are
reasonably designed to avoid a conflict of interest for the individual. In addition, the
Chief Compliance Officer may exempt from Access Person status any individual or class of
individual employee that is not required under Rule&nbsp;17j-1 to be covered by the Code in
circumstances that are deemed likely to not raise any conflicts with Calamos clients. Any
such exceptions shall be subject to such additional procedures, reviews and reporting as
determined appropriate by the Chief Compliance Officer in connection with granting such
exception. Any such exceptions will be reported to the Board of Directors of CAM at the
meeting of the Board of Directors and the Board of Trustees of the Funds, respectively,
immediately following the grant of such exception, and such Board of Directors or Board of
Trustees shall have the power to revoke or modify any such exceptions prospectively.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Corporate Trading/Seed Money</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Calamos may from time to time invest corporate funds in Covered Securities and/or directly<BR>
or together with Access Persons may establish mutual funds, hedge funds or similar products
(&#147;Seed Accounts&#148;) managed by Calamos for the purpose of eventually offering securities to
clients. Notwithstanding any provision of this Code, such Seed Accounts and the Access
Person with respect to such Corporate Transactions and Seed Accounts shall not be subject to
the substantive restrictions in this Code, such as the short-term trading ban or transaction
pre-clearance prior to the offering of that account to Calamos clients or the public,
provided that Calamos shall maintain reporting information for all such transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Policies and Procedures Regarding Trading In Securities Of CAM by Personnel and their Related
Persons</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The personal trading policies and procedures regarding securities of other companies are broadly
designed to protect Calamos clients against potential misuse of Material Nonpublic Information by
Calamos personnel that could disadvantage the client, or enrich Calamos personnel at the expense of
clients.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additional restrictions apply to transactions in CAM securities by Calamos personnel. These
restrictions are required under federal law to protect shareholders of Calamos from the potential
misuse of Material Nonpublic Information about Calamos itself.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-17-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Broadly speaking, the provisions of the Code with respect to the purchase and sale of securities of
other companies apply equally to the purchase and sale of CAM securities. For example, covered
accounts that hold CAM securities must be disclosed, duplicate confirmations and statements must be
provided, and transactions in CAM securities must be pre-cleared. However, trading in CAM
securities by CAM personnel and their Related Persons are limited to specific periods. Note that
the <I>de minimis </I>exception applicable to securities of other companies does not apply to transactions
in CAM securities by CAM personnel and their Related Persons. <B>Every trade in CAM Securities must
be pre-approved.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Blackout Periods and Trading Windows</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Quarterly Blackout Periods</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The period leading up to CAM&#146;s announcement of its quarterly financial results is a particularly
sensitive period of time for trading in CAM securities from the perspective of complying with
applicable securities laws. During this period, directors, officers and certain employees and
consultants may often possess Material Nonpublic Information about the expected financial
results for the quarter. As a result, directors, officers and employees of CAM are prohibited
from trading in CAM securities and entering into trading plans including but not limited to
dividend reinvestments during the period beginning on the first day of the last fiscal month of
each fiscal quarter and ending at the close of trading on the NASDAQ National Market (&#147;NASDAQ&#148;)
on the second full trading day following the release of the quarterly financial results. The
beginning and end of each such blackout period will be announced by the Chief Compliance
Officer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The exempt transactions described below under &#147;Certain Exemptions&#148; are permissible even during
the quarterly blackout periods. However, entering into a Rule&nbsp;10b5-1 trading plan and setting
up regularly scheduled plan transactions such as dividend reinvestment plan in CAM Securities
are prohibited during blackout periods. Rule&nbsp;10b5-1 trading plans are described further in that
Section.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Retirement Plan Blackout Periods</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In the event that CAM shares are available in any Calamos retirement plan, directors and
executive officers of Calamos are prohibited from purchasing, selling, acquiring or transferring
Calamos shares and derivative securities acquired in connection with their service or employment
during any blackout periods of more than three consecutive business days applicable to the
participants in such retirement plan. Such blackout periods, while rare, usually occur in
connection with administrative changes to the plans and plan service providers. The retirement
plan or its sponsor is required to give directors, executive officers and affected plan
participants advance written notice of such retirement plan blackout periods.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">These blackout periods are intended to conform to the current and any future requirements of and
exceptions to Section&nbsp;306 of the Sarbanes-Oxley Act of 2002, as amended (&#147;Section&nbsp;306&#148;). This
prohibition will be interpreted and implemented in accordance with Section&nbsp;306 and the
regulations thereunder, as amended.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Event Specific Blackout Periods</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Calamos reserves the right to impose other trading blackouts from time to time on specified
groups of its directors, officers, employees, agents or consultants when, in the judgment of the
CAM&#146;s General Counsel, a blackout period is warranted. Calamos will notify those affected by
such a blackout of when the blackout begins and when it ends. Those affected should not
disclose to others the fact of such trading suspension.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-18-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Trading Windows</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">To avoid even the appearance of impropriety, the most appropriate period for transactions in CAM
securities by directors, officers, employees, agents and consultants who are routinely in
possession of Material Nonpublic Information about CAM is the period beginning on the third full
trading day through the twelfth trading day following each quarterly earnings release.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">This trading window is based on the concept that CAM&#146;s disclosures to the investing public
should be up to date and complete during that period. The securities markets also should have
had a sufficient opportunity to digest the disclosures in the quarterly release.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>It should be noted that even during the trading windows, any person possessing Material
Nonpublic Information concerning CAM should not engage in any transactions in CAM securities
until such information has been known publicly for at least two full trading days, whether or
not CAM has recommended a suspension of trading to that person. Trading in CAM securities
during the trading window should </B><U><B>not</B></U><B> be considered a &#147;safe harbor&#148; for purposes of the
insider trading laws. and all directors, officers, employees and other persons should use good
judgment at all times and contact the Chief Compliance Officer or General Counsel if there are
questions.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Certain Exceptions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The prohibitions against trading while in possession of Material Nonpublic Information and
during blackout periods do not apply to the following types of transactions in CAM securities:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Transactions pursuant to a binding contract, instruction or written plan that complies
with the requirements of Rule&nbsp;10b5-1 (&#147;Rule&nbsp;10b5-1&#148;) under the Securities Exchange Act of
1934, as amended (the &#147;Act&#148;). Any such contract, instruction or written plan must be
presented to the Legal and Compliance Department for approval prior to entering into the
first transaction under such an arrangement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Rule&nbsp;10b5-1 provides a defense from insider trading liability for trading contracts,
instructions and plans that meet the rule&#146;s requirements. In general, a Rule&nbsp;10b5-1
contract, instruction or plan must be entered into outside of blackout periods applicable
to such person and when the person is not in possession of Material Nonpublic Information.
Once the contract, instruction or plan is adopted, the person must not exercise any
influence over the amount of securities to be traded, the price at which they are to be
traded or the date of the trade. The plan must either specify the amount, pricing and
timing of transactions when established or delegate discretion on these matters to an
independent third party, usually a broker.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Regularly scheduled and matching contributions to and withdrawals from a CAM stock fund
in a benefit plan when the contributions or withdrawals are put in place outside of
blackout periods applicable to such person and when not in possession of Material Nonpublic
Information;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Regularly scheduled purchases and reinvestments in and withdrawals from a dividend
reinvestment plan when the purchases, reinvestments or withdrawals are put in place outside
of blackout periods applicable to such person and when not in possession of Material
Nonpublic</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->-19-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Information. However any such contract, instruction or written plan must be presented to
the Compliance Department for approval prior to entering into such an arrangement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bona fide gifts of CAM securities, unless there exists reason to believe the recipient
intends to sell the securities while you possess Material Nonpublic Information;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Acceptance or vesting and any related stock withholding of stock options, restricted
stock, restricted stock units, phantom stock units or other grants issued under CAM&#146;s
incentive compensation plans;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Acquisition or disposition of stock in a stock split, reverse stock split, stock
dividend, or other transaction affecting all shareholders in a similar manner; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any other transaction designated by the General Counsel of CAM as exempt from the Code.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Prohibitions</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">As an investment philosophy, CAM does not believe in speculation, and speculation often
leads to insider trading issues. Accordingly, directors, officers and employees of CAM and
its affiliates are prohibited from the following activities:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases or sales of exchange-listed or OTC options on CAM stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The exercise of an option or right to purchase CAM shares, or the sale of CAM restricted
stock which has vested, is generally not permitted if the final exercise date or the sale
date falls within a blackout period, although certain transactions may be permitted,
depending upon specific circumstances.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Short term or day trading (<I>i.e. </I>purchases and sales within a 30&nbsp;day period) of CAM shares.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Short sales of CAM shares, other than shorting against the box.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Any exceptions to these restrictions must be approved in writing by both the Chief Compliance
Officer and the General Counsel of CAM.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Although margining and pledging of CAM securities as collateral is not prohibited, it is
strongly discouraged. In any margin or loan account, the securities used as collateral may be
sold without your consent to meet a margin call or to satisfy a loan. If such a sale occurs
during a blackout period, or when you have access to material non-public information, it may
result in unlawful insider trading. Because of this danger, it is recommended that directors,
officers, employees, agents and consultants of CAM not hold CAM stock in a margin account or
pledge CAM stock as collateral for a loan.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Additional Requirements for Directors and Executive Officers</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Directors, including Outside Directors, and certain officers of CAM and its affiliated
companies, as well as other personnel with regular access to CAM&#146;s financial information,
must obtain prior clearance from the General Counsel of CAM before engaging in <U><B>any</B>
</U>transaction in CAM securities and securities of closed-end funds managed by CAM. This
includes trades within the trading windows described above. A request should be made at
least two business days in advance of the proposed trade date, and the clearance will
generally be good for 48 hours. CAM
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">personnel subject to this requirement are listed in Attachment A, which may be amended from
time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">In addition, initial participation in a dividend reinvestment plan of CAM stock must be
pre-cleared by CAM&#146;s General Counsel and thereafter only for changes in reinvestment
directions (e.g. change in the percent of the dividend amount being reinvested). The
following information must be provided initially for each dividend reinvestment plan of CAM
stock you participate in: (i)&nbsp;the name of the plan and plan sponsor; (ii)&nbsp;the reinvestment
directions give to the plan sponsor; and (iii)&nbsp;form of ownership (e.g. hold directly,
jointly with spouse, through a trust, etc.). Typically, these transactions need to be
reported to the SEC within two business days after the execution of the transaction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Such persons also may trade in CAM securities and securities of closed-end funds managed by
CAM pursuant to the provisions of Rule&nbsp;10b5-1 of the Securities Exchange Act of 1934. Rule
10b5-1 provides a defense from insider trading liability for trading contracts, instructions
and plans that meet the rule&#146;s requirements by sharply limiting the discretion an insider
has over the timing, amount and pricing of trades. In general, a Rule&nbsp;10b5-1 contract,
instruction or plan must be entered into, in writing, outside of blackout periods applicable
to such person and when the person is not in possession of material nonpublic information.
Once the contract, instruction or plan is adopted, the person must not exercise any
influence over the amount of securities to be traded, the price at which they are to be
traded or the date of the trade. In short, it is similar to regularly scheduled purchases
and reinvestments in, or withdrawals from, dividend reinvestment plans or similar programs.
The plan must either specify the amount, pricing and timing of transactions when established
or delegate discretion on these matters to an independent third party, usually a broker.
Such arrangements must be approved by the Legal &#038; Compliance Department prior to the first
transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Section&nbsp;16 Reporting and Prohibitions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the requirements of Section&nbsp;16 of the Securities Exchange Act of 1934, certain parties are
required to report any transactions in CAM securities including but not limited to dividend
reinvestments on a regular basis. These persons include:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CAM&#146;s CEO</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CAM&#146;s principal financial officer</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CAM&#146;s principal accounting officer (or, if there is no such accounting officer, the
controller)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any director of CAM, including Outside Directors</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any vice-president of CAM in charge of a principal business unit, division or function
(such as sales, administration or finance)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any other officer of CAM who performs a policy-making function, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any other person who performs similar policy-making functions for CAM.</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Officers of CAM&#146;s parent(s) or subsidiaries shall be deemed officers of CAM if they perform such
policy-making functions for CAM. In general such persons are deemed to have inside information by
virtue of their positions within CAM.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Transactions of immediate family members of the persons listed above also are generally subject to
the reporting requirements, on the theory that the director, officer or principal shareholder will
financially benefit from these transactions. For Section&nbsp;16 purposes, &#147;immediate family&#148; means any
child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These persons, as well as any holder of more than 10% of CAM stock, must file initial reports of
CAM share ownership on Form&nbsp;3 and subsequent reports of transactions on Form&nbsp;4. Although the Legal
Department of CAM is prepared to assist these persons in preparing such filings, the responsibility
for such filings, including notifying CAM of the transaction and seeking pre-clearance, is that of
the person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition to the periodic reporting requirements, directors, officers and principal shareholders
of CAM are subject to the &#147;short swing&#148; trading provisions of Section&nbsp;16. Subject to certain
exceptions, an officer, director or principal shareholder of CAM who engages in any combination of
purchase and sale, or sale and purchase of a CAM security within any period of less than six months
must turn over to CAM any profit realized or loss avoided by such a combination of transactions.
This is an absolute penalty imposed by law, and it is imposed regardless of any intention on the
part of the director, officer or owner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CAM&#146;s Legal Department is prepared to assist these persons in determining and satisfying their
obligations under Section&nbsp;16, but that assistance can be offered only if the transactions are
reported to CAM&#146;s General Counsel for pre-approval.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Rule&nbsp;144</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Directors and executive officers of CAM are required to file Form&nbsp;144 with the SEC and NASDAQ
before making an open market sale of CAM shares. The Form&nbsp;144 notifies the SEC and NASDAQ of an
intent to sell CAM shares. Although the Form&nbsp;144 is generally prepared and filed by the Calamos
Legal Department, the reporting person retains responsibility for the timeliness and accuracy of
reports. Again, that assistance can be offered only if the transactions are reported to CAM&#146;s
General Counsel for pre-approval.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-22-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OTHER REGULATORY REQUIREMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain other restrictions are imposed upon Calamos personnel, other than Outside Trustees,
Unaffiliated Trustees and Outside Directors, as a result of being in a highly regulated industry.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Outside Employment</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">What employees do outside the office on their own time is their business as long as it does not
reflect negatively on the Company. However, for full-time employees of Calamos, it is expected
that their position with the company is their primary employment. Any outside activity must not
interfere with an employee&#146;s ability to properly perform his or her job responsibilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Personnel contemplating a second job must notify their supervisor immediately. The supervisor
will thoroughly discuss this opportunity with the employee to ensure it will not interfere with
job performance at Calamos, nor pose a conflict of interest. All outside business activities
must be approved by your supervisor and reported to the Chief Compliance Officer via the
completion of the Notice of Outside Business Activities Form.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Service As A Director Or Officer</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">No Access Person may serve as a member of the board of directors or trustees, or as an officer,
of any publicly-held company without the prior written approval of the President or the Chief
Compliance Officer, based on a determination that the board service would not be inconsistent
with the interests of the clients of CAM. If an Investment Person is serving as a board member,
that Investment Person shall not participate in making investment decisions relating to the
securities of the company on whose board he or she sits. Because of the potential for real or
apparent conflicts of interests, such service is strongly discouraged.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Gifts</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Regulators require that Calamos monitor the receipt and giving of gifts. The regulatory concern
is that the receipt or giving of gifts, or excessive entertainment or favors could interfere
with fiduciary judgment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B><I>Accepting Gifts and Entertainment</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Except as otherwise specifically stated below, an Access Person or his/her family members must
not accept excessive gifts, entertainment or favors from current or prospective customers or
suppliers of Calamos. Cash gifts and checks or gift certificates convertible into cash are
always inappropriate and must never be accepted. Other gifts up to $100 in retail value may be
accepted if the Access Person is certain that there is no conflict of interest or appearance of
any conflict of interest raised by the gift(s). If an employee receives a gift, over a $100
retail value, the employee must submit a written report to the Chief Compliance Officer.
Reports submitted to the Chief Compliance Officer must contain the following information: name
of recipient; title or position; department; name of donor; description of gift; date received;
actual or estimated value. Such reports are to be prepared and submitted immediately upon
receipt of such gift. Senior Management reserves the right to require the person to return any
gift if it determines such return is appropriate under the circumstances.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-23-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Invitations for excessive or extravagant entertainment must be declined. If such entertainment
is accepted inadvertently, it must be reported in writing in accordance with the above
guidelines. Employees should only accept types of entertainment that they believe would be
deemed appropriate. No gifts should be accepted by one employee from another employee if
accepting such gifts would<U> </U>create a conflict of interest or the appearance thereof, if
such gifts would be considered excessive, or if such gifts are inappropriate or in bad taste.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B><I>Presenting Gifts and Entertainment</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In situations where Calamos is to present a gift, entertainment, or other accommodation to a
current or prospective customer or supplier, <B>Investment Persons </B>or <B>Access Persons </B>must use
careful judgment to determine that the matter is handled in good taste and without excessive
expense. All entertainment presented by Calamos or in the name of Calamos must be appropriate
and in good taste. Employees presenting a gift, entertainment or accommodation must be certain
that such gift, entertainment or accommodation they have selected would be appropriate. If there
are any questions as to whether or not a particular form of gift, entertainment or accommodation
is appropriate, such gift, entertainment or accommodation should not be presented. Prior
approval from the Chief Compliance Officer is required before purchasing a gift with a retail
value over $100 or the presentation of a gift combined with other gifts given to the same client
during the calendar year would exceed $100. Reports should include name of donor; title or
position; department; name of recipient, description of gift; date presented; and actual value.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Access Persons sometimes obtain Calamos-owned tickets to sporting or cultural events, etc. When
an Access Person is accompanying a customer to the event using the Calamos-owned tickets, the
use of such tickets is considered to be customer entertainment. When an Access Person presents
such tickets to a customer, but does not attend the event with the customer, the presentation of
such Calamos-owned tickets is then considered a gift to the customer. In either event, care
must be taken to ensure that such gift or entertainment is an appropriate business expense for
Calamos. It is expected that Calamos-owned tickets would not be repeatedly used to entertain,
or be presented as gifts to, the same customer.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Identifying Actual or Potential Conflicts of Interest</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Calamos believes that the interests of Calamos and its clients can and should be aligned,
despite the potential for conflicts of interest in the investment adviser/client relationship.
In addition to being in the best interests of our clients to avoid conflicts of interest, it is
in the best interest of Calamos itself to avoid actual and even, if possible, potential
conflicts of interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In a company of our size and complexity, it can become difficult to identify conflicts of
interest and other potential problems. But identification is the first and most necessary step
in resolving those issues. Calamos believes that those dealing with the details of running its
business operations are in just as good a position &#150; often a better one &#150; as Calamos management
to identify potential problems.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">All Calamos employees have an interest in identifying and solving potential problems. Each
employee should feel free to raise questions and analyze what he or she is doing. In the end,
Calamos is paying all of us to think and use our best judgment, and that includes raising
questions and joining the discussion that shapes our business policies and practices. If any
employee is concerned about an apparent conflict of interest, or any other legal or ethical
question involving our businesses, we want to hear from you so that we can take the appropriate
action.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-24-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Calamos recognizes that some people may feel uncomfortable raising issues, especially if they
question the propriety of something that is occurring. Although people should not be afraid to
raise these points openly, as an alternative Calamos has established the EthicsPoint program for
reporting and resolving issues under the Calamos Standards of Conduct, including conflicts of
interest and other legal or ethical issues. Under the EthicsPoint program, any employee can
report any type of actual or suspected violation on an anonymous, no retaliation basis. The
EthicsPoint program, which is described more completely on the Calamos intranet site, has
established a procedure for investigating and resolving such issues, and the same procedures
will be used to resolve issues raised face-to-face, outside the EthicsPoint program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>YEARLY CERTIFICATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Copies of the Code will be provided to all personnel at least yearly. They will be required to
sign a certification that they have read and understand the provisions of the Code, and that
they have abided by all of its provisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>RECORD RETENTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Compliance Department shall maintain the records listed below for a period of five years in
a readily accessible place:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of each Code that has been in effect at any time during the past five years;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A record of any violation of the Code and any action taken as a result of such
violation for five years from the end of the fiscal year in which the violation
occurred;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A record of all written acknowledgements of receipt of the Code and amendments for
each person who is currently, or within the past five years was, a supervised person;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holdings and transactions reports made pursuant to the Code, including any brokerage
confirmation and account statements made in lieu of these reports;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A record of any decision and supporting reasons for approving the acquisition of
securities in limited offerings for at least five years after the end of the fiscal
year in which approval was granted;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of each Initial Statement of Beneficial Ownership of Securities ( SEC Form
3), Statement of Changes of Beneficial Ownership of Securities ( SEC Form&nbsp;4), and
Annual Statement of Beneficial Ownership of Securities ( SEC Form&nbsp;5).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Effective Date: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; June&nbsp;30, 2005
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->-25-<!-- /Folio -->
</DIV>




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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
