Are the stock split shares to be distributed subject to federal income tax?
We have been advised by counsel that under present federal income tax laws, your receipt of shares issued under this distribution is not taxable as income to you. However, your basis in all of the shares subject to the split will be impacted and you must consider this impact when determining the amount of gain or loss that results from the sale of any shares (gain or loss must be reported for federal income tax purposes). Although this tax information is provided for your assistance, we are not providing personal tax advice. You should consult your personal tax advisor regarding the tax consequences of any transaction you undertake with these shares. You should also consult your tax advisor regarding the tax consequences in foreign jurisdictions. Under existing U.S. laws and regulations, the new shares issued will have a basis equal to one-half the adjusted cost or other basis of the shares on which they were distributed. For example, if prior to the stock split you own 100 shares with
