TO OUR SHAREHOLDERS:
I am pleased to report that the Board of Directors of your Company has declared, as the year-end dividend, a stock dividend of ten (10) percent, or one share for each ten shares of common stock (with cash to be paid in lieu of fractions), payable on [date] to stockholders of record at the close of business on [date].
There is enclosed:
1. A certificate for any shares to which you are entitled
2. In the event that you are entitled to cash in lieu of a fraction of a share, a cheque representing such cash, the amount of which was determined on the basis of the market value, as estimated by the Company's regular certified public accountant, of ........ dollars ($........) per share of Company Common Stock on the record date The Company is advised by its counsel that no gain or loss is to be reported by shareholders on the receipt of shares representing this stock dividend, but that each shareholder's tax basis for the original shares should be allocated proportionately between the original and the dividend shares. Shareholders receiving cash should consult their individual tax advisers for information regarding the proper treatment of these amounts.
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