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ACM Government Income Fund
Dividend Reinvestment and Cash Purchase Plan
ACM GOVERNMENT INCOME FUND, INC.
1345 Avenue of the Americas
New York, New York 10105
Investment Adviser
ALLIANCE CAPITAL MANAGEMENT CORPORATION
Shareholder Inquiries to:
State Street Bank & Trust Company
c/o ACM Government Income Fund, Inc.
P.O. Box 366
Boston, MA 02101
Telephone: (617) 328-5000, x2705
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ACM GOVERNMENT INCOME FUND, INC.
This form is for shareholders who hold shares in their own names.
If your shares are held through a brokerage firm, bank, or other
nominee and you wish to participate in the Plan, you should
request your brokerage firm, bank or other nominee to re-register
your shares in your own name which will enable your participation
in the Plan.
The authorization and appointment is given with the
understanding that I may terminate it at any time by terminating
my account under the Plan as provided in such Terms and
Conditions.
_________________________________________
Please print exact name of account
_________________________ _____________
Shareholder signature Date
_________________________ _____________
Shareholder signature Date
Please sign exactly as your shares are
registered. All persons whose names
appear on the share certificate must
sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR
DIVIDENDS AND DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
This authorization form, when signed, should be mailed
in the enclosed, pre-addressed envelope, to:
State Street Bank and Trust Company
P.O. Box 366, Boston, MA 02101
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Dear Shareholder:
We are pleased that you have chosen to invest in ACM Government
Income Fund and are happy to offer you a plan for the
reinvestment of your dividends and capital gain distributions in
shares of the Fund. The Plan also allows you to make optional
cash investments in Fund shares through the State Street Bank and
Trust Company, the Plan Agent. The features of the Plan are
described in this brochure.
If you decide to use this service, State Street Bank, as your
Agent, will automatically invest your dividends and capital gain
distributions in shares of the Fund for your account.
This service is entirely voluntary and subject to the terms of
the Plan you may join or withdraw at any time.
We invite you to review the Plan. If you wish to participate and
your shares are held in your own name, simply complete and mail
the enrollment form in the enclosed business reply envelope. If
your shares are held in the name of a brokerage firm, bank, or
other nominee and you wish to participate in the Plan, you should
request your brokerage firm, bank or other nominee to re-register
your shares in your own name which will enable you to participate
in the Plan.
Sincerely,
David H. Dievler
Chairman of the Board
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What is the Dividend Reinvestment and Cash Purchase Plan?
The Dividend Reinvestment and Cash Purchase Plan offers
shareholders in ACM Government Income Fund a prompt and simple
way to reinvest dividends and capital gain distributions in
shares of the Fund. The Plan also allows you to make optional
cash investments in Fund shares through the Plan Agent. The Fund
will distribute to shareholders, monthly, substantially all of
its net investment income. Net realized short-term capital gains
will be distributed quarterly and net realized long-term capital
gains will be distributed annually.
State Street Bank and Trust Company acts as Plan Agent for
shareholders in administering the Plan. The complete Terms and
Conditions of the Plan appear later in this brochure.
Who can participate in the Plan?
If you own shares in your own name, you can participate directly
in the Plan. If you own shares that are held in the name of a
brokerage firm, bank, or other nominee and you wish to
participate in the Plan, you should request your brokerage firm,
bank or other nominee to re-register your shares in your own name
which will enable you to participate in the Plan.
The Plan Agent will administer the Plan on the basis of the
number of shares as representing the total amount registered in
your name and held for your account by your nominee.
What does the Plan offer?
The Plan has two components: reinvestment of dividends and
capital gains distributions, and an optional cash purchase
feature.
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Reinvestment of income dividends and capital gain
distributions
If you choose to participate in the Plan, your dividends and
capital gain distributions will be promptly invested for you,
automatically increasing your holdings in the Fund. If the
Fund declares a dividend or capital gain distribution payable
either in cash or in shares of the Fund, you will
automatically receive shares of the Fund. If the market
price of shares on the relevant date, normally the payment
date, equals or exceeds their net asset value, the Fund will
issue new shares to you at net asset value, provided that the
Fund will not issue new shares at a discount of more than 5%
from the then current market price. If the market price is
lower than net asset value, or if dividends or capital gain
distributions are payable only in cash, then you will receive
shares purchased on the New York Stock Exchange or otherwise
on the open market to the extent available. If the market
price exceeds net asset value before the Plan Agent has
completed its purchases, the average purchase price may
exceed net asset value resulting in fewer shares being
acquired than if the Fund had issued new shares. All
reinvestments are in full and fractional shares, carried to
three decimal places.
Voluntary cash purchase
Plan participants have the option of making semi-annual
investments in Fund shares through the Plan Agent. You may
invest any amount of at least $100 semi-annually. The Plan
Agent will purchase shares for you on the New York Stock
Exchange or otherwise on the open market on or about the
first business day of January and July. If you hold shares
in your own name, you should deal directly with State Street
Bank. Please send your check to the following address:
State Street Bank and Trust Company
P.O. Box 366
Boston, MA 02101
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State Street Bank will return any cash payments received more
than thirty days prior to the first business day of January
and July, and you will not receive interest on uninvested
cash payments. Cash payments received after 5 business days
prior to the investment date will be returned by the Plan
Agent. You may withdraw a voluntary cash payment by written
notice, if the notice is received by State Street Bank not
less than forty-either hours before the investment date.
Is there a cost to participate?
There is no direct charge to participants for reinvesting
dividends and capital gain distributions, since the Plan
Agent's fees are paid by the Fund. There are no brokerage
charges for shares issued directly by the Fund. Whenever
shares are purchased on the New York Stock Exchange or
otherwise on the open market, each participant will pay a pro
rata portion of brokerage commissions. Brokerage charges for
purchasing shares through the Plan are expected to be less
than the usual brokerage charges for individual transactions,
because the Plan Agent will purchase shares for all
participants in blocks, resulting in lower commissions for
each individual participant.
For purchases from voluntary cash payments, participants must
pay a service fee of $0.75 for each investment and a pro rata
share of the brokerage commissions.
What are the tax implications for participants?
You will receive tax information annually for your personal
records and to help you prepare your federal income tax
return. The automatic reinvestment of dividends and capital
gain distributions does not relieve you of any income tax
which may be payable on dividends or distributions.
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Once enrolled in the Plan, may I withdraw from it?
You may withdraw from the Plan without penalty at any time by
written notice to State Street Bank. Your withdrawal will be
effective as specified in Paragraph II of the Terms and
Conditions.
If you withdraw, you will receive without charge a share
certificate issued in your name for all full shares, or, if
you wish, State Street Bank will sell your shares and send
you the proceeds, less a service fee of $2.50 and less
brokerage commissions. State Street Bank will convert any
fractional shares you hold at the time of your withdrawal to
cash at the current market price and send you a check for the
proceeds.
How do participating shareholders benefit?
You will build holdings in the Fund easily and automatically,
at no brokerage cost or at reduced costs.
You will receive a detailed account statement from State
Street Bank and Trust Company, your Plan Agent, showing total
dividends and distributions, additional cash payments, date
of investment shares acquired and price per share, and total
shares of record held by you and by the Plan Agent for you.
Your proxy will include shares purchased for you by the Plan
Agent according to the Plan.
As long as you participate in the Plan, State Street Bank, as
your Plan Agent, will hold the shares it has acquired for you
in safekeeping, in non-certificated form. This convenience
provides added protection against loss, theft, or inadvertent
destruction of certificates.
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Whom should I contact for additional information?
If you hold shares in your own name, please address all
notices, correspondence, questions, or other communications
regarding the Plan to:
State Street Bank and Trust Company
c/o ACM Government Income Fund, Inc.
P.O. Box 366
Boston, MA 02101
(617) 328-5000 x2705
If your shares are not held in your name, you should contact
your brokerage firm, bank, or other nominee for more
information.
How to enroll
To enroll in the Divident Reinvestment and Cash Purchase
Plan, please review the Terms and Conditions in this
brochure. Then all you need to do is
Complete and sign the attached authorization form
Mail the form in the enclosed, pre-addressed envelope
Your reinvestments will begin with the next dividend or
capital gain distribution payable after State Street Bank
receives your authorization, provided it is received prior to
the record date. You may also exercise the voluntary cash
purchase option at the next appropriate date. Should your
authorization arrive after the record date, your
participation in the Plan will begin with the following
dividend or distribution.
Either ACM Government Income Fund or State Street Bank may
amend or terminate the Plan. Participants will receive
written notice at least 90 days before the effective date of
any amendment. In the case of termination, participants will
receive written notice at least 90 days before the record
date of any dividend or capital gain distribution by the
Fund.
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Terms and Conditions of Dividend Reinvestment and Cash Purchase
Plan
1. The State Street Bank and Trust Company will act as Agent for
me and will open an account for me under the Dividend
Reinvestment and Cash Purchase Plan in the same name as my
present shares are registered and put into effect for me the
divident reinvestment option of the Plan as of the first record
date for a dividend or capital gain distribution and the cash
purchase option of the Plan as of the next appropriate date as
provided in paragraph 5 below after you receive the Authorization
duly executed by me.
2. Whenever ACM Government Income Fund Inc. (the Fund) declares
an income dividend or capital gain distribution payable on shares
of Common Stock or cash at the option of the shareholders I
hereby elect to take such distribution entirely in shares of
Common Stock and you shall automatically receive such shares,
including fractions, for my account except in the circumstances
described in paragraph 4 below. Except in such circumstances,
the number of additional shares to be credited to my account
shall be determined by dividing the dollar amount of the income
dividend or capital gain distribution payable on my shares by the
net asset value per share of the Fund shares on the valuation
date provided that the normal discount from the then current
market price per share shall not exceed [$___]. The valuation
date will be the payable date for such distribution.
3. Should the net asset value per share of the Fund shares of
Common Stock exceed the market price per share on the valuation
date for a stock or cash income dividend or capital gain
distribution or on another date chosen by you in your sole
discretion which is not more than 5 business days prior to the
valuation date, or should the Fund declare an income dividend or
capital gain distribution payable only in cash, you shall apply
the amount of such dividend or distribution on my shares (less my
pro rata share of brokerage commissions incurred with respect to
your open market purchases in connection with the reinvestment of
such dividend or distribution) to the purchase on the open market
of shares of the Fund Common Stock for my account. In no event
may such purchases be made more than 45 days after the payment
date for such dividend except where temporary curtailment or
suspension of purchase is necessary to comply with applicable
provisions of federal securities law.
4. For purposes of the dividend reinvestment purchase comparison
of the Plan (a) the market price of the Fund's Shares of Common
Stock on a particular date shall be the last sales price on the
New York Stock Exchange on that date, or if there is no sale on
such Exchange on that date, then the mean between the closing bid
and asked quotations for such shares on such Exchange on such
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date and (b) net asset value per share of the Fund's shares of
Common Stock on a particular date shall be the net asset per
share most recently calculated by or on behalf of the Fund.
5. I understand that semi annually I have the option of sending
additional funds in any amount of at least $100 for the purchase
on the open market of the Fund's shares of Common Stock for my
account. Voluntary payments will be invested on or shortly after
the first business day of January and July and in no event more
than 45 days after such dates except where temporary curtailment
or suspension of purchases is necessary to comply with applicable
provisions of federal securities law. Funds received more than
30 business days before the investment date or less than 5
business days prior to the investment date will be returned
uninvested. I may withdraw my entire voluntary cash payment by
written notice received by you not less than 48 hours before such
payment is to be invested.
6. Investments of voluntary cash payments and other open-market
purchases provided for above may be made on any securities
exchange where the Fund's shares of Common Stock are traded in
the over-the-counter market or in negotiated transactions and may
be on such terms as to price, delivery and otherwise as you shall
determine. My funds held by you uninvested will not bear
interest and it is understood that, in any event, you shall have
no liability in connection with any inability to purchase shares
within 45 days after the initial date of such purchase as herein
provided or with the timing of any purchases effected. You shall
have no responsibility as to the value of the Fund's shares of
Common Stock acquired for my account. For the purpose of cash
investments you may commingle my funds with those of other
shareholders of the Fund for whom you similarly act as Agent and
the average price (including brokerage commissions) of all shares
purchased by you as Agent shall be the price per share allocable
to me in connection therewith.
7. You may hold my shares acquired pursuant to my Authorization,
together with the shares of other shareholders of the Fund
acquired pursuant to similar authorizations in noncertificated
form in your name or that of our nominee. You will forward to me
any proxy solicitation material and will vote any shares so held
for me only in accordance with the proxy returned by me to the
Fund. Upon my written request, you will deliver to me, without
charge, a certificate or certificates for the full shares.
8. You will confirm to me each acquisition made for my account
as soon as practicable but not later than 60 days after the date
thereof. Although I may from time to time have an undivided
fractional interest (computed to three decimal places) in a share
of the Fund, no certificates for a fractional share will be
issued. However, dividends and distributions on fractional
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shares will be credited to my account. In the event of
termination of my account under the Plan, you will adjust for any
such undivided fractional interest in cash at the market value of
the Fund's shares at the time of termination.
9. Any stock dividends or split shares distributed by the Fund
on shares held by you for me will be credited to my account. In
the event that the Fund makes available to its shareholders
rights to purchase additional shares of other securities, the
shares held for me under the Plan will be added to other shares
held by me in calculating the number of rights to be issued to
me.
10. Your service fee for handling capital gain distributions or
income dividends will be paid by the Fund. I will be charged a
$0.75 service fee for each voluntary cash investment and pro rata
share of brokerage commissions on all open market purchases.
11. I may terminate my account under the Plan by notifying you
in writing. Such termination will be effective immediately if my
notice is received by you not less than ten days prior to any
dividend or distribution record date, otherwise such termination
will be effective shortly after the investment of such dividend
distributions with respect to any subsequent dividend or
distribution. The Plan may be terminated by you or the Fund upon
notice in writing mailed to me at least 90 days prior to any
record date for the payment of any dividend or distribution by
the Fund. Upon any termination you will cause a certificate or
certificates to be issued for the full shares held for me under
the Plan and cash adjustment for any fraction to be delivered to
me without charge. If I elect by notice to you in writing in
advance of such termination to have you sell part or all of my
shares and remit the proceeds to me, you are authorized to deduct
a $2.50 fee plus brokerage commission for this transaction from
the proceeds.
12. These terms and conditions may be amended or supplemented by
you or the Fund at any time or times but, except when necessary
or appropriate to comply with applicable law or the rules or
policies of the Securities and Exchange Commission or any other
regulatory authority, only by mailing to me appropriate written
notice at least 90 days prior to the effective date thereof. The
amendment or supplement shall be deemed to be accepted by me
unless, prior to the effective date thereof, you receive written
notice of the termination of my account under the Plan. Any such
amendment may include an appointment by you in your place and
stead of a successor Agent under these terms and conditions, with
full power and authority to perform all or any of the acts to be
performed by the Agent under these terms and conditions. Upon
any such appointment of any Agent for the purpose of receiving
dividends and distributions, the Fund will be authorized to pay
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to such successor Agent, for my account, all dividends and
distributions payable on shares of Common Stock of the Fund held
in my name or under the Plan for retention or application by such
successor Agent as provided in these terms and conditions.
13. You shall at all times act in good faith and agree to use
your best efforts within reasonable limits to insure the accuracy
of all services performed under this Agreement and to comply with
applicable law, but assume no responsibility and shall not be
liable for loss or damage due to errors unless such error is
caused by your negligence, bad faith, or willful misconduct or
that of your employees.
14. These terms and conditions shall be governed by the laws of
the State of New York.
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ACM GOVERNMENT INCOME FUND, INC.
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
AUTHORIZATION FOR REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS
(Please read carefully before signing)
This form is for shareholders who hold shares in their own names.
If your shares are held through a brokerage firm, bank, or any
other nominee and you wish to participate in the Plan, you should
request your brokerage firm, bank or other nominee to re-register
your shares in your own name which will enable your participation
in the Plan.
I hereby authorize ACM Government Income Fund, Inc. (the
"Fund") to pay to State Street Bank and Trust Company for my
account all income dividends capital gain distributions payable
to me on shares of Common Stock of the Fund now or hereafter
registered in my name, and hereby elect to receive in shares of
Common Stock all such dividends and distributions payable in
shares or cash at the option of shareholders, except as set forth
below.
I hereby appoint State Street Bank and Trust Company as my
Agent subject to the Terms and Conditions of Dividend
Reinvestment and Cash Purchase Plan (the "Plan") set forth in the
accompanying brochure, and authorize State Street Bank and Trust
Company, as such Agent, in accordance with such Terms and
Conditions, to apply all such income dividends and capital gain
distributions and any additional cash investments made by me,
after deducting the charges as provided in such Terms and
Conditions, to the purchase of shares of Common Stock of the
Fund.
(Continued on other side)
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