Section 2 Interpretation

In this Scheme:

• “the additional HYF units” means a number of units in the High Yield Fund calculated in accordance with paragraph 3(2);

• “the effective date” means 5th April 1999;

• “the existing GIF units” means the units in the Gross Income Fund in existence on the effective date;

• “the existing HYF units” means the units in the High Yield Fund in existence on the effective date;

• “the final GIF dividend” means the dividend to be paid on units of the Gross Income Fund in accordance with paragraph 5;

• “the GIF asset value” means the value of the assets of the Gross Income Fund on the effective date, ascertained in accordance with paragraph 3(1), less the value of the assets retained in accordance with paragraph 4(2);

• “the HYF asset value” means the value of the assets of the High Yield Fund on the effective date, ascertained in accordance with paragraph 3(1);

• “the multiplier” means a number calculated in accordance with paragraph 3(3);

• “the Principal Scheme” means the Common Investment Scheme 1991^f1;

• “relevant liabilities” means all liabilities, costs and expenses, including liabilities, costs and expenses incurred in relation to paragraphs 3 to 7 which may lawfully be satisfied or paid out of the Gross Income Fund and “liabilities” includes, without limitation, a liability to tax;

• “the retained assets” means the assets retained in accordance with paragraph 4(2), together with any income accruing to those assets while they are retained.

Unless the context requires otherwise: