disregard). Purchasers of Subordinated Securities arc urged to consult their own tax advisers regarding these reporting requirements. In addition, the Code and related Treasury regulations will require any U.S. holder that directly or indirectly owns a significant portion of the voting power or value of the Issuer's equity (generally 10%. but in some cases more than 50%) to comply with certain additional reporting requirements. While it is unclear how the voting power of the Subordinated Securities would be measured for this purpose, a U.S. holder that owns less than 10% (or 50% or less, as applicable) of the Subordinated Securities should not be required to file this return. In general, a U.S. holder that is deemed to own the applicable percentage of the voting power or value of the Issuer's equity will be required to file a Form 5471 with the IRS and to supply certain information to the IRS, including with respect to the activities and assets of the Issuer and other holders of the Subordinated Securities. If a U.S. holder fails to comply with the reporting requirements, the U.S. holder may be subject to a penalty. depending on the circumstances, equal to 510,000 for each failure to comply, subject to a maximum of $60,000. Purchasers of Subordinated Securities arc urged to consult their own tax advisers regarding these reporting requirements. Generally, a U.S. holder of Subordinated Securities will be required to file an annual report containing such information, with respect to its interest in a PFIC, as the IRS may require. The IRS has announced that it will issue guidance with respect to the information it will require and acceptable methods of reporting such information. U.S. holders should consult their own tax advisers regarding the PFIC reporting requirements. U.S. holders, and non-U.S. holders with certain minimum contacts with the United States, of Subordinated Securities may be required to report certain information on United States Trea