The Depository Trust Company's (DTC) Reorganization Service provides participants with information about various reorganization activities, and processes these actions on a participant's behalf. These services are available through DTC's Participant Browser Service (PBS) and, in some cases, via Computer-to-Computer Facilities (CCF and CCF II) and Mainframe Dual Host (MDH).

Overview

The Depository Trust Company's (DTC) Reorganization Service provides participants with information about various reorganization activities, and processes these actions on a participant's behalf. These services are available through DTC's Participant Browser Service (PBS) and, in some cases, via Computer-to-Computer Facilities (CCF and CCF II) and Mainframe Dual Host (MDH).

Also, DTC assigns voting or consenting rights to participants in conjunction with shareholder meetings or consent solicitations.

Who Can Use the Service

All DTC participants are eligible to use the service.

Benefits

DTC's Reorganization Service provides:

• Quick and easy access to announcements about reorganization events
• Automated execution of conversion options with immediate credit for the underlying securities
• Automated transmission and processing of voluntary instructions to agents
• A book-entry environment in which you can protect and surrender securities and receive offering proceeds. Each instruction functions similarly to a Letter of Transmittal.
• An online method for separating unit securities into components or combining separate eligible securities into units
• Automatic calculation and charging of rights subscription payments following instruction submittal
• Warrant subscription processing with no need to withdraw securities from the depository or delay receipt of underlying securities
• Automated method for early Certificate of Deposit (CD) redemption
• An automated method for switching between different payment periods on Unit Investment Trusts (UIT) and Variable Mode Preferred stocks (VMP)
• Automatic processing of mandatory reorganizations, including the submission of affected securities to agents and the collection and allocation of entitlements to participant firms

How the Service Works

DTC obtains reorganization announcements from various sources and makes this information available to participants in reorganization "envelopes" via the PTS function RIPS. These envelopes serve as a means of announcing the reorganization event and providing you with any updates to that information.

In certain cases, DTC assigns contra-CUSIP numbers and RRG sub-accounts which are used to report reorganization activity on a participant's positions. Contra CUSIP numbers are used to segregate that position for voluntary offers and put bond options. The RRG account contains numerous sub-accounts, organized by the various types of reorganization activities. Securities undergoing a reorganization are segregated from your general free account into various sub-accounts or contra-CUSIPs.

Using DTC's Reorganization Service you can:

• Receive, view and track information regarding reorganization events
• Receive and view the distributions of all reorganization allocations
• View announcements and submit instructions for tender offers, exchange offers, or mergers with elections
• View announcements about upcoming repayment options and mandatory tenders, as well as process instructions to exercise repayments, retainments, and relinquishments
• Exercise the early redemption privilege of eligible CDs
• Process a participant's rights subscriptions, conversion instructions, warrant exercise instructions and CMOP instructions
• Combine components into units, or separate a unit into its components
• View announcements and mandatory reorganization activities being processed on your behalf by DTC
• View announcements concerning upcoming shareholder meetings, consent solicitations, and bankruptcies, as well as exercise share/bondholder rights

For More Information

Please contact Relationship Management at (800) 422-0582.