Distribution Policy

For historical distribution amounts, please see distribution information.

Redemption

All Capital Shares and Preferred Shares were redeemed on February 11, 2009.

Preferred Shares were redeemed at US$25.00 per share.

Capital Shares were redeemed at US$2.6507 per share.

Holders of 250,730 Capital Shares requested delivery of their pro rata share of the portfolio securities in payment for their Capital Shares.

Taxation

Dividends other than the capital gains dividends received by individuals on the Preferred or Capital Shares will be subject to the normal gross-up and dividend tax credit rules applicable to dividends received on shares of a taxable Canadian corporation.

Return of capital payments to a holder of Preferred Shares will not be subject to tax but will reduce the adjusted cost base of the Preferred Shares to the holder.

The amount of any capital gains dividend received by a holder of Preferred Shares or Capital Shares will be considered to be a capital gain of the holder in the taxation year in which the capital gain is received.

The Company qualifies as a “mutual fund corporation” and a “financial intermediary corporation” as defined in the Income Tax Act (Canada). As a result thereof and after deduction of expenses in computing its income, the Company does not anticipate that it will be subject to any material non-refundable income tax liability.

While the matter is unclear, the Capital Shares and Units (comprised of 2 Capital Shares and 1 Preferred Share) may be considered to be “specified foreign property” based on published statements made by CCRA. As a result, Capital Shares and Units would be included in completion of Form T1135 – Foreign Income Verification Statement. This form is required to be filed if the total cost of all “specified foreign property” you owned or held a beneficial interest in exceeds $100,000 CDN at any time during the taxation year.