If a stockholder's shares are registered directly with a fund, all distributions are automatically reinvested for stockholders by the Plan Agent, Computershare Trust Company, N.A. ("Computershare"), in additional shares of common stock of a fund (unless a stockholder is ineligible or elects otherwise). Stockholders who elect not to participate in the Plan will receive all distributions payable in cash paid by check mailed directly to the stockholder of record (or, if the shares are held in street or other nominee name, then to such nominee) by Computershare, as distribution paying agent. Distributions subject to tax (if any) are taxable whether or not shares are reinvested. Stockholders may elect not to participate in the Plan by sending written, telephone or Internet instructions to Computershare, as distribution paying agent, at the address set forth below. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by giving notice in writing to the Plan Agent; such termination will be effective with respect to a particular distribution if notice is received prior to the record date for such distribution.
On the distribution payment date, if the net asset value per share of the common stock is equal to or less than the market price per share of common stock plus estimated brokerage commissions, a fund will issue additional shares of common stock to the Plan Agent for each participant's account. The number of shares to be credited to the participant's account will be determined by dividing the dollar amount of the distribution by the greater of (i) the net asset value per share of common stock on the payment date, or (ii) 95 percent of the market price per share of common stock on the payment date. If, on the payment date, the net asset value per share of common stock exceeds the market price plus estimated brokerage commissions, the Plan Agent will invest the distribution amount in shares acquired in open-market purchases as soon as practicable, but not later than 30 days following the payment date. The weighted average price (including brokerage commissions) of all common stock purchased by the Plan Agent as Plan Agent will be the price per share of common stock allocable to each participant.
There are no brokerage charges with respect to shares issued directly by a fund as a result of distributions payable either in shares or in cash. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent's open-market purchases in connection with the reinvestment of distributions. If a participant elects to have the Plan Agent sell part or all of his or her common stock and remit the proceeds, such participant will be charged a $15.00 transaction fee plus his or her pro rata share of brokerage commissions on the shares sold.
Additional information about the Plan may be obtained by writing to Computershare at P.O. Box 30170, College Station, TX 77842-3170. You may also contact Computershare by phone at 1-800-426-5523 or visit their Web site at www.computershare.com.