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<SEC-DOCUMENT>0000950137-05-013113.txt : 20051031
<SEC-HEADER>0000950137-05-013113.hdr.sgml : 20051031
<ACCEPTANCE-DATETIME>20051031173143
ACCESSION NUMBER:		0000950137-05-013113
CONFORMED SUBMISSION TYPE:	N-2/A
PUBLIC DOCUMENT COUNT:		10
FILED AS OF DATE:		20051031
DATE AS OF CHANGE:		20051031

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MEXICO EQUITY & INCOME FUND INC
		CENTRAL INDEX KEY:			0000863900
		IRS NUMBER:				133576061
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			0731

	FILING VALUES:
		FORM TYPE:		N-2/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-128040
		FILM NUMBER:		051167394

	BUSINESS ADDRESS:	
		STREET 1:		U.S. BANCORP FUND SERVICES, LLC
		STREET 2:		615 EAST MICHIGAN STREET, LC-2
		CITY:			MILWAUKEE
		STATE:			WI
		ZIP:			53202
		BUSINESS PHONE:		4147654499

	MAIL ADDRESS:	
		STREET 1:		U.S. BANCORP FUND SERVICES, LLC
		STREET 2:		615 EAST MICHIGAN STREET, LC-2
		CITY:			MILWAUKEE
		STATE:			WI
		ZIP:			53202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEXICO CONVERTIBLE ADVANTAGE FUND INC
		DATE OF NAME CHANGE:	19900807

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEXICO ADVANTAGE FUND INC
		DATE OF NAME CHANGE:	19900805

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MEXICO EQUITY & INCOME FUND INC
		CENTRAL INDEX KEY:			0000863900
		IRS NUMBER:				133576061
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			0731

	FILING VALUES:
		FORM TYPE:		N-2/A
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-06111
		FILM NUMBER:		051167395

	BUSINESS ADDRESS:	
		STREET 1:		U.S. BANCORP FUND SERVICES, LLC
		STREET 2:		615 EAST MICHIGAN STREET, LC-2
		CITY:			MILWAUKEE
		STATE:			WI
		ZIP:			53202
		BUSINESS PHONE:		4147654499

	MAIL ADDRESS:	
		STREET 1:		U.S. BANCORP FUND SERVICES, LLC
		STREET 2:		615 EAST MICHIGAN STREET, LC-2
		CITY:			MILWAUKEE
		STATE:			WI
		ZIP:			53202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEXICO CONVERTIBLE ADVANTAGE FUND INC
		DATE OF NAME CHANGE:	19900807

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEXICO ADVANTAGE FUND INC
		DATE OF NAME CHANGE:	19900805
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-2/A
<SEQUENCE>1
<FILENAME>c98194a1nv2za.htm
<DESCRIPTION>AMENDMENT TO FORM N-2
<TEXT>
<HTML>
<HEAD>
<TITLE>nv2za</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"><B>As filed with the Securities and Exchange Commission on September&nbsp;1, 2005<BR>
and as amended on October&nbsp;31, 2005<BR>
1933 Act File No.&nbsp;333-128040<BR>
1940 Act File No.&nbsp;811-06111</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">
<DIV style="width:18%; margin-top: 12pt; font-size: 3pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
</DIV>

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


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B><FONT face="Wingdings">&#254;</FONT> REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933<BR>
<FONT face="Wingdings">&#254;</FONT> PRE-EFFECTIVE AMENDMENT NO.
1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
<FONT face="Wingdings">&#111;</FONT> POST-EFFECTIVE AMENDMENT NO. __________</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B><FONT face="Wingdings">&#254;</FONT>
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940<BR>
<FONT face="Wingdings">&#111;</FONT> AMENDMENT NO. _______</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>THE MEXICO EQUITY &#038; INCOME FUND, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Charter)<BR>
615 East Michigan St., 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Floor<BR>
Milwaukee, WI 53202<BR>
(Address of Principal Executive Offices)<BR>
Registrant&#146;s Telephone Number, including Area Code: (888)&nbsp;294-8217</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt">The Mexico Equity &#038; Income Fund, Inc.<BR>
615 East Michigan St., 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Floor<BR>
Milwaukee, WI 53202<BR>
(Name and Address of Agent for Service)<BR>
Copies of information to:</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Thomas R. Westle, Esq.<BR>
Rustin I. Paul, Esq.<BR>
Blank Rome LLP<BR>
405 Lexington Avenue<BR>
New York, NY 10174<BR>
(212)&nbsp;885-5239</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any securities being registered on this form will be offered on a delayed or continuous basis in
reliance on Rule&nbsp;415 under the Securities Act of 1933, other than securities offered in connection
with a dividend reinvestment plan, check the following box. <FONT face="Wingdings">&#111;</FONT>
</DIV>

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

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

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


<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>This post-effective amendment designates a new effective date for a previously filed
post-effective amendment registration statement.</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>This form is filed to register additional securities for an offering pursuant to Rule&nbsp;462(b)
under the Securities Act and the Securities Act registration statement number of the earlier
effective registration statement for the same offering is __________.</TD>
</TR>
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>

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

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

    <TD>&nbsp;</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Being</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Offering Price</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Offering</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Registration</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center">Title of Securities Being Registered</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Registered</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Per Share (3)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Price (3)</TD>
    <TD style="border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Fee (4)</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
                    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Rights to Purchase Preferred Stock (1)</DIV></TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">1,855,128(2)</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">0.00</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">0.00</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">0.00</TD>
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Preferred Stock</DIV></TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">1,855,128</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>

<TD align="center" valign="bottom" style="border-top: 1px solid #000000">$
20.35</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">$ 37,750,000</TD>
    <TD style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 1px solid #000000">$ 4,443.17</TD>
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-top: 3px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</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>Evidencing the rights to subscribe for shares of Preferred Stock of the Registrant
being registered herewith. Pursuant to Rule 457(g) of the Securities Act of 1933, no
separate registration fee is required for the rights because the rights are being
registered in the same registration statement as the Preferred Stock of the Registrant
underlying the rights.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents 0.75 Subscription Rights for each share of common stock of Registrant
outstanding as of the Record Date.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated solely for the purpose of calculating the registration fee. Based on
90% of net asset value per Fund share on October&nbsp;28, 2005.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Calculated in accordance with Rule 457(c) of the Securities Act of 1933, as amended,
based on the estimated maximum aggregate offering price of the common stock of the
Registrant.</TD>
</TR>

</TABLE>


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




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





<P align="center" style="font-size: 10pt">&nbsp;
</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">The Mexico Equity &#038; Income Fund, Inc.<BR>
Cross Reference Sheet
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PART A &#151; INFORMATION REQUIRED IN A PROSPECTUS
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="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">No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Location</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;1.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Outside Front Cover
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Outside Front Cover</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">Item&nbsp;2.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cover Pages; Other Offering Information
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inside Front and Outside Back Cover</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">Item&nbsp;3.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fee Table and Synopsis
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fees and Expenses</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">Item&nbsp;4.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Highlights
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Highlights</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">Item&nbsp;5.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Plan of Distribution
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Outside Front Cover; Prospectus
Summary</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">Item&nbsp;6.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Selling Stockholders
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not Applicable</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">Item&nbsp;7.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Use of Proceeds
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Use of Proceeds</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">Item&nbsp;8.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">General Description of the Registrant
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Outside Front Cover Page;
Prospectus Summary; Risk Factors;
Business of the 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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;9.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">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="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">Item&nbsp;10.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Capital Stock, Long-Term Debt and Other Securities
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Description of our Capital Stock</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <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">Item&nbsp;11.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defaults and Arrears on Senior Securities
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not Applicable</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">Item&nbsp;12.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Proceedings
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Proceedings</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">Item&nbsp;13.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Table of Contents of the Statement of Additional
Information
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Not Applicable</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PART B &#151; INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION<SUP style="font-size: 85%; vertical-align: text-top"> *</SUP>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="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">No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Location</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;14.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cover Page
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Outside Front Cover</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">Item&nbsp;15.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Table of Contents
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Table of Contents</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">Item&nbsp;16.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">General Information and History
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Prospectus Summary;
Business of the
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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;17.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Objective and Policies
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Prospectus Summary;
Investment
Objective and
Policies; Risk
Factors; Business
of the 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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;18.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">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="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">Item&nbsp;19.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Control Persons and Principal Holders of Securities
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Control Persons and
Principal
Stockholders</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</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="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <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">No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Location</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Item&nbsp;20.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Advisory and Other Services
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Prospectus Summary;
Business of the
Fund; Investment
Advisory Agreement</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">Item&nbsp;21.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Portfolio Managers
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Prospectus Summary;
Business of the
Fund; Investment
Advisory Agreement</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">Item&nbsp;22.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brokerage Allocation and Other Practices
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fees and Expenses;
Prospectus Summary;
Brokerage
Allocation and
Other Practices</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">Item&nbsp;23.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Status
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Distributions;
Material United
States Federal
Income Tax
Consequences</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">Item&nbsp;24.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">PART C &#151; OTHER INFORMATION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Information required to be included in Part&nbsp;C is set forth under the appropriate item, so numbered,
in Part&nbsp;C of this Registration Statement.
</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" style="font-size: 10pt; margin-top: 0pt"><DIV style="margin-left:10px; text-indent:-10px">* PURSUANT TO THE GENERAL INSTRUCTIONS TO FORM N-2, ALL INFORMATION REQUIRED TO BE SET FORTH IN
PART B &#147;STATEMENT OF ADDITIONAL INFORMATION&#148; HAS BEEN INCLUDED IN THE PROSPECTUS AND, ACCORDINGLY,
NO STATEMENT OF ADDITIONAL INFORMATION HAS BEEN FILED AS PART OF THIS REGISTRATION STATEMENT.<BR></DIV>
</DIV>


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

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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE MAY NOT ISSUE THESE
SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS
EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL OR ISSUE THESE SECURITIES AND IS NOT SOLICITING
AN OFFER TO PURCHASE OR ACCEPT THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT
PERMITTED.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">PRELIMINARY
PROSPECTUS
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUBJECT TO COMPLETION &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October&nbsp;31, 2005
</DIV>


<DIV align="left" style="font-size: 12pt; margin-top: 12pt"><B>1,855,128 Shares Issuable Upon Exercise of Rights to Purchase Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 14pt; margin-top: 6pt"><B>The Mexico Equity &#038; Income Fund, Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each of our stockholders as of &#95;&#95;&#95;, 2005 (the &#147;Record Date&#148;) shall receive, at no
cost, 0.75 nontransferable rights (each whole right, a &#147;Subscription Right&#148;) to purchase one share
of Preferred Stock for each share of our common stock such stockholder owns as of the Record Date
(the &#147;Basic Subscription Right&#148;). We will not issue fractional shares upon the exercise of your
Basic Subscription Right or Over-Subscription Privilege (as defined below). We intend to offer
shares of Preferred Stock to these stockholders for a price equal to the greater of (a)&nbsp;90% of the
Fund&#146;s net asset value per share (&#147;NAV&#148;) as determined on the Expiration Date (as defined below) or
(b)&nbsp;the average closing price of our common stock over the four consecutive trading days ending on
the Expiration Date. The offer to purchase Preferred Stock will expire at 5:00 p.m., New York City
time, on December &#95;&#95;&#95;, 2005, unless we decide to extend it to some later date (the &#147;Expiration
Date&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If you elect to purchase the maximum amount of our Preferred Stock that you are entitled to
pursuant to your Basic Subscription Right, you will also be entitled to subscribe, subject to
allotment, to purchase additional shares of our Preferred Stock, if any, that are not purchased by
our other stockholders pursuant to their Basic Subscription Right as of the Expiration Date (the
&#147;Over-Subscription Privilege&#148;). If you do not fully subscribe for your Basic Subscription Right,
your ownership may be diluted. See &#147;Risk Factors &#151; Dilution of Ownership.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We intend to file an application to list our Preferred Stock on the New York Stock Exchange under
the symbol &#147;MXEP,&#148; but we cannot assure you that the Preferred Stock will be listed for trading or
that a liquid market for our Preferred Stock will develop. Since August&nbsp;21, 1990, our common stock
has traded on the NYSE under the symbol &#147;MXE.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>An investment in the Fund involves risks. See &#147;Risk Factors&#148; beginning on page 9.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We will conduct a series of tender offers for Preferred Stock only (each, a &#147;Tender Offer&#148;) on a
semi-annual basis, on dates to be determined by the Board of Directors and beginning within the
6-month period between January&nbsp;31, 2006 and July&nbsp;31, 2006, in which 25% of the issued and
outstanding Preferred Stock as of the date the Preferred Stock is issued may be tendered to the
Fund and repurchased in kind for the Fund&#146;s portfolio securities. Each stockholder participating in
a Tender Offer may have his or her tendered shares of Preferred Stock repurchased by the Fund in
kind for portfolio securities having a value equal to 99% of NAV as determined on the date of each
Tender Offer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Neither the SEC 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" style="font-size: 10pt; margin-top: 6pt">The Mexico Equity &#038; Income Fund, Inc. is registered under the Investment Company Act of 1940, as
amended, as a closed-end, non-diversified management investment company. Our investment objective
is high total return through capital appreciation and current income by investing at least 80% of
the Fund&#146;s assets in equity and convertible securities issued by Mexican companies and debt
securities of Mexican issuers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Prospectus sets forth concisely the information about the Fund that a prospective investor
ought to know before investing. Additional information about the Fund has been filed with the SEC
and is available upon written or oral request and without charge by calling our administrator at
(888)&nbsp;294-8217. Our SEC filings, including annual and semi-annual reports to stockholders, are also
available to the public on the SEC&#146;s Internet website at
<U>http://www.sec.gov</U> and can be inspected at
the offices of the NYSE, 20 Broad Street, New York, NY 10005. We do not have a website. This
Prospectus should be retained for future reference.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</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">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</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 this Prospectus. We have not authorized
any other person to provide you with different information. If anyone provides you with different
or inconsistent information, you should not rely on it. This Prospectus is not an offer to sell or
issue, or a solicitation of an offer to buy or accept, any securities in any jurisdiction where it
is unlawful to make such an offer or solicitation.
</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="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="#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">The Offering</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">Fees and Expenses</A></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:15px; text-indent:-15px"><A href="#104">Financial Highlights</A></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"><A href="#105">Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">Preferred Stock Rights Offering</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">Material United States Federal Income Tax Consequences</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">Price Range of Common Stock</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">Distributions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">Business of the Fund</A></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:15px; text-indent:-15px"><A href="#112">Management</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">Compensation of Directors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">Investment Advisory Agreement</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">Administration Agreement</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="#116">Control Persons and Principal Stockholders</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="#117">Determination of Net Asset Value</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="#118">Description of our Capital Stock</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="#119">Limitation on Liability of Directors and Officers; Indemnification and Advancement of Expenses</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#120">Provisions of the Maryland General Corporation Law and our Charter and Bylaws</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#121">Regulation</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#122">Share Repurchases</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#123">Custodian, Transfer and Dividend Paying Agent and Registrar</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="#124">Brokerage Allocation and Other Practices</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#125">Privacy Policy</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#126">Legal Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#127">Experts</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#128">Available Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#129">Forward-Looking Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#130">Financial Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
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</DIV>

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

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

<DIV style="width: 99%; 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>This summary highlights some of the information in this Prospectus. It may not contain
all of the information that you may want to consider. You should read carefully the more detailed
information set forth under &#147;Risk Factors&#148; and the other information included in this Prospectus.
The terms &#147;we,&#148; &#147;us,&#148; the &#147;Fund&#148; and &#147;our&#148; refer to The Mexico Equity &#038; Income Fund, Inc. &#147;PAM&#148; or
the &#147;investment adviser&#148; refers to Pichardo Asset Management, S.A. de C.V.</I>
</DIV>

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


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were incorporated in Maryland on May&nbsp;24, 1990 and commenced investment operations on August
21, 1990. We are registered under the Investment Company Act of 1940, as amended ( the &#147;1940
Act&#148;), as a closed&#150;end, non-diversified management investment company. Our common stock is listed
and trades on the NYSE under the trading symbol &#147;MXE.&#148;
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investment objective is high total return through capital appreciation and current income.
We seek to achieve our investment objective by investing at least 80% of our assets in equity and
convertible securities issued by Mexican companies and debt securities of Mexican issuers.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investment adviser is Pichardo Asset Management, S.A. de C.V., a corporation organized
under the laws of Mexico. PAM is an investment adviser registered under the Investment Advisers
Act of 1940, as amended (the &#147;Advisers Act&#148;). Maria Eugenia Pichardo, who owns 99% of PAM, has
acted as the Fund&#146;s portfolio manager since the inception of the Fund in 1990. Under our
Investment Advisory Agreement, we pay PAM a monthly fee at an annual rate of 0.80% of the value of
our average daily net assets. See &#147;Investment Advisory Agreement.&#148;
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of our stockholders as of the Record Date shall receive, at no cost, 0.75 nontransferable
rights (each whole right, a &#147;Subscription Right&#148;) to purchase one share of Preferred Stock for each
share of our common stock such stockholder owns as of the Record Date (the &#147;Basic Subscription
Right&#148;). We will not issue fractional shares of our Preferred Stock upon the exercise of any
Rights (as defined below). The number of Rights issued to Record Date stockholders will be rounded
down to the nearest whole number of Rights. We intend to offer shares of Preferred Stock to these
stockholders for a price (the &#147;Subscription Price&#148;) equal to the greater of (a)&nbsp;90% of the Fund&#146;s
net asset value per share (&#147;NAV&#148;) as determined on the Expiration Date (as defined herein) or (b)
the average closing price of our common stock as of the Expiration Date. The &#147;average closing
price&#148; of our common stock shall be calculated as an average of the last reported sale prices of a
share of our common stock on the NYSE over the four consecutive trading days ending on the
Expiration Date. The offer to purchase Preferred Stock will expire at 5:00 p.m., New York City
time, on December &#95;&#95;&#95;, 2005, unless we decide to extend it to some later date (the &#147;Expiration
Date&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you elect to purchase the maximum amount of our Preferred Stock that you are entitled to
purchase pursuant to your Basic Subscription Right, you will also be entitled to subscribe, subject
to allotment, to purchase additional shares of our Preferred Stock, if any, that are not purchased
by our other stockholders pursuant to their Basic Subscription Right as of the Expiration Date (the
&#147;Over-Subscription Privilege&#148;). See &#147;Preferred Stock Rights Offering &#150; Over-Subscription
Privilege.&#148; If you do not fully subscribe for your Basic Subscription Right, your ownership is
likely to be diluted. See &#147;Risk Factors &#150; Dilution of Ownership.&#148; The Basic Subscription Right and
the Over-Subscription Privilege shall be collectively referred to herein as the &#147;Rights.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will conduct a series of tender offers for Preferred Stock only (each, a &#147;Tender
Offer&#148;) on a semi-annual basis (each semi-annual period, a &#147;Tender Period&#148;), on dates to be
determined by the Board of Directors and beginning within the 6-month period between January&nbsp;31,
2006 and July&nbsp;31, 2006, in which 25% of the issued and outstanding Preferred Stock on the date the
Preferred Stock is issued may be tendered to the Fund and repurchased
</DIV>

<P align="center" style="font-size: 10pt">1
</DIV>
</DIV>

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

<DIV style="width: 99%; border: 1px solid black; padding: 11px;">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in kind for the Fund&#146;s portfolio securities. The consideration for the Preferred Stock to be
repurchased by the Fund shall be that value of portfolio securities equal to 99% of NAV as
determined, with respect to each Tender Offer, on a date designated by the Board. The Fund may pay
cash for fractional shares; or round off (up or down) fractional shares so as to eliminate them
prior to distribution. See &#147;Preferred Stock Rights Offering &#150; Semi Annual Tender Offer.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How to Subscribe</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"><font face="wingdings">&#216;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Deliver a completed Subscription Certificate (enclosed)
and payment to the Subscribing Agent at the address
below (Attn: Reorg. Dept.) so that it is received by
the Expiration Date (we recommend using an insured
courier), 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"><font face="wingdings">&#216;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If your shares are held in an account with your broker-dealer,
trust company, bank or other nominee, have your broker-dealer,
trust company, bank or other nominee deliver a Notice of
Guaranteed Delivery to the Subscribing Agent by the Expiration
Date.</TD>
</TR>

</TABLE>
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Computershare Trust Company of New York, 88 Pine Street &#151; 19th Floor, New York NY 10005 (the
&#147;Subscribing Agent&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Important Dates to Remember</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="60%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Record Date
</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>, 2005</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Subscription Period
</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>, 2005-December &#95;&#95;&#95;, 2005*</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Expiration Date/ Deadline to Purchase Preferred Stock&#134;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">December &#95;&#95;&#95;, 2005*</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Deadline for Notice of Guaranteed Delivery&#134;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">December &#95;&#95;&#95;, 2005</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Deadline for Payment to Notice of Guaranteed Delivery
</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>, 2005</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Confirmation Mailed to Participating Holders
</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>, 2005</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>Unless the offer is extended.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>A person purchasing Preferred Stock pursuant to his
or her Rights must deliver either (i)&nbsp;Subscription
Certificate and payment for the Preferred Stock or (ii)
a Notice of Guaranteed Delivery by the Expiration Date,
unless the offer is extended.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">2
</DIV>
</DIV>

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

<DIV style="width: 99%; border: 1px solid black; padding: 11px;">



<DIV align="left">
<A name="102"></A>
</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="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="68%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Preferred Stock to be issued by Us
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1,855,128 shares of Preferred Stock
</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Description of Preferred Stock
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Shares of the Preferred Stock will
have identical rights, voting
powers, restrictions, and
qualifications of the common stock
of the Fund except for the
liquidation, repurchase and
conversion preference features
described in &#147;Liquidation
Preference,&#148; &#147;Repurchase&#148; and
&#147;Automatic Conversion&#148; below.</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">Purpose of the Offering/Use of Proceeds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">As of July&nbsp;31, 2005, portfolio
sales have resulted in the
probability that we will be
required, under Subchapter M of
the Code, to distribute the
capital gains realized on such
sales to our stockholders. We are
required to distribute at least
98% of the our realized capital
gains, if any, for the one-year
period ending on October&nbsp;31 of
each calendar year. If we do not
distribute any realized capital
gains by January&nbsp;31, 2006, we will
not be able to meet the Subchapter
M requirements with respect to
calendar year 2005. We are making
this offering to raise cash to
permit us to meet our distribution
requirements of capital gains
realized, if any, in an effort (i)
to avoid an excise tax and to
meet our Subchapter M requirements
and (ii)&nbsp;to avoid having to sell
portfolio securities which would
further decrease the Fund&#146;s assets
to invest and would result in
additional realized capital gains.
See &#147;Preferred Stock Rights
Offering &#150; Purpose of the
Offering/Use of Proceeds.&#148; Any
remaining proceeds, after meeting
our current distribution
requirements, will be invested in
accordance with the Fund&#146;s
investment objectives and policies
as stated herein. See &#147;Business of
the Fund.&#148;</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">Basic Subscription Right
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Each of our stockholders as of the
Record Date shall receive, at no
cost, 0.75 nontransferable rights
(each whole right, a &#147;Subscription
Right&#148;) to purchase one share of
Preferred Stock for each share of
our common stock such stockholder
owns as of the Record Date (the
&#147;Basic Subscription Right&#148;). We
will not issue fractional shares
of our Preferred Stock upon the
exercise of Rights. The number of
Rights issued to Record Date
stockholders will be rounded down
to the nearest whole number of
Rights. We intend to offer shares
of Preferred Stock to these
stockholders for a price (the
&#147;Subscription Price&#148;) equal to the
greater of (a)&nbsp;90% of the Fund&#146;s
net asset value per share (&#147;NAV&#148;)
as determined on the Expiration
Date or (b)&nbsp;the average closing
price of our common stock over the
four consecutive trading days
ending on the Expiration Date.</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">Over-Subscription Privilege
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If you elect to purchase the
maximum amount of our Preferred
Stock that you are entitled to
purchase pursuant to your Basic
Subscription Right, you will also
be entitled to subscribe, subject
to allotment, to purchase
additional shares of our Preferred
Stock, if any, that are not
purchased by our other
stockholders pursuant to their
Basic Subscription Right as of the
Expiration Date (the
&#147;Over-Subscription Privilege&#148;).
See &#147;Preferred Stock Rights
Offering &#150; Over-Subscription
Privilege.&#148; If you do not fully
subscribe for your Basic
Subscription Right, your ownership
is likely to be diluted. See &#147;Risk
Factors &#150; Dilution of Ownership.&#148;</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">Expiration Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5:00 p.m., New York City time, on
December &#95;&#95;&#95;, 2005, unless we
decide to extend it to some later
date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Liquidation Preference
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In the event of any voluntary or
involuntary liquidation,
dissolution or winding up of the
Fund, the holders of Preferred
Stock will be entitled to receive
preferential liquidating
distribution, which is expected to
equal the original Subscription
Price per share of Preferred Stock
before any distribution of assets
is made to the holders of our
common stock. After payment of
the full amount of the liquidating
distribution to which they are</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">3
</DIV>
</DIV>

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

<DIV style="width: 99%; 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="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="68%">&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">entitled, the holders of shares of
Preferred Stock will not be
entitled to any further
participation in any distribution
of assets by the Fund. See
&#147;Preferred Stock Rights Offering &#150;
Description of Preferred Stock.&#148;</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">Voting Rights
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The 1940 Act requires that the
holders of any Preferred Stock,
voting separately as a single
class, have the right to elect at
least two directors at all times.
The remaining directors will be
elected by holders of common stock
and Preferred Stock, voting
together as a single class. The
1940 Act also requires that, in
addition to any approval by
stockholders that might otherwise
be required, the approval of the
holders of a majority of any
outstanding Preferred Stock voting
separately as a class, would be
required to (1)&nbsp;adopt any plan of
reorganization that would
adversely affect the Preferred
Stock, 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
restrictions. 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 is any Preferred Stock
outstanding. The Board presently
intends that, except as otherwise
indicated in this prospectus and
except as otherwise required by
applicable law or the Fund&#146;s
Articles of Incorporation or
bylaws, holders of Preferred Stock
will have equal voting rights with
our holders of common stock (one
vote per share, unless otherwise
required by the 1940 Act) and will
vote together with our holders of
common stock as a single class.
See &#147;Preferred Stock Rights
Offering &#150; Description of
Preferred Stock.&#148;</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">Repurchase
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund will conduct a series of
tender offers for the Preferred
Stock only (each, a &#147;Tender
Offer&#148;) on a semi-annual basis
(each semi-annual period, a
&#147;Tender Period&#148;), on dates to be
determined by the Board of
Directors and beginning within the
6-month period between January&nbsp;31,
2006 and July&nbsp;31, 2006, in which
25% of the issued and outstanding
Preferred Stock on the date the
Preferred Stock is issued may be
tendered to the Fund and
repurchased in kind for the Fund&#146;s
portfolio securities. The
consideration for the Preferred
Stock to be repurchased by the
Fund shall be that value of
portfolio securities equal to 99%
of NAV as determined, with respect
to each Tender Offer, on a date
designated by the Board.</TD>
</TR>



<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Fund may pay cash for
fractional shares; or round off
(up or down) fractional shares so
as to eliminate them prior to
distribution. See &#147;Preferred Stock
Rights Offering &#150; Semi Annual
Tender Offer.&#148;</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">Automatic Conversion
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In the event the Put Warrant
Program (as defined herein) is
approved by the SEC and upon the
anticipated issuance of put
warrants by the Fund, all issued
and outstanding shares of
Preferred Stock will automatically
convert to our common stock on a
one-to-one basis., and, shortly
thereafter, stockholders will
receive put warrants. See
&#147;Preferred Stock Rights Offering -
Put Warrant Program.&#148;</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">Risk Factors
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See &#147;Risk Factors&#148; beginning on
page 9 and the other information
included in this Prospectus for a
discussion of risks that you
should carefully consider about us
and about this offering.</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">Non-Transferability of the Rights
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Your Rights are non-transferable.
If you do not exercise them, you
give up any right to the
underlying shares of Preferred
Stock.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Termination of the Offering
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Board of Directors may decide
to terminate this offering at any
time, on or before the Expiration
Date. If we terminate the
offering, our only obligation to
you will be to return any payment,
without interest.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">4
</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">


<DIV style="width: 99%; 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="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="68%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Distribution Arrangements
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We do not intend to engage a
dealer manager for the offer. Our
officers and directors may solicit
the exercise of Rights by our
stockholders. The offer is not
contingent on any number of Rights
being exercised. We will pay all
expenses incurred in connection
with the offer.</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">Listing
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">It is the Fund&#146;s intention to list
the Preferred Stock for trading on
the NYSE under the symbol &#147;MXEP&#148;
prior to the issuance of the
Preferred Stock.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Trading
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We cannot assure you that the
Preferred Stock will develop any
liquidity in the secondary market.
In addition, we cannot predict
how the issuance of the Preferred
Stock will affect the market value
of our common stock.

</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material United States Federal Income
Tax Consequences
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The receipt and election to
purchase Preferred Stock are
intended to be nontaxable events.
If you sell the Preferred Stock
after purchasing them, you will
recognize gain or loss. You
should obtain specific tax advice
from your personal tax advisor.
See &#147;Material United States Federal Income Tax Consequences
&#151;Taxation of Stockholders&#148; below.</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">Available Information
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We are subject to the reporting
requirements of the 1940 Act and
are required to file reports,
proxy statements and other
information with the SEC. This
information will be available at
the SEC&#146;s public reference room at
100 F St. NE, Washington, D.C.
20549. You may call the SEC at
1-800-SEC-0330 for information on
the operation of the Public
Reference Room. Our SEC filings
are also available to the public
on the SEC&#146;s Internet website at
<U>http://www.sec.gov</U> and can be
inspected at the offices of the
NYSE, 20 Broad Street, New York,
NY 10005.</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">Management Arrangements
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pichardo Asset Management, S.A. de
C.V. (&#147;PAM&#148;) serves as our
investment adviser. U.S. Bancorp
Fund Services, LLC
(&#147;Administrator&#148;) serves as our
administrator. For a description
of PAM or the Administrator and
our contractual arrangements with
these companies, see &#147;Investment
Advisory Agreement&#148; and
&#147;Administration Agreement.&#148;</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">Subscribing Agent
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Computershare Trust Company of New
York, 88 Pine Street &#151; 19th Floor,
New York NY 10005.</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">Dilution
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">As a result of the terms of this
offer, stockholders who do not
fully exercise their Rights will
own, upon completion of this
offer, a smaller proportional
interest in us than they owned
prior to the offer. In addition,
because the Subscription Price may
be less than NAV per share, the
offer may result in an immediate
dilution of NAV. See &#147;Risk Factors
&#150; Dilution of Ownership.&#148;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

<DIV style="width: 99%; border: 1px solid black; padding: 11px;">

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table is intended to assist prospective investors in understanding the
costs and expenses associated with this offering and an investment in the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Stockholder transaction expenses(1):</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">Total stockholder transaction expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0</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>Annual expenses </B>(as a percentage of net assets of the Fund), as of July&nbsp;31, 2005:</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">Management fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest payments on borrowed funds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;&nbsp;</TD>
    <TD nowrap>(2)</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 nowrap align="left">&nbsp;</TD>
    <TD align="right">0.97</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">Total annual expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.77</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><I>We will pay all transactions expenses incurred in connection with this offering.</I></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><I>We do not plan to incur any indebtedness, or to pay interest in respect thereof, during the
term after this offering.</I></TD>
</TR>

</TABLE>



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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following example demonstrates the projected dollar amount of total cumulative expenses
that would be incurred over various periods with respect to a hypothetical investment in the Fund.
These amounts are based upon payment by an investor of a $1,000 as an investment in the Fund and
our payment of annual operating expenses at the levels set forth in the table above which, as
indicated above, does not include leverage or related expenses.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>1 year</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>3 years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>5 years</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>10 years</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">You would pay the following
expenses on a $1,000
investment,
assuming a 5% annual return</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">208</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This example and the expenses in the table above should not be considered a representation of our
future expenses, and actual expenses may be greater or less than those shown. Moreover, while the
example assumes, as required by the SEC, a 5% annual return, our performance will vary and may
result in a return greater or less than 5%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not pay any broker or dealer, commercial bank, trust company or other person any
solicitation fee for any Preferred Stock purchased pursuant to this offering. No such broker,
dealer, commercial bank, trust company or other person has been authorized to act as our agent for
purposes of this offering.
</DIV>



<P align="center" style="font-size: 10pt">6
</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">

<DIV style="width: 99%; border: 1px solid black; padding: 11px;">


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Financial Highlights<BR>
For a Share Outstanding Throughout Each Year</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&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">For Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">For Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">For Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">For Year</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">For Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">For Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">For Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">For Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">For Year</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">For Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">July 31,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">July 31,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">July 31,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">July 31,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">July 31,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">July 31,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">July 31,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">July 31,</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">July 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" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">July 31, 2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">1998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">1997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">1996</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">Per Share Operating Performance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net asset value, beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net investment income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.03</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net realized and unrealized gains
(losses)&nbsp;on investments and foreign
currency transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.42</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.64</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.87</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.34</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.67</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 increase (decrease)&nbsp;from
investment operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.45</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.66</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.65</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.11</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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">Less: Distributions
Dividends from net
investment income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.19</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.44</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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 colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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">Distributions from net
realized gains</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.60</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.93</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.37</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.67</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.09</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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 colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Return of capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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">Total dividends and distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.62</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.93</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.56</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.11</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.09</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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">Capital share transactions
Anti-dilutive effect of
Tender Offer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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 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">Anti-dilutive effect of
dividend reinvestment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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 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">Dilutive effect of rights
Offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.74</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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 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">Anti-dilutive effect of Share
Repurchase Program</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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">Total capital share transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.74</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 asset value, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">16.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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">Per share market value, end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14.125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9.625</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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 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 Investment
Return Based on
Market Value, end
of year*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">60.44</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">29.10</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14.47</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12.73</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8.64</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">53.36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.24</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26.23</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">62.52</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8.26</TD>
    <TD nowrap>)%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">7
</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">


<DIV style="width: 99%; border: 1px solid black; padding: 11px;">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Financial Highlights (concluded)</B><BR>
<B>For a Share Outstanding Throughout Each Year</B>
</DIV>

<DIV align="left">
      <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="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&nbsp;</TD>
          <TD width="1%">&nbsp;</TD>
          <TD width="3%">&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">&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">For the</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">&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>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">For Year</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">For Year</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">For year</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Year</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">For Year</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">For Year</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">For Year</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">For Year</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">For Year</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">For Year</TD>
          <TD>&nbsp;</TD>
        </TR>
        <TR style="font-size: 8pt" valign="bottom">
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Ended</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Ended</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Ended</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Ended</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Ended</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Ended</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Ended</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Ended</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Ended</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">Ended</TD>
          <TD>&nbsp;</TD>
        </TR>
        <TR style="font-size: 8pt" valign="bottom">
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">July 31,</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">July 31,</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">July 31,</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">July 31,</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">July 31,</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">July 31,</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">July 31,</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">July 31,</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">July 31,</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2">July 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" style="border-bottom: 1px solid #000000">2005</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2004</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2003</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">
            2002</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">
            2001</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">
            2000</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">
            1999</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">
            1998</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">
            1997</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">
            1996</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>Ratios/Supplemental
              Data</B></DIV></TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <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 assets, end
              of year (in 000s)</DIV></TD>
          <TD>&nbsp;</TD>
          <TD align="left">$</TD>
          <TD align="right">52,621</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD align="left">$</TD>
          <TD align="right">33,779</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD align="left">$</TD>
          <TD align="right">25,104</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD align="left">$</TD>
          <TD align="right">21,629</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD align="left">$</TD>
          <TD align="right">87,620</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD align="left">$</TD>
          <TD align="right">114,112</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD align="left">$</TD>
          <TD align="right">97,150</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD align="left">$</TD>
          <TD align="right">120,148</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD align="left">$</TD>
          <TD align="right">199,066</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD align="left">$</TD>
          <TD align="right">141,448</TD>
          <TD>&nbsp;</TD>
        </TR>
        <TR valign="bottom" style="background: #cceeff">
          <TD><DIV style="margin-left:15px; text-indent:-15px">Ratios of expenses
              to average net assets:</DIV></TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <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">Before expense
              Reimbursement</DIV></TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.77</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">2.09</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">2.64</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.81</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.90</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">2.03</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.88</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.46</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.49</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.56</TD>
          <TD nowrap>%</TD>
        </TR>
        <TR valign="bottom" style="background: #cceeff">
          <TD><DIV style="margin-left:30px; text-indent:-15px">After expense Reimbursement</DIV></TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.77</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">2.08</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">2.62</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.81</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.90</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">2.03</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.88</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.46</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.49</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1/56</TD>
          <TD nowrap>%</TD>
        </TR>
        <TR valign="bottom">
          <TD><DIV style="margin-left:15px; text-indent:-15px">Ratios of net investment
              income (loss)&nbsp;to average net assets:</DIV></TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <TD>&nbsp;</TD>
          <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">Before expense
              Reimbursement</DIV></TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">0.03</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">(0.15</TD>
          <TD nowrap>)%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">0.02</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">(0.14</TD>
          <TD nowrap>)%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">(0.16</TD>
          <TD nowrap>)%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">0.27</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">2.72</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.65</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">3.29</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">7.32</TD>
          <TD nowrap>%</TD>
        </TR>
        <TR valign="bottom">
          <TD><DIV style="margin-left:30px; text-indent:-15px">After expense Reimbursement</DIV></TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">0.03</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">(0.14</TD>
          <TD nowrap>)%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">0.04</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">(0.14</TD>
          <TD nowrap>)%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">(0.16</TD>
          <TD nowrap>)%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">0.27</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">2.72</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">1.65</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">3.29</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">7.32</TD>
          <TD nowrap>%</TD>
        </TR>
        <TR>
          <TD>&nbsp;</TD>
        </TR>
        <TR valign="bottom" style="background: #cceeff">
          <TD><DIV style="margin-left:15px; text-indent:-15px">Portfolio turnover</DIV></TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">259.60</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">234.42</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">180.67</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">189.05</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">220.85</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">249.28</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">163.23</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">88.85</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">127.44</TD>
          <TD nowrap>%</TD>
          <TD>&nbsp;</TD>
          <TD nowrap align="left">&nbsp;</TD>
          <TD align="right">42.59</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">*</TD>
    <TD>&nbsp;</TD>
    <TD>Total investment return is calculated assuming a purchase of common stock at the current
market price on the first day and a sale at the current market price on the last day of each
period reported. Dividends and distributions, if any, are assumed for purposes of this
calculation to be reinvested at prices obtained under the Fund&#146;s dividend reinvestment plan.
Total investment return does not reflect brokerage commissions.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The amount listed is less than $0.005 per share.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt">8
</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">

<DIV style="width: 99%; border: 1px solid black; padding: 11px;">

<DIV align="left">
<A name="105"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>An investment in the Fund involves risks. You should carefully consider these risk
factors, together with all of the other information included in this Prospectus. If any of the
following adverse events and circumstances described in the risk factors occur, our business,
financial condition and results of operations could be materially adversely affected, and our NAV
and the trading price of our common stock and the Preferred Stock could decline.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RISKS RELATED TO THIS OFFERING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Decline in Preferred Stock Trading Price: </I></B>The public trading price for our Preferred Stock
cannot yet be determined as there is currently no market for the Preferred Stock. After you
purchase Preferred Stock, and once a market is established for the Preferred Stock, the public
trading price of our Preferred Stock may decline. If our trading price declines below the
Subscription Price, you will suffer an immediate unrealized loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Absence of Existing Public Market; Market Prices: </I></B>There is no existing market for the
Preferred Stock. There can be no assurance that an active and liquid trading market for the
Preferred Stock will develop or that quotation of the Preferred Stock will be available on the
NYSE. Future trading prices of the Preferred Stock will depend on many factors including, among
other things, prevailing interest rates, the operating results and financial condition of the Fund,
and the market for similar securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>No Revocation: </I></B>Once you elect to purchase Preferred Stock, you may not revoke the election,
even if you later learn information about us that you consider to be unfavorable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Value versus Subscription Price: </I></B>The Subscription Price was not determined based on
established criteria for valuation, such as expected future operations, cash flows or financial
condition. You should not rely on the Subscription Price to bear a relationship to those criteria
or to be a guaranty of the value of the Fund or of our Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Termination of Offering: </I></B>Our Board of Directors may terminate the offering at any time. If
we decide to terminate the offering, we have no obligation to you except to return, without
interest, your subscription payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Discount to Net Asset Value: </I></B>The Fund&#146;s shares of common stock have historically traded on the
NYSE at a discount to the Fund&#146;s NAV per share, and the discount has at times exceeded 20%. There
is no assurance that this offering of Preferred Stock or any subsequent Tender Offer will have any
effect on the persistent discount to NAV experienced by the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Dilution of Ownership: </I></B>As a result of the terms of this offer, stockholders who do not fully
exercise their Rights will own, upon completion of this offer, a smaller proportional interest in
our voting stock than they owned prior to the offer. In addition, because the Subscription Price
may be less than NAV per share, the offer may result in an immediate dilution of NAV per share for
all of our stockholders. Such dilution is not currently determinable because it is not known how
many shares of Preferred Stock will be subscribed for, what the market price of our Preferred Stock
will be on the Expiration Date or what the Subscription Price will be. Such dilution will
disproportionately affect non-exercising stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Unwillingness of Brokers to Hold Foreign Securities: </I></B>As more fully stated in &#147;Preferred Stock
Rights Offering &#151; Semi Annual Tender Offer,&#148; stockholders participating in the Tender Offers will
receive the Fund&#146;s portfolio securities in exchange for tendering their Preferred Stock to the Fund
for repurchase. The majority of such portfolio securities will be securities of Mexican issuers.
Your broker may be unwilling to hold such foreign securities for you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RISKS RELATED TO THE FUND&#146;S INVESTMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Investments in Foreign Securities Risks: </I></B>We invest a majority of our assets in foreign
securities of Mexican issuers. Investing in the Mexican financial market presents political,
regulatory and economic risks which are significant and which may differ in kind and degree from
the risks presented by investing in the U.S. financial
</DIV>

</DIV>
<P align="center" style="font-size: 10pt">9
</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="width: 99%; border: 1px solid black; padding: 11px;">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">markets. Some of these risks may include changes in foreign currency exchange rates or
controls, greater price volatility, differences in accounting standards and policies, and in the
type and nature of disclosures required to be provided by Mexican issuers, substantially less
liquidity, controls on foreign investment, and limitations on repatriation of invested capital. Our
exposure to developing country financial markets may involve greater risk than a portfolio that
invests only in developed country financial markets. Some of these risks are detailed below:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Illiquidity, Volatility. </I>Although one of the largest in Latin America by
market capitalization, the Bolsa Mexicana de Valores, S.A. de C.V. (the &#147;Mexican Stock
Exchange&#148; or &#147;Bolsa&#148;) is substantially smaller, less liquid and more volatile than the major
securities markets in the United States. In addition, trading on the Mexican Stock Exchange
is concentrated. Approximately 80% of the total traded volume of the Mexican Stock Exchange
in 2004 was produced by fourteen issuers as of December&nbsp;31, 2004. At such date, the stock of
<I>Tel&#233;fonos de Mexico, S.A. de C.V. </I>(&#147;Telmex&#148;) and its affiliates accounted for approximately
23.225% of the aggregate market capitalization of the Mexican Stock Exchange, while no
single stock issue accounted for more than 2.6% of the aggregate market capitalization of
the NASDAQ and the NYSE. Thus, the performance of the Mexican Stock Exchange, as further
described below, is highly dependent on the performance of a few issuers. Additionally,
prices of equity securities traded on the Mexican Stock Exchange are generally more volatile
than prices of equity securities traded on the NYSE. The combination of price volatility and
the relatively limited liquidity of the Mexican Stock Exchange may have an adverse impact on
the investment performance of the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Market Corrections. </I>Although less so in recent times, the Mexican securities market has
been subject to periodic severe market corrections. In the two months following the general
destabilization of the Mexican economy in December&nbsp;1994, the Bolsa&#146;s Index declined 36.3% in
nominal peso terms and 58.0% in dollar terms from December&nbsp;20, 1994 to February&nbsp;27, 1995
before beginning to recover. Due to the high concentration of investors, issuers and
intermediaries in the Mexican securities market and the general high volatility of the
Mexican economy, the Mexican securities market may be subject to severe market corrections
than more broadly based markets. As is the case with investing in any securities market,
there can be no assurance that market corrections will not occur again.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The Mexican Economy. </I>The Mexican economy is currently stable as a result of initiatives
implemented in the last few years, successful free trade agreements with other countries,
economic and fiscal discipline and stable political and social conditions. Nevertheless, in
the past the Mexican economy has experienced peso devaluations, significant rises in
inflation and domestic interest rates and other economic instability and there can be no
assurance that the economy will remain stable. In addition, although Mexico has exhibited in
recent times positive market indicators in terms of GDP growth, long-term interest rates,
current account deficits, exports, and foreign investment, there is no assurance that these
trends will continue. Overt unemployment continues to exist at levels of over three percent
and more than one million new jobs will be required annually according to economic
estimates. The economy has recently witnessed significant increases in energy,
transportation and telecommunications costs and there is significant pressure to increase
wage and energy productivity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Smaller Capitalization Risks: </I></B>We may invest in securities without regard to market
capitalization. Investments in securities of smaller companies may be subject to more abrupt or
erratic market movements then larger, more established companies, because these securities
typically are traded in lower volume and issuers are more typically subject to changes in earnings
and future earnings prospects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Borrowing Risks: </I></B>Because we may borrow money from banks or other financial institutions to
purchase securities, commonly referred to as &#147;leveraging,&#148; our exposure to fluctuations in the
prices of these securities is increased in relation to our capital. Our borrowing activities will
exaggerate any increase or decrease in our net asset value. In addition, the interest which we must
pay on borrowed money, together with any additional fees to maintain a line of credit or any
minimum average balances required to be maintained, are additional costs which will reduce or
eliminate any net investment profits. Unless profits on assets acquired with borrowed funds exceed
the costs of borrowing, the use of borrowing will diminish our investment performance compared with
what it would have been without borrowing.
</DIV>

</DIV>
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</DIV>

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

<DIV style="width: 99%; border: 1px solid black; padding: 11px;">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>High Portfolio Turnover Rate Risk: </I></B>Our portfolio management may result in high turnover rates
which may increase our short-term capital appreciation and increase brokerage commission costs. If
we have a higher portfolio turnover rate, then our performance could be negatively impacted due to
the increased expenses incurred as a result of the higher brokerage commissions. Rapid portfolio
turnover also exposes stockholders to a higher current realization of capital gains and this could
cause you to pay higher taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Credit Risk: </I></B>Debt obligations are generally subject to the risk that the issuer may be unable
to make principal and interest payments when they are due. There is also the risk that the
securities could lose value because of a loss of confidence in the ability of the borrower to pay
back debt. Non-investment grade debt &#151; also known as &#147;high-yield bonds&#148; and &#147;junk bonds&#148; &#151; have a
higher risk of default and tend to be less liquid than higher-rated securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Interest Rate Risk: </I></B>Fixed income securities are subject to the risk that the securities could
lose value because of interest rate changes. For example, bonds tend to decrease in value if
interest rates rise. Debt obligations with longer maturities sometimes offer higher yields, but are
subject to greater price shifts as a result of interest rate changes than debt obligations with
shorter maturities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Initial Public Offerings Risks: </I></B>We may purchase securities of companies in initial public
offerings. Special risks associated with these securities may include a limited number of shares
available for trading, unseasoned trading, lack of investor knowledge of the company and limited
operating history. These factors may contribute to substantial price volatility for the shares of
these companies. The limited number of shares available for trading in some initial public
offerings may make it more difficult for the us to buy or sell significant amounts of shares
without unfavorable impact on prevailing market prices. Some companies in initial public offerings
are involved in relatively new industries or lines of business, which may not be widely understood
by investors. Some of these companies may be undercapitalized or regarded as developmental stage
companies without revenues or operating income, or the near-term prospects of achieving them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Restricted Securities Risks: </I></B>We may invest in securities that are subject to restrictions on
resale, such as Rule&nbsp;144A securities. Rule&nbsp;144A securities are securities that have been privately
placed but are eligible for purchase and sale by certain qualified institutional buyers under Rule
144A under the Securities Act of 1933. Under the supervision of the Board of Directors, we will
determine whether securities purchased under Rule&nbsp;144A are illiquid. Our ability to invest in
illiquid securities is limited to 15% of our total assets. If it is determined that qualified
institutional buyers are unwilling to purchase these securities, the percent of our assets invested
in illiquid securities would increase.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Shares of Other Investment Companies: </I></B>We may invest in shares of other investment companies as
a means to pursue our investment objective. As a result of this policy, your cost of investing
will generally be higher than the cost of investing directly in the underlying investment company
shares. You will indirectly bear fees and expenses charged by the underlying investment companies
in addition to our direct fees and expenses. Furthermore, the use of this strategy could affect
the timing, amount and character of distributions to you and therefore may increase the amount of
taxes payable by you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Discount Risk: </I></B>Historically, our shares, as well as those of other closed-end investment
companies, have frequently traded at a discount to their NAV, which discount often fluctuates over
time. See &#147;Financial Highlights.&#148;
</DIV>

</DIV>

<P align="center" style="font-size: 10pt">11
</DIV>

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<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"><B>Preferred Stock Rights Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Purpose of Offering/Use of Proceeds</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of July&nbsp;31, 2005, portfolio sales have resulted in the probability that we will be
required, under Subchapter M of the Code, to distribute the capital gains realized on such sales to
our stockholders. We are required to distribute at least 98% of the our realized capital gains, if
any, for the one-year period ending on October&nbsp;31 of each calendar year. If we do not distribute
any realized capital gains by January&nbsp;31, 2006, we will not be able to meet the Subchapter M
requirements with respect to calendar year 2005. We are making this offering to raise cash to
permit us to meet our distribution requirements of capital gains realized, if any, in an effort (i)
to avoid an excise tax and to meet our Subchapter M requirements and (ii)&nbsp;to avoid having to sell
portfolio securities which would further decrease the Fund&#146;s assets to invest and would result in
additional realized capital gains.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any remaining proceeds, after meeting our current distribution requirements, will be invested
in accordance with the Fund&#146;s investment objectives and policies as stated herein. It is
anticipated that such remaining proceeds will be invested in equity and convertible securities
issued by Mexican companies and securities of Mexican issuers.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of our stockholders as of the Record Date shall receive, at no cost, 0.75 nontransferable
rights ( each whole right, a &#147;Subscription Right&#148;) to purchase one share of Preferred Stock for
each share of our common stock such stockholder owns as of the Record Date (the &#147;Basic Subscription
Right&#148;). We will not issue fractional shares of our Preferred Stock upon the exercise of Rights.
The number of Rights issued to Record Date stockholders will be rounded down to the nearest whole
number of Rights. We intend to offer shares of Preferred Stock to these stockholders for a price
(the &#147;Subscription Price&#148;) equal to the greater of (a)&nbsp;90% of the Fund&#146;s net asset value per share
(&#147;NAV&#148;) as determined on the Expiration Date or (b)&nbsp;the average closing price of our common stock
as of the Expiration Date. The &#147;average closing price&#148; of our common stock shall be calculated as
an average of the last reported sale prices of a share of our common stock on the NYSE over the
four consecutive trading days ending on the Expiration Date. The offer to purchase Preferred Stock
will expire at 5:00 p.m., New York City time, on December &#95;&#95;&#95;, 2005, unless we decide to extend it
to some later date (the &#147;Expiration Date&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund announced the offer after the close of trading on the NYSE on &#95;&#95;&#95;, 2005. The
NAV per share of our common stock at the close of business on &#95;&#95;&#95;, 2005 (the last trading
date on which the Fund publicly reported its NAV prior to the announcement) and on &#95;&#95;&#95;,
2005 (the last trading date on which the Fund publicly reported its NAV prior to the date of this
Prospectus) was $&#95;&#95;&#95; and $&#95;&#95;&#95;, respectively, and the last reported sales price of a
share of our common stock on the NYSE on those dates was $&#95;&#95;&#95; and $&#95;&#95;&#95;,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because we will not determine the actual Subscription Price until the Expiration Date,
stockholders who wish to purchase Preferred Stock pursuant to their Rights will not know the
Subscription Price per share at the time they elect to purchase the Preferred Stock. As a result,
we are requiring that stockholders deliver an estimated Subscription
Price of $20.35 per share. If
the actual Subscription Price is lower, excess payments will be refunded without interest, and if
the actual Subscription Price is higher, stockholders purchasing Preferred Stock must make an
additional payment with five (5)&nbsp;business days of the Expiration Date to get the full number of
shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of setting the determination of the Subscription Price upon the expiration of the
offer is to attract the maximum participation of stockholders in the offer, with minimum dilution
to nonparticipating stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All questions as to the validity, form, eligibility (including time of receipt), payment and
acceptance for payment of any Preferred Stock will be determined by us, in our sole discretion,
which determination shall be final and binding. We reserve the absolute right to reject any and
all requests for participation in this offering and to issue a lower number of shares of Preferred
Stock, with our only obligation being to return any excess payment without
</DIV>

<P align="center" style="font-size: 10pt">12
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">interest. We shall be under no duty to give notification of any defects or irregularities in
any request for participation in this offering, nor shall we incur any liability for failure to
give any such notification.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Preferred Stock is a new class of our capital stock designated by the Board specifically
for issuance pursuant to this offering. The Preferred Stock has identical rights and qualifications
of our common stock, except as set forth in paragraphs (a), (b), (c)&nbsp;and (d)&nbsp;below (See
&#147;Description of our Capital Stock&#148;):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(a) <U>Liquidation Preference</U>: In the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Fund, the holders of Preferred Stock will be
entitled to receive preferential liquidating distribution, which is expected to equal the
original Subscription Price per share of Preferred Stock before any distribution of assets
is made to the holders of our common stock. After payment of the full amount of the
liquidating distribution to which they are entitled, the holders of shares of Preferred
Stock will not be entitled to any further participation in any distribution of assets by the
Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(b) <U>Voting Rights</U>: The 1940 Act requires that the holders of any Preferred Stock,
voting separately as a single class, have the right to elect at least two directors at all
times. The remaining directors will be elected by holders of common stock and Preferred
Stock, voting together as a single class. The 1940 Act also requires that, in addition to
any approval by stockholders that might otherwise be required, the approval of the holders
of a majority of any outstanding Preferred Stock voting separately as a class, would be
required to (1)&nbsp;adopt any plan of reorganization that would adversely affect the Preferred
Stock, and (2)&nbsp;take any action requiring a vote of security holders under Section 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 restrictions. 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 is any Preferred Stock outstanding. The Board presently intends that,
except as otherwise indicated in this prospectus and except as otherwise required by
applicable law or the Fund&#146;s Articles of Incorporation or bylaws, holders of Preferred Stock
will have equal voting rights with our holders of common stock (one vote per share, unless
otherwise required by the 1940 Act) and will vote together with our holders of common stock
as a single class.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(c) <U>Repurchase</U>. On a semi-annual basis, on dates to be determined by the Board of
Directors and beginning within the 6-month period between January&nbsp;31, 2006 and July&nbsp;31,
2006, the Fund will conduct special Tender Offers for Preferred Stock as further described
in &#147;Semi-Annual Tender Offer&#148; below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(d) <U>Automatic Conversion</U>. If the Put Warrant Program (as described below) is
approved by the SEC, the Preferred Stock will automatically convert into common stock on a
one-to-one basis upon the anticipated issuance of put warrants by the Fund, and, shortly
thereafter, stockholders will receive put warrants. Holders of the Preferred Stock will
have no other conversion rights. See &#147;Put Warrant Program&#148; below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Immediately following the issuance of the Preferred Stock to purchasing stockholders and in
accordance with the rules promulgated under the 1940 Act, (i)&nbsp;the Fund shall have an asset coverage
of at least 200&nbsp;percent, (ii)&nbsp;the Fund will be prohibited from declaring any dividend (except a
dividend payable in our common stock) or any other distribution upon the our common stock, unless
the Preferred Stock has at the time of any such declaration an asset coverage of at least 200
percent after deducting the amount of such dividend or distribution, as the case may be, (iii)
holders of Preferred Stock will be entitled, voting as a class, to the voting rights outlined in
(b)&nbsp;above, and (iv)&nbsp;holders of Preferred Stock will have the liquidation preference outlined in (a)
above.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you elect to purchase the maximum amount of our Preferred Stock that you are entitled to
purchase pursuant to your Basic Subscription Right, you will also be entitled to subscribe, subject
to allotment, to purchase additional shares of our Preferred Stock, if any, that are not purchased
by our other stockholders pursuant to their Basic Subscription Right as of the Expiration Date (the
&#147;Over-Subscription Privilege&#148;). If the number of shares of
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">our Preferred Stock available for sale pursuant to the Over-Subscription Privilege is not
sufficient to satisfy in full all subscriptions submitted for additional shares, we will allocate
any available shares pro rata among stockholders who exercise their Over-Subscription Privilege in
proportion to the number of shares each stockholder subscribing for additional shares was entitled
to and elected to purchase under his or her Basic Subscription Right; up to the number of
additional shares that the stockholder subscribed for pursuant to the exercise of his or her
Over-Subscription Privilege, rounded down to the nearest whole share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks, brokers, trustees and other nominee holders of Rights will be required to certify to
the Subscribing Agent, before any Over-Subscription Privilege may be exercised with respect to any
particular beneficial owner, as to the aggregate number of Subscription Rights exercised and the
number of Preferred Stock subscribed for pursuant to the Over-Subscription Privilege by such
beneficial owner and that such beneficial owner&#146;s Basic Subscription Right was exercised in full. A
Notice of Guaranteed Delivery form will be distributed to banks, brokers, trustees and other
nominee holders with the Subscription Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have been advised that the directors who own shares of our common stock intend to exercise
all of the Rights initially issued to them. If additional shares of Preferred Stock remain after
all over-subscriptions exercised by stockholders other than the directors are honored in full, the
directors may, on the Expiration Date, purchase all or any of the remaining shares of Preferred
Stock on the same terms offered to all stockholders.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will conduct a series of tender offers for the Preferred Stock only (each, a &#147;Tender
Offer&#148;) on a semi-annual basis (each semi-annual period, a &#147;Tender Period&#148;), on dates to be
determined by the Board of Directors and beginning within the 6-month period between January&nbsp;31,
2006 and July&nbsp;31, 2006, in which 25% of the issued and outstanding Preferred Stock as of the date
the Preferred Stock is issued may be tendered to the Fund and repurchased for the Fund&#146;s portfolio
securities. Each stockholder participating in a Tender Offer may have his or her tendered shares of
Preferred Stock repurchased by the Fund in kind for portfolio securities having a value equal to
99% of NAV as determined, with respect to each Tender Offer, on a date designated by the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may pay cash for fractional shares of securities; or round off (up or down)
fractional shares so as to eliminate them prior to distribution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to file an exemptive application with the Division of Investment Management of the
SEC seeking the ability of stockholders who are &#147;affiliated persons&#148; of the Fund solely by reason
of owning, controlling or holding with the power to vote 5% or more of our common stock to have
their Preferred Stock repurchased by the Fund for portfolio securities pursuant to the Tender
Offers. We cannot assure you that the SEC will grant our request for exemptive relief. If the SEC
does not grant relief pursuant to the exemptive application, we will pay such 5% holders cash for
their Preferred Stock tendered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although the intention of the Board is to conduct a semi-annual Tender Offer in which 25% of
the issued and outstanding Preferred Stock may be tendered to the Fund and repurchased for the
Fund&#146;s portfolio securities, the Board may, in its sole discretion, direct the Fund to conduct a
Tender Offer for less than 25% of the issued and outstanding Preferred Stock. For example, if the
SEC does not grant our request for exemptive relief as explained above, the Fund will be required
to pay the 5% holders cash for their Preferred Stock if tendered. In such a case, the Fund may not
have enough cash to pay such holders if the Tender Offer is conducted for 25% of the issued and
outstanding Preferred Stock. In order to avoid this dilemma, the Fund may reduce the Tender Offer
to as little as 5% of the issued and outstanding Preferred Stock. In no event, except in the event
of a Tender Termination Event (as defined below), shall any Tender Offer be conducted in which less
than 5% of the issued and outstanding Preferred Stock may be tendered to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Tender Offer shall be governed by substantially the same terms and conditions that
governed the Fund&#146;s previous tender offer which commenced on February&nbsp;19, 2002 and expired on March
20, 2002. See &#147;Share Repurchases.&#148;
</DIV>

<P align="center" style="font-size: 10pt">14
</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 the event that the average trade weighted discount to the last published NAV per Fund share
is less than 5% for any five consecutive trading days during any Tender Period (a &#147;Tender
Termination Event&#148;), the Fund will not conduct a Tender Offer during that Tender Period. In the
event of a Tender Termination Event, a Tender Offer will be conducted during the next Tender Period
(unless a Tender Termination Event exists during such next Tender Period).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We normally publish our NAV on the last business day of each week (generally Friday) at the
close of regular trading on the NYSE. The NAV per Fund share is available daily through the
Administrator by calling toll free 888-294-8217. As an example, the NAV per Fund share on October 28, 2005
 was $22.61.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2001, the Fund&#146;s Board of Directors approved the creation and registration of a put warrant
program (the &#147;Put Warrant Program&#148;) whereby the Fund would issue without charge one put warrant for
each whole share of common stock issued by the Fund held by each stockholder of record as of a date
selected by our Board. As envisioned, each put warrant would allow our stockholders to &#147;put&#148;
(sell)&nbsp;on a quarterly basis one share of our common stock to us for an amount of cash equal to our
NAV per share. Our Board believes that the Put Warrant Program would give a holder the ability to
realize NAV without us incurring the substantial expenses associated with conducting a traditional
tender offer pursuant to the requirements contained in the Securities Exchange Act of 1934, as
amended (the &#147;Exchange Act&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;2004, we filed a No-Action Request Letter with the SEC&#146;s Division of Corporate
Finance, and, in May&nbsp;2004, we filed an exemptive application with the Division of Investment
Management seeking the ability to issue and register the put warrants. To date, we have received
no definitive answer on whether the Fund may administer the Put Warrant Program from either
Division of the SEC, and there is no guarantee that the SEC will decide to grant exemptive relief.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event the Put Warrant Program is approved by the SEC, and upon the anticipated issuance
of put warrants by the Fund, all issued and outstanding shares of Preferred Stock will
automatically convert to common stock on a one-to-one basis, and, shortly thereafter, stockholders
will receive put warrants.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Immediately following the issuance of the Preferred Stock to purchasing stockholders and in
accordance with the rules promulgated under the 1940 Act, the Fund shall have an asset coverage of
at least 200&nbsp;percent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>No Fractional Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not issue fractional shares of our Preferred Stock upon the exercise of Rights. The
number of Rights issued to Record Date stockholders will be rounded down to the nearest whole
number of Rights.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Rights granted in this offer are non-transferable. If you do not exercise them, you give
up any right to the underlying shares of Preferred Stock.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may elect to purchase Preferred Stock pursuant to your Basic Subscription Right and/or
Over-Subscription Privilege at any time before 5:00 p.m., New York City time, on December &#95;&#95;&#95;, 2005
(the &#147;Expiration Date&#148;). The Board reserves the right to extend the date upon which the Rights
expire. If you do not elect to purchase Preferred Stock pursuant to your Rights before the time
they expire, then your Rights will be null and void. We will not be obligated to honor your
election to purchase Preferred Stock if we receive the documents relating to your purchase of
Preferred Stock or collect your payment after the time they expire, regardless of when you
transmitted the documents. See &#147;Receipt of Payment&#148; below.
</DIV>

<P align="center" style="font-size: 10pt">15
</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;Any extension of the offer will be followed as promptly as practicable by announcement
thereof, and in no event later than 9:00 a.m., New York City time, on the next business day
following the previously scheduled Expiration Date. Without limiting the manner in which the Fund
may choose to make such announcement, the Fund will not, unless otherwise required by law, have any
obligation to publish, advertise or otherwise communicate any such announcement other than by
making a release to the Dow Jones News Service or such other means of announcement as the Fund
deems appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we have no present intention to do so, we may, in the future and in our discretion,
choose to make additional offerings from time to time for a number of shares and on terms which may
or may not be similar to this offer. Any such future offering will be made in accordance with the
1940 Act.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We do not intend to engage a dealer manager for the offer. Our officers and directors may
solicit the exercise of Rights by our stockholders. The offer is not contingent on any number of
Rights being exercised, and we will pay all expenses incurred in connection with the offer.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may elect to purchase Preferred Stock by delivering the following to the Subscribing Agent
at or before the Expiration Date:
</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>your properly completed and signed Subscription Certificate, with any required
signature guarantees, evidencing those rights with any other supplemental documentation;
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>your payment in full of the Subscription Price for each share of our Preferred
Stock that you choose to subscribe for under your Basic Subscription Right and your
Over-Subscription Privilege.</TD>
</TR>

</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your payment of the Subscription Price must be made by 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"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>check or bank draft drawn upon a U.S. bank or postal, telegraphic, or express
money order payable to: &#147;The Mexico Equity and Income Fund, Inc.&#148;; 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>wire transfer of immediately available funds to the account maintained by the
Subscribing Agent for such purpose at: &#091; &#093;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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 you hold our common stock through a nominee holder, you will need to have
your broker, custodian bank or other nominee act for you. To indicate your decision with
respect to your Rights, you should have your broker, custodian bank or other nominee
deliver a Notice of Guaranteed Delivery to the Subscribing Agent by the Expiration Date.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Receipt of Payment</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">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Your payment of the Subscription Price will be deemed to have been received by us only upon:</TD>
</TR>

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



<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
<TD>clearance of any uncertified check;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR 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>receipt by us of any certified check or bank draft drawn upon a U.S. bank or
any postal, telegraphic or express money order; 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>receipt of collected funds in our account designated above.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">16
</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: 12pt"><B>Clearance of Uncertified Checks</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should note that funds paid by uncertified personal checks may take 5 business days or
more to clear. If you wish to pay the Subscription Price by an uncertified personal check, we
recommend that you make payment at least 10&nbsp;days in advance of the Expiration Date to ensure that
your payment is received and clears by that time<B>. If your check does not clear before the
Expiration Date, you will not receive any shares of Preferred Stock, and our only obligation will
be to return your subscription payment, without interest. It is safer to use a certified or
cashier&#146;s check, money order or wire transfer of funds to avoid missing the opportunity to purchase
Preferred Stock.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Delivery of Subscription Materials and Payment</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should deliver the Subscription Certificate and payment of the Subscription Price, as well
as any other subscription documentation as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>If by Mail, Hand Delivery or Overnight Delivery, to:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Computershare Trust Company of New York<BR>
88 Pine Street &#151; 19th Floor<BR>
New York NY 10005<BR>
Attn: Reorg. Dept.

</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you do not indicate the number of shares of Preferred Stock being subscribed for, or do not
forward full payment of the aggregate Subscription Price for the number of shares of Preferred
Stock that you indicate are subscribed for, then you will be deemed to have purchased the maximum
number of shares of the Preferred Stock that may be purchased for the payment that you delivered to
our Subscribing Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Funds Will Be Held by our Subscribing Agent until Shares of Preferred Stock Are Issued</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Subscribing Agent will hold your payment in a segregated account with other payments
received from stockholders until we issue to you your shares of our Preferred Stock.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a broker, a trustee or a depositary for securities who holds shares of our common
stock for the account of others as of the Record Date, you should notify the respective beneficial
owners of the shares about the rights offering as soon as possible to find out their intentions.
You should obtain instructions from the beneficial owner with respect to the rights by using the
instructions that we have provided to you for your distribution to beneficial owners. If the
beneficial owner so instructs, you should complete the appropriate Subscription Certificate and
Notice of Guaranteed Delivery, if applicable, and submit them to our Subscribing Agent with the
proper payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Notice to Beneficial Owners Whose Shares are Held by a Broker or Nominee</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a beneficial owner of shares of our common stock or rights that you hold through a
nominee holder, we will ask your broker, custodian bank or other nominee to notify you of this
offering. If you wish to purchase Preferred Stock, you will need to have your broker, custodian
bank or other nominee act for you. To indicate your decision with respect to your rights, you
should complete and return to your broker, custodian bank or other nominee the Subscription
Certificate. You should receive this form from your broker, custodian bank or other nominee with
the other rights offering materials. We suggest that you contact your broker or other nominee to
be sure that they are sending you the election form without delay. <B>If you are giving instructions
to your nominee, you should act promptly to allow a sufficient amount of time to ensure that the
nominee can act to follow your instructions in time.</B>
</DIV>

<P align="center" style="font-size: 10pt">17
</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>Notice of NAV Decline</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund, as required by the SEC&#146;s registration form, will suspend the offer until it
amends this Prospectus if, subsequent to the date of this Prospectus, the Fund&#146;s NAV declines more
than 10% from its NAV as of that date. Accordingly, the Expiration Date would be extended and the
Fund would notify Record Date stockholders of the decline and permit stockholders to cancel their
exercise of Rights.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On a date within eight (8)&nbsp;business days following the Expiration Date (&#147;Confirmation Date&#148;),
the Subscribing Agent will send to each exercising Rights holder (or, if shares of common stock are
held by a nominee, to such nominee) a confirmation showing (i)&nbsp;the number of shares of Preferred
Stock purchased pursuant to the Basic Subscription Right; (ii)&nbsp;the number of shares, if any,
acquired pursuant to the Over-Subscription Privilege (for Record Date stockholders who are
exercising all of the Rights originally issued to them); (iii)&nbsp;the per share and total Subscription
Price for the shares and (iv)&nbsp;any additional amount payable to the Fund by the Rights holder or any
excess to be refunded by the Fund to the Rights holder, in each case based on the Subscription
Price as determined on the Expiration Date. If any Rights holder, if eligible, exercises his right
to acquire shares of Preferred Stock pursuant to the Over-Subscription Privilege, any excess
payment which would otherwise be refunded to him will be applied by the Fund toward payment for
shares acquired pursuant to the exercise of the Over-Subscription Privilege. Any additional payment
required from a Rights holder must be received by the Subscribing Agent within ten (10)&nbsp;business
days after the Confirmation Date. Any excess payment to be refunded by the Fund to a Rights holder
will be mailed by the Subscribing Agent to the Rights holder as promptly as practicable. All
payments by an exercising Rights holder must be in U.S. dollars by money order or check drawn on a
bank or branch located in the United States and payable to &#147;<B>The Mexico Equity and Income Fund,
Inc.</B>&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Determinations Regarding the Election to Purchase Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will decide all questions concerning the timeliness, validity, form and eligibility of your
election to purchase Preferred Stock. Our decisions will be final and binding. We, in our sole
discretion, may waive any defect or irregularity, or permit a defect or irregularity to be
corrected within such time as we may determine. We may reject the election to purchase Preferred
Stock because of any defect or irregularity. Your election will not be deemed to have been
received or accepted until all irregularities have been waived by us or cured by you within such
time as we decide, in our sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither we nor our Subscribing Agent will be under any duty to notify you of a defect or
irregularity. We will not be liable for failing to give you any such notice. We reserve the right
to reject your election to purchase Preferred Stock if your election is not in accordance with the
terms of the offering or in proper form. We will also not accept your election to purchase
Preferred Stock if our issuance of shares of our Preferred Stock upon your election could be deemed
unlawful or materially burdensome.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may terminate this offering at any time prior to the Expiration Date. If we terminate the
offering, our only obligation to you will be to return your subscription payment to you, without
interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Effects of this Offer on the Fund Adviser</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investment adviser will benefit from this offer because a portion of the investment
management fee we pay to the investment adviser is based on our gross assets. See &#147;Investment
Advisory Agreement.&#148; It is not possible to state precisely the amount of additional compensation
the investment adviser will receive as a result of this offer because it is not known how many
shares of Preferred Stock will be subscribed for. However, assuming (i)&nbsp;all Rights are exercised,
(ii)&nbsp;the average value of our gross assets remains between
 $50
million and
$55
million,
and (iii)&nbsp;the Subscription Price is
$20.35
per share, and after giving effect to expenses
related to this offer, the investment adviser would receive additional annualized advisory fees of
$302,015
and the amount of the administrative fee received would be an additional fee of
$45,302.
 Maria Eugenia Pichardo, President of the
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fund, is also an officer and owner of our investment adviser. None of our directors who
approved this offer are affiliated with the investment adviser.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>No Recommendations to Holders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WE MAKE NO RECOMMENDATION TO ANY PERSON TO PARTICIPATE IN THIS OFFERING, AND WE HAVE NOT
AUTHORIZED ANY PERSON TO MAKE ANY SUCH RECOMMENDATION. POTENTIAL HOLDERS ARE URGED TO EVALUATE
CAREFULLY ALL INFORMATION IN THE REGISTRATION STATEMENT, CONSULT THEIR OWN INVESTMENT AND TAX
ADVISORS AND MAKE THEIR OWN DECISIONS WHETHER OR NOT TO PARTICIPATE IN THIS OFFERING.
</DIV>
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Material United States Federal Income Tax Consequences</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion is a summary of certain material U.S. federal income tax
consequences to a typical &#147;U.S. holder&#148; (defined below) that Receives rights pursuant to this
offering and that either (i)&nbsp;exercises such Rights, (ii)&nbsp;allows such Rights to expire, or (iii)
sells, exchanges, redeems or otherwise disposes of such Rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion is based on current provisions of the Internal Revenue Code of 1986, as
amended, which we refer to as the &#147;Code,&#148; applicable current, temporary and proposed Treasury
regulations promulgated thereunder, which we refer to as the &#147;Treasury Regulations,&#148; the
legislative history of the Code and publicly available administrative and judicial interpretations
thereof, all as in effect of the date of this prospectus and all of which are subject to change,
possibly with retroactive effect, or to different interpretations. In addition, the administrative
interpretations and practices of the Internal Revenue Service include its practices and policies as
expressed in private letter rulings which are not binding on the Internal Revenue Service, except
with respect to the particular taxpayers who requested and received these rulings. This discussion
is included for general information purposes only and does not purport to be a complete technical
analysis or listing of all potential tax considerations that may be relevant to U.S. holders in
light of their particular circumstances. This discussion does not address any state, local or
foreign tax consequences or any non-income tax consequences (such as estate or gift tax
consequences). This discussion applies only to U.S. holders that hold shares of our common stock
as capital assets and that will hold the Rights distributed pursuant to this offering as capital
assets (and, in the event such rights are exercised, will hold newly acquired shares of our common
stock as capital assets), in each case, within the meaning of Section&nbsp;1221 of the Code. This
discussion also does not address the United States federal income tax consequences to a U.S. holder
that is one of our affiliates or that is subject to special rules under the Code, including but not
limited 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"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A financial institution, insurance company, or regulated 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>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Persons who are subject to alternative minimum tax;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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 tax-exempt organization, retirement plan, or mutual fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A dealer, broker, or trader in 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>Non-U.S. holders (as defined 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>An entity treated as a partnership for U.S. federal income tax purposes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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 stockholder that owns its shares of our common stock indirectly through an entity
treated as a partnership for United States federal income tax purposes, or a trust or
estate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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>Persons deemed to sell their shares of common stock under the constructive sale
provisions of the Code;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">19
</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>A stockholder that holds its shares of our common stock as part of a hedge,
appreciated financial position, straddle or conversion transaction; 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>A stockholder that acquired our common stock pursuant to the exercise of
compensatory stock options or otherwise as compensation.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not seek a ruling from the Internal Revenue Service, or the &#147;IRS,&#148; with respect to the
rights offering. The IRS could take positions concerning the tax consequences of this offering that
are different from those described in this discussion, and, if litigated, a court could sustain any
such positions taken by the IRS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this discussion, the term &#147;U.S. holder&#148; means a holder of shares of our common
stock that, for U.S. federal income tax purposes, is:
</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 citizen or resident of the U.S.;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A corporation or other entity treated as a corporation for U.S. federal income tax
purposes created or organized in the U.S. or under U.S. laws or the laws of any state
or political subdivision 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>An estate the income of which is subject to U.S. federal income taxation regardless
of its source; 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>A trust (i)&nbsp;if, in general, a court within the U.S. is able to exercise primary
jurisdiction over its administration and one or more U.S. persons have authority to
control all of its substantial decisions or (ii)&nbsp;that has a valid election in effect
under applicable Treasury Regulations to be treated as a U.S. person.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A &#147;non-U.S. holder&#148; is a holder other than a U.S. holder. If a holder of our common stock is
a non-U.S. holder, the tax consequences of the rights offering to such holder will depend upon a
variety of factors, including whether such person conducts a trade or business in the U.S.
Non-U.S. holders are urged to consult their own tax advisors regarding the tax consequences
associated with the rights offering.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Holders of our common stock are urged to consult their own tax advisors regarding the specific tax
consequences associated with the rights offering, including the applicability and effect of any
state, local, foreign, or other tax laws as well as changes in applicable tax laws.</B>
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that pursuant to Section&nbsp;305 of the Code and the Treasury Regulations issued
thereunder, a U.S. holder that receives Rights pursuant to this offering should not be required to
recognize taxable income for U.S. federal income tax purposes upon the receipt of such Rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to report this offering accordingly. However, if our intended treatment of the
Rights were challenged by the IRS and if such challenge were ultimately upheld, the U.S. federal
income tax consequences to a U.S. holder that receives Rights pursuant to this offering may differ
from the consequences described herein, and it is possible that a U.S. holder&#146;s receipt of Rights
or a portion thereof pursuant to this offering may be taxable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Basis and Holding Period of Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, in accordance with Section&nbsp;307 of the Code, if the fair market value of the Rights which
we distribute to U.S. holder is less than 15% of the fair market value of such U.S. holder&#146;s shares
of our common stock with respect to which such Rights were distributed, such U.S. holder&#146;s basis in
the Rights distributed generally will be zero. A U.S. holder may elect, however, to allocate its
basis in our common stock between such common stock and the Rights received in proportion to the
fair market value of such common stock and such Rights. This election may be
</DIV>

<P align="center" style="font-size: 10pt">20
</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">made pursuant to Section&nbsp;307 of the Code and the Treasury Regulations thereunder and will be
irrevocable once made.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the fair market value of the Rights which we distribute to a U.S. holder is 15% or more of
the fair market value of such U.S. holder&#146;s shares of our common stock with respect to which such
Rights were distributed, such U.S. holder will be required to allocate its basis between such
commons tock and such Rights in proportion to their relative fair market values.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In either case, a U.S. holder&#146;s holding period for the Rights that we distribute will include
the holding period of such U.S. holder&#146;s shares of our common stock with respect to which such
Rights were distributed.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Exercise of Rights; Basis and Holding Period of Acquired Shares; Sale, Exchange, Redemption or
Other Disposition of Acquired Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. holder will not recognize gain or loss upon the exercise of the Rights. A U.S.
holder&#146;s basis in our Preferred Stock acquired through exercise of the Rights generally will equal
the sum of (i)&nbsp;the Subscription price paid by such U.S. holder to acquire such stock and (ii)&nbsp;such
U.S. holder&#146;s basis, if any, in the Rights exercised. A U.S. holder&#146;s holding period in shares of
our Preferred Stock acquired through the exercise of Rights will begin on the day such U.S. holder
exercises the Rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the sale, exchange, redemption or other disposition of the Preferred Stock acquired upon
the exercise of Rights, a U.S. holder generally will recognize gain or loss equal to the difference
between the amount realized and such U.S. holder&#146;s basis in such Preferred Stock. Such gain or
loss will be capital gain or loss and will be long-term capital gain or loss if a U.S. holder&#146;s
holding period exceeds one year at the time of the sale, exchange or other disposition. The
deductibility of capital losses is subject to limitations.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a U.S. holder receives Rights pursuant to this offerings, and such U.S. holder&#146;s basis in
our common stock is not allocated between such common stock and the Rights received and such U.S.
holder&#146;s Rights expire unexercised, then such U.S. holder will not recognize taxable loss upon
expiration of the Rights. In addition, such U.S. holder&#146;s basis in its shares of our common stock
will not be affected by this offering and such U.S. holder&#146;s decision to allow its Rights to expire
and will remain the same as before this offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a U.S. holder receives Rights pursuant to this offering, and such U.S. holder&#146;s basis in
our common stock is allocated between such a common stock and the Rights received and such U.S.
holder&#146;s Rights expire unexercised, then such U.S. holder will recognize a taxable loss upon the
expiration of the Rights equal to the basis that was allocated to the Rights. Such loss will be a
capital loss.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. holder that sells, exchanges, redeems or otherwise disposes shares of our Preferred
Stock acquired upon the exercise of Rights or that sells, exchanges or otherwise disposes of Rights
may be subject to backup withholding on the proceeds received, unless such U.S. holder:
</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>Is a corporation or other exempt recipient and, when required, establishes this
exemption; or</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>Provides a correct taxpayer identification number, certifies that it is not
currently subject to backup withholding, and otherwise complies with the applicable
requirements of the backup withholding rules.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup withholding is not an additional tax. Any amount withheld under the backup withholding
rules will generally be creditable against the United States federal income tax liability of a U.S.
holder if appropriate information is provided to the IRS. If a U.S. holder does not provide the
appropriate party with the correct taxpayer
</DIV>

<P align="center" style="font-size: 10pt">21
</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">identification number or any other proper document or certification required by the IRS
(generally a Form W-9 in the case of a U.S. holder), such U.S. holder may be subject to penalties
imposed by the IRS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>THE FOREGOING DOES NOT PURPORT TO BE A COMPLETE ANALYSIS OF THE POTENTIAL TAX CONSIDERATIONS
RELATING TO THIS OFFERING AND IS NOT TAX ADVICE. THEREFORE, HOLDERS OF OUR COMMON STOCK ARE URGED
TO CONSULT THEIR TAX ADVISORS AS TO THE SPECIFIC TAX CONSEQUENCES TO THEM OF THIS OFFERING,
INCLUDING THE APPLICABILITY OF FEDERAL, STATE, LOCAL, FOREIGN AND OTHER TAX LAWS.</B>
</DIV>


<P align="center" style="font-size: 10pt">22
</DIV>

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

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



<DIV align="left">
<A name="108"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to use the proceeds of this offering to make required distributions of capital
gains realized on 2005 portfolio sales to our stockholders. We are required to distribute at least
98% of the our realized capital gains, if any, for the one-year period ending on October&nbsp;31 of each
calendar year. See &#147;Preferred Stock Rights Offering &#151; Purpose of Offering/Use of Proceeds.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any remaining proceeds, after meeting our current distribution requirements, will be invested
in accordance with the Fund&#146;s investment objectives and policies as stated herein. It is
anticipated that such remaining proceeds will be invested in equity and convertible securities
issued by Mexican companies and debt securities of Mexican issuers.
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is traded on the NYSE under the symbol &#147;MXE.&#148; The following table
lists the high and low closing sales prices for our common stock, and the closing sales price as a
percentage of NAV:
</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 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="7"><B>Closing Sales</B></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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Premium/Discount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Premium/Discount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of High Sales</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Low Sales</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Declared</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>NAV</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>Price to NAV</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Price to NAV</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Dividends</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B><I>Year ended July&nbsp;31, 2004</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(11.37</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(12.35</TD>
    <TD nowrap>)%</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:45px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10.49</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(11.81</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8.58</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10.46</TD>
    <TD nowrap>)%</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:45px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(14.13</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(14.13</TD>
    <TD nowrap>)%</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"><B><I>Year ended July&nbsp;31, 2005</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(13.81</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(14.45</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(11.49</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(13.39</TD>
    <TD nowrap>)%</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:45px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(14.19</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(14.98</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(11.52</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(12.83</TD>
    <TD nowrap>)%</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"><B><I>Year ending July&nbsp;31, 2006</I></B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">First Quarter
(through October
28, 2005)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">22.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">22.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">16.19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="110"></A>
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We make annual distributions to our stockholders of at least 90% of our ordinary income
and short-term capital gains. Holders of shares of Preferred Stock shall have the same
distribution rights as holders of shares of common stock. We will distribute during each calendar
year an amount equal to the sum of (1)&nbsp;at least 98% of our ordinary income for the calendar year,
(2)&nbsp;at least 98% of the Fund&#146;s capital gains in excess of capital losses for the one-year period
ending on October&nbsp;31 of the calendar year and (3)&nbsp;any ordinary income and net capital gains for the
preceding year that were not distributed during such year, in order to avoid excise taxes imposed
on registered investment companies that do not make these distributions. In addition, although we
currently intend to distribute net realized long-term capital gains at least annually, we may in
the future decide to retain such capital gains for investment in accordance with our investment
objective. In such event, the consequences of our retention of ordinary income and net realized  capital
gains could be the required distribution of as much as $10,206,909, as described in more
detail under &#147;Material United States Federal Income Tax Consequences.&#148; This number could change
based on portfolio and economic conditions. No stockholder should assume that there will be a
distribution.
</DIV>

<P align="center" style="font-size: 10pt">23
</DIV>

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

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="111"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investment objective is a high total return through capital appreciation and current
income by investing at least 80% of our assets in equity and convertible securities issued by
Mexican companies and debt securities of Mexican issuers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investment activities are managed by Pichardo Asset Management, S.A. de C.V. (&#147;PAM&#148;). PAM
is registered as an investment adviser under the Advisers Act. Under PAM&#146;s investment advisory
agreement with us, we have agreed to pay PAM a monthly fee at an annual rate of 0.80% of the value
of our average daily net assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Bancorp Fund Services, LLC (&#147;Administrator&#148;) serves as our administrator pursuant to an
administrative agreement with the Fund. Administrator is located at 615 East Michigan Avenue,
Milwaukee, WI 53202.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has adopted certain fundamental investment restrictions that may not be changed
without the prior approval of the holders of a majority of the Fund&#146;s outstanding voting
securities. For purposes of the restrictions listed below, all percentage limitations apply
immediately after a purchase or initial investment, and any subsequent change in any applicable
percentage resulting from market fluctuations does not require elimination of any security from the
Fund&#146;s portfolio. Fund policies which are not fundamental may be modified by the Directors if, in
the reasonable exercise of the Directors&#146; business judgment, modification is determined to be
necessary or appropriate to carry out the Fund&#146;s objectives. Under its fundamental restrictions,
the Fund may not:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;invest 25% or more of the total value of its assets in a particular industry; this
restriction does not apply to investments in U.S. Government securities but does apply to
investments in Mexican Government securities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;issue senior securities, borrow or pledge its assets, except that the Fund may borrow from
a bank to make distributions required for the Fund to maintain its qualification as a regulated
investment company under U.S. tax law, for temporary or emergency purposes or for the clearance of
transactions in amounts not exceeding 10% (taken at the lower of cost or current value) of its
total assets (not including the amount borrowed) and may also pledge its assets to secure such
borrowings. Additional investments will not be made when borrowings exceed 5% of the Fund&#146;s assets;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;lend money to other persons except through the purchase of debt obligations and the
entering into of repurchase agreements in the United States or Mexico consistent with the Fund&#146;s
investment objective and policies;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;make short sales of securities or maintain a short position in any security except for
short sales against the box as a form of hedging;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;purchase securities on margin, except such short-term credit as may be necessary or routine
for the clearance or settlement of transactions and the maintenance of margin with respect to
forward contracts or other hedging transactions;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;underwrite securities of other issuers, except insofar as the Fund may be deemed an
underwriter under the Securities Act, in selling portfolio securities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;purchase or sell commodities or real estate, except that the Fund may invest in securities
secured by real estate or interests in real estate or in securities issued by companies, including
real estate investment trusts, that invest in real estate or interests in real estate, and may
purchase and sell forward contracts on foreign currencies to the extent permitted under applicable
law; or
</DIV>

<P align="center" style="font-size: 10pt">24
</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;8.&nbsp;make investments for the purpose of exercising control over, or management of, the issuers
of any securities.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gerald Hellerman, our Chief Financial Officer and Chief Compliance Officer, is our only
employee. The officers of the Fund, except for Mr.&nbsp;Hellerman, are employees of our investment
adviser. Our day-to-day investment operations are managed by our investment adviser.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we may, from time to time, be involved in litigation arising out of our
operations in the normal course of business, we are not currently a party to any pending material
legal proceedings.
</DIV>
<DIV align="left">
<A name="112"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business and affairs are managed under the direction of our Board. The Board
currently consists of five members, four of whom are not &#147;interested persons&#148; as that term is
defined in Section&nbsp;2(a)(19) of the 1940 Act. We refer to these individuals as our independent
directors. Our Board elects our officers, who serve at the discretion of the Board. The officers
of the Fund, except for Mr.&nbsp;Hellerman, are employees of our investment adviser.
</DIV>

<P align="center" style="font-size: 10pt">25
</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: 12pt"><B>Directors and Executive Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our directors and executive officers, their positions, year born and principal occupation
are set forth below. The address for each director and executive officer is c/o U.S. Bancorp Fund
Services, LLC, 615 East Michigan Street, Milwaukee, WI 53202.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEPENDENT DIRECTORS</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="26%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&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"><B>Other</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Directorships</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Held with the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Held Office</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>During</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Held by</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"> <B>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>Since</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Past 5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Director</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Glenn Goodstein (1963)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Class&nbsp;I Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2001</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registered investment
adviser; Managing
Member of the General
Partner of Mercury
Partners LP. (an
investment
partnership)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None</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="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">Phillip Goldstein (1945)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Class&nbsp;I Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Kimball &#038;
Winthrop, Inc. (an
investment advisory
firm); and general
partner of Opportunity
Partners L.P. (an
investment
partnership)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of
Brantley Capital
Corporation (a
business
development
company); The
Emerging Markets
Telecommunications
Fund (a registered
closed-end
investment company)
and First Israel
Funds (a registered
closed-end
investment 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 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>
    <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">Rajeev Das (1968)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Class&nbsp;II Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2001</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Analyst,
Kimball &#038; Winthrop,
Inc. (an investment
advisory firm)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None</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="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">Andrew Dakos (1966)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Class&nbsp;II Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2001</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and CEO of
Uvitec Printing Ink,
Inc. (an ink and
coating manufacturing
company); Managing
Member of the general
partner of Full Value
Partners L.P. (an
investment
partnership);
President of Elmhurst
Capital, Inc. (an
investment advisory
firm).
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&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"><B>Other</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Directorships</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Held with the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Held Office</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>During</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Held by</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"> <B>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>Since</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Past 5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Director</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gerald Hellerman<BR>
(1937)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Class&nbsp;III Director,
Chief Financial
Officer and Chief
Compliance Officer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2001</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Managing Director,
Hellerman Associates
(a financial and
corporate consulting
firm)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director, Brantley
Capital Corporation
(a business
development
company); and MVC
Capital, Inc. (a
business
development
company); and
AirNet Systems,
Inc. (a specialty
air courier)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">26
</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">
<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;Hellerman is only deemed an interested director because he is an executive officer.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Board is divided into three classes with each class serving a staggered three year term ending
on the date of our annual meeting as follows: Class&nbsp;I directors&#146; terms expire in the year 2005;
Class&nbsp;II directors&#146; terms expire in 2006; and Class&nbsp;III directors&#146; terms expire in 2007.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to Mr.&nbsp;Hellerman, our only other current executive officers are:
</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="33%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="11%">&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="30%">&nbsp;</TD>
    <TD width="5%">&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"><B>Directorships</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"> <B>Name and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Position(s) Held</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Held Office</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation(s)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Held by</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"> <B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>with the Fund</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Since</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>During Past 5 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Officer</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Maria Eugenia Pichardo<BR>
(1950)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2004</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Portfolio manager of
the Fund since the
Fund&#146;s inception in
1990; President and
General Partner of
Pichardo Asset
Management, S.A. de
C.V., the Fund&#146;s
registered investment
adviser.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None</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="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">Francisco Lopez (1971)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Secretary
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2005</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">For the period May
1997 through December
2002, acted as
portfolio manager
assistant to the Fund
at Acciones y Valores
de Mexico, S.A. de
C.V., a wholly owned
subsidiary of
Acciworldwide, S.A. de
C.V., the Fund&#146;s
registered investment
adviser prior to 2002;
Portfolio manager at
Pichardo Asset
Management, S.A. de
C.V., the Fund&#146;s
registered investment
adviser.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each officer&#146;s term of office is one year and until their respective successors are chosen and
qualified. The officers of the Fund serve without compensation, except that Mr.&nbsp;Hellerman received
an annual fee of $25,000 for the fiscal year ended July&nbsp;31, 2005 for serving as Chief Compliance
Officer.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our Certificate of Incorporation, our directors are divided into three classes: Class&nbsp;I,
Class&nbsp;II and Class&nbsp;III, each class having a term of three years. Each year the term of office of
one Class expires. The effect of these staggered terms is to limit the ability of other entities
or persons to acquire control of us by delaying the replacement of a majority of the Board.
Messrs.&nbsp;Goodstein and Goldstein&#146;s term will expire in 2005, the terms of Messrs.&nbsp;Das and Dakos will
expire in 2006, and Mr.&nbsp;Hellerman&#146;s term will expire in 2007. At each annual meeting of our
stockholders, the successors to the class of directors whose terms expire at such meeting will be
elected to hold office for a term expiring at the annual meeting of stockholders held in the third
year following the year of their election.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Committees of the Board Of Directors</B>
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The members of the Audit Committee are Messrs.&nbsp;Das, Dakos and Goldstein, each of whom is an
independent director. The Audit Committee is responsible for approving our independent auditors,
reviewing with our independent auditors the plans and results of the audit engagement, approving
professional services provided by our independent auditors, reviewing the independence of our
independent auditors and reviewing the adequacy of our internal accounting controls. In addition,
the Audit Committee members have been designated the Qualified Legal Compliance Committee for
attorney and employee reporting purposes. During the last fiscal year, the Audit Committee
conducted one meeting.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Nominating Committee is comprised of all of the directors who are non-interested, namely,
Messrs.&nbsp;Goodstein, Goldstein, Dakos and Das. The Nominating Committee is responsible for seeking
and reviewing
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">candidates for consideration as nominees for directors as is from time to time considered
necessary or appropriate. During the last fiscal year, the Nominating Committee conducted no
meetings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the policy of the Nominating Committee to consider nominees recommended by stockholders
of the Fund so long as the stockholders properly submit their recommendations in accordance with
the following: A stockholder wishing to recommend to the Nominating Committee a candidate for
election as director must submit the recommendation in writing, addressed to the Committee care of
our Secretary c/o U.S. Bancorp Fund Services, LLC, 615 Michigan St., 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Floor,
Milwaukee, Wisconsin 53202. Submissions recommending candidates for election at an annual meeting
of stockholders must be received no later than 120 calendar days prior to the first anniversary of
the date of the proxy statement for the prior annual meeting of stockholders. In the event that the
date of the next annual meeting of stockholders is more than 30&nbsp;days following or preceding the
first anniversary date of the annual meeting of stockholders for the prior year, the submission
must be made a reasonable time in advance of the mailing of our next annual proxy statement. The
written recommendation should include information concerning the stockholder or group of
stockholders making the recommendation, the proposed nominee, relationships between the
recommending stockholder and the proposed nominee and the qualifications of the proposed nominee to
serve as director, describing the contributions that the nominee would be expected to make to the
Board. The recommendation must also be accompanied by the consent of the proposed nominee to serve
if nominated and the agreement of the nominee to be interviewed by the Nominating Committee, if the
Nominating Committee decides in its discretion to do so.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The members of the Valuation Committee are all of the directors who are non-interested,
namely, Messrs.&nbsp;Goodstein, Goldstein, Dakos and Das. The Valuation Committee is responsible for
reviewing and approving the fair value determinations provided by the adviser with respect to any
securities for which market quotations are not readily available. During the last fiscal year, the
Valuation Committee conducted no meetings.
</DIV>
<DIV align="left">
<A name="113"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows information regarding the compensation expected to be received
by the directors for the fiscal year ending July&nbsp;31, 2005.
</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">Total Compensation</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">from Fund Paid during the</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name of Director</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Period Ended July 31, 2005</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Glenn Goodstein</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,900</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Phillip Goldstein</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Andrew Dakos</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gerald Hellerman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">27,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rajeev Das</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,600</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">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>The directors will receive an annual fee of $5,000 plus $700 for each Board Meeting attended
in person and $100 for each special telephonic meeting attended. We pay the members of the Audit
Committee $100 per meeting attended. Of the compensation paid to Mr.&nbsp;Hellerman during the fiscal
year ended July&nbsp;31, 2005, $24,000 was in consideration for his services as Chief Compliance
Officer.</TD>
</TR>

</TABLE>


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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Management Services/Portfolio Manager</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PAM serves as our investment adviser. PAM is a registered investment adviser under the
Advisers Act. Subject to the overall supervision of our Board of Directors, PAM manages our
day-to-day operations and provides us with investment advisory services. Under the terms of an
Investment Advisory Agreement, PAM will conduct all
</DIV>

<P align="center" style="font-size: 10pt">29
</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">investment research and supervision and is responsible for the purchase and sale of our
investment portfolio securities, subject to the supervision and direction of the Board. PAM also
provides us with advice, supervises our management and investment programs and provides investment
advisory facilities and executive and supervisory personnel for managing the investments and
effectuating portfolio transactions. PAM also furnishes, at its own expense, all necessary
administrative services, office space, equipment and clerical personnel for servicing our
investments. In addition, PAM will pay the salaries and fees of all of our officers who are
affiliated with PAM.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PAM&#146;s services under the Investment Advisory Agreement are not exclusive, and it is free to
furnish similar services to other entities so long as its services to us are not impaired.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We pay PAM a monthly fee at an annual rate of 0.80% of the value of our average daily net
assets for the investment management and research services provided. In addition, PAM has
voluntarily agreed to reimburse us for certain fees and expenses on an annual basis. These expense
reimbursements may be terminated at any time.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Advisory Agreement provides that we will be responsible for all of our expenses
and liabilities, except that PAM is responsible for the expense in connection with maintaining a
staff within its organization to furnish the above services to us.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Advisory Agreement was approved by our Board on June&nbsp;18, 2003, and by our
stockholders on November&nbsp;19, 2003. Unless terminated earlier as described below, it will continue
in effect for a period of two years from its effective date. It will remain in effect from year to
year thereafter if approved annually by our Board or by the affirmative vote of the holders of a
majority of our outstanding voting securities, including, in either case, approval by a majority of
our Directors who are not interested persons. The Investment Advisory Agreement will automatically
terminate in the event of its assignment. The Investment Advisory Agreement may be terminated by
either party without penalty upon not more than 60&nbsp;days&#146; written notice to the other.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PAM is organized as a corporation under the laws of Mexico and is registered as an investment
adviser under the Advisers Act. PAM&#146;s principal office is located at Teopanzolco Avenue #408,
3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> Floor, Cuernavaca 62260, Morelos, Mexico. Maria Eugenia Pichardo is the President
and Chief Executive Officer of PAM. Ms.&nbsp;Pichardo owns 99% of the total outstanding shares of
common stock of PAM and has acted as the Fund&#146;s portfolio manager since the Fund&#146;s inception.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Factors in Approving the Investment Advisory Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s Board of Directors, including the directors who are not interested persons of any
party to the Investment Advisory Agreement or its affiliates, approved the Investment Advisory
Agreement at a meeting of the Board of Directors held on June&nbsp;29, 2004, with legal counsel in
attendance. In approving the Investment Advisory Agreement, the Board of Directors considered the
best interests of the stockholders and took into account factors they deemed relevant, as described
below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PAM provided the Board with written materials concerning: (a)&nbsp;information on the investment
performance of the investment adviser; (b)&nbsp;the economic outlook and the general investment outlook
in the markets in which the Fund invests; (c)&nbsp;the procedures employed to determine the value of
Fund assets; (d)&nbsp;the investment adviser&#146;s management of the relationships with the Fund&#146;s
administrator and custodian; (e)&nbsp;the resources devoted to compliance with the Fund&#146;s investment
policies and restrictions and with policies on personal securities transactions; and (f)&nbsp;the
nature, cost and character of non-investment management services provided by the investment
adviser.
</DIV>

<P align="center" style="font-size: 10pt">30
</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 factors considered by the independent directors, who met in executive session, included
the nature, quality and scope of the operations and services to provided by PAM, while focusing on
the prior experience of PAM&#146;s principals with respect to: (i)&nbsp;the structure of closed-end
investment companies in general; (ii)&nbsp;management of portfolios of foreign equity securities; (iii)
the fact that the Fund&#146;s current portfolio manager, Maria Eugenia Pichardo, would continue to act
as the Fund&#146;s portfolio manager at PAM; and (iv)&nbsp;implementing policies to cut costs and expenses of
closed-end investment companies. Furthermore, the Board considered the opportunity to obtain
investment management and research services at costs that it deemed appropriate and reasonable and
at such fees which fall within the range of the standard industry fees for comparable investment
companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the Board&#146;s deliberations, it was noted that they did not identify any single piece of
information that was all-important or controlling with respect to the Investment Advisory
Agreement. Based on the Board&#146;s deliberations and its evaluation of the information described
above, the Board, including all of the independent directors, unanimously concluded that: (a)&nbsp;the
terms of the Investment Advisory Agreement are fair and reasonable; (b)&nbsp;the investment adviser&#146;s
fees are reasonable in light of the services that it provides to the Fund; (c)&nbsp;the Investment
Advisory Agreement was in the best interests of the Fund and its stockholders; and (d)&nbsp;agreed to
approve the Investment Advisory Agreement for term of one year.
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Bancorp Fund Services LLC serves as our administrator pursuant to an Administration
Agreement dated July&nbsp;21, 2001. Pursuant to the Administration Agreement, Administrator provides us
with, but is not limited to the following types of services, general fund management, compliance
oversight, financial reporting oversight and tax reporting. For the fiscal year ended July&nbsp;31,
2005, the Fund paid Administrator $50,459. In addition, we reimbursed Administrator for certain
expenses and fees incurred on our behalf.
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Control Persons and Principal Stockholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain ownership information with respect to our common
stock for those persons who directly or indirectly own, control or hold with the power to vote, 5%
or more of our outstanding common stock and all officers and directors, as a group.
</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="54%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&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 nowrap align="center" colspan="7"><B>Immediately</B></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="7"><B>prior to this</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Type of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>offering</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name and address</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>ownership</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- 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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<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"><DIV style="margin-left:0px; text-indent:-0px">QVT Financial LP (1)<BR>
527 Madison Avenue, 8th Floor<BR>
New York, New York 10022
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record and
beneficial
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">359,650</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14.54</TD>
    <TD nowrap valign="top">%</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 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">Deutsche Bank AG(2)<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taunusanlage 12, D-60325<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Frankfurt am Main<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal Republic of Germany<BR>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record and
beneficial
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">287,154</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11.61</TD>
    <TD nowrap valign="top">%</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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Richard J. Shaker, d/b/a Shaker<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Services (3)<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1094 Mogothy Circle <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annapolis, MD 21401
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record and
beneficial
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">159,200</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.40</TD>
    <TD nowrap valign="top">%</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 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">All officers and directors <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as a group (7 persons)(4)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record and
beneficial
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>All of the officers and directors as a group hold less than 1% of the Fund&#146;s shares of common
stock.</TD>
</TR>

</TABLE>


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

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

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





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

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Based solely upon information presented in a <U>Schedule&nbsp;13G</U>, dated September&nbsp;20, 2005,
filed by QVT Financial LP (&#147;QVT Financial&#148;). QVT Financial is the investment manager for QVT
Fund LP (&#147;QVT Fund&#148;), which beneficially owns 72,496 shares of common stock of the Fund. QVT
Financial is also the investment manager for a separate discretionary account managed for
Deutsche Bank AG (the &#147;Separate Account&#148;), which holds 287,154 shares of common stock of the
Fund. QVT Financial has the power to direct the vote and disposition of the common stock held
by each of QVT Fund and the Separate Account. Accordingly, QVT Financial may be deemed to be
the beneficial owner of an aggregate amount of 359,650 shares of the Fund&#146;s common stock,
consisting of the shares owned by QVT Fund and the shares held in the Separate Account.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Based solely upon information presented in a <U>Schedule&nbsp;13G/A</U>, dated February&nbsp;10, 2005
filed by Deutsche Bank AG.</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 solely upon information presented in a <U>Schedule&nbsp;13G/A</U>, dated July&nbsp;12, 2004
filed by Richard J. Shaker, d/b/a Shaker Financial Services.</TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>The address for all officers and directors is c/o US Bancorp Fund Services, LLC, 615 East
Michigan Street, 2nd Floor, Milwaukee, WI 53202.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">32
</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>Outstanding Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain information regarding our authorized shares and shares
outstanding as of July&nbsp;31, 2005.
</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="8%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="12%">&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>(3)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount Issued and</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title of Class</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount Authorized</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">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">Common Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,473,504</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="117"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The NAV per share of our outstanding shares of common stock is determined daily, by
dividing the value of total assets minus liabilities by the total number of shares outstanding at
the date as of which such determination is made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All securities for which market quotations are readily available are valued at the last sales
price prior to the time of determination of net asset value, or , if no sales price is available at
that time, at the closing price last quoted for the securities (but if bid and asked quotations are
available, at the mean between the current bid and asked prices, rather than the quoted closing
price). Securities that are traded over-the-counter are valued (if bid and asked quotations are
available) at the mean between the current bid and asked prices. Investments in short-term debt
securities having a maturity of 60&nbsp;days or less are valued at amortized cost if their term to
maturity from the date of purchase was less than 60&nbsp;days, or by amortizing their value on the
61<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day prior to maturity if their term to maturity from the date of purchase when
acquired by us was more than 60&nbsp;days. Securities for which market values are not readily
ascertainable are carried at fair value as determined in good faith by, or under the supervision
of, the Board. It is possible that the estimated value may differ significantly from the amount
that might ultimately be realized in the near term, and the difference could be material.
</DIV>
<DIV align="left">
<A name="118"></A>
</DIV>

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


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our authorized capital stock consists of 100,000,000 shares of common stock, par value
$0.001 per share, and 1,855,128 shares of Preferred Stock, par value $0.001 per share. Our common
stock trades on the NYSE under the symbol &#147;MXE.&#148; We intend to file an application to list our
Preferred Stock on the NYSE under the symbol &#147;MXEP.&#148; No stock has been authorized for issuance
under any equity compensation plans. Under Maryland law, our stockholders generally are not
personally liable for our debts or obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As permitted by the Maryland General Corporation Law, our charter provides that the Board of
Directors, without any action by our stockholders, may amend the charter from time to time to
increase or decrease the aggregate number of shares of stock or the number of shares of stock of
any class or series that the Fund have authority to issue. In addition, our charter provides that
the Board, by majority vote, may reclassify any unissued shares of our capital stock into one or
more additional or other classes or series of stock with such designations, preferences, conversion
or other rights, voting powers, restrictions, limitations as to dividends and qualifications as
determined by the Board. As discussed below, our Board has designated a new class of Preferred
Stock created specifically for issuance pursuant to this offering.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares of our common stock have equal rights as to earnings, assets, dividends and voting
privileges and, when they are issued, will be duly authorized, validly issued, fully paid and
nonassessable. Distributions may
</DIV>

<P align="center" style="font-size: 10pt">33
</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">be paid to the holders of our common stock if, as and when authorized by our Board of
Directors and declared by us out of funds legally available for such distributions. Shares of our
common stock have no preemptive, conversion or redemption rights and are freely transferable,
except where their transfer is restricted by federal and state securities laws or by contract. In
the event of our liquidation, dissolution or winding up, each share would be entitled to share
ratably in all of our assets that are legally available for distribution after we pay all debts and
other liabilities. Each of our shares of common stock is entitled to one vote on all matters
submitted to a vote of stockholders, including the election of directors. Except as provided with
respect to any other class or series of stock, the holders of the Fund&#146;s common stock will possess
exclusive voting power. There is no cumulative voting in the election of directors, which means
that holders of a majority of the outstanding shares of common stock will elect all of our
directors, and holders of less than a majority of such shares will be unable to elect any director.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Preferred Stock is a new class of our capital stock designated by the Board specifically
for issuance pursuant to this offering. See &#147;Description of our Capital Stock.&#148; The Preferred Stock
has identical rights and qualifications of our common stock, except as set forth in paragraphs (a),
(b), (c)&nbsp;and (d)&nbsp;below:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(a) <U>Liquidation Preference</U>: In the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Fund, the holders of Preferred Stock will be
entitled to receive preferential liquidating distribution, which is expected to equal the
original Subscription Price per share of Preferred Stock before any distribution of assets
is made to the holders of our common stock. After payment of the full amount of the
liquidating distribution to which they are entitled, the holders of shares of Preferred
Stock will not be entitled to any further participation in any distribution of assets by the
Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(b) <U>Voting Rights</U>: The 1940 Act requires that the holders of any Preferred Stock,
voting separately as a single class, have the right to elect at least two directors at all
times. The remaining directors will be elected by holders of common stock and Preferred
Stock, voting together as a single class. The 1940 Act also requires that, in addition to
any approval by stockholders that might otherwise be required, the approval of the holders
of a majority of any outstanding Preferred Stock voting separately as a class, would be
required to (1)&nbsp;adopt any plan of reorganization that would adversely affect the Preferred
Stock, and (2)&nbsp;take any action requiring a vote of security holders under Section 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 restrictions. 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 is any Preferred Stock outstanding. The Board presently intends that,
except as otherwise indicated in this prospectus and except as otherwise required by
applicable law or the Fund&#146;s Articles of Incorporation or bylaws, holders of Preferred Stock
will have equal voting rights with our holders of common stock (one vote per share, unless
otherwise required by the 1940 Act) and will vote together with our holders of common stock
as a single class.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(c) <U>Repurchase</U>. On a semi-annual basis, on dates to be determined by the Board of
Directors and beginning within the 6&nbsp;month period between January&nbsp;31, 2006 and July&nbsp;31,
2006, the Fund intends to conduct special Tender Offers for Preferred Stock as further
described in &#147;Preferred Stock Rights Offering &#151; Semi-Annual Tender Offer.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">(d) <U>Automatic Conversion</U>. If the Put Warrant Program is approved by the SEC, the
Preferred Stock will automatically convert into common stock on a one-to-one basis upon the
anticipated issuance of put warrants by the Fund, and, shortly thereafter, stockholders will
receive put warrants. Holders of the Preferred Stock will have no other conversion rights.
See &#147;Preferred Stock Rights Offering &#151; Put Warrant Program&#148; above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Immediately following the issuance of the Preferred Stock to purchasing stockholders and in
accordance with the rules promulgated under the 1940 Act, (i)&nbsp;the Fund shall have an asset coverage
of at least 200&nbsp;percent, (ii)&nbsp;the Fund will be prohibited from declaring any dividend (except a
dividend payable in our common stock) or any other distribution upon the our common stock, unless
the Preferred Stock has at the time of any such declaration an asset coverage of at least 200
percent after deducting the amount of such dividend or distribution, as the case may
</DIV>


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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">be, (iii)&nbsp;holders of Preferred Stock will be entitled, voting as a class, to the voting rights
outlined in (b)&nbsp;above, and (iv)&nbsp;holders of Preferred Stock will have the liquidation preference
outlined in (a)&nbsp;above.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Limitation on Liability of Directors and Officers; Indemnification and Advancement of Expenses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland law permits a Maryland corporation to include in its charter a provision
limiting the liability of its directors and officers to the corporation and its stockholders for
money damages except for liability resulting from (a)&nbsp;actual receipt of an improper benefit or
profit in money, property or services or (b)&nbsp;active and deliberate dishonesty established by a
final judgment and which is material to the cause of action. Our charter contains such a provision
which eliminates directors&#146; and officers&#146; liability to the maximum extent permitted by Maryland
law, subject to the requirements of the 1940 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our bylaws obligate us, to the maximum extent permitted by Maryland law and subject to the
requirements of the 1940 Act, to indemnify any director, officer, employees or agents of the Fund
against any judgments, fines, settlements or expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland law requires a corporation (unless its charter provides otherwise, which our charter
does not) to indemnify a director or officer who has been successful in the defense of any
proceeding to which he or she is made a party by reason of his or her service in that capacity.
Maryland law permits a corporation to indemnify its present and former directors and officers,
among others, against judgments, penalties, fines, settlements and reasonable expenses actually
incurred by them in connection with any proceeding to which they may be made a party by reason of
their service in those or other capacities unless it is established that (a)&nbsp;the act or omission of
the director or officer was material to the matter giving rise to the proceeding and (1)&nbsp;was
committed in bad faith or (2)&nbsp;was the result of active and deliberate dishonesty, (b)&nbsp;the director
or officer actually received an improper personal benefit in money, property or services or (c)&nbsp;in
the case of any criminal proceeding, the director or officer had reasonable cause to believe that
the act or omission was unlawful. However, under Maryland law, a Maryland corporation may not
indemnify for an adverse judgment in a suit by or in the right of the corporation or for a judgment
of liability on the basis that a personal benefit was improperly received, unless in either case a
court orders indemnification, and then only for expenses. In addition, Maryland law permits a
corporation to advance reasonable expenses to a director or officer upon the corporation&#146;s receipt
of (a)&nbsp;a written affirmation by the director or officer of his or her good faith belief that he or
she has met the standard of conduct necessary for indemnification by the corporation and (b)&nbsp;a
written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed by
the corporation if it is ultimately determined that the standard of conduct was not met.
</DIV>
<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Provisions of the Maryland General Corporation Law and our Charter and Bylaws</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Maryland General Corporation Law and our charter and bylaws contain provisions that
could make it more difficult for a potential acquiror to acquire us by means of a tender offer,
proxy contest or otherwise. These provisions are expected to discourage certain coercive takeover
practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to
negotiate first with our Board. We believe that the benefits of these provisions outweigh the
potential disadvantages of discouraging any such acquisition proposals because, among other things,
the negotiation of such proposals may improve their terms.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board is divided into three classes of directors serving staggered three-year terms. A
classified board may render a change in control of us or removal of our incumbent management more
difficult. We believe, however, that the longer time required to elect a majority of a classified
board of directors will help to ensure the continuity and stability of our management and policies.
</DIV>

<P align="center" style="font-size: 10pt">35
</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>Action by Stockholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Maryland General Corporation Law provides that stockholder action can be taken only at an
annual or special meeting of stockholders or by unanimous written consent in lieu of a meeting.
These provisions, combined with the requirements of our bylaws regarding the calling of a
stockholder-requested special meeting of stockholders discussed below, may have the effect of
delaying consideration of a stockholder proposal until the next annual meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Ability of Stockholders to call a Special Meeting of Stockholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our bylaws only allow our stockholders to call a Special Meeting of Stockholders if such
request is made to the Secretary of the Fund in writing signed by stockholders having at least 50%
of the issued and outstanding shares of voting stock.
</DIV>
<DIV align="left">
<A name="121"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to continue to be regulated as a registered management investment company under
the 1940 Act and as a registered investment company under Subchapter M of the Internal Revenue
Code. The 1940 Act contains prohibitions and restrictions relating to transactions between
registered investment companies and their affiliates (including any investment advisers or
sub-advisers), principal underwriters and affiliates of those affiliates or underwriters and
requires that a majority of the directors be persons other than &#147;interested persons,&#148; as that term
is defined in the 1940 Act.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may take temporary defensive positions in cash or in high quality, short-term debt
securities or other money market instruments in response to adverse market, economic, political or
other conditions.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund and PAM have each adopted a code of ethics pursuant to Rule&nbsp;17j-1 under the 1940 Act
that establishes procedures for personal investments and restricts certain personal securities
transactions. Personnel subject to each code may invest in securities for their personal
investment accounts, including securities that may be purchased or held by us, so long as such
investments are made pursuant to the code&#146;s requirements. For information on how to obtain a copy
of each code of ethics, see &#147;Available Information.&#148;
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Proxy Voting Policies and Guidelines contained in this document summarize our positions on
various issues of concern to our stockholders. These Guidelines give general indication as to how
our investment adviser will vote our portfolio securities on each issue listed. However, this
listing does not address all potential voting issues or the intricacies that may surround
individual proxy votes. For that reason there may be instances in which votes may vary from the
guidelines presented here. We endeavor to vote our shares in accordance with our investment
objectives and strategies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will vote NO on any proposals that would limit or restrict a stockholders rights.
</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>I.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CORPORATE GOVERNANCE</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="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Board and Governance Issues</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="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Board of Director/Trustee Composition</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors is responsible for the overall governance of the corporation.
</DIV>


<P align="center" style="font-size: 10pt">36
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>oppose</B></U> slates without at least a majority of independent directors
(1/3 of directors who are outsiders to the corporation).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will vote <U><B>for</B></U> shareholder proposals that request that the board audit,
compensation and/or nominating committees include independent directors exclusively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. Increase Authorized Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>support</B></U> the authorization of additional common stock
necessary to facilitate a stock split.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>support</B></U> the authorization of additional common stock, if
the company already has a large amount of stock authorized but not issued or reserved for its stock
option plans. In this latter instance, there is a concern that the authorized but unissued shares
will be used as a poison pill or other takeover defense, which will be <U><B>opposed</B></U>. In
addition, the Fund will require the company to provide a specific purpose for any request to
increase shares by more than 100&nbsp;percent of the current authorization.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. Blank Check Preferred Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Blank check preferred is stock with a fixed dividend and a preferential claim on company assets
relative to common shares. The terms of the stock (voting dividend and conversion rights) are set
by the Board at a future date without further shareholder action. While such an issue can in
theory have legitimate corporate purposes, most often it has been used as a takeover defense since
the stock has terms that make the entire company less attractive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>oppose</B></U> the creation of blank check preferred stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Classified or &#147;Staggered&#148; Board</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On a classified (or staggered) board, directors are divided into separate classes (usually three)
with directors in each class elected to overlapping three-year terms. Companies argue that such
Boards offer continuity in direction which promotes long-term planning. However, in some instances
they may serve to deter unwanted takeovers since a potential buyer would have to wait at least two
years to gain a majority of Board seats.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will vote no on proposals involving classified boards.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. Supermajority Vote Requirements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Supermajority vote requirements in a company&#146;s charter or bylaws require a level of voting approval
in excess of a simple majority. Generally, supermajority provisions require at least 2/3
affirmative vote for passage of issues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will vote no on proposals involving supermajority voting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. Restrictions on Stockholders to Act by Written Consent</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Written consent allows stockholders to initiate and carry out a shareholder action without waiting
until the annual meeting or by calling a special meeting. It permits action to be taken by the
written consent of the same percentage of outstanding shares that would be required to effect the
proposed action at a shareholder meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will vote no on proposals to limit or eliminate the right of stockholders to act
by written consent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. Restrictions on Stockholders to Call Meetings</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>oppose</B></U> such a restriction as it limits the right of the
stockholder.
</DIV>


<P align="center" style="font-size: 10pt">37
</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>8. Limitations, Director Liability and Indemnification</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Because of increased litigation brought against directors of corporations and the increased costs
of director&#146;s liability insurance, many states have passed laws limiting director liability for
those acting in good faith. Stockholders however must opt into such statutes. In addition, many
companies are seeking to add indemnification of directors to corporate bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>support</B></U> director liability and indemnification resolutions
because it is important for companies to be able to attract the most qualified individuals to their
Boards. Note: Those directors acting fraudulently would remain liable for their actions
irrespective of this resolution.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. Reincorporation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Corporations are in general bound by the laws of the state in which they are incorporated.
Companies reincorporate for a variety of reasons including shifting incorporation to a state where
the company has its most active operations or corporate headquarters, or shifting incorporation to
take advantage of state corporate takeover laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While each reincorporation proposal will be evaluated based on its own merits, the Fund adviser
will generally <U><B>support</B></U> reincorporation resolutions for valid business reasons (such as
reincorporating in the same state as the corporate headquarters).
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cumulative voting allows stockholders to &#147;stack&#148; their votes behind one or a few director nominees
running for the Board, thereby helping a minority of stockholders to win board representation.
Cumulative voting gives minority stockholders a voice in corporate affairs proportionate to their
actual strength in voting shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>support</B></U> proposals calling for cumulative voting in the
election of directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. Dual Classes of Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In order to maintain corporate control in the hands of a certain group of stockholders, companies
may seek to create multiple classes of stock with differing rights pertaining to voting and
dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>oppose</B></U> dual classes of stock. However, the advisor will
<U><B>support</B></U> classes of stock offering different dividend rights (such as one class which pays
cash dividends and a second which pays stock dividends) depending on the circumstances.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. Limit Directors&#146; Tenure</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In general corporate directors may stand for re-election indefinitely. Opponents of this practice
suggest that limited tenure would inject new perspectives into the boardroom as well as possibly
creating room for directors from diverse backgrounds; however, continuity is important to corporate
leadership and in some instances alternative means may be explored for injecting new ideas or
members from diverse backgrounds into corporate boardrooms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Accordingly, the Fund adviser will vote on a case-by-case basis attempts to limit director tenure.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13. Minimum Director Stock Ownership</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The director share ownership proposal requires that all corporate directors own a minimum number of
shares in the corporation. The purpose of this resolution is to encourage directors to have the
same interest as other stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>support</B></U> resolutions that require corporate directors to own shares in
the company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. Selection of Independent Registered Public Accounting Firm</B>
</DIV>


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

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Annual election of the outside accountants is standard practice. While it is recognized that the
company is in the best position to evaluate the competence of the outside accountants, we believe
that outside accountants must ultimately be accountable to stockholders. Furthermore, audit
committees have been the subject of a report released by the Blue Ribbon Commission on Improving
the Effectiveness of Corporate Audit Committees in conjunction with the NYSE and the National
Association of Securities Dealers. The Blue Ribbon Commission concluded that audit committees must
improve their current level of oversight of independent accountants. Given the rash of accounting
irregularities that were not detected by audit panels or auditors, shareholder ratification is an
essential step in restoring investor confidence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>oppose</B></U> the resolutions seeking ratification of the auditor when fees
for financial systems design and implementation exceed audit and all other fees, as this can
compromise the independence of the Independent Registered Public Accounting Firm.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>oppose</B></U> the election of the audit committee chair if the audit
committee recommends an auditors whose fees for financial systems design and implementation exceed
audit and all other fees, as this can compromise the independence of the Independent Registered
Public Accounting Firm.
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1. Disclosure of President, Executive Officers, Board and Management Compensation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On a case-by-case basis, the Fund adviser will <U><B>support</B></U> shareholder resolutions requesting
companies to disclose the salaries of top management and the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. Compensation for President, Executive Officers, Board and Management</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>oppose</B></U> an executive compensation proposal if we believe the
compensation does not reflect the economic and social circumstances of the company (i.e. at times
of layoffs, downsizing, employee wage freezes, etc.).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. Formation and Independence of Compensation Review Committee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>support</B></U> stockholder resolutions requesting the formation of a
committee of independent directors to review and examine executive compensation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Stock Options for Board and Executives</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>oppose</B></U> stock option plans that in total offer greater than
15% of shares outstanding because of voting and earnings dilution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>oppose</B></U> option programs that allow the repricing of
underwater options. (Repricing divides stockholder and employee interests. Stockholders cannot
&#147;reprice&#148; their stock and, therefore, optionees should not be treated differently).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>oppose</B></U> stock option plans that have option exercise prices
below the marketplace on the day of the grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>support</B></U> options programs for outside directors subject to
the same constraints previously described.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. Employee Stock Ownership Plan (ESOPs)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>support</B></U> ESOPs created to promote active employee ownership. However,
they will <U><B>oppose</B></U> any ESOP whose purpose is to prevent a corporate takeover.
</DIV>


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

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. Pay Equity</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>support</B></U> stockholder resolutions that request that management provide
a race and/or gender pay equity report.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. Changes to Charter or ByLaws</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will conduct a case-by-case review of the proposed changes with the voting
decision resting on whether the proposed changes are in stockholder&#146;s best interests.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. Confidential Voting</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Typically, proxy voting differs from voting in political elections in that the company is made
aware of shareholder votes as they are cast. This enables management to contact dissenting
stockholders in an attempt to get them to change their votes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>support</B></U> confidential voting because the voting process should be free
of coercion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. Equal Access to Proxy</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Equal access proposals ask companies to give stockholders access to proxy materials to state their
views on contested issues, including director nominations. In some cases, they would actually
allow stockholders to nominate directors. Companies suggest that such proposals would make an
increasingly complex process even more burdensome.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In general, the Fund adviser will <U><B>oppose</B></U> resolutions for equal access proposals.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Golden parachutes are severance payments to top executives who are terminated or demoted pursuant
to a takeover. Companies argue that such provisions are necessary to keep executives from &#147;jumping
ship&#148; during potential takeover attempts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>support</B></U> the right of stockholders to vote on golden parachutes
because they go above and beyond ordinary compensation practices. In evaluating a particular
golden parachute, we will examine total management compensation, the employees covered by the plan,
and the quality of management.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>C. Mergers and Acquisitions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1. Considering the Non-Financial Effects of a Merger Proposal</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Such a proposal allows or requires the Board to consider the impact of merger decisions on various
&#147;stakeholders,&#148; such as employees, communities, customers and business partners. This proposal
gives the Board the right to reject a tender offer on the grounds that it would adversely affect
the Fund&#146;s stakeholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>support</B></U> stockholder resolutions that consider non-financial impacts
of mergers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. Mergers, Restructuring and Spin-offs</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A merger, restructuring, or spin-off in some way affects a change in control of the Fund&#146;s assets.
In evaluating the merit of each issue, we will consider the terms of each proposal. This will
include an analysis of the potential long-term value of the investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>support</B></U> management proposals for merger or restructuring if the
transaction appears to offer fair value and other proxy voting policies stated are not violated.
For example, the adviser may oppose restructuring
</DIV>


<P align="center" style="font-size: 10pt">40
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">resolution which include in it significant takeover defenses and may again oppose the merger of a
non-nuclear and a nuclear utility if it poses potential liabilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. Poison Pills</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Poison pills (or stockholder rights plans) are triggered by an unwanted takeover attempt and cause
a variety of events to occur which may make the company financially less attractive to the suitor.
Typically, directors have enacted these plans without stockholder approval. Most poison pill
resolutions deal with putting poison pills up for a vote or repealing them altogether.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will <U><B>support</B></U> proposals to put rights plans up for a stockholder vote. In
general, poison pills will be <U><B>opposed</B></U> unless management is able to present a convincing
case fur such a plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Opt-Out of State Anti-Takeover Law</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A strategy for dealing with anti-takeover issues has been a stockholder resolution asking for a
company to opt-out of a particular state&#146;s anti-takeover laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund adviser will generally <U><B>support</B></U> bylaws changes requiring a company to opt-out of
state anti-takeover laws. However, resolutions requiring companies to opt-into state anti-takeover
statutes will be <U><B>opposed</B></U>.
</DIV>

<DIV align="left">
<A name="122"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders of a closed-end management investment company generally do not have the
right to cause it to repurchase its shares. Generally, a closed-end management company may
repurchase its shares under the 1940 Act: (1)&nbsp;on a securities exchange or such other open market
as may be designated by the SEC (provided that it has, in any such case, informed holders of the
class of stock involved within the preceding six months of its intention to repurchase such stock),
(2)&nbsp;by a tender offer open to all holders of the class of shares involved or (3)&nbsp;as otherwise
permitted by the SEC. If the Fund intends to repurchase its shares other than on a securities
exchange, in the open market or by making a tender offer, a rule adopted by the SEC under the 1940
Act provides that the closed-end fund must meet certain conditions regarding the distribution of
our net income, the identity of the seller, the price paid, any brokerage commissions, prior notice
to holders of the class of shares involved of an intention to purchase such shares and that the
purchase is not being made in a manner or on a basis which discriminates unfairly against the other
holders of such class.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we are not required to repurchase our shares, we have done so in the past and may
continue to do so if the Board believes that such repurchase is in our best interests and of our
stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At a Meeting of the Board held on December&nbsp;13, 2001, the Board approved a tender offer (the
&#147;Tender&#148;). The Tender allowed us to purchase up to 100% of each stockholder&#146;s shares of common
stock, not to exceed 80% of the total outstanding shares of our common stock, for cash at a price
equal to 100% of our net asset value per share as of the closing date. The Tender commenced on
February&nbsp;19, 2002 and expired on March&nbsp;20, 2002. In connection with the Tender, the Fund purchased
6,122,069 shares of capital stock at a total cost of $68,444,728. There were no gains or losses to
the Fund because the repurchase of tendered shares was executed at 100% of the Fund&#146;s NAV as
calculated on the Expiration Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At a Special Meeting of the Board of Directors held on October&nbsp;11, 1999, the Board approved a
share repurchase program. Pursuant to the share repurchase program, we were authorized to commence
a two phase share repurchase program for up to 2,800,000 shares, or approximately 25% of our then
outstanding shares of common stock, through a combination of share purchases and tender offers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the years ended July&nbsp;31, 2002, 2003, 2004 and 2005, we made no repurchases pursuant to
the program. Pursuant to the share repurchase program, during the year ended July&nbsp;31, 2001, we
purchased 174,000 share of capital stock in the open market at a total cost of $1,703,552. The
weighted average discount of these purchases comparing the purchase price to the net asset value at
the time of purchase was 9.01%. During the fiscal
</DIV>

<P align="center" style="font-size: 10pt">41
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">year ended July&nbsp;31, 2000, we purchased 1,199,700 shares of capital stock in the open market at
a total cost of $10,573,159. The weighted average discount of these purchases comparing the
purchase prices to the net asset value at the time of purchase was 16.40%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed under &#147;Preferred Stock Rights Offering &#151; Semi-Annual Tender Offer&#148; herein, the
Fund will conduct a series of tender offers for Preferred Stock only (each, a &#147;Tender Offer&#148;) on a
semi-annual basis (each semi-annual period, a &#147;Tender Period&#148;), on dates to be determined by the
Board of Directors and beginning within the 6-month period between January&nbsp;31, 2006 and July&nbsp;31,
2006, in which 25% of the issued and outstanding Preferred Stock on the date the Preferred Stock is
issued may be tendered to the Fund and repurchased for the Fund&#146;s portfolio securities. Each
stockholder participating in a Tender Offer may have his or her tendered shares of Preferred Stock
repurchased by the Fund in kind for portfolio securities having a value equal to 99% of NAV as
determined, with respect to each Tender Offer, on a date designated by the Board. In the event
that the average trade weighted discount to the last published NAV for the Fund is less than 5% for
any five consecutive trading days during any Tender Period (a &#147;Tender Termination Event&#148;), the Fund
will not conduct a Tender Offer during that Tender Period. In the event of a Tender Termination
Event, a Tender Offer will be conducted during the next Tender Period (unless a Tender Termination
Event exists during such next Tender Period).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to ensure that the Fund conducts such a Tender Offer, the Fund has adopted, by
unanimous written consent of the Board of Directors to action taken without a meeting, the
following Fundamental Periodic Repurchase Offer Policy:
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;The Fund will make offers to repurchase its Preferred Stock semi-annually;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;Repurchase request deadlines shall be disclosed in the notification provided to stockholders of
a repurchase offer and repurchase request deadlines shall be determined by the Board consistent
with the 1940 Act, applicable SEC regulations and the terms of any exemptive order issued to the
Fund by the SEC; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;The date on which the repurchase price for shares of Preferred Stock is to be determined shall
occur no later than the fourteenth day after a repurchase request deadline, or the next business
day if such day is not a business day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For each repurchase offer, the Fund will offer to repurchase 25% of the Fund&#146;s outstanding
shares of Preferred Stock. Participating stockholders generally will receive a pro-rata
distribution or &#147;slice&#148; of the Fund&#146;s portfolio securities in return for their repurchase shares of
Preferred Stock except for (a)&nbsp;securities which, if distributed, would be required to register
under the Securities Act of 1933; (b)&nbsp;securities issued by entities in countries which restrict or
prohibit the holding of securities by non-nationals other than through qualified investment
vehicles; and (c)&nbsp;certain portfolio assets (such as forward currency exchange contracts, futures
and options contracts, and repurchase agreements) that, although they may be liquid and marketable,
include the assumption of contractual obligations, require special trading facilities or can only
be traded with the counterparty to the transaction in order to effect a change in beneficial
ownership. Additionally, the Fund may pay cash for fractional shares and/or odd lots of securities
and/or amounts attributable to any cash positions (including short-term non-equity securities);
distribute odd lots, fractional shares and any cash position to stockholders; round down fractional
shares so as to eliminate them prior to distribution; or pay a higher pro-rata percentage of equity
securities to represent those items.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fund anticipates that it will conduct its Tender Offers semi-annually, beginning within the
6-month period between January&nbsp;31, 2006 and July&nbsp;31, 2006, for 25% of the issued and outstanding
shares of Preferred Stock. See &#147;Preferred Stock Rights Offering &#151; Semi-Annual Tender Offer.&#148;
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our portfolio securities are held under a custody agreement by U.S. Bank, N.A. The
address of the custodian is: 425 Walnut Street, Cincinnati, OH 45202. Our assets are held under
bank custodianship in compliance with the 1940 Act. Computershare Trust Company of New York acts
as our transfer agent, dividend paying agent and registrar (as well as Subscribing Agent in
connection with this offering). The principal business address of the transfer agent is 2 North La
Salle Street, Chicago, IL 60602.
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="124"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Brokerage Allocation and Other Practices</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the supervision of the directors, decisions to buy and sell securities for the
Fund are made by the adviser. The adviser is authorized by the directors to allocate the orders
placed by them on behalf of the Fund to brokers and dealers who may, but need not, provide research
or statistical material or other services to the Fund or the adviser for the Fund&#146;s use. Such
allocation is to be in such amounts and proportions as the adviser may determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In selecting a broker or dealer to execute each particular transaction, the adviser will take
the following into consideration: (i)&nbsp;best net price available; (ii)&nbsp;the reliability, integrity and
financial condition of the broker or dealer; (iii)&nbsp;the size of and difficulty in executing the
order; and (iv)&nbsp;the value of the expected contribution of the broker or dealer to the investment
performance of the Fund on a continuing basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brokers or dealers executing a portfolio transaction on behalf of the Fund may receive a
commission in excess of the amount of commission another broker or dealer would have charged for
executing the transaction if the adviser determines in good faith that such commission is
reasonable in relation to the value of brokerage, research and other services provided to the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In allocating portfolio brokerage, the adviser may select brokers or dealers who also provide
brokerage, research and other services to other accounts over which the adviser exercise investment
discretion. Some of the services received as the result of the Fund&#146;s transactions may primarily
benefit accounts other than the Fund&#146;s, while services received as the result of portfolio
transactions effected on behalf of those other accounts may primarily benefit the Fund.
</DIV>
<DIV align="left">
<A name="125"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have adopted the following privacy policy in order to safeguard the personal
information of its consumers and customers in accordance with SEC Regulation&nbsp;S-P, 17 CFR 284.30:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Commitment to Consumer Privacy. </B>The Fund recognizes and respects the privacy expectations of
each of our customers and believes that the confidentiality and protection of consumer information
is one of our fundamental responsibilities. The Fund is committed to maintaining the
confidentiality, integrity and security of the customers&#146; personal information and will handle
personal consumer and customer information only in accordance with Regulation&nbsp;S-P and any other
applicable laws, rules and regulations. The Fund will ensure: (a)&nbsp;the security and confidentiality
of customer records and information; (b)&nbsp;that customer records and information are protected from
any anticipated threats and hazards; and (c)&nbsp;that unauthorized access to, or use of, customer
records or information is protected against.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Collection and Disclosure of Shareholder Information. </B>Consumer information collected by, or
on behalf of, the Fund, generally consists of the following:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Information received from consumers or customers on or in
applications or other forms, correspondence, or conversations,
including, but not limited to, their name, address, phone number,
social security number, assets, income and date of birth; 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="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Information about transactions with us, our affiliates, or others,
including, but not limited to, shareholder account numbers and
balance, payments history, parties to transactions, cost basis
information, and other financial information.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund does not disclose any nonpublic personal information about our current or former
consumers or customers to nonaffiliated third parties, except as permitted by law. For example, as
the Fund has no employees, it conducts its business affairs through third parties that provide
services pursuant to agreements with the Fund (as well as through its officers and directors).
</DIV>

<P align="center" style="font-size: 10pt">43
</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>Security of Consumer and Customer Information. </B>The Fund will determine whether the policies
and procedures of its affiliates and service providers and reasonably designed to safeguard
customer information and require only appropriate and authorized access to, and use of, customer
information through the application of appropriate administrative, technical, physical, and
procedural safeguards that comply with applicable federal standards and regulations. The Fund
directs each of its service providers to adhere to the Fund&#146;s privacy policy and to their
respective privacy policies with respect to all customer information of the Fund and to take all
actions reasonably necessary so that the Fund is in compliance with the provisions of 17 CFR
248.30, including, as applicable, the development and delivery of initial and annual
privacy notices and maintenance of appropriate and adequate records. The Fund will require its
service providers to confirm to the Fund, in writing, that they are restricting access to nonpublic
personal information about customers to those employees who need to know that information to
provide products or services to customers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund requires its service providers to provide periodic reports, no less frequently than
annually, to the Board of Directors outlining their privacy policies and implementation and
promptly report to the Fund any material changes to their privacy policy before, or promptly after,
their adoption.
</DIV>
<DIV align="left">
<A name="126"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal matters regarding the securities offered by this Prospectus and of the Fund in
general will be passed upon for the Fund by Blank Rome LLP, New York, New York.
</DIV>
<DIV align="left">
<A name="127"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements included in this Prospectus and in the Registration Statement
have been audited by Tait, Weller &#038; Baker LLP, an independent registered public accounting firm, to
the extent and for the periods set forth in their report appearing elsewhere herein and in the
Registration Statement, and are included in reliance upon such report given upon the authority of
said firm as experts in auditing and accounting.
</DIV>
<DIV align="left">
<A name="128"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will file with or submit to the SEC reports, proxy statements and other information
meeting the informational requirements of the 1940 Act and the Exchange Act. You may inspect and
copy these reports, proxy statements and other information at the Public Reference Room of the SEC
at 100 F St. NE, Washington, D.C. 20549. You may call the SEC at 1-800-SEC-0330 for information on
the operation of the Public Reference Room. Our SEC filings are also available to the public on the
SEC&#146;s Internet website at <U>http://www.sec.gov</U> and can be inspected at the offices of the NYSE, 20
Broad Street, New York, NY 10005. Copies of these reports, proxy and information statements and
other information may be obtained, after paying a duplicating fee, by electronic request at the
following E-mail address: publicinfo@sec.gov, or by writing the SEC&#146;s Public Reference Section,
100 F St. NE, Washington, D.C. 20549-0102.
</DIV>
<DIV align="left">
<A name="129"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Prospectus contains forward-looking statements, within the meaning of the Securities
Act, that involve risks and uncertainties. We use words such as &#147;anticipates,&#148; &#147;believes,&#148;
&#147;expects,&#148; &#147;objectives,&#148; &#147;future,&#148; &#147;intends,&#148; &#147;will,&#148; &#147;may,&#148; &#147;should,&#148; and similar expressions to
identify forward-looking statements. Our actual results could differ materially from those
projected in the forward-looking statements because of various risks and uncertainties, including
the factors set forth in &#147;Risk Factors&#148; and elsewhere in this Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have based the forward-looking statements included in this Prospectus on information
available to us on the date of this Prospectus, and we assume no obligation to update any such
forward-looking statements. Although we undertake no obligation to revise or update any
forward-looking statements, whether as a result of new information, future events or otherwise, you
are advised to consult any additional disclosures that we may make directly to you or through
reports, if any, that we in the future may file with the SEC, including an annual or semi-annual
report on Form N-CSR.
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="130"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund hereby incorporates its Annual Report to Stockholders dated July&nbsp;31, 2005
 and the
Semi-Annual Report to Stockholders dated January&nbsp;31, 2005 each of which  was filed with the Securities and
Exchange Commission.
</DIV>

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

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

<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>The Mexico Equity &#038; Income Fund, Inc.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>1,855,128 Shares Issuable Upon Exercise of Rights to Purchase Preferred Stock,<BR>
$.001 par Value</B>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</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>PART C<BR>
OTHER INFORMATION</B>
</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">1. Financial Statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Exhibits
</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>1) Articles of Incorporation (Incorporated by reference to the Registrant&#146;s
Registration Statement on Form N-2 (File No.&nbsp;33-35089)</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">2) Articles of Amendment to the Articles of Incorporation (Incorporated by reference to
Exhibit 1(b) to Pre-Effective Amendment Nos. 2 and 3 to the Registrant&#146;s Registration
Statement on Form N-2 (File No.&nbsp;33-35089)
</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>Amended and Restated Bylaws (Incorporated by reference to Exhibit 2(b) to Pre-Effective
Amendment No.&nbsp;2 to the Registrant&#146;s Registration Statement on Form N-2 (File No.&nbsp;33-35089)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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>Not 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>1) Form of Subscription Certificate</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">2) Form of Notice of Guaranteed Delivery
</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">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">f.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">g.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investment Advisory Agreement between Registrant and Pichardo Asset Management, S.A. de
C.V.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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>Not 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">j.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Custodian Agreement between Registrant and U.S. Bank, N.A.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">k.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>1) Administration Agreement between Registrant and U.S. Bancorp Fund Services, LLC</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">2) Transfer Agency and Service Agreement between Registrant and Computershare Investors
Services, LLC
</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">l.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Opinion and Consent of Blank Rome LLP, counsel for Registrant<BR></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">m.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">n.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consent of Tait, Weller &#038; Baker LLP, the independent registered public accounting firm
for Registrant</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">o.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">p.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">q.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">r.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Codes of Ethics of Registrant</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 26. MARKETING ARRANGEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not Applicable
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 27. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION</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">Commission registration fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounting fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NYSE Listing fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">27,363</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subscribing Agent fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing and engraving</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">129,363</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>





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

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

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






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of the expenses set forth above shall be borne by the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 28. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not Applicable
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 29. NUMBER OF HOLDERS OF SECURITIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the approximate number of record holders of the Fund&#146;s common
stock, $0.001 par value per share, at July&nbsp;31, 2005.
</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="left" style="border-bottom: 1px solid #000000">Title of Class</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Number of Record Holders</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">572</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 30. INDEMNIFICATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to Section&nbsp;2-418 of the Maryland General Corporation Law, Article&nbsp;XI of the
Company&#146;s Articles of Incorporation, Article&nbsp;VII of the Company&#146;s bylaws, the Investment Advisory
Agreement and Administration Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland law permits a Maryland corporation to include in its charter a provision limiting the
liability of its directors and officers to the corporation and its stockholders for money damages
except for liability resulting from (a)&nbsp;actual receipt of an improper benefit or profit in money,
property or services or (b)&nbsp;active and deliberate dishonesty established by a final judgment and
which is material to the cause of action. The Registrant&#146;s charter contains such a provision which
eliminates directors&#146; and officers&#146; liability to the maximum extent permitted by Maryland law,
subject to the requirements of the 1940 Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our charter authorizes us, to the fullest extent permitted by Maryland law and subject to the
requirements of the 1940 Act, to indemnify any present or former director or officer or any
individual from and against any claim or liability to which that person may become subject or which
that person may incur by reason of his or her status as a present or former director or officer and
to pay or reimburse their reasonable expenses in advance of final disposition of a proceeding. Our
bylaws obligate us, to the maximum extent permitted by Maryland law and subject to the requirements
of the 1940 Act, to indemnify any present or former director or officer or any individual who is
made a party to the proceeding by reason of his service in that capacity from and against any claim
or liability to which that person may become subject or which that person may incur by reason of
his or her status as a present or former director or officer and to pay or reimburse their
reasonable expenses in advance of final disposition of a proceeding. The charter and bylaws also
permit us to indemnify and advance expenses to any person who served a predecessor of us in any of
the capacities described above and any of our employees or agents or any employees or agents of our
predecessor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland law requires a corporation (unless its charter provides otherwise, which our charter
does not) to indemnify a director or officer who has been successful in the defense of any
proceeding to which he or she is made a party by reason of his or her service in that capacity.
Maryland law permits a corporation to indemnify its present and former directors and officers,
among others, against judgments, penalties, fines, settlements and reasonable expenses actually
incurred by them in connection with any proceeding to which they may be made a party by reason of
their service in those or other capacities unless it is established that (a)&nbsp;the act or omission of
the director or officer was material to the matter giving rise to the proceeding and (1)&nbsp;was
committed in bad faith or (2)&nbsp;was the result of active and deliberate dishonesty, (b)&nbsp;the director
or officer actually received an improper personal benefit in money, property or services or (c)&nbsp;in
the case of any criminal proceeding, the director or officer had reasonable cause to believe that
the act or omission was unlawful. However, under Maryland law, a Maryland corporation may not
indemnify for an adverse judgment in a suit by or in the right of the corporation or for a judgment
of liability on the basis that a personal benefit was improperly received, unless in either case a
court orders indemnification, and then only for expenses. In addition, Maryland law permits a
corporation to advance reasonable expenses to a director or officer upon the corporation&#146;s receipt
of (a)&nbsp;a written affirmation by the director or officer of his or her good faith belief that he or
she has met the standard of conduct necessary for indemnification by the corporation and (b)&nbsp;a
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</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">written undertaking by him or her or on his or her behalf to repay the amount paid or
reimbursed by the corporation if it is ultimately determined that the standard of conduct was not
met.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Investment Advisory Agreement provides that, absent willful misfeasance, bad faith or
gross negligence in the performance of its duties or by reason of the reckless disregard of its
duties and obligations, our investment adviser and its officers, managers, agents, employees,
controlling persons, members and any other person or entity affiliated with it are entitled to
indemnification from the Fund for any damages, liabilities, costs and expenses (including
reasonable attorneys&#146; fees and amounts reasonably paid in settlement) arising from the rendering of
the adviser&#146;s services under the Investment Advisory Agreement or otherwise as an investment
adviser of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Administration Agreement provides that, absent willful misfeasance, bad faith or gross
negligence in the performance of its duties or by reason of the reckless disregard of its duties
and obligations, the Administrator and its officers, manager, agents, employees, controlling
persons, members and any other person or entity affiliated with it are entitled to indemnification
from the Fund for any damages, liabilities, costs and expenses (including reasonable attorneys&#146;
fees and amounts reasonably paid in settlement) arising from the rendering of the Administrator&#146;s
services under the Administration Agreement or otherwise as administrator for the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The law also provides for comparable indemnification for corporate officers and agents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 31. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not Applicable
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 32. LOCATION OF ACCOUNTS AND RECORDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All accounts, books and other documents required to be maintained by Section 31(a) of the 1940
Act, and the rules thereunder are maintained at the offices of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;the Registrant, 615 East Michigan St., 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Floor, Milwaukee, WI 53202;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;the transfer agent, Computershare Investor Services, LLC, 2 North LaSalle Street,
Chicago, IL 60602;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;the Custodian, U.S. Bank, N.A., 425 Walnut Street, Cincinnati, OH 45202; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;the investment adviser, Pichardo Asset Management, S.A. de C.V., Teopanzolco Avenue #408,
3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> Floor, Cuernavaca 62260, Morelos, Mexico.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 33. MANAGEMENT SERVICES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not Applicable.
</DIV>

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

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 34. UNDERTAKINGS</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">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Registrant undertakes to suspend the issuance of Preferred Stock 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 the net proceeds as stated in the Prospectus.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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>The Registrant undertakes 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purpose of determining any liability under the
Securities Act of 1933, the information omitted from the form of Prospectus
filed as part of this registration statement in reliance upon Rule&nbsp;430A and
contained in a form of Prospectus filed by the Registrant pursuant to Rule
497(h) under the Securities Act of 1933 shall be deemed to be part of this
registration statement as of the time it was declared effective.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purpose of determining any liability under the
Securities Act of 1933, each post-effective amendment that contains a form of
Prospectus shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.</TD>
</TR>


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

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

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


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



</TABLE>
</DIV>

<DIV align="left">
<A name="131"></A>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As required by the Securities Act of 1933, this registration statement has been signed on
behalf of the registrant, in the City of New York and the State of New York, on the 31<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>
day of October, 2005.
</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="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="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"><B>MEXICO EQUITY &#038; INCOME FUND, INC.</B></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>
</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" nowrap>By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Maria Eugenia Pichardo</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" colspan="3">Name: Maria Eugenia Pichardo</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" colspan="3">Title: President</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;As required by the Securities Act of 1933, this registration statement has been signed by the
following persons in the capacities and on the dates 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="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Date</B></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>/s/ Maria Eugenia Pichardo</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" 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>
<B>Maria Eugenia Pichardo</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;31, 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 align="left" 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"><B>/s/ Gerald Hellerman</B>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
<B>Gerald Hellerman</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director,
Chief Financial
Officer and Chief
Compliance Officer
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;31, 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 align="left" 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"><B>*</B>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
<B>Phillip Goldstein</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;31, 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 align="left" 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"><B>*</B>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
<B>Rajeev Das</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;31, 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 align="left" 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"><B>*</B>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
<B>Andrew Dakos</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;31, 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 align="left" 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"><B>*</B>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
<B>Glenn Goodstein</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;31, 2005</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="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&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">&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"><B>*By:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>/s/ Gerald Hellerman</B></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">Gerald Hellerman</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">Attorney-in-Fact</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

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

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

<DIV align="left">
<A name="132"></A>
</DIV>


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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Description</B></TD>
</TR>
<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-2(d)(1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Subscription Certificate</TD>
</TR>
<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-2(d)(2)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Notice of Guaranteed Delivery</TD>
</TR>
<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-2(g)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investment Advisory Agreement between Registrant and Pichardo Asset
Management, S.A. de C.V.</TD>
</TR>
<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-2(j)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Custodian Agreement between Registrant and U.S. Bank, N.A.</TD>
</TR>
<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-2(k)(1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Administration Agreement between Registrant and U.S. Bancorp Fund Services, LLC</TD>
</TR>
<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-2(k)(2)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfer Agency and Service Agreement between Registrant and Computershare
Investors Services, LLC</TD>
</TR>
<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-2(l)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion and Consent of Blank Rome LLP, counsel for Registrant</TD>
</TR>
<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-2(n)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Tait, Weller &#038; Baker LLP, the independent registered public
accounting firm for Registrant</TD>
</TR>
<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ex-2(r)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Codes of Ethics of Registrant</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2(D)(1)
<SEQUENCE>2
<FILENAME>c98194a1exv99w2xdyx1y.htm
<DESCRIPTION>SUBSCRIPTION CERTIFICATE
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2xdyx1y</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Exhibit&nbsp;2(d)(1)</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">CONTROL NUMBER:
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>THIS SUBSCRIPTION CERTIFICATE</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">SUBSCRIPTION</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>MAY BE USED TO SUBSCRIBE</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">CERTIFICATE</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>FOR PREFERRED STOCK. FULL</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FOR</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><B><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>INSTRUCTIONS APPEAR ON THE</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>BACK OF THIS SUBSCRIPTION</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV></B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>CERTIFICATE</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">SHARES&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE MEXICO EQUITY &#038; INCOME FUND, INC.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUBSCRIPTION CERTIFICATE FOR PREFERRED SHARES</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ESTIMATED SUBSCRIPTION PRICE: U.S. $20.35 PER PREFERRED SHARE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>THE FINAL SUBSCRIPTION PRICE WILL BE THE GREATER OF (a)&nbsp;90% OF THE FUND&#146;S NET ASSET VALUE PER SHARE
AS DETERMINED ON THE EXPIRATION DATE OR (b)&nbsp;THE AVERAGE CLOSING PRICE OF OUR COMMON STOCK OVER THE
FOUR CONSECUTIVE TRADING DAYS ENDING ON THE EXPIRATION DATE</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>VOID IF NOT EXERCISED AT OR BEFORE 5:00 P.M.<BR>
(NEW YORK TIME) ON DECEMBER __, 2005, THE EXPIRATION DATE</B>
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The registered owner of the Subscription Certificate, named above, or assignee,
is entitled to the number of Rights to subscribe for Preferred Stock, $0.001
par value, of The Mexico Equity and Income Fund, Inc. (the &#147;Fund&#148;) shown above,
in the ratio of one share of Preferred Stock for each 0.75 Rights, pursuant to
the Basic Subscription Right and upon the terms and conditions and at the price
for each share of Preferred Stock specified in the Prospectus dated &#95;&#95;&#95;2005
relating thereto.
</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="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="1" valign="top" align="left">Dated: __________, 2005</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>IMPORTANT: Complete appropriate form on reverse</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>
</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 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">Secretary
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President</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">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">COUNTERSIGNED AND REGISTERED:</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">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>COMPUTERSHARE TRUST COMPANY OF</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>NEW YORK</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>TRANSFER AGENT AND REGISTRAR</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>
</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"><B>By:</B></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>
</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"><B>Authorized Signature</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</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"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PLEASE FILL IN ALL APPLICABLE INFORMATION
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Expiration Date December __, 2005
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">TO:</TD>
    <TD>&nbsp;</TD>
    <TD>Computershare Trust Company of New York<br>
88 Pine Street, 19<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor<br>
New York, New York 10005</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="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">A.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Basic Subscription Right
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">x
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$20.35
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">= $
</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">(1</TD>
    <TD nowrap valign="top">)</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>
    <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" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(No. of Shares)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Subscription Price)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">B.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Over-Subscription Privilege
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">x
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$20.35
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">= $
</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">(2</TD>
    <TD nowrap valign="top">)</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>
    <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" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(No. of Shares)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Subscription Price)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="1" valign="top" align="left">C.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" valign="top" align="left">Amount of Check Enclosed (or amount in notice of guaranteed delivery) payable to</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">&#147;The Mexico Equity and Income Fund, Inc.&#148;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left">= $</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR 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">&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" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="border-bottom: 3px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SECTION 1. TO SUBSCRIBE: I hereby irrevocably subscribe for the face amount of Preferred Stock
indicated as the total of A and B hereon upon the terms and conditions specified in the Prospectus
related hereto, receipt of which is acknowledged, I hereby agree that if I fail to pay for the
shares of Preferred Stock for which I have subscribed, the Fund may exercise any of the remedies
set forth in the Prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><DIV align="left"><DIV style="font-size: 3pt; margin-top: 16pt; width: 35%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
Signature of Subscriber(s)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><DIV align="left"><DIV style="font-size: 3pt; margin-top: 16pt; width: 35%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
Address for delivery of Shares
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">If permanent change address, check here <FONT face="Wingdings">&#111;</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Please give your telephone number: (&nbsp;&nbsp;&nbsp;&nbsp;) <B>________________________</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Tax I.D. Number or Social Security Number: ______________________
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">METHOD OF PAYMENT (CHECK ONE)
</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="1%"><FONT face="Wingdings">&#111;</FONT> &nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD>Check or certified check, cashier&#146;s check or bank draft drawn on a U.S. bank, or U.S.
postal money order payable to &#147;The Mexico Equity and Income Fund, Inc.&#148; Funds paid by an
uncertified check may take at least five business days to clear.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%"><FONT face="Wingdings">&#111;</FONT> &nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD>Wire transfer of immediately available funds directly to the account maintained by
Computershare Trust Company of New York, as Subscribing Agent, for purpose of accepting
subscriptions in this Rights Offering at Harris N.A., ABA #071000288, Account #&nbsp;2279388.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">If you do not indicate the number of shares being purchased, or do not forward full
payment of the total Subscription Price for the number of shares that you indicate are
being purchased, then you will be deemed to have exercised your Rights with respect to
the maximum number of shares that may be purchase on the actual payment delivered. The
Fund will make this determination 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>you will be deemed to have exercised your Basic Subscription Right to the full
extent of the payment received, 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if any funds remain, you will be deemed to have exercised your
Over-subscription Privilege to the extent of the remaining funds.</TD>
</TR>

</TABLE>
</DIV>

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



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;
</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 align="left" style="font-size: 10pt; margin-top: 6pt"><B>IMPORTANT: </B>The signature(s) must correspond in every particular, without alteration, with the
name(s) as printed on your Subscription Certificate
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Your signature must be guaranteed by an Eligible Guarantor Institutions that term is defined under
Rule&nbsp;17AD-15 of the Securities Exchange Act of 1934, which 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Commercial bank or trust company, 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A member of a domestic stock exchange, 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(C)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A savings bank or credit union</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="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature Guaranteed
</DIV></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Name of Bank or 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>
</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>
</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Signature of Officer and Title)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>PROCEEDS FROM THE SALE OF RIGHTS MAY BE SUBJECT TO WITHHOLDING OF U.S. TAXES UNLESS THE SELLER&#146;S
CERTIFIED U.S. TAXPAYER IDENTIFICATION NUMBER (OR CERTIFICATE REGARDING FOREIGN STATUS) IS ON FILE
WITH THE SUBSCRIPTION AGENT AND THE SELLER IS NOT OTHERWISE SUBJECT TO U.S. BACKUP WITHHOLDING.</B>
</DIV>


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


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2(D)(2)
<SEQUENCE>3
<FILENAME>c98194a1exv99w2xdyx2y.htm
<DESCRIPTION>EXHIBIT 99.2(D)(2)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2xdyx2y</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"><B>Exhibit&nbsp;2(d)(2)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>NOTICE OF GUARANTEED DELIVERY FOR SHARES OF PREFERRED STOCK OF THE MEXICO EQUITY AND INCOME FUND,
INC. SUBSCRIBED FOR PURSUANT TO THE BASIC SUBSCRIPTION RIGHT AND THE OVER-SUBSCRIPTION PRIVILEGE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Mexico Equity and Income Fund, Inc. Rights Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As set forth in the Fund&#146;s Prospectus dated <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>, 2005 (the &#147;Prospectus&#148;) under &#147;Preferred Stock
Rights Offering &#151; Election to Purchase Preferred Stock,&#148; this form or one substantially equivalent
hereto may be used as a means of effecting subscription and payment for all shares of The Mexico
Equity and Income Fund, Inc. Preferred Stock subscribed for by exercise of Rights pursuant to the
Basic Subscription and the Over-Subscription Privilege. Such form may be delivered by hand or sent
by facsimile transmission, overnight courier or mail to the Subscribing Agent and must be received
prior to 5:00 p.m. New York City time on December &#95;&#95;&#95;, 2005 (the &#147;Expiration
Date&#148;).<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-family: Symbol">&#042;</FONT></SUP> The terms and conditions of the Offer set forth in the Prospectus are
incorporated by reference herein. Capitalized terms used and not otherwise defined herein have the
meanings attributed to them in the Prospectus.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>COMPUTERSHARE TRUST COMPANY 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="48%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>BY FACSIMILE</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>BY MAIL:</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>(TELECOPIES):</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Computershare Trust Company of New York</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(212) 701-7664
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">88 Pine Street, 19<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Confirm by telephone to:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, New York 10005</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(212) 701-7600</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>BY EXPRESS MAIL OR OVERNIGHT</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>BY HAND:</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>COURIER:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Computershare Trust Company of New York</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Computershare Trust Company of New York
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">88 Pine Street, 19<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">88 Pine Street, 19<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, New York 10005</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">New York, New York 10005</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"><B>DELIVERY OF THIS INSTRUMENT TO AN ADDRESS OR TRANSMISSION OF INSTRUCTIONS VIA A TELECOPY OR
FACSIMILE NUMBER OTHER THAN AS SET FORTH ABOVE DOES NOT CONSTITUTE A VALID DELIVERY.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The New York Stock Exchange member firm or bank or trust company which completes this form must
communicate the guarantee and the number of Shares subscribed for under both the Basic Subscription
Right and the Over-Subscription Privilege to the Subscribing Agent and must deliver this Notice of
Guaranteed Delivery prior to 5:00 p.m., New York City time, on the Expiration Date,* guaranteeing
delivery of (i)&nbsp;payment in full for all subscribed shares and (ii)&nbsp;a properly completed and
executed Subscription Certificate to the Subscribing Agent. The
</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"><FONT style="font-family: Symbol">&#042;</FONT></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Unless extended by the Fund</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">&nbsp;
</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">Subscription Certificate and full payment must then be delivered by the close of business on the
third business day (<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005) after the Expiration Date (December &#95;&#95;&#95;, 2005)* to the
Subscription Agent. Failure to do so will result in a forfeiture of the Rights.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The undersigned, a member firm of the New York Stock Exchange or a bank or trust company,
guarantees delivery of payment to the Subscription Agent by the close of business (5:00 p.m., New
York City time) on the third business day (<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005) after the Expiration Date (December &#95;&#95;&#95;,
2005), unless extended by the Fund) of (i)&nbsp;a properly completed and executed Subscription
Certificate and (ii)&nbsp;payment of the full Subscription Price for shares subscribed for in the Basic
Subscription Right and pursuant to the Over-Subscription Privilege, if applicable, as subscription
for such shares is indicated herein or in the Subscription Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Mexico Equity and Income Fund, Inc.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&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"><B>Broker Assigned Control #: ________</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1. Basic Subscription
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number of Rights to
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number of shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment to be made</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Right
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">be exercised &#95;&#95;&#95;&#95;&#95;&#95;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">requested for which
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">in connection with</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">Rights
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">you are guaranteeing
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Basic Subscription</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">delivery of Rights and
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shares: $&#95;&#95;&#95;&#95;&#95;&#95;</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">payment &#95;&#95;&#95;&#95;&#95;&#95;shares:</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">(Rights &#247; by .75)</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">2. Over-Subscription
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number of Over-
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment to be made</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">Subscription shares
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">in connection with</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">requested for which
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Over-Subscription</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">you are guaranteeing
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">shares: $&#95;&#95;&#95;&#95;&#95;&#95;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">payment: &#95;&#95;&#95;&#95;&#95;&#95;shares</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3. Totals
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Total number of
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$&#95;&#95;&#95;&#95;&#95;&#95;</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">Rights to be delivered
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Total Payment</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">&#95;&#95;&#95;&#95;&#95;&#95;Rights</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>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Method of Delivery of Rights (circle one)</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="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Through The Depository Trust Company (&#147;DTC&#148;)<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-family: Symbol">&#042;</FONT><FONT style="font-family: Symbol">&#042;</FONT></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="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Direct to the Subscription Agent. Please reference below the registration of the Rights to be
delivered</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></TD>
</TR>

</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"><FONT style="font-family: Symbol">&#042;</FONT><FONT style="font-family: Symbol">&#042;</FONT></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>IF THE RIGHTS ARE TO BE DELIVERED THROUGH DTC, CALL THE SUBSCRIBING AGENT TO OBTAIN A PROTECTED IDENTIFICATION
NUMBER, WHICH NEEDS TO BE COMMUNICATED BY YOU TO DTC.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">&nbsp;
</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">PLEASE ASSIGN A UNIQUE CONTROL NUMBER FOR EACH GUARANTEE SUBMITTED. This number needs to be
referenced on any direct delivery of Rights or any delivery through DTC. In addition, please note
that if you are guaranteeing for Over-Subscription Shares and are a DTC participant, you must also
execute and forward to Computershare Trust Company of New York a DTC Participant Over-Subscription
Exercise Form.
</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="4%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<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>
</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">Authorized 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 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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DTC Participant Number
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title</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 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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Address
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name (please type or print)</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 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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Zip Code
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" 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 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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Contact Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Mexico Equity and Income Fund, Inc. Rights Offering</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The undersigned, a bank, broker or other nominee holder of Rights (&#147;Rights&#148;) to purchase shares of
Preferred Stock, $.001 par value, of The Mexico Equity and Income Fund, Inc. (the &#147;Fund&#148;) pursuant
to the Rights Offering (the &#147;Offer&#148;) described and provided for in the Fund&#146;s Prospectus dated
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005 (the &#147;Prospectus&#148;), hereby certifies to the Fund and to Computershare Trust Company
of New York, as Subscribing Agent for such Offer, that for each numbered line filled in below, the
undersigned has exercised, on behalf of the beneficial owner thereof (which may be the
undersigned), the number of Rights specified on such line pursuant to the Basic Subscription Right
(as defined in the Prospectus) and such beneficial owner wishes to subscribe for the purchase of
additional shares pursuant to the Over-Subscription Privilege (as defined in the Prospectus), in
the amount set forth in the third column of such line.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</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="30%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="30%">&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>NUMBER OF RIGHTS</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>NUMBER OF SHARES</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="3" nowrap align="center"><B>Number of Record Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>exercised pursuant to the</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>requested pursuant to the</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD colspan="3" nowrap align="center" style="border-bottom: 1px solid #000000"><B>Shares owned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Basic Subscription Right</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Over-Subscription Privilege</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1</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"><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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2</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"><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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3</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"><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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4</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"><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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5</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"><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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">6</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"><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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">7</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"><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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8</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"><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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">9</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"><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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10</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"><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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" 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; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> vested<br>
Name of Nominee Holder
</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="1%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- 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">Name:</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"><!-- 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">Title:</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"><!-- 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">Dated:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">, 2005</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>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Provide the following information, if applicable:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Depository Trust Corporation (&#147;DTC&#148;)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name of Broker</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Participant Number</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR 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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DTC Primary Subscription Confirmation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Address</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Number(s)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2(G)
<SEQUENCE>4
<FILENAME>c98194a1exv99w2xgy.htm
<DESCRIPTION>INVESTMENT ADVISORY AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2xgy</TITLE>
</HEAD>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;2(g)
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>AGREEMENT </B>dated and effective as of July&nbsp;1, 2003, between THE MEXICO EQUITY AND
INCOME FUND, INC., a Maryland corporation (herein referred to as the &#147;Fund&#148;) and PICHARDO ASSET
MANAGEMENT, S.A. DE C.V., a Mexican corporation (herein referred to as the &#147;Investment
Adviser&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Fund and the Investment Adviser desire to enter into an investment management
agreement whereby the terms of said agreement are set forth 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 covenants herein contained, it is agreed by
the parties as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Appointment of the Investment Adviser.</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 Investment Adviser hereby undertakes and agrees, upon the terms
and conditions herein set forth, (i)&nbsp;to make investment decisions for the Fund, to prepare and
make available to the Fund research and statistical data in connection therewith, and to
supervise the acquisition and disposition of securities by the Fund, including the selection
of
brokers or dealers to carry out the transactions, all in accordance with the Fund&#146;s investment
objective and policies and in accordance with guidelines and directions from the Fund&#146;s
Board of Directors; (ii)&nbsp;to assist the Fund as it may reasonably request in the conduct of the
Fund&#146;s business, subject to the direction and control of the Fund&#146;s Board of Directors; (iii)
to
maintain and furnish or cause to be maintained and furnished for the Fund all records, reports
and other information required under the U.S. Investment Company Act of 1940, as amended
(the &#147;1940 Act&#148;), to the extent that such records, reports and other information are not
maintained or furnished by the administrators, custodians or other agents of the Fund; (iv)&nbsp;to
furnish at the Investment Adviser&#146;s expense for the use of the Fund such clerical services and
office space and facilities as the Fund may reasonably require for its needs in the United
States and Mexico related to research, statistical and investment work; and (v)&nbsp;to pay the
reasonable salaries and expenses of such of the Fund&#146;s officers and employees (including,
where applicable, the Fund&#146;s share of payroll taxes) and any fees and expenses of such of the
Fund&#146;s directors as are directors, officers or employees of the Investment Adviser or any of
its
affiliates. The Investment Adviser shall bear all expenses arising out of its duties hereunder
but shall not be responsible for any expenses of the Fund other than those specifically
allocated to the Investment Adviser in this Section&nbsp;1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In particular, but without limiting the generality of the foregoing, the
Investment Adviser shall not be responsible, except to the extent of the compensation of such
of the Fund&#146;s employees as are directors, officers or employees of the Investment Adviser
whose services may be involved, for the following expenses of the Fund; organization
expenses (but not the overhead or employee costs of the Investment Adviser); legal fees and
</DIV>


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

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expenses of counsel (United States and Mexican) to the Fund and, if counsel is retained by the
directors who are not &#147;interested persons&#148; of the Fund, of such counsel; auditing and accounting
expenses; taxes and governmental fees; New York Stock Exchange listing fees; dues and expenses
incurred in connection with membership in investment company organizations; fees and expenses of
the Fund&#146;s custodians, transfer agents and registrars; fees and expenses with respect to
administration except as may be provided otherwise pursuant to administration agreements; expenses
for portfolio pricing services by a pricing agent, if any; expenses of preparing share certificates
and other expenses in connection with the issuance, offering and underwriting of shares issued by
the Fund; expenses relating to investor and public relations; fees and expenses involved in
registering and maintaining registration of the Fund and of its shares with the U.S. Securities and
Exchange Commission, and qualifying its shares under state securities laws, including the
preparation and printing of the Fund&#146;s registration statements and prospectuses for such purposes;
freight, insurance and other charges in connection with the shipment of the Fund&#146;s portfolio
securities; brokerage commissions, stamp duties or other costs of acquiring or disposing of any
portfolio holding of the Fund; expenses of preparation and distribution of reports, notices and
dividends to shareholders; expenses of the dividend reinvestment and share purchase plan; costs of
stationery; any litigation expenses; and costs of shareholders&#146; and other meetings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In selecting brokers or dealers to execute portfolio transactions on
behalf of the Fund, the Investment Adviser will seek the best overall terms available. In
assessing the best overall terms available for any transaction, the Investment Adviser must
consider the factors it deems relevant, including the breadth of the market in the security,
the
price of the security, the financial condition and execution capability of the broker or
dealer,
and the reasonableness of the commission, if any, for the specific transaction and on a
continuing basis. In addition, the Investment Adviser may, in selecting brokers or dealers to
execute a particular transaction and in evaluating the best overall terms available, consider
the
brokerage and research services (as those terms are defined in Section 28(e) of the Securities
Exchange Act of 1934, as amended) provided to the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Investment Adviser may contract with or consult with such banks,
other securities firms or other parties in Mexico or elsewhere as it may deem appropriate to
obtain additional advisory information and advice, including investment recommendations,
advice regarding economic factors and trends, advice as to currency exchange matters and
clerical and accounting services and other assistance. It is acknowledged and agreed that the
Investment Adviser will be responsible for the management of the Fund&#146;s portfolio and
overall investment strategy, in accordance with the Fund&#146;s investment policies, and for
making decisions to buy, sell or hold particular securities, including but not limited to all
investment decisions with respect to the Fund&#146;s portfolio of equity, debt and convertible debt
securities.
</DIV>




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

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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Remuneration</U>. The Fund agrees to pay to the Investment Adviser, in either
U.S. dollars, as may from time to time be agreed among the Fund and the Investment Adviser,
as full compensation for the services to be rendered and expenses to be borne by the
Investment Adviser hereunder, a monthly fee at an annual rate equal to 0.80% of the value of
the Fund&#146;s average daily net assets. For purposes of computing the fee, the average monthly
net assets of the Fund are determined at the end of each month on the basis of the average net
assets of the Fund for each week during the month. The assets for each weekly period are
determined by averaging the net assets at the last business day of a week with the net assets
at
the last business day of the prior week. The value of the net assets of the Fund shall be
determined pursuant to the applicable provisions of the 1940 Act and the directions of the
Fund&#146;s Board of Directors. Subject to the provisions of Section&nbsp;6 of this Agreement, such fee
shall be computed beginning on July&nbsp;1, 2003 (the &#147;Effective Date&#148;) until the termination, for
whatever reason, of this Agreement. The fee for the period from the end of the last month
ending prior to termination of this Agreement to the date of termination and the fee for the
period from the Effective Date through the end of the month in which the Effective Date
occurs shall be pro rated according to the proportion which such period bears to the full
monthly period. Except as provided below, each payment of a monthly fee to the Investment
Adviser shall be made within ten days of the first day of each month following the day as of
which such payment is computed. Upon the termination of this Agreement before, the end of
any month, such fee shall be payable on the date of termination of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Representations
and Warranties</U>. The Investment Adviser represents and
warrants that it is duly registered and authorized as an investment adviser under the United
States Investment Advisers Act of 1940, as amended, and agrees to maintain effective all
requisite registrations, authorizations and licenses, as the case may be, until the
termination of
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Services
Not Deemed Exclusive</U>. Nothing herein shall be construed as
prohibiting the Investment Adviser from providing investment management and advisory
services to, or entering into investment management and advisory agreements with, other
clients, including other registered investment companies and clients which may invest in
securities of Mexican issuers, or from utilizing (in providing such services) information
furnished to the Investment Adviser by others as contemplated by Section&nbsp;1 of this
Agreement; nor, except as explicitly provided herein, shall anything herein be construed as
constituting the Investment Adviser as an agent of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Limit
of Liability</U>. The Investment Adviser may rely on information
reasonably believed by it to be accurate and reliable. Neither the Investment Adviser nor its
officers, directors, employees, agents or controlling persons as defined in the 1940 Act shall
be subject to any liability for any act or omission, error of judgment or mistake of law, or
for
any loss suffered by the Fund, in the course of, connected with or arising out of any services
to be rendered hereunder, except by reason of willful misfeasance, bad faith or gross
</DIV>

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

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">negligence on the part of the Investment Adviser in the performance of its duties or by
reason of reckless disregard on the part of the Investment Adviser of its obligations and duties
under this Agreement. Any person, even though also employed by the Investment Adviser, who may be
or become an employee of the Fund shall be deemed, when acting within the scope of his employment
by the Fund, to be acting in such employment solely for the Fund and not as an employee or agent
of the Investment Adviser.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Duration
and Termination</U>. This Agreement shall continue in effect initially
for a two year period and will continue from year to year, provided, such continuance is
specifically approved at least annually by the affirmative vote of (i)&nbsp;a majority of the
members
of the Fund&#146;s Board of Directors who are neither parties to this Agreement nor interested
persons of the Fund or of the Investment Adviser or of any entity regularly furnishing
investment advisory services with respect to the Fund pursuant to an agreement with the
Investment Adviser, cast in person at a meeting called for the purpose of voting on such
approval, and (ii)&nbsp;a majority of the Fund&#146;s Board of Directors or the holders of a majority of
the outstanding voting securities of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the above, this Agreement (a)&nbsp;may nevertheless be terminated at any time
without penalty, by the Fund&#146;s Board of Directors, by vote of holders of a majority of the
outstanding voting securities of the Fund or by the Investment Adviser upon 60&nbsp;days&#146; written
notice delivered or sent to the other party, and (b)&nbsp;shall automatically be terminated in the
event of its assignment; <I>provided, however, </I>that a transaction which does not, in accordance with
the 1940 Act, result in a change of actual control or management of the Investment Adviser&#146;s
business shall not be deemed to be an assignment for the purposes of this Agreement. Any such
notice shall be deemed given when received by the addressee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Non-Assignment
and Amendment</U>. This Agreement may not be transferred,
assigned, sold or in any manner hypothecated or pledged by either party hereto other than
pursuant to Section&nbsp;6. It may be amended by mutual agreement, but only after authorization
of such amendment by the affirmative vote of (i)&nbsp;the holders of a majority of the outstanding
voting securities of the Fund, and (ii)&nbsp;a majority of the members of the Fund&#146;s Board of
Directors&#146; who are not interested persons of the Fund or of the Investment Adviser or of an
entity regularly furnishing investment advisory services with respect to the Fund pursuant to
any agreement with the Investment Adviser, cast in person at a meeting called for the purpose
of voting on such approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Governing
Law</U>. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York; <I>provided, however, </I>that nothing herein
shall be construed as being inconsistent with the 1940 Act. As used herein, the terms
&#147;interested person,&#148; &#147;assignment&#148; and &#147;vote of a majority of the outstanding voting
securities&#148; shall have the meanings set forth in the 1940 Act.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</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;<U>Notices</U>. Any notice hereunder shall be in writing and shall be
delivered in person or by telex or facsimile followed by delivery in person to the parties
at the addresses 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="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
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<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">If to the 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>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">THE MEXICO EQUITY AND INCOME FUND, INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">615 E. Michigan St., 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> Floor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Milwaukee, Wisconsin 53202</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:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(414)765-5307</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">Facsimile:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(414)212-7606</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:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Andrew P. Chica</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="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="70%">&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">with a copy to:</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">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">SPITZER &#038; FELDMAN P.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">405 Park Avenue</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">New York, NY 10022</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:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> (212)&nbsp;888-6680</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">Facsimile:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> (212)&nbsp;838-7472</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:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Thomas R. Westle, Esq.</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="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="70%">&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">If to the Investment Adviser:</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">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">PICHARDO ASSET MANAGEMENT, S.A. DE C.V.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Teopanzolco Avenue #408</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> Floor Reforma</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Cuernavaca, Mexico 62260</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:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">52 777 380 15 34</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">Fax:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">52 777 380 15 34</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:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Ms.&nbsp;Eugenia Solis Pichardo</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or to such other address as to which the recipient shall have informed the other parties in
writing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless specifically provided elsewhere, notice given as provided above shall be
deemed to have been given, if by personal delivery, on the day of such delivery, and, if
by telex or facsimile and mail, on the date on which such telex or facsimile and
confirmatory letter are sent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U>Consent
to Jurisdiction</U>. Each party hereto irrevocably agrees that any
suit, action or proceeding against the Investment Adviser or the Fund arising out of or
relating to
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</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 Agreement shall be subject exclusively to the jurisdiction of the United States
District Court for the Southern District of New York and the Supreme Court of the State of New
York, New York County, and each party hereto irrevocably submits to the jurisdiction of each such
court in connection with any such suit, action or proceeding. Each party hereto waives any
objection to the laying of venue of any such suit, action or proceeding in either such court, and
waives any claim that such suit, action or proceeding has been brought in an inconvenient forum.
Each party hereto irrevocably consents to service of process in connection with any such suit,
action or proceeding by mailing a copy thereof registered or certified mail, postage prepaid, to
their respective addresses as set forth in this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U>Counterparts</U>. This Agreement may be executed in two or more counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute one and the
same instrument.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">&#091;This Remainder of this page has been intentionally left blank&#093;
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</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 parties have caused their duly authorized signatories to execute
this Agreement as of the day and year 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="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&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"><B>THE MEXICO EQUITY AND INCOME FUND, INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <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">/s/&nbsp;Gerald Hellerman&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: Gerald Hellerman</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: President</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="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&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"><B>PICHARDO ASSET MANAGEMENT S.A. DE C.V.</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">/s/&nbsp;Eugenia Solis Pichardo</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: Eugenia Solis Pichardo</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;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">&nbsp;
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2(J)
<SEQUENCE>5
<FILENAME>c98194a1exv99w2xjy.htm
<DESCRIPTION>CUSTODIAN AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2xjy</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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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="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;2(j)
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
AGREEMENT is made and entered into as of this
11<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
&nbsp;day of July, 2001, by and between The
Mexico Equity and Income Fund, Inc., a Company organized under the laws of the State of Maryland,
(the &#147;Company&#148;), and Firstar Bank, N.A., a national banking association (the &#147;Custodian&#148;);
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company is a closed-end management investment company registered under the
Investment Company Act of 1940, as amended (the&#147;1940 Act&#148;); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company desires to retain Firstar Bank, N.A. to act as Custodian; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company desires that the Fund&#146;s Securities and cash be
held and administered by the Custodian pursuant to this Agreement; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Custodian represents that it is a bank having the qualifications
prescribed in Section&nbsp;26(a)(1) of the 1940 Act;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual agreements herein made, the
Company and the Custodian hereby agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE
I</B></U><BR><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, unless the context
otherwise requires, shall have the following meanings:
</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">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Authorized Person&#148;</U> means any Officer or
other person duly authorized by resolution of the Board of Directors to give Oral Instructions and Written
Instructions on behalf of the Fund and named in Exhibit&nbsp;A hereto or in such
resolutions of the Board of Directors, certified by an Officer, as may be received
by the Custodian 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">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Board of Directors&#148;</U> shall mean the Directors from time to time
serving under the
Company&#146;s Articles of Incorporation, as from time to time amended.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Book-Entry System&#148;</U> shall mean a federal book-entry system as provided
in
Subpart O of Treasury Circular No.&nbsp;300, 31 CFR 306, in Subpart B of 31 CFR
Part 350, or in such book-entry regulations of federal agencies as are
substantially
in the form of such Subpart O.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">1
</DIV>

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


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



</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Business Day&#148;</U> shall mean any day recognized as a settlement day by The New
York Stock Exchange, Inc. and any other day for which the Company computes
the net asset value of Shares of the Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Fund Custody Account&#148;</U> shall mean any of the accounts in the name of the
Company, which is provided for in Section&nbsp;3.2 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">1.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;NASD&#148;</U> shall mean The National Association of Securities Dealers, Inc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Officer&#148;</U> shall mean the Chairman, President, any Vice President, any Assistant
Vice President, the Secretary, any Assistant Secretary, the Treasurer, or any
Assistant Treasurer of the 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">1.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Oral Instructions&#148;</U> shall mean instructions orally transmitted to and accepted by
the Custodian because such instructions are: (i)&nbsp;reasonably believed by the
Custodian to have been given by an Authorized Person, (ii)&nbsp;recorded and kept among
the records of the Custodian made in the ordinary course of business and (iii)&nbsp;orally confirmed by the Custodian. The Company shall cause all Oral
Instructions to be confirmed by Written Instructions prior to the end of the next
Business Day. If such Written Instructions confirming Oral Instructions are not received
by the Custodian prior to a transaction, it shall in no way affect the validity of the
transaction or the authorization thereof by the Company. If Oral Instructions vary from
the Written Instructions which purport to confirm them, the Custodian shall notify the
Company of such variance but such Oral Instructions will govern unless the Custodian has
not yet acted.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Proper Instructions&#148;</U> shall mean Oral Instructions or Written Instructions. Proper
Instructions may be continuing Written Instructions when deemed appropriate by
both 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">1.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Securities Depository&#148;</U> shall mean The Depository Trust Company and (provided
that Custodian shall have received a copy of a resolution of the Board of
Directors, certified by an Officer, specifically approving the use of such clearing
agency as a depository for the Fund) any other clearing agency registered with the
Securities and Exchange Commission under Section&nbsp;17A of the Securities and
Exchange Act of 1934 as amended (the &#147;1934 Act&#148;), which acts as a system for
the central handling of Securities where all Securities of any particular class or
series of an issuer deposited within the system are treated as fungible and may be
transferred or pledged by bookkeeping entry without physical delivery 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">1.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Securities&#148;</U> shall include, without limitation, common and preferred stocks,
bonds, call options, put options, debentures, notes, bank certificates of deposit,
bankers&#146; acceptances, mortgage-backed securities or other obligations, and any
certificates, receipts, warrants or other instruments or documents representing rights to
receive, purchase or subscribe for the same, or evidencing or</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">2
</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>representing any other rights or interests therein, or any similar property or assets that
the Custodian has the facilities to clear and to service.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Shares&#148;</U> shall mean, with respect to a Fund, the units of beneficial interest
issued
by the Company on account of the Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Sub-Custodian&#148;</U> shall mean and include (i)&nbsp;any branch of a &#147;U.S. Bank,&#148; as that
term is defined in Rule&nbsp;17f-S under the 1940 Act, (ii)&nbsp;any &#147;Eligible Foreign
Custodian,&#148; as that term is defined in Rule&nbsp;17f-5 under the 1940 Act, having a
contract with the Custodian which the Custodian has determined will provide
reasonable care of assets of the Fund based on the standards specified in Section&nbsp;3.3 below. Such contract shall include provisions that provide: (i)&nbsp;for
indemnification or insurance arrangements (or any combination of the foregoing)
such that the Fund will be adequately protected against the risk of loss of assets
held in accordance with such contract; (ii)&nbsp;that the Fund&#146;s assets will not be
subject to any right, charge, security interest, lien or claim of any kind in favor of
the Sub-Custodian or its creditors except a claim of payment for their safe custody
or administration, in the case of cash deposits, liens or rights in favor of creditors
of the Sub-Custodian arising under bankruptcy, insolvency, or similar laws; (iii)
that beneficial ownership for the Fund&#146;s assets will be freely transferable without
the payment of money or value other than for safe custody or administration; (iv)
that adequate records will be maintained identifying the assets as belonging to the
Fund or as being held by a third party for the benefit of the Fund;
(v)&nbsp;that the
Fund&#146;s independent public accountants will be given access to those records or
confirmation of the contents of those records; and (vi)&nbsp;that the Fund will receive
periodic reports with respect to the safekeeping of the Fund&#146;s assets, including,
but not limited to, notification of any transfer to or from a Fund&#146;s account or a
third party account containing assets held for the benefit of the Fund. Such
contract may contain, in lieu of any or all of the provisions specified above, such
other provisions that the Custodian determines will provide, in their
entirety, the
same or a greater level of care and protection for Fund assets as the specified
provisions, in their entirety.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>&#147;Written Instructions&#148;</U> shall mean (i)&nbsp;written communications actually received by
the Custodian and signed by an Authorized Person, or (ii)&nbsp;communications by
telex or any other such system from one or more persons reasonably believed by
the Custodian to be Authorized Persons, or (iii)&nbsp;communications
between electro-mechanical or electronic devices provided that the use of such devices and the
procedures for the use thereof shall have been approved by resolutions of the
Board of Directors, a copy of which, certified by an Officer, shall have been
delivered to the Custodian.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">3
</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="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE II</B></U><BR>
<U><B>APPOINTMENT OF CUSTODIAN</B></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">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Appointment</U>. The Company hereby constitutes and appoints the Custodian as
custodian of all Securities and cash owned by or in the possession of the Fund at any
time during the period 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">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Acceptance.</U> The Custodian hereby accepts appointment as such custodian and
agrees to perform the duties thereof as hereinafter set forth.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Documents to be Furnished</U>. The following documents, including any
amendments thereto, will be provided contemporaneously with the execution of
the Agreement to the Custodian by the Company:</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of the Articles of Incorporation certified by the Secretary;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of the Bylaws of the Company certified by the Secretary;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of the resolution of the Board of Directors of the Company
appointing the Custodian, certified by the Secretary;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A copy of the then current Prospectus of the Fund; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certification of the Chairman and Secretary of the Company
setting forth the names and signatures of the current Officers of the Company and
other Authorized Persons.</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">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Notice of Appointment of Dividend and Transfer Agent.</U> The Company agrees to
notify the Custodian in writing of the appointment, termination or
change in
appointment of any Dividend and Transfer Agent of the Fund.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE III </B></U><BR>
<U> <B>CUSTODY OF CASH AND SECURITIES</B></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">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Segregation.</U> All Securities and non-cash property held by the Custodian for the
account of the Fund (other than Securities maintained in a Securities Depository
or Book-Entry System) shall be physically segregated from other Securities and
non-cash property in the possession of the Custodian (including the Securities and
non-cash property of the other series of the Company) and shall be identified as
subject to 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">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Fund Custody Accounts.</U> As to each Fund, the Custodian shall open and maintain
in its trust department a custody account in the name of the Company coupled
with the name of the Fund, subject only to draft or order of the Custodian, in
which the Custodian shall enter and carry all Securities, cash and other assets of
such Fund which are delivered to it.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Appointment of Agents. </U>&nbsp;&nbsp;(a)&nbsp;In its discretion, the Custodian may appoint one or
more Sub-Custodians to act as Securities Depositories or as sub-custodians to
hold Securities and cash of the Fund and to carry out such other provisions of this</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">4
</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>Agreement as it may determine, provided, however, that the
appointment of any
such agents and maintenance of any Securities and cash of the Fund shall be at the Custodian&#146;s
expense and shall not relieve the Custodian of any of its obligations or liabilities 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">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If, after the initial approval of Sub-Custodians by the Board of Directors in
connection with this Agreement, the Custodian wishes to appoint other Sub-Custodians to hold property of the Fund, it will so notify the Company and
provide it with information reasonably necessary to determine any such new Sub-Custodian&#146;s eligibility under Rule&nbsp;17f-5 under the 1940 Act, including a copy of
the proposed agreement with such Sub-Custodian. The Company shall at the
meeting of the Board of Directors next following receipt of such notice and
information give a written approval or disapproval of the proposed action.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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 Agreement between the Custodian and each Sub-Custodian acting hereunder
shall contain the required provisions set forth in Rule&nbsp;17f-5(a)(1)(iii).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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>At the end of each calendar quarter, the Custodian shall provide written reports
notifying the Board of Directors of the placement of the Securities and cash of the
Fund with a particular Sub-Custodian and of any material changes in the Fund&#146;s
arrangements. The Custodian shall promptly take such steps as may be required
to withdraw assets of the Fund from any Sub-Custodian that has ceased to meet
the requirements of Rule&nbsp;17f-5 under the 1940 Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to its responsibilities under this Section&nbsp;3.3, the Custodian hereby
warrants to the Company that it agrees to exercise reasonable care, prudence and
diligence such as a person having responsibility for the safekeeping of property of
the Fund. The Custodian further warrants that a Fund&#146;s assets will be subject to
reasonable care, based on the standards applicable to custodians in the relevant
market, if maintained with each Sub-Custodian, after considering all factors
relevant to the safekeeping of such assets, including, without limitation: (i)&nbsp;the
Sub-Custodian&#146;s practices, procedures, and internal controls, for certificated
securities (if applicable), the method of keeping custodial records, and the
security and data protection practices; (ii)&nbsp;whether the Sub-Custodian has the
requisite financial strength to provide reasonable care for Fund assets; (iii)&nbsp;the
Sub-Custodian&#146;s general reputation and standing and, in the case of a Securities
Depository, the Securities Depository&#146;s operating history and number of
participants; and (iv)&nbsp;whether the Fund will have jurisdiction over and be able to
enforce judgments against the Sub-Custodian, such as by virtue of the existence
of any offices of the Sub-Custodian in the United States or the Sub-Custodian&#146;s
consent to service of process in the United States.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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>The Custodian shall establish a system to monitor the appropriateness of
maintaining the Fund&#146;s assets with a particular Sub-Custodian and the contract
governing the Fund&#146;s arrangements with such Sub-Custodian.</TD>
</TR>

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

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


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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Delivery of Assets to Custodian</U>. The Company shall deliver, or cause to
be
delivered, to the Custodian all of the Fund&#146;s Securities, cash and other assets,
including (a)&nbsp;all payments of income, payments of principal and capital
distributions received by the Fund with respect to such Securities, cash or other
assets owned by the Fund at any time during the period of this Agreement, and (b)
all cash received by the Fund for the issuance, at any time during such period, of
Shares. The Custodian shall not be responsible for such Securities, cash or other
assets until actually received by it.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Securities Depositories and Book-Entry Systems.</U> The Custodian may deposit
and/or maintain Securities of the Fund in a Securities Depository or in a Book-
Entry System, subject to the following 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">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prior to a deposit of Securities of the Fund in any Securities Depository or Book-Entry System, the Company shall deliver to the Custodian a resolution of the
Board of Directors, certified by an Officer, authorizing and instructing the
Custodian on an on-going basis to deposit in such Securities Depository or Book-
Entry System all Securities eligible for deposit therein and to make use of such
Securities Depository or Book-Entry System to the extent possible and practical
in connection with its performance hereunder, including, without limitation, in
connection with settlements of purchases and sales of Securities, loans of
Securities, and deliveries and returns of collateral consisting of Securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securities of the Fund kept in a Book-Entry System or Securities Depository shall
be kept in an account (&#147;Depository Account&#148;) of the Custodian in such Book-
Entry System or Securities Depository which includes only assets held by the
Custodian as a fiduciary, custodian or otherwise for customers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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 records of the Custodian with respect to Securities of the Fund maintained in
a Book-Entry System or Securities Depository shall, by book-entry, identify such
Securities as belonging to the Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Securities purchased by the Fund are to be held in a Book-Entry System or
Securities Depository, the Custodian shall pay for such Securities upon (i)&nbsp;receipt
of advice from the Book-Entry System or Securities Depository that such
Securities have been transferred to the Depository Account, and (ii)&nbsp;the making of
an entry on the records of the Custodian to reflect such payment and transfer for
the account of the Fund. If Securities sold by the Fund are held in a Book-Entry
System or Securities Depository, the Custodian shall transfer such Securities upon (i)&nbsp;receipt of advice from the Book-Entry System or Securities Depository that
payment for such Securities has been transferred to the Depository Account, and (ii)&nbsp;the making of an entry on the records of the Custodian to reflect such transfer
and payment for the account of the Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian shall provide the Company with copies of any report (obtained by
the Custodian from a Book-Entry System or Securities Depository in which</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">6
</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 of the Fund are kept) on the internal accounting controls and procedures
for safeguarding Securities deposited in such Book-Entry System or Securities Depository.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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>Anything to the contrary in this Agreement notwithstanding, the Custodian shall be
liable to the Company for any loss or damage to the Fund resulting
(i)&nbsp;from the use of a
Book-Entry System or Securities Depository by reason of any negligence or willful misconduct
on the part of Custodian or any Sub-Custodian appointed pursuant to Section&nbsp;3.3 above or any
of its or their employees, or (ii)&nbsp;from failure of Custodian or any such Sub-Custodian to
enforce effectively such rights as it may have against a Book-Entry System or Securities
Depository. At its election, the Company shall be subrogated to the rights of the Custodian
with respect to any claim against a Book-Entry System or Securities Depository or any other
person from any loss or damage to the Fund arising from the use of such Book-Entry System or
Securities Depository, if and to the extent that the Fund has not been made whole for any such
loss or damage.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Disbursement of Moneys from Fund Custody Account.</U> Upon receipt of Proper
Instructions, the Custodian shall disburse moneys from the Fund Custody Account but only in
the following cases:</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">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purchase of Securities for the Fund but only in accordance with
Section&nbsp;4.1 of this Agreement and only (i)&nbsp;in the case of Securities (other
than options on Securities, futures contracts and options on futures
contracts), against the delivery to the Custodian (or any Sub-Custodian
appointed pursuant to Section&nbsp;3.3 above) of such Securities registered as
provided in Section&nbsp;3.9 below or in proper form for transfer, or if the
purchase of such Securities is effected through a Book-Entry System or
Securities Depository, in accordance with the conditions set forth in
Section&nbsp;3.5 above; (ii)&nbsp;in the case of options on Securities, against delivery
to the Custodian (or such Sub-Custodian) of such receipts as are required
by the customs prevailing among dealers in such options; (iii)&nbsp;in the case
of futures contracts and options on futures contracts, against delivery to
the Custodian (or such Sub-Custodian) of evidence of title thereto in favor
of the Fund or any nominee referred to in Section&nbsp;3.9 below; and (iv)&nbsp;in
the case of repurchase or reverse repurchase agreements entered into
between the Company and a bank which is a member of the Federal
Reserve System or between the Company and a primary dealer in U.S.
Government securities, against delivery of the purchased Securities either
in certificate form or through an entry crediting the Custodian&#146;s account at
a Book-Entry System or Securities Depository with such 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)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In connection with the conversion, exchange or surrender, as set forth in
Section&nbsp;3.7(f) below, of Securities owned by the Fund;</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">7
</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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the payment of any dividends or capital gain
distributions declared by
the Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In payment of the redemption price of Shares as provided in Section <I>5.</I>1
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">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the payment of any expense or liability incurred by the Fund,
including but not limited to the following payments for the account of the
Fund: interest; taxes; administration, investment advisory, accounting,
auditing, transfer agent, custodian, director and legal fees; and other
operating expenses of the Fund; in all cases, whether or not such expenses
are to be in whole or in part capitalized or treated as deferred expenses;</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">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For transfer in accordance with the provisions of any agreement among
the Company, the Custodian and a broker-dealer registered under the 1934
Act and a member of the NASD, relating to compliance with rules of The
Options Clearing Corporation and of any registered national securities
exchange (or of any similar organization or organizations) regarding
escrow or other arrangements in connection with transactions by the Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For transfer in accordance with the provision of any agreement among the
Company, the Custodian, and a futures commission merchant registered
under the Commodity Exchange Act, relating to compliance with the rules
of the Commodity Futures Trading Commission and/or any contract
market (or any similar organization or organizations) regarding account
deposits in connection with transactions by the Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the funding of any uncertificated time deposit or other
interest-bearing account with any banking institution (including the Custodian), which
deposit or account has a term of one year or less; 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">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For any other proper purpose, but only upon receipt, in addition to
Proper Instructions, of a copy of a resolution of the Board of Directors, certified by
an Officer, specifying the amount and purpose of such payment, declaring such purpose
to be a proper corporate purpose, and naming the person or persons to whom such
payment is to be made.</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">3.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Delivery of Securities from Fund Custody Account</U>. Upon receipt of Proper
Instructions, the Custodian shall release and deliver Securities from the Fund Custody Account
but only in the following cases:</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">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon the sale of Securities for the account of the Fund but only against
receipt of payment therefor in cash, by certified or cashiers check or bank credit;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">8
</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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the case of a sale effected through a Book-Entry System or Securities
Depository, in accordance with the provisions of Section&nbsp;3.5 above;</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">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To an offeror&#146;s depository agent in connection with tender or other similar
offers for Securities of the Fund; provided that, in any such case, the cash
or other consideration is to be delivered to the Custodian;</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">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the issuer thereof or its agent (i)&nbsp;for transfer into the name of the Fund,
the Custodian or any Sub-Custodian appointed pursuant to Section&nbsp;3.3
above, or of any nominee or nominees of any of the foregoing, or (ii)&nbsp;for
exchange for a different number of certificates or other evidence
representing the same aggregate face amount or number of units; provided
that, in any such case, the new Securities are to be delivered to the
Custodian;</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">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the broker selling Securities, for examination in accordance with the
&#147;street delivery&#148; custom;</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">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For exchange or conversion pursuant to any plan or merger, consolidation,
recapitalization, reorganization or readjustment of the issuer of such
Securities, or pursuant to provisions for conversion contained in such
Securities, or pursuant to any deposit agreement, including surrender or
receipt of underlying Securities in connection with the issuance or
cancellation of depository receipts; provided that, in any such case, the
new Securities and cash, if any, are to be delivered to the Custodian;</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">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon receipt of payment therefor pursuant to any repurchase or reverse
repurchase agreement entered into by the Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the case of warrants, rights or similar Securities, upon the exercise thereof,
provided that, in any such case, the new Securities and cash, if any, are to be delivered to
the Custodian;</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">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For delivery in connection with any loans of Securities of the Fund, but only
against receipt of such collateral as the Company shall have specified to the Custodian in
Proper Instructions;</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">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For delivery as security in connection with any borrowings by the Fund requiring a
pledge of assets by the Company, but only against receipt by the Custodian of the amounts
borrowed;</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">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to any authorized plan of liquidation, reorganization, merger,
consolidation or recapitalization of the 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For delivery in accordance with the provisions of any agreement among the Company, the
Custodian and a broker-dealer registered under the 1934</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">9
</DIV>

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


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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Act and a member of the NASD, relating to compliance with the rules of The Options
Clearing Company and of any registered national securities exchange (or of any
similar organization or organizations) regarding escrow or other arrangements in
connection with transactions by the Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For delivery in accordance with the provisions of any agreement among the
Company, the Custodian, and a futures commission merchant registered under the
Commodity Exchange Act, relating to compliance with the rules of the Commodity Futures
Trading Commission and/or any contract market (or any similar organization or
organizations) regarding account deposits in connection with transactions by the Fund;
or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For any other proper corporate purpose, but only upon receipt, in
addition to Proper Instructions, of a copy of a resolution of the Board of Directors,
certified by an Officer, specifying the Securities to be delivered, setting forth the
purpose for which such delivery is to be made, declaring such purpose to be a proper
corporate purpose, and naming the person or persons to whom delivery of such
Securities shall be made.</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">3.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Actions Not Requiring Proper Instructions.</U> Unless otherwise instructed by the
Company, the Custodian shall with respect to all Securities held for the Fund:</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">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to Section&nbsp;7.4 below, collect on a timely basis all income and
other payments to which the Fund is entitled either by law or pursuant to
custom in the securities business;</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)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Present for payment and, subject to Section&nbsp;7.4 below, collect on a timely
basis the amount payable upon all Securities which may mature or be
called, redeemed, or retired, or otherwise become 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Endorse for collection, in the name of the Fund, checks, drafts and other
negotiable instruments;</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">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Surrender interim receipts or Securities in temporary form for Securities in
definitive 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Execute, as custodian, any necessary declarations or certificates of
ownership under the federal income tax laws or the laws or regulations of
any other taxing authority now or hereafter in effect, and prepare and
submit reports to the Internal Revenue Service (&#147;IRS&#148;) and to the
Company at such time, in such manner and containing such information as
is prescribed by the IRS;</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">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Hold for the Fund, either directly or, with respect to Securities held
therein, through a Book-Entry System or Securities Depository, all rights and
similar securities issued with respect to Securities of the Fund; and</TD>
</TR>

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

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


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


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In general, and except as otherwise directed in Proper Instructions, attend
to all non-discretionary details in connection with the sale, exchange,
substitution, purchase, transfer and other dealings with Securities and assets of
the Fund.</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">3.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Registration and Transfer of Securities</U>. All Securities held for the Fund that are
issued or issuable only in bearer
form shall be held by the
Custodian in that form,
provided that any such Securities
shall be held in a Book-Entry
System if eligible
therefor. All other Securities
held for the Fund may be
registered in the name of
the Fund, the Custodian, or any
Sub-Custodian appointed pursuant
to Section&nbsp;3.3
above, or in the name of any
nominee of any of them, or in the
name of a Book-Entry System, Securities
Depository or any nominee of
either thereof. The
Company shall furnish to the
Custodian appropriate instruments
to enable the
Custodian to hold or deliver in
proper form for transfer, or to
register in the name
of any of the nominees
hereinabove referred to or in the
name of a Book-Entry
System or Securities Depository,
any Securities registered in the
name of the
Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Records</U>.</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">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian shall maintain, for the Fund, complete and accurate records
with respect to Securities, cash or other property held for the Fund,
including (i)&nbsp;journals or other records of original entry containing an
itemized daily record in detail of all receipts and deliveries of Securities
and all receipts and disbursements of cash; (ii)&nbsp;ledgers (or other records)
reflecting (A)&nbsp;Securities in transfer, (B)&nbsp;Securities in physical possession,
(C)&nbsp;monies and Securities borrowed and monies and Securities loaned
(together with a record of the collateral therefor and substitutions of such
collateral), (D)&nbsp;dividends and interest received, and (E)&nbsp;dividends
receivable and interest receivable; and (iii)&nbsp;canceled checks and bank
records related thereto. The Custodian shall keep such other books and
records of the Fund as the Company shall reasonably request, or as may be
required by the 1940 Act, including, but not limited to, Section&nbsp;31 of the
1940 Act and Rule&nbsp;31a-2 promulgated 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All such books and records maintained by the Custodian shall (i)&nbsp;be
maintained in a form acceptable to the Company and in compliance with
rules and regulations of the Securities and Exchange Commission, (ii)&nbsp;be
the property of the Company and at all times during the regular business
hours of the Custodian be made available upon request for inspection by
duly authorized officers, employees or agents of the Company and
employees or agents of the Securities and Exchange Commission, and (iii)
if required to be maintained by Rule&nbsp;31a-1 under the 1940 Act, be
preserved for the periods prescribed in Rule&nbsp;31a-2 under the
1940 Act.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">11
</DIV>

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


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



</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Fund Reports by Custodian</U>. The Custodian shall furnish the Company with a
daily activity statement and a summary of all transfers to or from each Fund
Custody Account on the day following such transfers. At least monthly and from
time to time, the Custodian shall furnish the Company with a detailed statement of
the Securities and moneys held by the Custodian and the Sub-Custodians for the
Fund 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">3.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Other Reports by Custodian</U>. The Custodian shall provide the Company with such
reports, as the Company may reasonably request from time to time, on the internal
accounting controls and procedures for safeguarding Securities, which are
employed by the Custodian or any Sub-Custodian appointed pursuant to Section
3.3 above.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Proxies and Other Materials</U>. The Custodian shall cause all proxies relating to
Securities which are not registered in the name of the Fund, to be promptly
executed by the registered holder of such Securities, without indication of the
manner in which such proxies arc to be voted, and shall promptly deliver to the
Company such proxies, all proxy soliciting materials and all notices relating to
such 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">3.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Information on Corporate Actions</U>. The Custodian shall promptly deliver to the
Company all information received by the Custodian and pertaining to Securities
being held by the Fund with respect to optional tender or exchange offers, calls
for redemption or purchase, or expiration of rights as described in the Standards
of Service Guide attached as Exhibit&nbsp;B. If the Company desires to take action
with respect to any tender offer, exchange offer or other similar transaction, the
Company shall notify the Custodian at least five Business Days prior to the date
on which the Custodian is to take such action. The Company will provide or
cause to be provided to the Custodian all relevant information for any Security
which has unique put/option provisions at least five Business Days prior to the
beginning date of the tender period.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE IV </B></U><BR>
<U><B>PURCHASE AND SALE OF INVESTMENTS OF THE FUND</B></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">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Purchase of Securities</U>. Promptly upon each purchase of Securities for the
Fund, Written Instructions shall be delivered to the Custodian, specifying (a)&nbsp;the name of the
issuer or writer of such Securities, and the title or other description thereof, (b)&nbsp;the
number of shares, principal amount (and accrued interest, if any) or other units purchased,
(c)&nbsp;the date of purchase and settlement, (d)&nbsp;the purchase price per unit, (e)&nbsp;the total amount
payable upon such purchase, and (f)&nbsp;the name of the person to whom such amount is payable. The
Custodian shall upon receipt of such Securities purchased by the Fund pay out of the moneys
held for the account of the Fund the total amount specified in such Written Instructions to
the person</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">12
</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>named therein. The Custodian shall not be under any obligation to pay out moneys to cover
the cost of a purchase of Securities for the Fund, if in the Fund Custody Account there is
insufficient cash available to the Fund for which such
purchase was made.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Liability for Payment in Advance of Receipt of Securities Purchased.</U> In any and
every case where payment for the purchase of Securities for the Fund is made by
the Custodian in advance of receipt of the Securities purchased but in the absence
of specified Written Instructions to so pay in advance, the Custodian shall be
liable to the Fund for such Securities to the same extent as if the Securities had
been received by the Custodian.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Sale of Securities.</U> Promptly upon each sale of
Securities by the Fund, Written
Instructions shall be delivered to the Custodian, specifying (a)&nbsp;the name of the
issuer or writer of such Securities, and the title or other description thereof, (b)&nbsp;the
number of shares, principal amount (and accrued interest, if any), or other units
sold, (c)&nbsp;the date of sale and settlement, (d)&nbsp;the sale price per unit, (e)&nbsp;the total
amount payable upon such sale, and (f)&nbsp;the person to whom such Securities are to
be delivered. Upon receipt of the total amount payable to the Fund as specified in
such Written Instructions, the Custodian shall deliver such Securities to the person
specified in such Written Instructions. Subject to the foregoing, the Custodian
may accept payment in such form as shall be satisfactory to it, and may deliver
Securities and arrange for payment in accordance with the customs prevailing among
dealers in 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">4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Delivery of Securities Sold.</U> Notwithstanding Section&nbsp;4.3 above or any other
provision of this Agreement, the Custodian, when instructed to deliver Securities
against payment, shall be entitled, if in accordance with generally accepted
market practice, to deliver such Securities prior to actual receipt of final payment
therefor. In any such case, the Fund shall bear the risk that final payment for such
Securities may not be made or that such Securities may be returned or otherwise
held or disposed of by or through the person to whom they were delivered, and
the Custodian shall have no liability for any for the foregoing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Payment for Securities Sold, etc.</U> In its sole discretion and from time to time,
the
Custodian may credit the Fund Custody Account, prior to actual receipt of final
payment thereof, with (i)&nbsp;proceeds from the sale of Securities which it has been
instructed to deliver against payment, (ii)&nbsp;proceeds from the redemption of
Securities or other assets of the Fund, and (iii)&nbsp;income from cash, Securities or
other assets of the Fund. Any such credit shall be conditional upon actual receipt
by Custodian of final payment and may be reversed if final payment is not
actually received in full. The Custodian may, in its sole discretion and from time
to time, permit the Fund to use funds so credited to the Fund Custody Account in</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">13
</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>anticipation of actual receipt of final payment. Any such funds shall be
repayable immediately upon demand made by the Custodian at any time prior to the
actual receipt of all final payments in anticipation of which funds were credited to
the Fund Custody 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">4.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Advances by Custodian for Settlement</U>. The Custodian may, in its sole
discretion and from time to time, advance funds to the Company to facilitate the
settlement of a Fund&#146;s transactions in the Fund Custody Account. Any such advance shall
be repayable immediately upon demand made by Custodian.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE V </B></U><BR>
<U><B>REDEMPTION OF FUND SHARES</B></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">5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Transfer of funds.</U> From such funds as may be available for the purpose in
the
relevant Fund Custody Account, and upon receipt of Proper Instructions
specifying that the funds are required to redeem Shares of the Fund, the Custodian
shall wire each amount specified in such Proper Instructions to or through such
bank as the Company may designate with respect to such amount in such Proper
Instructions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U> No Duty Regarding Paying Banks.</U> The Custodian shall not be under any
obligation to effect payment or distribution by any bank designated in Proper.
Instructions given pursuant to Section&nbsp;5.1 above of any amount
paid by the
Custodian to such bank in accordance with such Proper Instructions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE VI </B></U><BR>
<U> <B>SEGREGATED ACCOUNTS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
receipt of Proper Instructions, the Custodian shall establish and maintain a
segregated account or accounts for and on behalf of the Fund, into which account or accounts
may be transferred cash and/or Securities, including Securities maintained in a Depository Account,
</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">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in accordance with the provisions of any agreement among the
Company,
the Custodian and a broker-dealer registered under the 1934 Act and a
member of the NASD (or any futures commission merchant registered
under the Commodity Exchange Act), relating to compliance with the
rules of The Options Clearing Company and of any
registered national securities exchange (or the Commodity Futures Trading
Commission or any registered contract market), or of any similar
organization or organizations, regarding escrow or other arrangements in
connection with transactions by the Fund,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for purposes of segregating cash or Securities in connection
with securities
options purchased or written by the Fund or in connection with financial
futures contracts (or options thereon) purchased or sold by the Fund,</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">14
</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="5%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which constitute collateral for loans of Securities made by the Fund,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for purposes of compliance by the Fund with requirements under the 1940
Act for the maintenance of segregated accounts by registered investment
companies in connection with reverse repurchase agreements and when-issued, delayed delivery and firm commitment transactions, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for other proper corporate purposes, but only upon receipt of,
in addition to Proper Instructions, a certified copy of a resolution of the Board of
Directors, certified by an Officer, setting forth the purpose or purposes of
such segregated account and declaring such purposes to be proper
corporate purposes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Segregated account established under this Article&nbsp;VI shall be established and maintained
for the Fund only. All Proper Instructions relating to a segregated account shall specify the Fund.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE VII</B></U><BR>
<U><B>CONCERNING THE CUSTODIAN</B></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="2%" nowrap align="left">7.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Standard of Care</U>. The Custodian shall be held to the exercise of reasonable care-in carrying out its obligations under this Agreement, and shall be without liability
to the Company or any Fund for any loss, damage, cost, expense (including
attorneys&#146; fees and disbursements), liability or claim unless such loss, damage,
cost, expense, liability or claim arises from negligence, bad faith or willful
misconduct on its part or on the part of any Sub-Custodian appointed pursuant to
Section&nbsp;3.3 above. The Custodian shall be entitled to rely on and may act upon
advice of counsel on all matters, and shall be without liability for any action
reasonably taken or omitted pursuant to such advice. The Custodian shall
promptly notify me Company of any action taken or omitted by the Custodian
pursuant to advice of counsel The Custodian shall not be under any obligation at
any time to ascertain whether the Company or the Fund is in compliance with the
1940 Act, the regulations thereunder, the provisions of the Company&#146;s charter
documents or by-laws, or its investment objectives and policies as
then in effect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">7.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Actual Collection Required</U>. The Custodian shall not be liable for, or considered
to be the custodian of, any cash belonging to the Fund or any money represented
by a check, draft or other instrument for the payment of money, until the
Custodian or its agents actually receive such cash or collect on such instrument</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">7.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>No Responsibility for Title, etc</U>. So long as and to the extent that it is
in the exercise of reasonable care, the Custodian shall not be responsible for the
title, validity or genuineness of any property or evidence of title thereto received
or delivered by it pursuant to this Agreement.
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">15
</DIV>

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

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


</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">7.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Limitation on Duty to Collect.</U> Custodian shall not be
required TO enforce
collection, by legal means or otherwise, of any money or property due and
payable with respect to Securities held for the Fund if such Securities are in
default or payment is not made after due demand or presentation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">7.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Reliance Upon Documents and Instructions.</U> The Custodian shall be entitled to
rely upon any certificate, notice or other instrument in writing received by it and
reasonably believed by it to be genuine. The Custodian shall be entitled to rely
upon any Oral Instructions and any Written Instructions actually
received by it pursuant to 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="2%" nowrap align="left">7.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Express Duties Only.</U> The Custodian shall have no duties or obligations
whatsoever except such duties and obligations as are specifically set forth in this
Agreement, and no covenant or obligation shall be implied in this Agreement
against the Custodian.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">7.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Co-operation.</U> The Custodian shall cooperate with and supply necessary
information to the entity or entities appointed by the Company to keep the books
of account of the Fund and/or compute the value of the assets of the
Fund. The
Custodian shall take all such reasonable actions as the Company may from time to
time request to enable the Company to obtain, from year to year, favorable
opinions from the Company&#146;s independent accountants with respect to the
Custodian&#146;s activities hereunder in connection with (a)&nbsp;the preparation of the
Company&#146;s reports on Form N-l A and Form N-SAR and any other reports
required by the Securities and Exchange Commission, and (b)&nbsp;the fulfillment by
the Company of any other requirements of the Securities and Exchange
Commission.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><U>ARTICLE VIII<BR>
INDEMNIFICATION</U></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="2%" nowrap align="left">8.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Indemnification by Company.</U> The Company shall indemnify and hold harmless the
Custodian and any Sub-Custodian appointed pursuant to Section&nbsp;3.3 above, and any nominee of
the Custodian or of such Sub-Custodian, from and against any loss, damage, cost, expense
(including attorneys&#146; fees and disbursements), liability (including, without limitation,
liability arising under the Securities Act of 1933, the 1934 Act, the 1940 Act, and any state
or foreign securities and/or banking laws) or claim arising directly or indirectly (a)&nbsp;from
the fact that Securities are registered in the name of any such nominee, or (b)&nbsp;from any
action or inaction by the Custodian or such Sub-Custodian (i)&nbsp;at the request or direction of
or in reliance on the advice of the Company, or (ii)&nbsp;upon Proper Instructions, or (c)
generally, from the performance of its obligations under this Agreement or any sub-custody
agreement with a Sub-Custodian appointed pursuant to Section&nbsp;3.3</TD>
</TR>

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

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


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>above, provided that neither the Custodian nor any such Sub-Custodian shall be <B>&#149;</B>
indemnified and held harmless from and against any such loss, damage, cost, expense,
liability or claim arising from the Custodian&#146;s or such Sub-Custodian&#146;s negligence,
bad faith or willful misconduct.</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="2%" nowrap align="left">8.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Indemnification by Custodian.</U> The Custodian shall indemnify and hold
harmless the Company from and against any loss, damage, cost, expense (including
attorneys&#146; fees and disbursements), liability (including without limitation,
liability
arising under the Securities Act of 1933, the 1934 Act, the 1940 Act, and any state
or foreign securities and/or banking laws) or claim arising from the negligence,
bad faith or willful misconduct of the Custodian or any Sub-Custodian appointed
pursuant to Section&nbsp;3.3 above, or any nominee of the Custodian or of such Sub-
Custodian.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">8.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Indemnity to be Provided.</U> If the Company requests the Custodian to take
any
action with respect to Securities, which may, in the opinion of the Custodian,
result in the Custodian or its nominee becoming liable for the payment of money
or incurring liability of some other form, the Custodian shall not be required to
take such action until the Company shall have provided indemnity therefor to the
Custodian in an amount and form satisfactory to the Custodian.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">8.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Security.</U> If the Custodian advances cash or Securities to the Fund for
any
purpose, either at the Company&#146;s request or as otherwise contemplated in this
Agreement, or in the event that the Custodian or its nominee incurs, in connection
with its performance under this Agreement, any loss, damage, cost, expense
(including attorneys&#146; fees and disbursements), liability or claim (except such as
may arise from its or its nominee&#146;s negligence, bad faith or willful misconduct),
then, in any such event, any property at any time held for the account of the Fund
shall be security therefor, and should the Fund fail promptly to repay or indemnify
the Custodian, the Custodian shall be entitled to utilize available cash of such
Fund and to dispose of other assets of such Fund to the extent necessary to obtain
reimbursement or indemnification.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><U>ARTICLE IX<BR>
FORCE MAJEURE</U></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Custodian nor the Company shall be liable for any failure or delay in
performance of its obligations under this Agreement arising out of or caused, directly or
indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of
God; earthquakes; fires; floods; wars; civil or military disturbances; sabotage; strikes;
epidemics; riots; power failures; computer failure and any such circumstances beyond its reasonable
control as may cause interruption, loss or malfunction of utility, transportation, computer
(hardware or software) or telephone communication service; accidents; labor disputes; acts of civil
or military authority; governmental actions; or inability to obtain labor, material, equipment or
transportation; provided, however, that the Custodian in the event of a failure or delay (i)&nbsp;shall
</DIV>

<P align="center" style="font-size: 10pt">17
</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
discriminate against the Fund to favor of any other customer of the Custodian in making
computer time and personnel available to input or process the transactions contemplated by this
Agreement and (ii)&nbsp;shall use its best efforts to ameliorate the effects of any such failure or
delay.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><U>ARTICLE X<BR>
EFFECTIVE PERIOD; TERMINATION</U></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="2%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Effective Period.</U> This Agreement shall become effective as of its
execution and shall continue in full force and effect for a period of
three (3)&nbsp;years; Subsequent
to the initial three (3)&nbsp;year term, this Agreement may be terminated according to
the following provision.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Termination.</U> Either party 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 90&nbsp;days after the date of the giving of such notice. If a successor
custodian shall have been appointed by the Board of Directors, me Custodian
shall, upon receipt of a notice of acceptance by the successor custodian, on such
specified date of termination (a)&nbsp;deliver directly to the successor custodian all
Securities (other than Securities held in a
<FONT style="white-space: nowrap">Book-Entry</FONT> System or Securities
Depository) and cash then owned by the Fund and held by the Custodian as
custodian, and (b)&nbsp;transfer any Securities held in a Book-Entry System or
Securities Depository to an account of or for the benefit of the Fund at the
successor custodian, provided that the Company shall have paid to the Custodian
all fees, expenses and other amounts to the payment or reimbursement of which it
shall then be entitled. Upon such delivery and transfer, the Custodian shall be
relieved of all obligations under this Agreement. The Company may at any time
immediately terminate this Agreement in the event of the appointment of a
conservator or receiver for the Custodian by regulatory authorities or upon the
happening of a like event at the direction of an appropriate regulatory agency or
court of competent jurisdiction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Failure to Appoint Successor Custodian.</U> If a successor custodian is
not
designated by the Company on or before the date of termination specified
pursuant to Section&nbsp;10.1 above, then the Custodian shall have the right to deliver
to a bank or Company company of its own selection, which (a)&nbsp;is a &#147;bank&#148; as
defined in the 1940 Act and (b)&nbsp;has aggregate capital, surplus and undivided
profits as shown on its then most recent published report of not less than $25
million, all Securities, cash and other property held by Custodian under this
Agreement and to transfer to an account of or for the Fund at such bank or trust
company all Securities of the Fund held in a
<FONT style="white-space: nowrap">Book-Entry</FONT> System or Securities
Depository. Upon such delivery and transfer, such bank or trust company shall be
the successor custodian under this Agreement and the Custodian shall be relieved
of all obligations under this Agreement.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">18
</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="center" style="font-size: 10pt; margin-top: 18pt"><B><U>ARTICLE XI<BR>
COMPENSATION OF CUSTODIAN</U></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Custodian shall be entitled to compensation as agreed upon from time to time by the
Company and the Custodian. The fees and other charges in effect on the date hereof and applicable
to the Fund are set forth in Exhibit&nbsp;C attached hereto.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><U>ARTICLE XII<BR>
LIMITATION OF LIABILITY</U></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is expressly agreed that the obligations of the Company hereunder shall not be binding upon
any of the Directors, shareholders, nominees, officers, agents or employees of the Company
personally, but shall bind only the property of the Company as
provided in the Company&#146;s Articles
of Incorporation, as from time to time amended. The execution and delivery of this Agreement have
been authorized by the Directors, and this Agreement has been signed and delivered by an authorized
officer of the Company, acting as such, and neither such authorization by the Directors nor such
execution and delivery by such officer shall be deemed to have been made by any of them
individually or to impose any liability on any of them personally, but shall bind only the Company
property of the Company as provided in the above-mentioned Articles of Incorporation.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><U>ARTICLE XIII<BR>
NOTICES</U></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified herein, all demands, notices, instructions, and other
communications to be given hereunder shall be in writing and shall be sent or delivered to the
recipient at the address set forth after its name hereinbelow:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt"><U>To the Company:</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">The Mexico Equity and Income Fund, Inc.<BR>
Spitzer &#038; Feldman P.C.<BR>
405 Park Avenue<BR>
New York. NY 10022<BR>
Attention: Thomas R. Westle<BR>
212-888-6680
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt"><U>To
Custodian:</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Mr.&nbsp;James C. Tyler<BR>
Firstar Mutual Fund Services, LLC<BR>
615 East Michigan Street<BR>
Milwaukee, WI 53202
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">or at such other address as either party shall have provided to the other by notice given
in
</DIV>



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

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">accordance with this Article&nbsp;XIII. Writing shall include
transmissions by or through teletype, facsimile, central processing unit
connection, on-line terminal and magnetic tape.
</DIV>


<P align="center" style="font-size: 10pt">20
</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 XIV<BR>
<U>MISCELLANEOUS</U></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="2%" nowrap align="left">14.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Governing Law.</U> This Agreement shall be governed by and construed in
accordance with the laws of the State of Ohio.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>References to Custodian.</U> The Company shall not circulate any printed matter
which contains any reference to Custodian without the prior written approval of
Custodian, excepting printed matter contained in the prospectus or statement of
additional information for the Fund and such other printed matter as merely
identifies Custodian as custodian for the Fund. The Company shall submit
printed matter requiring approval to Custodian in draft form, allowing sufficient
time for review by Custodian and its counsel prior to any deadline for printing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>No Waiver.</U> No failure by either party hereto to exercise, and no delay by such
party in exercising, any right hereunder shall operate as a waiver thereof. The
exercise by either party hereto of any right hereunder shall not preclude the
exercise of any other right, and the remedies provided herein are cumulative and
not exclusive of any remedies provided at law or in equity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Amendments.</U> This Agreement cannot be changed orally and no amendment to
this Agreement shall be effective unless evidenced by an instrument in writing
executed by the parties hereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Counterparts.</U> This Agreement may be executed in one or more counterparts, and
by the parties hereto on separate counterparts, each of which shall be deemed an
original but all of which together shall constitute but one and the same instrument.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Severability.</U> If any provision of this Agreement shall be invalid, illegal or
unenforceable in any respect under any applicable law, the validity, legality and
enforceability of the remaining provisions shall not be affected or unpaired
thereby.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Successors and Assigns.</U> This Agreement shall be
binding upon and shall inure to
the benefit of the parties hereto and their respective successors and assigns;
provided, however, that this Agreement shall not be assignable by either party
hereto without the written consent of the other party hereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">14.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Headings.</U> The headings of sections in this Agreement are for convenience of
reference only and shall not affect the meaning or construction of any provision of
this Agreement.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">21
</DIV>

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

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


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



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed
and delivered in its name and on its behalf by its representatives thereunto duly authorized, all
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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">THE MEXICO EQUITY AND INCOME</TD>
    <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">FUND, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">FIRSTAR BANK, N.A.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/&nbsp;Thomas R. Westle</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/&nbsp;Paul Rock</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 valign="top"><DIV style="margin-left:0px; text-indent:-0px">Print:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Thomas R. Westle</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Print:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Paul Rock</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 valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Secretary</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;Senior V.P.</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 valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;July 11, 2001</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;July 11, 2001</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>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">22
</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"><U><B>EXHIBIT
A</B></U></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>AUTHORIZED PERSONS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth below are the names and specimen signatures of the persons authorized by
the Company to administer the Fund Custody Accounts.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Authorized Persons</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Specimen Signatures</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">President:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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></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">Secretary:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Andrew P. Chica</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Andrew P. Chica</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">Treasurer:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Michael J. Weckwerth</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Michael J. Weckwerth</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">Vice President:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Michael J. Weckwerth</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Michael J. Weckwerth</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">Adviser Employees:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marcela Martinez Gonzales</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Marcela Martinez Gonzales</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">Luis E. Martinez Ibarguen</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Luis E. Martinez Ibarguen</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 colspan="3" valign="top" align="left">Transfer Agent/Fund Accountant</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>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Employees:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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></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">&nbsp;</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></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">&nbsp;</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></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">&nbsp;</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></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">&nbsp;</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></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">23
</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><U>EXHIBIT B</U></B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Firstar Bank, N.A.<BR>
Standards of Service Guide</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Firstar Bank, N.A. is committed to providing superior quality service to all customers
and their agents at all times. We have compiled this guide as a tool for our clients to determine
our standards for the processing of security settlements, payment collection, and capital change
transactions. Deadlines recited in this guide represent the times required for Firstar Bank to
guarantee processing. Failure to meet these deadlines will result in settlement at our client&#146;s
risk. In all cases, Firstar Bank will make every effort to complete all processing on a timely
basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Firstar Bank is a direct participant of the Depository Trust Company, a direct member of the
Federal Reserve Bank of Cleveland, and utilizes the Bankers Trust Company as its agent for
ineligible and foreign securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For corporate reorganizations, Firstar Bank utilizes SETs Reorg Source, Financial
Information, Inc., XCITEK, DTC Important Notices, and the <U>Wall Street Journal.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For bond calls and mandatory puts, Firstar Bank utilizes SETs Bond Source, Kenny Information
Systems, Standard <I>&#038;. </I>Poor&#146;s Company, and DTC Important Notices. Firstar Bank will not notify
clients of optional put opportunities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any securities delivered free to Firstar Bank or its agents must be received three (3)
business days prior to any payment or settlement in order for the
Firstar Bank standards of service
to apply.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Should you have any questions regarding the information contained in this guide, please
feel free to contact your account representative.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%"><B><I>The information contained in this Standards of Service Guide is
subject to change. Should any changes be made Firstar Bank will
provide you with an updated copy of its Standards of Service Guide.</I></B>
</DIV>

<P align="center" style="font-size: 10pt">24
</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>Firstar Bank Security Settlement Standards</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>Transaction Type</I></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>Instructions Deadlines*</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>Delivery Instructions</I></B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DTC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1:30 P.M. on Settlement Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DTC Participant #2803</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">Agent Bank ID 27895</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">Institutional # <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></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">For Account # <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"><!-- 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">Federal Reserve Book Entry
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12:30&nbsp;P.M. on Settlement Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Federal Reserve Bank of Cinti/Trust</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">for Firstar Bank, N. A. ABA #042000013</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">For Account # <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"><!-- 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">Fed Wireable FNMA &#038; FHLMC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12:30&nbsp;P.M. on Settlement Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bk of NYC/Cust</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">ABA 021000018</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">A/C Firstar Bank # 117612</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">For Account #<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"><!-- 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">Federal Reserve Book Entry (Repurchase
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1:00 P.M. on Settlement Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Federal Reserve Bank of Cinti/Spec</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Agreement Collateral Only)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">for Firstar Bank, N.A. ABA# 042000013</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">For Account # <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"><!-- 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">PTC Securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12:00&nbsp;P.M. on Settlement Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PTC For Account BYORK</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(GNMA Book Entry)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Firstar Bank/ 117612</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Physical Securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9:30 A.M. EST on Settlement Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bank of New York</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">(for Deliveries, by 4:00 P.M. on
Settlement Date minus 1)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">One Wall Street- 3<sup>rd</sup> Floor &#151; Window A</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">
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10286</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">For account of Firstar Bank /Cust #117612</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">Attn: Donald Hoover</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">CEDEL/EURO-CLEAR
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11:00&nbsp;A.M. on Settlement Date minus 2
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cedel a/c 55021</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">FFC: a/c 387000</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">Firstar Bank / Global Omnibus</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">Cash Wire Transfer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3:00 P.M.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Firstar Bank, N.A. Cinti/Trust ABA# 042000013</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">Credit Account #9901877</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">Further Credit to <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Account # <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>All times listed are Eastern Standard Time.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">25
</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>Firstar Bank Payment Standards</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><I>Security Type</I></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>Income</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>Principal</I></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Equities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Municipal Bonds*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date</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">Corporate Bonds*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date</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">Federal Reserve Bank Book Entry*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date</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">PTC GNMA&#146;s (P&#038;I)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date &#043; 1
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date &#043;1</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">CMOs*</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">DTC<BR>
Bankers Trust
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date &#043;1<BR>
Payable Date &#043; 1
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date &#043;1<BR>
Payable Date &#043; 1</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">SBA Loan Certificates
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When Received
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When Received</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">Unit Investment Trust</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Certificates*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date</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">Certificates of Deposit*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date &#043;1
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date &#043;1</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">Limited Partnerships
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When Received
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When Received</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">Foreign Securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When Received
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When Received</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">*Variable Rate Securities</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">Federal Reserve Bank Book
Entry<BR>
DTC<BR>
Bankers Trust
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date<BR>
Payable Date &#043; 1<BR>
Payable Date &#043; 1
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payable Date<BR>
Payable Date &#043; 1<BR>
Payable Date &#043; 1</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>NOTE: If a payable date falls on a weekend or bank holiday, payment will be made
on the immediately following business day.</B></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">25
</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 align="center" style="font-size: 10pt; margin-top: 18pt"><B>Firstar Bank Corporate Reorganization Standards</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="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="20%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B><I>Type of Action</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B><I>Notification to Client</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B><I>Deadline for Client Instructions</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B><I>Transaction</I></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B><I>to Firstar Bank</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B><I>Posting</I></B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Rights, Warrants,<BR>
and Optional Mergers
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Later of 10 business days prior to expiration
or receipt of notice
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>5 </I>business days prior to expiration
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Upon receipt</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">Mandatory Puts with
Option to Retain
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Later of 10 business days prior to expiration
or receipt of notice
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5 business days prior to expiration
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Upon receipt</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">Class&nbsp;Actions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10 business days prior to expiration date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5 business days prior to expiration
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Upon receipt</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">Voluntary Tenders,
Exchanges,
and Conversions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Later of 10 business days prior to expiration
or receipt of notice
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>5</I> business days prior to expiration
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Upon receipt</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">Mandatory Puts. Defaults,
Liquidations, Bankruptcies, Stock
Splits, Mandatory Exchanges
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">At posting of funds or securities received
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Upon receipt</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">Full and Partial Calls
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Later of 10 business days prior to expiration
or receipt of notice
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">None
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Upon receipt</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>NOTE: Fractional shares/par amounts resulting from any of the above will be sold.</B></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">26
</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 align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EXHIBIT C</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>Firstar Bank, N.A.<BR>
Domestic Custody Fee Schedule</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Firstar Bank, N, A., as Custodian, will receive monthly compensation for services according to the
terms of the following Schedule:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Annual fee based upon market value
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">2 basis points per year<BR>
Minimum annual fee per fund &#151; $3,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Investment transactions (purchase; sale, exchange, tender, redemption, maturity, receipt,
delivery):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">$ 5.00 per disbursement (waived if Firstar is Administrator)<BR>
$12.00 per book entry security (depository or Federal Reserve system)<BR>
$25.00 per definitive security (physical)<BR>
$25.00 per mutual fund trade<BR>
$75.00 per Euroclear<BR>
$ 8.00 per principal reduction on pass-through certificates<BR>
$ 6.00 per short sale/liability transaction<BR>
$35.00 per option/futures contract<BR>
$15.00 per variation margin<BR>
$15.00 per Fed wire deposit or withdrawal
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Variable Amount Demand Notes: Used as a short-term investment, variable amount notes offer safety
and prevailing high interest rates. Our charge, which is &#188; of 1%, is deducted from the variable
amount note income at the time it is credited to your account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Plus cut-of-pocket expenses, and extraordinary expenses based upon complexity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fees are billed monthly, based upon market value at the beginning of the month.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>All pricing valid for 45&nbsp;days.</B>
</DIV>


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

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

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




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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
AMENDMENT dated as of January&nbsp;1, 2002 to the Custody Agreement
dated as July 11<sup>th</sup>,
2001, between The Mexico Equity and Income Fund, Inc., a Company organized under the laws of the
State of Maryland (the &#147;Fund&#148;), and Firstar Bank, N.A.,
shall be as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
January&nbsp;1, 2002, the name Firstar Bank, N.A. has been changed to U.S. Bank, N.A.
Accordingly, all references to Firstar Bank, N.A. in this Agreement should be replaced with U.S.
Bank, N.A. Similarly, any references to Firstar Mutual Fund Services, LLC should be replaced with
U.S. Bancorp Fund Services, LLC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by a duly authorized officer on one or more counterparts as of the day and year 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="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap colspan="3" valign="top" align="left">THE MEXICO EQUITY AND INCOME
FUND, INC.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">U.S. BANK, N.A.</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">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;[Illegible]</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;[Illegible]</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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2(K)(1)
<SEQUENCE>6
<FILENAME>c98194a1exv99w2xkyx1y.htm
<DESCRIPTION>ADMINISTRATION AGREEMENT
<TEXT>
<HTML>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;2(k)(1)
</DIV>


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS AGREEMENT is made and entered into as of this 11th day of July, 2001, by
and between The Mexico Equity and Income Fund, Inc., a corporation organized under the laws
of the State of Maryland (the &#147;Company&#148;), and Firstar Mutual Fund Services, LLC, a limited
liability company organized under the laws of the State of Wisconsin (&#147;FMFS&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company is a closed-end management investment company which is registered
under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, FMFS is in the business of providing fund administration services for the
benefit of its customers; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Company desires to retain FMFS to act as Administrator for the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual agreements herein made, the Company and
FMFS 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="2%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Appointment of Administrator</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Company hereby appoints FMFS as Administrator of the Company on the terms and
conditions set forth in this Agreement, and FMFS hereby accepts such appointment and
agrees to perform the services and duties set forth in this Agreement in
consideration of the compensation provided for herein.
</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%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Duties and Responsibilities of FMFS</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="2%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>General Fund Management</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Act as liaison among all Company service providers<BR></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="2%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>FMFS shall supply:</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="2%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Corporate secretarial services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Office facilities (which may be in FMFS&#146; office or
its affiliate&#146;s own
offices); 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="2%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Non-investment related statistical and research data as needed.</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Coordinate board communication by:</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="2%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Assisting Company counsel in establishing meeting agendas;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preparing board reports based on financial and administrative data;<BR></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Evaluating independent auditor;</TD>
</TR>

</TABLE>
</DIV>


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

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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Page 2</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="2%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securing and monitoring fidelity bond and director and officer liability
coverage, and making the necessary SEC filings relating thereto; 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="2%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preparing minutes of meetings of the board and shareholders.</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Audits</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="2%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare appropriate schedules and assist independent auditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provide information to SEC and facilitate audit process; 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="2%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provide office facilities.</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Assist in overall operations of the 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pay Company expenses upon written authorization from the Company.</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Compliance</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Regulatory Compliance</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="2%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monitor compliance with 1940 Act requirements, including:</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="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Asset diversification tests;</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="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Total return and SEC yield 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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintenance of books and records under Rule&nbsp;3la-3; 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="2%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Code of Ethics for the disinterested directors of the Company.</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monitor Company&#146;s compliance with the policies and investment limitations
of the Company as set forth in its Prospectus and Statement of Additional
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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SEC Registration and Reporting</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="2%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Assist Company counsel in updating Prospectus and Statement of
Additional Information (if necessary) and in preparing proxy statements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare annual and semiannual 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="2%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Coordinate the printing of publicly disseminated Prospectuses and 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="2%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>File fidelity bond under Rule&nbsp;I7g-l;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>File shareholder reports under Rule&nbsp;30b2-1; 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="2%" nowrap align="left">f.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare and file reports and other documents required by U.S. stock
exchanges on which the Company&#146;s shares are listed.</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>IRS Compliance</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="2%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monitor Company&#146;s status as a regulated Investment company under Subchapter
M through review of the following:</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">
</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="right" style="font-size: 10pt; margin-top: 12pt"><B>Page 3</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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Asset diversification requirements;</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="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Qualifying income requirements; 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="2%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Distribution requirements.</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate required distributions (including excise tax 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial Reporting</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provide financial data required by Company&#146;s Prospectus and Statement
of
Additional 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare financial reports for shareholders, the board, the SEC, U.S.
stock
exchanges on which the Company&#146;s shares are listed and independent auditors;
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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Supervise the Company&#146;s custodian and accountants in the maintenance
of the
Company&#146;s general ledger and in the preparation of the Company&#146;s financial
statements, including oversight of expense accruals and
payments, of the determination of net asset value of the Company&#146;s net assets
and of the Company&#146;s shares, and of the declaration and payment of dividends
and other distributions to shareholders.</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="2%" nowrap align="left">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Tax Reporting</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="2%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare and file on a timely basis appropriate federal and state 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="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>including Forms 1120/8610 with any necessary 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="2%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prepare state income breakdowns where relevant;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>File Form&nbsp;1099 Miscellaneous for payments to directors and other
service</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>providers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monitor wash losses; 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="2%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calculate eligible dividend income for corporate shareholders.</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="2%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Compensation</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees to pay FMFS the fees and reasonable out-of-pocket expenses as set
forth in the attached Exhibit&nbsp;A for the performance of the
duties listed in this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These fees may be changed from time to time, subject to mutual written Agreement
between the Company and FMFS.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</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="right" style="font-size: 10pt; margin-top: 12pt"><B>Page 4</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees to pay all fees and reimbursable expenses within ten (10)
business days following the receipt of the billing notice.
</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%" nowrap align="left"><B>4.</B></TD>

    <TD><B>Performance of Service; Limitation of Liability</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">A.
FMFS shall exercise reasonable care in
the performance of its duties under this
Agreement. FMFS shall not be liable for any error of judgment or mistake of law or for any
loss suffered by the Company in connection with matters to which this Agreement relates,
including losses resulting from mechanical breakdowns or the failure of communication or
power supplies beyond FMFS&#146;s control, except a loss resulting from FMFS&#146;s 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 Agreements.
Notwithstanding any other provision of this Agreement, the Company shall indemnify and hold
harmless FMFS from and against any and all claims, demands, losses, expenses, and
liabilities (whether with or without basis in fact or law) of any and every nature
(including reasonable attorneys&#146; fees) which FMFS may sustain or incur or which may be
asserted against FMFS 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 foregoing standards,
or (ii)&nbsp;in reliance upon any written or oral instruction provided to FMFS by any duly
authorized officer of the Company, such duly authorized officer to be included in a list of
authorized officers furnished to FMFS and as amended from time to time in writing by
resolution of the Board of Directors of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FMFS shall indemnify and hold the Company harmless from and against any and all
claims, demands, losses, expenses, and liabilities (whether with or without basis in fact
or law) of any and every nature (including reasonable attorneys&#146; fees) which the Company
may sustain or incur or which may be asserted against the Company by any person arising
out of any action taken or omitted to be taken by FMFS as a result of FMFS&#146;s refusal or
failure to comply with the terms of this Agreement, its bad faith, negligence, or willful
misconduct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of a mechanical breakdown or failure of communication or power supplies
beyond its control, FMFS shall take all reasonable steps to minimize service interruptions
for any period that such interruption continues beyond FMFS&#146;s control. FMFS 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 FMFS. FMFS
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 the Company shall be entitled to
inspect FMFS&#146;s premises and operating capabilities at any time during regular business
hours of FMFS, upon reasonable notice to FMFS.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regardless of the above, FMFS reserves the right to reprocess and correct
administrative errors at its own expense.
</DIV>

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

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Page 5</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">B. 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
bold 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 which 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 which may be the subject of this indemnification, In the event that the indemnitor so
elects, 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.
The 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.
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><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: 5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FMFS agrees on behalf of itself and its directors, officers, and employees to
treat confidentially and as proprietary information of the Company all records and other
information relative to the Company and prior, present, or potential shareholders of the
Company (and clients of said shareholders), 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 Company, which approval shall
not be unreasonably withheld and may not be withheld where FMFS may be exposed to civil or
criminal contempt proceedings for failure to comply, when requested to divulge such
information by duly constituted authorities, or when so requested by the Company.
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>6.</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: 5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company or its agent, which may be FMFS, shall furnish to FMFS the data
necessary to perform the services described herein at times and in such form as mutually
agreed upon.
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Term of Agreement</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall become effective as of the date hereof and shall continue in
effect for a period of one (1)&nbsp;year. Subsequent to the initial one (1)&nbsp;year term, this
Agreement may be terminated by either party upon giving ninety (90)&nbsp;days prior written
notice to the other party or such shorter period as is mutually agreed upon by the parties.
However, this Agreement may be amended by mutual written consent of the parties.
</DIV>

<P align="center" style="font-size: 10pt">
</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="right" style="font-size: 10pt; margin-top: 12pt"><B>Page 6</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="2%" nowrap align="left"><B>8.</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: 5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices of any kind to be given by either party to the other party shall be in writing
and shall be duly given if mailed or delivered as follows: Notice to FMFS shall be sent to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Mr.&nbsp;James C. Tyler<BR>
Firstar Mutual Fund Services, LLC<BR>
615 East Michigan Street<BR>
Milwaukee, WI 53202</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">and notice to the Company shall be sent to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">The Mexico Equity and Income Fund, Inc.<BR>
Spitzer &#038; Feldman P.C.<BR>
405 Park Avenue<BR>
New York, NY 10022<BR>
Attention: Thomas R. Westle</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">212-888-6680</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><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: 5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that, in connection with termination, a successor to any of
FMFS&#146;s duties or responsibilities hereunder is designated by the Company by written notice
to FMFS, FMFS will promptly, upon such termination and at the expense of the Company,
transfer to such successor all relevant books, records, correspondence, and other data
established or maintained by FMFS under this Agreement in a form reasonably acceptable to
the Company (if such form differs from the form in which FMFS has maintained, the Company
shall pay any expenses associated with transferring the data to such form), and will
cooperate in the transfer of such duties and responsibilities, including provision for
assistance from FMFS&#146;s 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>10.</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: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be construed and the provisions hereof interpreted under and
in accordance with the laws of the State of Wisconsin. However, nothing herein shall be
construed in a manner inconsistent with the 1940 Act or any rule or regulation promulgated
by the Securities and Exchange Commission 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Records</B></TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">
</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="right" style="font-size: 10pt; margin-top: 12pt"><B>Page 7</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FMFS 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
Company 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. FMFS
agrees that all such records prepared or maintained by FMFS relating
to the services to be performed by FMFS hereunder are the property of the Company and will be preserved,
maintained, and made available in accordance with such section and rules of the 1940 Act
and will be promptly surrendered to the Company on and in accordance
with its request.
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Agency Relationship</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="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nothing herein contained shall be deemed to authorize or empower FMFS to act as agent for
the other party to this Agreement, or to conduct business in the name of, or for the
account of the other party to this Agreement</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 day and year 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="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>THE MEXICO EQUITY AND INCOME FUND, INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>FIRSTAR MUTUAL FUND SERVICES, LLC</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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/&nbsp; Thomas R. Westle</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ &nbsp;Paul Rock</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" style="border-top: 1px solid #000000">&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">Print:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Thomas R. Westle</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Print:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Paul Rock</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" style="border-top: 1px solid #000000">&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">Title:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Senior V.P.</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" style="border-top: 1px solid #000000">&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>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">
</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="right" style="font-size: 10pt; margin-top: 12pt"><B>Page 8</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Fund Administration and Compliance<BR>
Annual Fee Schedule &#151; Domestic Funds</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;A</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Annual fee based upon average net fund assets
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">9 basis points on the first $200&nbsp;million<BR>
7 basis points on the next $500&nbsp;million<BR>
5 basis points on the balance<BR>
Minimum annual fee: $58,000</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Plus reasonable out-of-pocket expense reimbursements, including but not limited to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Postage<BR>
Programming<BR>
Stationery<BR>
Proxies<BR>
Retention of records<BR>
Special reports<BR>
Federal and state regulatory filing fees<BR>
Certain insurance premiums<BR>
Expenses from board of directors meetings<BR>
Auditing and legal expenses</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Extraordinary services &#151; quoted separately
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fees and reasonable out-of-pocket expense reimbursements are billed monthly
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</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>AMENDMENT TO THE FUND ADMINISTRATION SERVICING AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS AMENDMENT dated as of January&nbsp;1, 2002 to the Fund Administration Servicing
Agreement dated as of the 11th day of July, 2001, by and between The Mexico Equity and
Income Fund, Inc., a corporation organized under the laws of the State of Maryland, and
Firstar Mutual Fund Services, LLC, a Wisconsin limited liability company, shall be as
follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
January 1, 2002, the name Firstar Mutual Fund Services, LLC has been
changed to U.S. Bancorp Fund Services. LLC. Accordingly, all references to Firstar Mutual
Fund Services, LLC in this Agreement should be replaced with U.S. Bancorp Fund Services,
LLC, Similarly, any references to Firstar Bank, N.A. should be replaced with U.S. Bank,
N.A.
</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 Amendment to be executed by a
duly authorized officer on one or more counterparts as of the day and year first written
above.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">THE MEXICO
EQUITY AND INCOME FUND, INC.
</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="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&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="center" valign="bottom">&nbsp;[Illegible]</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;[Illegible]</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="right" valign="bottom" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</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 to the<BR>
Fund Administration Servicing Agreement<BR> As
Amended January&nbsp;1, 2003</B>
</DIV>

<P>

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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>U.S. BANCORP FUND SERVICES, LLC<BR>
FUND ADMINISTRATION &#038; COMPLIANCE SERVICES<BR>
ANNUAL FEE SCHEDULE</B>
</DIV>

<DIV  style="border-bottom: 1px solid #000000">&nbsp;</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Fee per fund for Closed-End International Equity Funds</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Annual fee based upon the greater of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Annual
basis point charge calculated utilizing the assets of the Fund as determined by the schedule below:<BR>
12 basis points on the first $200&nbsp;million<BR>
10 basis points on the next $500&nbsp;million<BR>
5 basis points on the balance
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Or a Minimum annual fee of: $50,000 effective January 1, 2003 through July 31, 2004
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 26%">$53,000
effective August&nbsp;1, 2004 through July&nbsp;31, 2005<BR>
$57,000 effective August&nbsp;1, 2005 through July&nbsp;31, 2006
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Extraordinary services &#151; quoted separately
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Plus out-of-pocket expenses, including but not
limited to.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Postage, Stationery<BR>
Programming<BR>
Proxies<BR>
EDGAR filing - Approx. $9.00/page<BR>
Retention of records<BR>
Federal and state regulatory filing fees<BR>
Certain insurance premiums<BR>
Expenses from board of directors meetings<BR>
Auditing and legal expenses
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fees are billed monthly
</DIV>

</DIV>



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

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


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




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;B to the<BR>
Fund Administration Servicing Agreement</B><BR>
Additional Termination Conditions
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition to the termination provisions under Paragraph&nbsp;7 of this Agreement, the Fund
agrees that should it (or the Board of Directors) be required to terminate this Agreement
within the initial 3-year period due to a merger of the Fund, sale of the Fund, change of
fund administration servicing agents or similar reason (other than the dissolution of the
Fund), the Fund shall be responsible for reimbursing USBFS any amount lost between the
effective date of this Agreement and the termination date due to the special discounted fee
arrangement provided for the Fund under Exhibit&nbsp;A compared to the standard fee schedule shown
below (Exhibit&nbsp;B).
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;B to the<BR>
Fund Administration Servicing Agreement</B>
</DIV>

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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>U.S. BANCORP FUND SERVICES, LLC<BR>
FUND ADMINISTRATION &#038; COMPLIANCE SERVICES<BR>
ANNUAL FEE SCHEDULE</B>
</DIV>


<DIV style="width:100%;border-bottom:1pt solid #000000;font-size:1pt; margin-top: 6pt">&nbsp;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Fee per fund for Closed-End International Equity Funds</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Annual fee based upon the greater of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 0pt">Annual basis points charge calculated utilizing the assets of the Fund as determined by the schedule below:<BR>
9 basis points on the first $200&nbsp;million<BR>
7 basis points on the next $500&nbsp;million<BR>
5 basis points on the balance
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Or a Minimum annual fee of: $58,000
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Extraordinary services &#151; quoted separately
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Plus out-of-pocket expenses, including but not
limited to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 0pt">Postage, Stationery<BR>
Programming<BR>
Proxies<BR>
EDGAR filing &#151; Approx. $9.00/page<BR>
Retention of records<BR>
Federal and state regulatory filing fees<BR>
Certain insurance premiums<BR>
Expenses from board of directors meetings<BR>
Auditing and legal expenses
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fees are billed monthly
</DIV>

</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</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>AMENDMENT TO THE FUND ADMINISTRATION SERVICING AGREEMENT<BR>
BETWEEN<BR>
THE MEXICO EQUITY AND INCOME FUND, INC.<BR>
AND<BR>
U.S. BANCORP FUND SERVICES,LLC</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Paragraph&nbsp;7, Term of Agreement, of the Fund Administration Servicing Agreement
made and entered into as of July&nbsp;11, 2001, by and between The Mexico Equity Income
Fund, Inc., a corporation organized under the laws of the State of Maryland (the
&#147;Fund&#148;), and U.S. Bancorp Fund Services, LLC, a limited liability company
organized under the laws of the State of Wisconsin (&#147;USBFS&#148;) is hereby amended as
follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.&nbsp;Term of Agreement (amended January 1, 2003</B>)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall become effective as of <B>January&nbsp;1, 2003</B>
and shall continue in effect for a period of three (3)&nbsp;years.
Subsequent to the initial three-year term, this Agreement may be
terminated by either party upon giving ninety (90)&nbsp;days prior
written notice to the other party or such shorter period as is
mutually agreed upon by the parties. However, this Agreement may
be amended by mutual written consent of the parties. See Exhibit&nbsp;D
for additional termination conditions.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This
Amendment to the Agreement is dated as of
January&nbsp;22, 2003 and effective
retroactively to January&nbsp;1, 2003 by:
</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="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">

<TD colspan="2" nowrap align="left"><B>THE MEXICO EQUITY AND INCOME FUND, INC.</B></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
<TD colspan="2" nowrap align="left"><B>U.S. BANCORP FUND SERVICES, LLC</B></TD>
</TR>

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


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>By:</B></DIV></TD>
    <TD align="left" valign="top">/s/&nbsp;Gerald Hellerman</TD>
    <TD align="left" valign="top">&nbsp;</TD>

<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><B>By:</B></TD>
    <TD align="left" valign="top">/s/&nbsp;Joseph Redwine</TD>

</TR>

<TR style="font-size: 1px">
    <TD colspan="2" valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD colspan="2" 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 align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>

</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Print:</B></DIV></TD>
    <TD align="left" valign="top">&nbsp;Gerald Hellerman</TD>
    <TD align="left" valign="top">&nbsp;</TD>
<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><B>Print:</B></TD>
    <TD align="left" valign="top">&nbsp;Joseph Redwine</TD>

</TR>
<TR style="font-size: 1px">
    <TD colspan="2" valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD colspan="2" 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 align="left" valign="top">&nbsp;</TD>

    <TD align="left" valign="top">&nbsp;</TD>
<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
<TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Title:</B></DIV></TD>
    <TD align="left" valign="top">&nbsp;President</TD>
    <TD align="left" valign="top">&nbsp;</TD>
<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><B>Title:</B></TD>
    <TD align="left" valign="top">&nbsp;President</TD>

</TR>
<TR style="font-size: 1px">
    <TD colspan="2" valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD colspan="2" 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 align="left" valign="top">&nbsp;</TD>

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

</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Date:</B></DIV></TD>
    <TD align="left" valign="top">&nbsp;1/24/03</TD>
    <TD align="left" valign="top">&nbsp;</TD>
<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top"><B>Date:</B></TD>
    <TD align="left" valign="top">&nbsp;1/22/03</TD>

</TR>

<TR style="font-size: 1px">
    <TD colspan="2" valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
<TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2(K)(2)
<SEQUENCE>7
<FILENAME>c98194a1exv99w2xkyx2y.htm
<DESCRIPTION>TRANSFER AGENCY AND SERVICE AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2xkyx2y</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;2(k)(2)
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This
Agreement dated as of August 14, 2002, by and between The Mexico Equity and Income Fund, Inc.,
(&#147;Company&#148;) and THE FIFTH THIRD BANK, an Ohio banking corporation (&#147;Bank&#148;) for the
purposes of performing the services indicated below with respect to the Company&#146;s
securities.
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">WHEREAS, the Company desires that certain services be rendered by Bank with respect to
the issuance, transfer and/or registration of certificates for a number of securities of
the Company; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">WHEREAS, the Bank is engaged in the business of providing services for issuers of
securities and desires to provide Company&#146;s services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein,
the parties hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1)
<U>SCOPE</U>. The Company hereby agrees to employ and hire Bank and Bank hereby
agrees to provide Company the issuance, transfer and/or registration of certificates and services indicated
herein (referred to as the &#147;Services&#148;), subject to the terms of this Agreement and the Bank&#146;s Regulations attached
hereto as Exhibit&nbsp;A which are incorporated herein and made a part hereof. In the event of a conflict between the
terms of this Agreement and the Regulations, the terms of this Agreement shall control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2)
<U>FEES</U>. The Company shall pay the Bank fees for services rendered pursuant to
the fee schedule attached
hereto as Exhibit&nbsp;B. Fees shall be determined quarterly in arrears on the last day of such
quarter and payable upon
receipt. The Company&#146;s failure to pay Bank&#146;s fees under this Agreement within thirty (30)
calendar days of billing
date shall constitute good cause for termination of Bank&#146;s services. In the event of
non-payment of Bank&#146;s fees, the
Company shall be liable to Bank for all reasonable costs of collection, including but not
limited to, interest, court
costs and attorneys&#146; fees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3)
<U>EFFECTIVE DATE</U>. Bank shall perform the Services indicated herein in the City of
Cincinnati, Ohio
effective as of August 26, 2002 with regard to certificates for the securities described below, and now or
hereafter authorized by the Company&#146;s governing documents:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">NUMBER OF SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">NUMBER OF SECURITIES REPRESENTED</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">PAR</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">NOW AUTHORIZED BY</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">BY CERTIFICATES OUTSTANDING AT</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">CLASS OF SECURITIES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">VALUE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">GOVERNING DOCUMENTS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">TIME OF THIS APPOINTMENT</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,000.000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,473,503.989</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury Stock
(held issued but</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">6,122,068.723 held</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">unauthorized)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.00l</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">included in total above</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">(none outstanding)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Company hereby certifies that all outstanding securities as of the date hereof
covered by this Agreement have been duly authorized and are fully-paid, non-assessable
and in the hands of the respective holders thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4) <U>SERVICES</U>. Bank shall perform the services indicated below by the Company:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>INSTRUCTIONS</B></U>.<B> For each item in A through E on the following pages, the
applicable services to be provided by Bank are so noted by Company. Company has placed
and (X)&nbsp;in each service that it desires bank to provide in its entirety.</B>
</DIV>



<P align="center" style="font-size: 10pt">1
</DIV>

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



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




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) TRANSFER AGENT SERVICES. The Bank:&nbsp;&nbsp;X&nbsp;&nbsp;shall&#95;&#95;&#95;shall not provide transfer agent
services, which 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintaining shareholder account. records, including name, address,
taxpayer identification number, shares held and certificate numbers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Processing of all transfers of certificates including the review of
those transfer items requiring supporting documents commonly referred to as
&#147;legal transfers.&#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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Furnishing a list of shareholders as of each dividend record date if
requested by the 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Furnishing a journal sheet reflecting the daily
transfer activity if requested by the 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintaining a record of all
certificates against which a stop transfer notice has been placed.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) REGISTRAR SERVICES. The Bank:&nbsp;&nbsp;X&nbsp;&nbsp;shall&#95;&#95;&#95;shall not provide registrar services, which
include:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintaining a record of the number of authorized
and outstanding 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Registering upon original issue
or transfer all certificates for securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C) DIVIDEND DISBURSING AGENT SERVICES. The Bank:&nbsp;&nbsp;X&nbsp;&nbsp;shall&#95;&#95;&#95;shall not provide
dividend disbursing agent services, which 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preparing dividend checks for each shareholder of record as of
the record date established for such dividend or dividend credit for those
shareholders that participate in the dividend reinvestment plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mailing dividend checks by First Class regular mail.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maintaining a checking account against which checks will be paid
with funds to be supplied by the 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preparing applicable Internal Revenue Service forms, mailing copies
of such forms to the shareholders annually and furnishing a computer tape
summary of such forms to the U.S. Treasury Department.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mailing quarterly financial reports of the 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Obtaining U.S. Treasury Forms or other certificates with respect to
Taxpayer Identification Numbers as may be required under U.S. Treasury
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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Withholding of Federal Income Tax on such dividends and processing
the payment of that tax over to the U.S. Treasury as may from time to time be
required by the U.S. Treasury 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Filing tax information returns on shares held and dividends paid
with the various states as requested by the Company.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">2
</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;D) DIVIDEND REINVESTMENT SERVICES. The Bank:
&nbsp;&nbsp;X&nbsp;&nbsp;
shall <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> shall not provide Dividend
Reinvestment Agent Services, which (if such services shall be performed) <U>shall</U> include the
services initialized (frequency of reports and statements should be provided for those items
initialized) and shall be subject to a Company sponsored dividend reinvestment plan acceptable 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#95;&#95;&#95;&nbsp;&nbsp;Collecting the dividends and/or voluntary cash deposits from the holders.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#95;&#95;&#95;&nbsp;&nbsp;Purchasing of stock at market
price on a (monthly/quarterly) basis.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#95;&#95;&#95;&nbsp;&nbsp;Crediting full and fractional shares to the participant accounts.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#95;&#95;&#95;&nbsp;&nbsp;Updating and balancing participant records as transactions occur.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#95;&#95;&#95;&nbsp;&nbsp;Generating (monthly/quarterly) reports for the 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#95;&#95;&#95;&nbsp;&nbsp;Generating (monthly/quarterly) statements for the participants.<BR></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">vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#95;&#95;&#95;&nbsp;&nbsp;Issuing, as applicable, all Internal Revenue Service forms.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E) PROXY AGENT SERVICES. The Bank:&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shall&#95;&#95;&#95;&nbsp;shall not provide proxy agent services,
which 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mailing broker-search cards prior to the voting record date of annual and
special meetings of shareholders</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preparing one set of proxies for the general annual or any special meeting of shareholders for each shareholder of record
on the
record date established for such meeting</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If requested by the Company mailing those proxies along with the proxy
statement and annual report</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Tabulating those proxies voted and furnishing the Company with interim reports
and a summary of such vote</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Providing the Company with a shareholder list as of record date
of the proxy, in alphabetical sequence, for the annual meeting of
shareholders.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5)
<U>AUTHORIZATION OF BANK</U>. Bank is authorized to countersign for original issue and to
deliver when
registered by it, certificates for shares in a number not to exceed the number of unissued shares
of said securities at
such time authorized to be issued by the Company and in such names as Bank may be directed in
writing from time
to time by the officer or officers authorized to do so pursuant to resolution of the Company
delivered to Bank,
including, unless otherwise specified, certificates for such number of unissued shares of said
stock reserved for
issuance upon exercise of options granted under plans or agreements disclosed to Bank by Company in
writing.
Notwithstanding the death, resignation, or removal of any officer of the Company authorized to sign
certificates of
stock, the Bank may continue to issue or register such certificates and continue to countersign
certificates bearing the
manual or facsimile signature of such officer until otherwise directed in writing by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6)
<U>INDEMNIFICATION BY THE COMPANY</U>. The Company shall indemnify the Bank and hold it
harmless
from any losses, damages, liabilities and expenses (including reasonable attorney&#146;s fees) which the
Bank may suffer
or incur from claims made against the Bank related to the Bank&#146;s performance of its duties or
arising from this
Agreement by reason of any act or omission to act by the Company in the conduct of its business,
provided that no
indemnification shall be provided by the Company pursuant to this Section for damages, losses,
liabilities or expenses
resulting from the reckless or willful misconduct of the Bank its officers, directors or employees
in connection with
</DIV>



<P align="center" style="font-size: 10pt">3
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">carrying out its duties under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company shall further protect and hold Bank harmless from any losses, damages,
liabilities and expenses (including reasonable attorney&#146;s fees) which the Bank may suffer or
incur from claims made against the Bank by reason of the Bank&#146;s performance of duties as a
Transfer Agent, Registrar and Dividend Disbursement Agent for the Company, including, without
limitation all liability and expense in acting upon any signature, certificate or other document
believed by the Bank to be genuine and to have been signed by the proper person, or refusing in
good faith to transfer a certificate if it is not satisfied as to the propriety of the requested
transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bank may
perform any of its duties by or through attorneys or agents. Bank shall be entitled
to advice of counsel concerning all matters hereunder and may pay reasonable compensation to all
attorneys and agents as may reasonably be employed and shall be entitled to reimbursement
therefor from the Company. Bank shall not be responsible for any loss or damage resulting from
any action or nonaction taken in good faith in reliance upon such opinion or advice and Bank has
provided notice to Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7)
<U>LIMITATION OF LIABILITY</U>. In no event shall the Bank be liable or responsible with
respect to any loss,
liability, cost, damage or expense arising out of a claim by Company or by any third party in
connection with the
Services provided and/or performed by Bank under this Agreement, to the extent such services as to
which any claim
arises are provided and/or performed in accordance with (i)&nbsp;the Company&#146;s written
requirements and/or instructions; or (ii)&nbsp;the Company&#146;s written concurrence that such
Services are provided or performed or to be provided or performed comply with Company&#146;s
previously communicated requirements and/or instructions in such regard.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In no event shall Bank be liable for special, consequential or punitive damages arising from the
performance or non-performance of any of the Services under this Agreement and the Bank&#146;s
liability hereunder to Company shall be limited, for the initial and subsequently renewal terms
of the Agreement, to the lessor of the Company&#146;s annual fee charged by Bank or actual damages as
may be substantiated and documented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8)
<U>REPRESENTATIONS OF COMPANY</U>. The Company hereby makes the following representations;
</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 Company is duly organized and validly existing and in good standing under the laws
of the state of its
formation.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The execution, delivery and performance by the Company of this Agreement has been
duly authorized by all
necessary corporate action and properly executed and constitutes the valid and binding
obligation of the Company,
subject to applicable bankruptcy and insolvency laws and general principles of equity, and
will not violate any
agreement or instrument by which the Company is bound.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)
The Company agrees to furnish the Bank with any and all information in such forms as the
Bank may
require in order to comply with the reporting and other requirements of the Securities and
Exchange Commission or
such other regulatory body having jurisdiction over the services to be performed by the Bank
for the Company under
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Company agrees to maintain records relating to the services performed hereunder for a
period of six months
and keep such records in a place of ready access for a period of at least six years
thereafter and to return copies of
such records, canceled stock certificates, instruments or documents, or any of the foregoing
when requested to do so,
to Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Company shall immediately advise the Bank in writing of all original issues and transfers
of certificates for
securities made or effected by the Company.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9)
<U>REPRESENTATIONS OF THE BANK</U>.
</DIV>


<P align="center" style="font-size: 10pt">4
</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) The Bank represents that this Agreement has been duly authorized by all necessary
action and constitutes a
valid and binding obligation of the Bank, subject to applicable bankruptcy and insolvency
laws and general principles
of equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The Bank represents that it presently has and shall maintain during the term of this
Agreement adequate staff
and facilities to perform the Services agreed to by the Bank pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) The Bank agrees to furnish the Company with all information and such forms as the Company
may require
in order to comply with the reporting or other requirements of the Securities and Exchange
Commission or such other
regulatory body having jurisdiction over the Services to be performed by the Bank for the Company
under this
Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10)
<U>TERM</U>. This Agreement shall be a continuous contract between both parties
beginning at its effective date and may be cancelable to either party upon sixty (60)&nbsp;days written
notice by Registered Mail return receipt requested. The Company shall provide Bank with the name
of a successor securities services provider within thirty (30)&nbsp;days of the date set for
termination of the Agreement and Bank shall forward records to such successor. If the Company
fails to provide the name of a successor within said thirty
(30)&nbsp;days, Bank shall forward records
to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event that the Company cancels this Agreement, the Company shall pay a deconversion fee
equal to $2,500 while the company, is not in a dividend payment mode. This fee payable in this
section is payable as consideration for the work involved during and after the deconversion and
is not a penalty for such termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11) <U>FORCE MAJEURE.</U> Bank shall have no liability or responsibility hereunder with respect
to its failure to perform the Services or duties and obligations under this Agreement arising
out of or related to acts beyond its control including those attributable to acts of God, war,
conditions or events of nature, civil disturbances, work stoppage, equipment failure, power
failure, fire and or other similar events beyond Bank&#146;s control. If such failures Shall extend
beyond a reasonable period of time, then the Company at its discretion, may immediately
terminate this Agreement without any charges or damages and Bank shall cooperate and assist
Company in such transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12)
<U>NOTICES</U>. Any notices required or permitted to be given shall be deemed
effective upon receipt when sent
by Certified Mail, Return Receipt Requested, to the following address or to such other addresses
which a parry may
later designate:
</DIV>


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Fifth Third Bank<BR>
Stock Transfer Department<BR>
Corporate Trust Department, MD #IOAT60<BR>
38 Fountain Square Plaza<BR>
Cincinnati, Ohio 45202<BR>
Attention: Mr.&nbsp;Randolph J. Stierer

</DIV>

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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Mexico Equity and Income
Fund, Inc.<BR> ATTN: Andrew P. Chica<BR>
U.S. Bancorp Fund Services, LLC<BR> 615
East Michigan Street, LC-2<BR>
Milwaukee, Wisconsin 53202

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">13) <U>EXPENSES.</U> The Company further agrees to reimburse the Bank for all reasonable out of
pocket expenses including, but not limited to, the following:<BR>
</DIV>


<P align="center" style="font-size: 10pt">5
</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) Courier charges plus insurance for any and all shipments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Postage and insurance on mailing stock certificates, dividend checks and other mailings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Reimbursement for envelopes, printing of checks, other forms and other cost of
supplies directly related to
the Company&#146;s shareholder requirements:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Reimbursement for costs incurred in distributing materials to the beneficial owners of the
Company&#146;s stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Fees of counsel or
agents.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">14) <U>MISCELLANEOUS.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Except as herein before provided, the terms and conditions of this
Agreement shall not be amended, supplemented or otherwise changed except in writing
signed by both of the parties hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The headnotes contained herein are considered only as a matter of convenience
and for reference and in no
way define or limit the scope or intent of this Agreement or in any way affect this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) This Agreement contains the entire agreement of the parties and no
representations, inducements, promises
or agreements or otherwise not embodied herein shall be of any force or effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) The representations and warranties contained herein shall survive the terms of
this Agreement but not
beyond the applicable statute of limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) If any section, subsection, sentence, clause, portion of mis Agreement or
underlying the Agreement is for
any reason held invalid or unconstitutional by any court, federal or state agency
of competent jurisdiction, such
portions shall be deemed a separate, distinct and independent provision and such
holdings shall not effect the validity
of the remaining portions hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) This Agreement shall be controlled by the laws of the State of Ohio.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS WHEREOF, each of the parties has executed this Agreement 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="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&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="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Fifth Third Bank.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

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

<TD colspan="1" valign="bottom" align="left" style="border-bottom: 1px solid #000000">/s/&nbsp;Gene E. Ploege</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">By: Gene E. Ploege<BR>Its: 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="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&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="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">The Mexico Equity and Income Fund, 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="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD colspan="1" valign="top" align="left" style="border-bottom: 1px solid #000000">/s/&nbsp;Andrew P. Chica</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD colspan="1" valign="bottom" align="left" style="border-bottom: 1px solid #000000">/s/&nbsp;Phillip Goldstein</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: Andrew P. Chica<BR>
Title: Secretary of the Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">By: Phillip Goldstein<BR>
Its: Director &#038; Chairman of the Board</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">6
</DIV>

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

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


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


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>REGULATIONS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>FOR SECURITIES TRANSFER AND REGISTRATION</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">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>DOCUMENTS TO BE FILED WITH APPOINTMENT.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the appointment of Fifth Third Bank (hereinafter called the &#147;Bank&#148;) as Transfer
Agent or as Registrar of securities, there shall be filed with the Bank the documents listed on
Appendix&nbsp;I Hereto.
</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">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>LIMIT OF AUTHORITY.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unless expressly limited by the resolution of appointment or by subsequent corporate action, the
appointment of the Bank as Transfer Agent or as Registrar shall include and cover the amount of
securities of the class for which the bank is appointed Agent pursuant to the Security Services
Agreement between the Bank and the Company, us the same shall at any time be constituted and
authorized by the governing documents of the Company. If there are any subsequent increases or
changes in such authorized securities the Company shall file with 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 amendment to the governing documents of the Company authorizing the
increase o securities or other changes as is applicable.f</TD>
</TR>
<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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 such commission, governmental or other consent to the issuance of the
securities as may be required by law.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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>If the original appointment of the Bank was expressly limited, a certified copy of a
resolution of the Company&#146;s governing board increasing the authority of the Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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>Information that the securities have been registered under the Securities Act of
1933, as amended, or opinion of counsel for the Company that the securities are exempt from
registration.</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">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>TEMPORARY CERTIFICATES.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If temporary certificates are issued in the first instance, the Bank will issue or register
definitive certificates when the same are ready in exchange for, or in transfer of, such temporary
certificates.
</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">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>RECAPITALIZATION OR READJUSTMENT.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In case of any recapitalization, readjustment or other change in the structure of the Company
requiring a change in the form of the stock certificates, the Bank will issue or register
certificates in the new form in exchange for, or in transfer of, the outstanding 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>Written instructions from an officer of the 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>A certified copy of the amendment to the governing documents of the Company reflecting 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>A certified copy of such commission, governmental or other consent to the issuance of the
securities in the
new form as may be required by law.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR 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>Information that the securities have been registered under the Securities Act of 1933, as
amended, or opinion
of counsel for the Company that the securities are exempt form registration.</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">5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SECURITIES CERTIFICATES.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company will furnish the Bank with a sufficient supply of blank stock certificates and from
time to time will renew such supply upon the request of the Bank. Such blank stock certificates
shall be signed by the officers of the Company authorized by law or
by the by-laws or code of
regulations to sign stock certificates, and shall bear the corporate seal.
</DIV>



<P align="center" style="font-size: 10pt">7
</DIV>

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

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




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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>AMENDMENTS OF GOVERNING DOCUMENTS.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company will file with the Bank certified copies of all amendments to its governing
documents (including, in the case of a corporation articles of incorporation, certificate of
incorporation, by-laws or code of regulations) made after the date of creation of the agency.
</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">7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>INSTRUCTION FROM THE COMPANY AND OPINION FROM COUNSEL.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At any time the Bank may request to any officer of the Company for instructions, and may seek
advice with legal counsel for the Company or its own legal counsel, in respect of any matter
arising in connection with the agency, and it shall not be liable for any action taken or suffered
by it in good faith in accordance with such instructions or with the opinion of such counsel.
</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">8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PAPERS SUBJECT TO APPROVAL OF BANK COUNSEL.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The acceptance by the Bank of its appointment as Transfer Agent or as Registrar, and all documents
filed in connection with such appointment and thereafter in connection with the agency, shall be
subject to the approval of legal counsel for 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="1%" nowrap align="left">9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CERTIFICATION OF DOCUMENTS.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The copy of the governing documents of the Company and copies of all amendments thereto shall be
certified by the Secretary of State of the state of the Company&#146;s formation, and if such governing
documents and amendments are required by law to be also filed with a county, city or to the
officer or official body, a certificate of such filing shall appear on the certified copy
submitted to the Bank. Copies of commission, governmental or other consents to the issuance of the
securities shall be certified by the Secretary or Clerk or the commission or other body granting
the consent, or by the officer having custody of the records, The copy of the governing documents
and copies of all amendments thereto, and copies of resolutions of the Company&#146;s governing body,
shall be certified by the Secretary or an Assistant Secretary of the Company under the Company&#146;s
seal.
</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">10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SIGNATURES.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank shall be protected in acting under any paper or document believed by it to be genuine and
to have been signed by the proper person or persons. It shall also be protected in recognizing
stock certificates for securities, which it reasonably believes to bear the genuine signatures of
the officers of the company and the genuine counter-signature of the Transfer Agent or Registrar.
</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">11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ORIGINAL ISSUE OF STOCK CERTIFICATES.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank as Transfer Agent will make original issues of certificates of securities upon the
written requisition of any officer of the Company having authority to make such request.
</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">12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ORIGINAL ISSUE TAX.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Before making any original issue of certificates the Bank must be furnished with a sufficient
amount of money to pay any applicable federal or state tax on the original issue of securities. If
the securities have no par value the Company will furnish to the Bank such evidence as may be
required by the Bank to show the actual value of the securities.
</DIV>



<P align="center" style="font-size: 10pt">8
</DIV>

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

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




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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">13)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>TRANSFER OF SECURITIES.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Shares of securities will be transferred and new certificates issued in transfer upon the
surrender of the old certificates properly endorsed for transfer, accompanied by such documents as
the Bank may deem necessary to evidence the authority of the person making the transfer, and
bearing the necessary transfer tax stamps, if any. The Bank reserves the right to refuse to
transfer securities until it is satisfied that the endorsement on the certificate is valid and
genuine, and for that purpose it may require a guaranty of signature by a firm having membership
in the Securities Transfer Agents Medallion Program or by a bank or
trust company approved by it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank also reserves the right to refuse to transfer securities until it is satisfied that the
requested transfer is legally authorized, and it shall incur no liability far the refusal in good
faith to make transfers which it, in its judgment, deems improper or unauthorized.
</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">14)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SUBSCRIPTION WARRANTS.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank as Transfer Agent will issue and mail warrants for rights to subscribe to securities and
will accept subscriptions and issue certificates of securities therefor upon receiving written
instructions from an officer of the company and upon being supplied with such warrants.
</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">15)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>LOST STOCK CERTIFICATES.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank may issue new or duplicate certificates in place of certificates represented to have been
lost, stolen or destroyed upon receiving an adequate bond of indemnity from the appropriate
shareholder or upon written instructions from the Company and indemnity satisfactory to the Bank,
the Company and the Registrar. Such instructions from the Company shall be in the form of a
certified copy of a resolution of the Company&#146;s governing board and shall be in accordance with
the provisions of law or of the governing documents of the Company. The Bank may issue new
certificates in exchange for, and upon surrender of, mutilated certificates.
</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">16)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SECURITIES DIVIDENDS.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank will issue and mail certificates of securities representing a securities dividend upon
receiving written instructions from an officer of the Company.
</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">17)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CASH DIVIDENDS.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank will distribute cash dividends on the securities of the Company upon receiving the money
for the dividend and written instructions from an officer of the
Company.
</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">18)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>STOCKHOLDERS&#146; LISTS.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank will supply a securities holders&#146; list as of the record date to the Company for
its annual or special meetings upon receiving a request from an officer of the Company. It will
also supply lists at such other times as may be requested by an officer of the Company.
</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">19)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>NOTICES TO STOCKHOLDERS.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At the written request of an officer of the Company, the Bank will address and mail such notices
to securities holders and broker search cards released to meetings of stockholders as the Company
may desire to send out.
</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">20)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>DISPOSITION OF CANCELLED CERTIFICATES.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank may send periodically to the Secretary of the Company certificates of securities which
have been canceled in transfer or in exchange, upon the understanding that the same will not be
destroyed by the Company but will be
</DIV>



<P align="center" style="font-size: 10pt">9
</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">safely stored for future reference.
</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">21)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>INSPECTION OF STOCK BOOKS.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In case of any request or demand for the inspection of the securities books of the
Company, the Bank will endeavor to notify the Company and to secure instructions as to permitting
or refusing such inspection. The Bank reserves the right, however, to exhibit the securities books
to any person in case it is advised by its counsel that it may be held responsible for the failure
to exhibit the stock books to such person.
</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">22)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>REGISTRATION OF ORIGINAL ISSUE OF STOCK CERTIFICATES.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank, as Registrar, will register original issues of stock certificates upon the
presentation to it for that purpose by the Transfer Agent of signed and countersigned securities
certificates. If the stock is listed on any stock exchange, the requirements of such exchange as
to the registration of stock certificates must be fulfilled.
</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">23)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>REGISTRATION IN TRANSFER.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certificates of securities will be registered in transfer upon the presentation to the Bank
by the Transfer Agent of certificates theretofore issued for a like amount of securities and not
previously discharged from registry in canceled form. The Bank, as Registrar, will not be
responsible for the validity of the transfer of securities, the genuineness of the endorsement, the
authority of the transferor or the payment of taxes.
</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">24)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CONFLICTS.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event of any conflict between the terms of these Regulations and the terms of the Agreement
between the Bank and the Company regarding the appointment of the Bank, as Registrar and/or
Transfer Agent, the terms of such Agreement shall control.
</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">25)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>AMENDMENT.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank may amend these Regulations at any time and Company shall be bound by and subject to such
amendments.
</DIV>



<P align="center" style="font-size: 10pt">10
</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>APPENDIX I</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>Stock Transfer Agent Appointment</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>A)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Documents needed upon Acceptance of Appointment</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">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Copy of Articles of Incorporation or other governing documents and all amendments to date,
certified by
Secretary or other authorized officer of the 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">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Copy of Bylaws and all amendments 10 date, certified by the Secretary or other authorized
officer of the
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">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Copy of resolutions of the governing board of the Company appointing Bank as Transfer Agent
certified by
the Secretary or other authorized officer of the 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">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certificates of Election and specimen signatures of officers authorized to instruct us in
connection with the
agency, certified by the Secretary of the 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">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Specimens of each form and denomination of securities certificates which Bank will be
authorized to issue
and/or accept in transfer, certified by the Secretary or other authorized officer of the
Company as being in
the form approved by the governing board of the 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">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Opinion of counsel to the Company covering:</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">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The good standing of the corporation,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The validity of the issue, 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">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The applicability of the Securities Act of 1933; Trust Indenture Act of 1939, the
Investment Company
Act of 1940, and the laws or regulations of other Governmental Agencies, if any.</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">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certification as to outstanding stock at the time of our appointment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certified list of registered holders showing full details as to addresses, certificates
held, issue dates and I.D.
numbers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>List of &#147;stop transfer&#148; orders in effect, if any.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If daily transfer reports are to be mailed, instructions in this connection,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certified Resolution appointing our Bank as Dividend Disbursing Agent and letter of
instructions regarding
procedure &#151; including authorization of Bank to open account and draw from 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">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Copies of any merger or acquisition agreement or other document, which will result in any
stock exchange.</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>B)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Transactions involving an original issue or public offering of stock.</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">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Copy of the Prospectus, certified by the Secretary or other authorized officer of
the Company to be a true copy of the Prospectus filed with and made a
part of the Registration
Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Opinion of counsel to the effect that the subject shares being offered by the Prospectus
have been registered
under the Securities Act of 1933, as amended, and that the registration has become
effective,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certified or photostat copy of the SEC Order declaring the Registration Statement effective.<BR></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">11
</DIV>

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

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


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



</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">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Photostat copy of a &#147;no stop order&#148; telegram, which is issued by the SEC on or before the
closing date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Officer&#146;s instructions to Bank reissuance and delivery of the securities certificates.</TD>
</TR>

</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">12
</DIV>

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


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




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


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>TRANSFER AGENT SERVICES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</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%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><B>Conversion Fee:</B>
</TD>
    <TD>&nbsp;</TD>

<TD align="right" valign="top"><B>$&nbsp;&nbsp;&nbsp;&nbsp;0.00</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There is no conversion fee assuming that we receive a good electronic file from your existing
transfer agent. If manual set up were required, a conversion fee based upon time and materials
would apply. We do not anticipate any such occurrence with the Mexico Equity and Income Fund, Inc.
common stock.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&nbsp;
</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%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><B>Annual
Transfer Agent Administration Fee:</B>
</TD>
    <TD>&nbsp;</TD>

<TD align="right" valign="top"><B>$10,500.00</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Annual Administration Fee covers the administration of all open and closed shareholder
accounts for The Mexico Equity and Income Fund, Inc. common stock. Moreover, the Annual
Administration Fee includes the following services:
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Shareholder record keeping for up to 1,000 shareholders (shareholders in
excess of 1,000 billed at a rate of $10.00 per shareholder)</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Processing of all transfers</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Issuance of all certificates</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Registrar services</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Processing of up to 25 stock options per annum (options in excess of 25 billed
at a rate of $10 per option)</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Payment of quarterly cash dividend via check or ACH</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Administration of dividend reinvestment plan for up to 1,000 participants
(participants in excess of 1,000 billed at a rate of $5.00 per participant)</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Annual meeting services including the mailing and tabulation of proxy cards
relating to all registered shareholders, attendance at the annual meeting, and
serving as inspector of elections (electronic proxy voting via the Internet and
telephone available at a cost of $3,000 per annum or special event)</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Shareholder reports of 12 per annum (you pick the reports you desire and
when you get them-reports in excess of 12 billed at a rate of $100 per
report)</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Tax reporting</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Escheatment services to all 50 states</TD>
</TR>
</TABLE>
</DIV>




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

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

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


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reimbursable expenses include, but are not limited to, the following:
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Postage</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Wire charges</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Courier fees</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Stationery</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Insurance</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Broker search and distribution for annual meeting</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Inserting and/or match mailing</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Brokerage commissions on buys/sells (typically paid by shareholder, but if
not, reimbursable by the company at a rate of $0.10 per share)</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Research fees for other than current year (typically paid by shareholder, but if
not, reimbursable by the company at rate of $10 per year)</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Replacement certificates (typically paid by shareholder, but if not,
reimbursable by the company at a rate of $30 per certificate)</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Copies of paid checks (typically paid by shareholder, but if not, reimbursable
by the company at a rate of $10 per check)</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Duplicate dividend reinvestment statements (typically paid by shareholder, but
if not, reimbursable by the company at a rate of $25 per statement)</TD>
</TR>
</TABLE>
</DIV>




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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following services represent services which are extraordinary in nature and as such, fees
for such services will be provided on a time and materials basis if and when they arise:
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Tender and exchange agent</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Stock splits and stock dividends</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Small shareholder buyback</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Secondary offerings</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><FONT style="font-family: Wingdings">&#216;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Direct stock purchase plan administration</TD>
</TR>
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">These fees are contingent upon the review and execution of the Fifth Third Bank Security Services
Agreement (the &#147;Agreement&#148;) by The Mexico Equity and Income Fund, Inc. and Fifth Third Bank. This
fee proposal shall be made a part of the Agreement and shall be amended from time to time with
the mutual approval of both parties.
</DIV>



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

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2(L)
<SEQUENCE>8
<FILENAME>c98194a1exv99w2xly.htm
<DESCRIPTION>OPINION AND CONSENT OF BLANK ROME LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2xly</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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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="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;2(1)</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">October&nbsp;31, 2005
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Mexico Equity and Income Fund, Inc.<BR>
615 East Michigan St., 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP>
Floor<BR> Milwaukee, WI 53202

</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have acted as counsel to The Mexico Equity and Income Fund, Inc. (the &#147;Fund&#148;), a Maryland
corporation, in connection with the preparation and filing of the Registration Statement of the
Fund filed on Form N-2 (the &#147;Registration Statement&#148;) covering shares of preferred stock of the
Fund, par value $0.001 per share (the &#147;Shares&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have examined originals or copies certified or otherwise identified to our satisfaction of
the Articles of Incorporation of the Fund, By-Laws of the Fund, the Registration Statement, and
such other corporate records, proceedings and documents, as we have deemed necessary as a basis
for the opinion hereinafter expressed. With respect to such examination, we have assumed the
genuineness of all signatures appearing on all documents presented to us as originals, and the
conformity to the originals of all documents presented to us as conformed or reproduced copies.
Where factual matters relevant to such opinion were not independently established, we have relied
upon statements and certificates of officers and representatives of the Fund and others.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the opinions expressed herein are limited to the laws of the State of Maryland
and we express no opinion as to the effect on the matters covered by this letter of the laws of
any other jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon and subject to the foregoing, we are of the opinion that the Shares have been duly
and validly authorized and when sold, paid for and issued as contemplated by the Registration
Statement will be duly and validly issued and fully paid and non-assessable.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</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 Mexico Equity and Income Fund, Inc.<BR>
October&nbsp;31, 2005<BR>
Page 2

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the use of this opinion as Exhibit&nbsp;2(1) to the Registration Statement and
to the reference to this firm in the Fund&#146;s Prospectus, included as part of the Registration
Statement. In giving this consent, we do not hereby concede that we come within the categories of
persons whose consent is required by the Securities Act of 1933, as amended, or the General Rules
and Regulations promulgated thereunder.
</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>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">/s/ Blank Rome LLP
<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">BLANK ROME LLP<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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

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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2(N)
<SEQUENCE>9
<FILENAME>c98194a1exv99w2xny.htm
<DESCRIPTION>CONSENT OF TAIT, WELLER & BAKER LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2xny</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 2.N
</DIV>


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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the references to our firm in this Registration Statement (Form N-2) of the
Mexico Equity &#038; Income Fund, Inc. and to the use of our report
dated September&nbsp;6, 2005 on the
financial statements and financial highlights of the Mexico Equity &#038; Income Fund, Inc. Such
financial statements and financial highlights appear in the 2005 Annual Report to Shareholders
which is incorporated by reference in the Registration Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Tait, Weller &#038; Baker LLP

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Philadelphia, PA<BR>
October 31, 2005

</DIV>


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


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2(R)
<SEQUENCE>10
<FILENAME>c98194a1exv99w2xry.htm
<DESCRIPTION>CODE OF ETHICS
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2xry</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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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="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;2(r)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MEXICO
EQUITY &#038; INCOME FUND, INC.<BR><BR>
CODE OF ETHICS</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">I.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Introduction.</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of this Code of Ethics is to prevent Access Persons (as defined below) of
MEXICO EQUITY &#038; INCOME FUND, INC. (&#147;MXE&#148;) (the &#147;Fund&#148;) from engaging in any act, practice or
course of business prohibited by paragraph (a)&nbsp;of Rule&nbsp;17j-1 (the &#147;Rule&#148;) under the
Investment Company Act of 1940, as amended (the &#147;Act&#148;). This Code of Ethics is required by
paragraph (b)&nbsp;of the Rule. A copy of the Rule is available from the Fund&#146;s Compliance Officer
upon request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Access Persons of the Fund, in conducting their personal securities transactions, owe a
fiduciary duty to the shareholders of the Fund. The fundamental standard to be followed in
personal securities transactions is that Access Persons may not take inappropriate advantage
of their positions. All personal securities transactions by Access Persons must be conducted
in such a manner as to avoid any actual or potential conflict of interest between the Access
Person&#146;s interest and the interests of each Fund, or any abuse of an Access Person&#146;s position
of trust and responsibility. Potential conflicts arising from personal investment activities
could include buying or selling securities based on knowledge of the Fund&#146;s trading position
or plans (sometimes referred to as front-running), and acceptance of personal favors that
could influence trading judgments on behalf of the Fund. While this Code of Ethics is
designed to address identified conflicts and potential conflicts, it cannot possibly be
written broadly enough to cover all potential situations and, in this regard, Access Persons
are expected to adhere not only to the letter, but also the spirit, of the policies contained
herein.
</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">II.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Definitions.</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to understand how this Code of Ethics applies to particular persons and
transactions, familiarity with the key terms and concepts used in this Code of Ethics is
necessary. Those key terms and concepts are:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&#147;Access Person&#148; means any director, officer or &#147;advisory person&#148; of the Fund. A
list of the Fund&#146;s Access Persons is attached as Appendix&nbsp;1 to this Code of Ethics and will be
updated from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&#147;Advisory Person&#148; means (a)&nbsp;any employee of the Fund or of any company in a
control relationship to the Fund, who, in connection with his regular functions or duties,
makes,
participates in, or obtains information regarding the purchase or sale of a security by the
Fund, or
whose functions relate to the making of any recommendations with respect to such purchases or
sales; and (b)&nbsp;any natural person in a control relationship to the Fund who obtains
information
concerning recommendations made to the Fund with regard to the purchase or sale of a security.
</DIV>

<P align="center" style="font-size: 10pt">1
</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;&#147;Beneficial Ownership&#148; has the meaning set forth in Rule&nbsp;16a-l(a)(2) of the
Securities Exchange Act of 1934, as amended, a copy of which is available from the Fund&#146;s
Compliance Officer upon request. The determination of direct or indirect beneficial ownership
shall apply to all securities which an Access Person has or acquires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&#147;Control&#148; has the meaning set forth in Section&nbsp;2(a)(9) of the Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&#147;Independent Director&#148; means a director of the Fund who is not an &#147;interested
person&#148; of the Fund within the meaning of Section&nbsp;2(a)(19) of the Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&#147;Purchase or Sale of a Security&#148; includes, among other things, the purchase or
sale of an equivalent security, such as the writing of an option to purchase or sell a
security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&#147;Security&#148; has the meaning set forth in Section&nbsp;2(a)(36) of the Act, except that it
shall not include &#147;long-term&#148; debt securities (securities with a remaining maturity of more
than
397&nbsp;days) issued by the Government of the United States or &#147;short-term&#148; debt securities
(securities with a remaining maturity of 397&nbsp;days or less) issued or guaranteed as to
principal or
interest by the Government of the United States or by a person controlled or supervised by and
acting as an instrumentality of the Government of the United States, bankers&#146; acceptances,
bank
certificates of deposit, commercial paper and shares of registered open-end investment
companies.
</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">III.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Prohibitions; Exemptions.</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Prohibited Purchases and Sales.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Access Person may purchase or sell, directly or indirectly, any security in which that
Access Person has, or by reason of the transaction would acquire, any direct or indirect
beneficial ownership and which to the actual knowledge of that Access Person at the time of such
purchase or sale:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. is being considered for purchase or sale by the Fund; or<BR>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. is being purchased or sold by the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Exemptions From Certain Prohibitions.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The prohibited purchase and sale transactions described in paragraph III.l. above do not
apply to the following personal securities transactions:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchases or sales effected in any account over which the
Access Person has no direct or indirect influence or control;</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">2
</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="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchases or sales which are non-volitional on the part of
either the Access Person or the Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchases which are part of an automatic dividend reinvestment plan
(other than pursuant to a cash purchase plan option);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchases effected upon the exercise of rights issued by an issuer
<U>pro</U> <U>rata</U>
to all holders of a class of its securities, to the extent the rights were
acquired from that issuer, and sales of the 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="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">E.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any purchase or sale, or series of related transactions, involving 500 shares
or less in the aggregate, if the issuer has a market capitalization
(outstanding shares multiplied by the current price per share) greater than
$1&nbsp;billion;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">F.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchases or sales of (i) &#147;long-term&#148; debt securities (securities with a
remaining maturity of more than 397&nbsp;days) issued by the U.S. Government
or &#147;short-term&#148; debt securities (securities with a remaining maturity of 397
days or less) issued or guaranteed as to principal or interest by the U.S.
Government or by a person controlled or supervised by and acting as an
instrumentality of the U.S. Government, (ii)&nbsp;bankers&#146; acceptances and
bank certificates of deposit, (iii)&nbsp;commercial paper, and (iv)&nbsp;shares of
registered open-end investment companies (each of the foregoing being
referred to herein as &#147;Exempt Securities&#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="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">G.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any purchase or sale which the Chairman of the Fund&#146;s Audit Committee,
or in the event of such Chairman&#146;s unavailability or if such purchase or
sale is to be undertaken by the Chairman of the Fund&#146;s Audit Committee,
any other member of the Fund&#146;s Audit Committee, approves on the
grounds that its potential harm to that Fund is remote; 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="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">H.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any purchase or sale of the Fund&#146;s shares by an Access Person or any
affiliated person of that Fund, directly or indirectly, during any time period that
the Board of Directors has authorized the Fund to engage in a Share Buyback Program
provided that: (i)&nbsp;the Board has determined that any potential harm to that Fund is
remote and (ii)&nbsp;proper dissemination of any material non-public information has been
made on a timely basis.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. <U>Prohibited Recommendations.</U>
</DIV>


<P align="center" style="font-size: 10pt">3
</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;Subject to certain exceptions for Exempt Securities, as indicated below, an Access Person may
not recommend the purchase or sale of any security to or for the Fund without having disclosed his
or her interest, if any, in such security or the issuer thereof, including without limitation:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. any direct or indirect beneficial ownership of any security of such issuer,
including any security received in a private securities transaction (other than an Exempt
Security);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. any contemplated purchase or sale by such person of such security (other
than an Exempt Security);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. any position with such issuer or its affiliates; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. any present or proposed business relationship between such issuer or its
affiliates and such person or any party in which such person has a significant interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IV. <U>Reporting.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Quarterly Reporting.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Subject to the provisions of paragraph B below, every Access Person shall
either report to the Fund the information described in paragraph C below with respect to
transactions in any security in which the Access Person has, or by reason of the transaction
acquires, any direct or indirect beneficial ownership in the security or, in the alternative,
make
the representation in paragraph D below, or by submitting a copy of the quarterly reporting
form
to be used in complying with this section IV, attached to this Code of Ethics as Appendix&nbsp;2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. (1)&nbsp;An Access Person is not required to make a report with respect to
any transaction effected for any account over which the Access Person does not have any direct
or indirect influence; provided, however, that if the Access Person is relying upon the
provisions
of this paragraph B(l) to avoid making such a report, the Access Person shall, not later than
ten
(10)&nbsp;days after the end of each calendar quarter, identify any such account in writing and
certify
in writing that he or she had no direct or indirect influence over any such account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;An independent director of the Fund who would be required to make a report pursuant to
paragraph A above solely by reason of being a director of the Fund is required to report a
transaction in a security only if the independent director, at the time of the transaction knew
or, in the ordinary course of fulfilling the independent director&#146;s official duties as a director
of the Fund, should have known that (a)&nbsp;the Fund has engaged in a transaction in the same security
within the last fifteen (15)&nbsp;days or is engaging or going to engage in a transaction in the same
security within the next fifteen (15)&nbsp;days, or (b)&nbsp;the Fund has within the last fifteen (15)&nbsp;days
considered a transaction in the same security or is considering a transaction in the same security
or within the next fifteen (15)&nbsp;days is going to consider a transaction in the same security.
</DIV>

<P align="center" style="font-size: 10pt">4
</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. Every report shall be made not later than ten (10)&nbsp;days after the end of the
calendar quarter in which the transaction to which the report relates was effected and shall
contain the following information:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the date of the transaction, the title and the number of shares and the
principal amount of each security involved;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the nature of the transaction <I>(i.e., </I>purchase, sale or any other type of
acquisition or disposition);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the price at which the transaction was effected;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the name of the broker, dealer or bank with or through whom the
transaction was effected; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a description of any factors potentially relevant to a conflict of interest
analysis, including the existence of any substantial economic relationship between
the transaction and securities held or to be acquired by the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. If no transactions were conducted by an Access Person during a calendar
quarter that are subject to the reporting requirements described above, such Access Person
shall,
not later than ten (10)&nbsp;days after the end of that calendar quarter, provide a written
representation
to that effect to the Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <U>Annual Reporting and Certification.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Access Persons are required to certify annually that they have read and understand this
Code of Ethics and recognize that they are subject to the provisions hereof and will comply with
the policy and procedures stated herein. Further, all Access Persons are required to certify
annually that they have complied with the requirements of this Code of Ethics and that they have
reported all personal securities transactions required to be disclosed or reported pursuant to the
requirements of such policies. A copy of the certification form to be used in complying with this
paragraph A is attached to this Code of Ethics as Appendix&nbsp;3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <U>Miscellaneous.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any report under this Code of Ethics may contain a statement that the report shall not be
construed as an admission by the person making the report that the person has any direct or
indirect beneficial ownership in the securities to which the report relates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">V. <U>Confidentiality.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Access Person shall reveal to any other person (except in the normal course of his or her
duties on behalf of the Fund) any information regarding securities transactions by the Fund or
consideration by the Fund of any such securities transaction.
</DIV>

<P align="center" style="font-size: 10pt">5
</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;All information obtained from any Access Person hereunder shall be kept in strict confidence,
except that reports of securities transactions hereunder will be made available to the Securities
and Exchange Commission or any other regulatory or self-regulatory organization to the extent
required by law or regulation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">VI. <U>Sanctions.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon discovering a violation of this Code of Ethics, the Boards of Directors of the Fund may
impose any sanctions it deems appropriate, including a letter of censure, the suspension or
termination of any director or officer of the Fund, or the recommendation to the employer of the
violator of the suspension or termination of the employment of the violator.
</DIV>


<P align="center" style="font-size: 10pt">6
</DIV>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">APPENDIX 1
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>MEXICO EQUITY &#038; INCOME FUND, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>ACCESS PERSONS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board and President</TD>
</TR>
<TR valign="bottom">
    <TD align="center" 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 align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Treasurer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" 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 align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Secretary</TD>
</TR>
<TR valign="bottom">
    <TD align="center" 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 align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assistant Treasurer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" 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 align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assistant Secretary</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">A-1
</DIV>

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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">APPENDIX 2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MEXICO EQUITY &#038; INCOME FUND, INC.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>SECURITY TRANSACTION REPORT</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">For the Calendar Quarter Ended<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: 12pt"><B>Instructions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;List transactions in securities (other than Exempt Securities) (&#147;Covered Securities&#148;) held
in any account in which you may be deemed to have Beneficial Ownership as of the date
indicated above.
<I>You are deemed to have Beneficial Ownership of accounts of your immediate family members.
You may
exclude any of such accounts from this report, however, if you have no direct or indirect
influence or
control over those accounts.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Write &#147;none&#148; if you had no transactions in Covered Securities during the quarter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;You must submit this form within 10&nbsp;days after the end of the calendar quarter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;If you are Director who is not an &#147;interested person&#148; of a Fund and who would otherwise
be required to report solely by reason of being a Director, then you need only report
transactions in
Covered Securities when you knew at the time of the transaction or, in the ordinary course of
fulfilling
your duties as a Director, you should have known, that during the 15-day period immediately
preceding or
after the date of the transaction, such security is or was purchased or sold, or was
considered for purchase
or sale, by the Fund. Please write &#147;none&#148; if you have no transactions in Covered Securities
during the
quarter that meet the above conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;If you submit copies of your monthly brokerage statements to the Fund or its designee,
and those monthly brokerage statements disclose the required information with respect to all
Covered Securities in which you may be deemed to have Beneficial Ownership, you need not file this
form unless you established a new brokerage account during the quarter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;For each account that you established during the previous quarter that held securities for
your direct or indirect benefit, state the name of the broker, dealer or bank with whom you
established the account, the account number and the date you established the account.
</DIV>

<P align="center" style="font-size: 10pt">B-1
</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="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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="2">Broker, Dealer or</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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Other Party</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 nowrap align="center" colspan="2">No. of Shares or</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">Through Whom</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Date of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Purchase/</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Principal</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">Transaction</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Name of Security<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Transaction</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Sale</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Price</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Was Made</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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR 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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the previous quarter, I established the following accounts with a broker, dealer or bank:
</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">Date</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Broker, Dealer or Bank</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Account Number</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Established</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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Certifications: </B>I hereby certify that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The information provided above is correct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. This report excludes transactions with respect to which I had no direct or indirect
influence or control.
</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="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">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></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature:<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></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">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></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Including interest rate and maturity, if applicable</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt">B-2
</DIV>

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

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">APPENDIX 3
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MEXICO EQUITY &#038; INCOME FUND, INC.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>ANNUAL ASSET CERTIFICATION OF ACCESS PERSONS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">For the Year Ended<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: 12pt"><B>Instructions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;List each Covered Security held in any account in which you may be deemed to have
Beneficial Ownership as of the date indicated above. <I>You are deemed to have Beneficial
Ownership of
accounts of your immediate family members. You are deemed to have Beneficial Ownership of
accounts
of your immediate family members. You may exclude any of such accounts from this report,
however, if
you have no direct or indirect influence or control over those accounts.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Write &#147;none&#148; if you did not hold any Covered Securities at year end.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;You
must submit this form no later than
January&nbsp;30,<U>&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;4.&nbsp;You must complete and sign this form for annual certification whether or not you or your
broker sends statements directly to the Fund or its designee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;If you are Director who is not an &#147;interested person&#148; of a Fund and who would otherwise
be required to report solely by reason of being a Director, then you need not submit this
report.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">No. of Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Registration on</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">or Principal</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Security or</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Nature of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Broker, Dealer or</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Name of Security<SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Account</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Interest</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Bank</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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</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 nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<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>Including interest rate and maturity, if applicable.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt">C-1
</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"><B>Certifications: </B>I hereby certify that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The securities listed above, or listed in the brokerage statements that I have provided,
reflect all the Covered Securities in which I may be deemed to have Beneficial Ownership at
the end of
the period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;I have read the Code of Ethics and certify that I am in compliance with them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;This report excludes holdings with respect to which I had no direct or indirect
influence
or control.
</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="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature:</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>
</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">&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">Name:</TD>
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</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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<P align="center" style="font-size: 10pt">C-2
</DIV>


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