Dividend Reinvestment Program
In order to join this Plan, you must hold at least one (1) share registered in certificate form in your name.
Abbott does not offer a direct purchase plan; you must contact a stockbroker to purchase your initial share(s).
If your shares are held by your broker in street name or nominee name, you are not eligible to join Abbott's dividend reinvestment plan. Please contact your broker to transfer the shares into your name.
Cash purchases are allowed under the Plan. Again, this option is only available to registered shareholders. Purchases are made every 45 days and your check must be received before the cash cut-off date, generally five business days prior to investment. Automatic deduction from your checking or savings account for investment under the Plan is not currently available.
The areas below contain details of the plan.
If Your Shares are Held in Street Name
Terms and Conditions of Authorization for Dividend Reinvestment and Stock Purchase Plan
Benefits
- Automatic reinvestment of dividends
- A systematic investment program
- No cost to you for brokerage commissions or bank fees on purchases
- Simplified record-keeping
- Safekeeping of shares
- Additional cash purchases regardless of whether you reinvest dividends
Dividend Reinvestment
With full dividend reinvestment, the plan automatically invests your quarterly dividends in additional Abbott common shares at no cost to you for brokerage commissions or bank fees. Instead of sending your regular dividend check to you, the transfer agent will use your dividend to purchase more common shares and credit them to your account. In addition to any full shares your dividends may purchase, you will be credited with fractional shares for any balance amounting to less than the price of a full share. Future dividends will then be paid on the basis of your cumulative holdings of both full and fractional shares, thereby compounding your investment.
And It's Convenient
After you have enrolled in the plan, you need take no further action. The transfer agent handles all the details of each transaction. Your dividends are paid by the company directly to the transfer agent, which applies them toward the purchase of more shares at the current market price of the stock. The transfer agent then credits the shares to your account and sends you a statement itemizing the details of your investment and advising you of the exact status of your holdings for your records. Participants should be aware that it is important to retain all statements received as there could be a fee incurred when requesting the agent to supply past history.
The Cash Purchase Option
You may participate in the plan and not reinvest your dividends by selecting the cash deposits only option when enrolling. Under this option, as with reinvestment participants, you may make purchases of Abbott shares. You may make these purchases whenever you choose and in varying amounts ranging from as little as $10 each, to a maximum investment of $20,000 annually. See table for cash receipt dates.
Voting Privileges
You will retain the right to direct the voting of any Abbott shares held for you by the transfer agent.
Tax Requirements
Your dividend is subject to income tax just as if you had received a check, and payment by the company of brokerage commissions and bank fees on your behalf constitutes additional taxable income to you. If you itemize tax deductions, agent fees (not brokerage commissions) may be included among your itemized deductions; when your shares (purchased through the plan) are sold, the cost basis for determining taxable gain or loss may be increased by the brokerage commission applicable to each share sold. Questions relating to tax treatment of these items should be referred to your tax advisor.
Under Section 3406(a)(1) of the Internal Revenue Code, the Company is required to withhold for United States income tax purposes a percentage of all dividend payments to a shareholder of the Company if (i) such shareholder has failed to furnish to the Company his taxpayer identification number ("TIN"), which for an individual is his social security number, (ii) the Internal Revenue Service (the "Service") has notified the Company that the TIN furnished by the shareholder is incorrect, (iii) the Service notified the Company that backup withholding should be commenced because the shareholder has failed to properly report interest or dividends or (iv) the shareholder has failed to certify, under penalties of perjury, that he is not subject to backup withholding. Shareholders have previously been requested by the Company or their broker to submit all information and certifications required in order to exempt them from backup withholding if such exemption is available to them.
In the case of a shareholder who is subject to backup withholding tax on dividends under the plan, or a foreign shareholder whose dividends are subject to United States income tax withholding, the amount of the tax to be withheld will be deducted from the amount of the dividend and only the reduced amount will be reinvested in Common Stock.
How to Participate
1. Reinvestment of dividends:
If you wish to reinvest your dividends automatically, just complete a shareholder authorization card and return it to Computershare Trust Co., NA, P.O. Box 43078, Providence, Rhode Island, USA 02940-3078. Contact the transfer agent for a card at 888-332-2268. Dividend reinvestment will begin with the first dividend payment following receipt of your authorization, provided you checked off the dividend reinvestment option and there is sufficient time for processing prior to the dividend record date. Otherwise, your participation will be deferred until the next dividend. After you have joined the plan, your future dividends will continue to be used to purchase full or fractional shares of Abbott common stock for as long as you choose to remain a participant.
2. Cash purchase options:
If, as a member of the plan, you wish to use the cash purchase option, simply use the tear-off cash remittance slip included for this purpose with each statement of your plan account. Fill out this slip and send it to the transfer agent along with your check or money order made payable to Computershare-Abbott.
If you are not in the dividend reinvestment portion of this plan, and wish to participate only in the cash purchase option, simply complete a shareholder authorization card and return it to the transfer agent. (Make sure you check the "Cash purchase only" block.) Thereafter, you may make cash purchases using the cash remittance slip included with the statement of your plan account. As a participant in the Cash Purchase Option only, you will continue to receive your dividends.
The transfer agent will send you a statement whenever there is investment activity in your account. The transfer agent will hold all newly acquired shares until you decide to make a withdrawal from the plan.
Share purchases from cash investments will be made approximately every 45 days on each "Cash Investment Date" indicated below, provided that the cash is received by the "Cash Receipt Date," also indicated below.
| Cash Receipt Date | Cash Investment Date |
|---|---|
| February 08 | February 15 |
| March 25 | April 01 |
| May 08 | May 15 |
| June 24 | July 01 |
| August 08 | August 15 |
| September 24 | October 01 |
| November 07 | November 15 |
| December 23 | January 2 |
In the event that any of the above dates falls on a Saturday, Sunday, or a business holiday, then the next business day will become the effective "Cash Receipt Date" or "Cash Investment Date." Each optional cash contribution must be accompanied by a properly executed Cash Remittance Form, which is attached to each statement you receive. Cash contributions (checks or money orders) should be made payable to Computershare-Abbott and be drawn from United States banks in United States funds. Third party checks and cash will not be accepted. Timeliness of your cash investment is important because the transfer agent does not pay interest on cash deposits. Funds not previously invested will be invested along with the next reinvestment and not automatically returned unless requested in writing five business days prior to the cash investment date.
In the event that any check or other form of payment is returned unpaid for any reason (e.g., insufficient funds), the transfer agent will consider the request for investment of such money null and void and shall immediately remove from a shareowner's account any shares purchased upon the prior credit of such payment. The transfer agent shall then be entitled to those shares at the current market price to satisfy any amount of such uncollected payments, the transfer agent will be entitled to sell additional shares from the shareowner's account to satisfy the uncollected balance. Any deposit returned unpaid will be subject to a $25 return funds fee, which will be deducted from the shareowner's account.
Safekeeping
Any share certificates that you wish to deposit with the transfer agent should be sent to the address indicated below with either the bottom, tear-off portion of your statement or written instructions that these shares are to be included in your account. The share certificates should not be endorsed. It is recommended that the certificates be sent via registered mail, return receipt requested, and insured for 3 percent of their current market value, (with a minimum of $20) to:
Computershare Trust Co., NA
P.O. Box 43078
Providence, Rhode Island, USA 02940-3078
If you wish overnight mail, please send to:
Computershare Trust Co., NA
250 Royall St.
Canton, Massachusetts, USA 02021
If Your Shares are Held in Street Name
If your shares in Abbott are not held in your name but instead are held by a broker or nominee, and you wish to participate in the plan, the ownership of your shares must be transferred to you personally. If you wish to have your Abbott dividends reinvested as explained here, ask your broker or nominee to make such a transfer in your behalf. Following receipt of the stock certificates registered in your name(s), you may write to Computershare Trust Co., NA, P.O. Box 43078, Providence, Rhode Island, USA 02940-3078, or contact the transfer agent at 888-332-2268 to request an authorization card to join the plan.
Withdrawal from the Plan
You may withdraw all or a portion of the shares from your account by notifying the transfer agent. A withdrawal/termination form is provided on the account statement for this purpose. This notice should be mailed to Computershare Trust Co., NA. Deliveries to any other address do not constitute valid delivery. All remaining shares in your account will continue to participate in the plan.
Within five business days of receipt of your request, certificates for the whole shares (fractional shares can not be issued, only sold) will be issued to you or, if you request, the transfer agent will sell the shares for you, less applicable brokerage commissions (historically $0.15 per share). Proceeds are normally paid by check and will be mailed as soon as practicable by the transfer agent.
SELLING PARTICIPANTS SHOULD BE AWARE THAT COMMON STOCK PRICES MAY FALL DURING THE PERIOD BETWEEN A REQUEST FOR SALE, ITS RECEIPT BY THE TRANSFER AGENT, AND THE ULTIMATE SALE IN THE OPEN MARKET. THIS RISK SHOULD BE EVALUATED BY THE PARTICIPANT AND IS A RISK TO BE BORNE SOLELY BY THE PARTICIPANT.
Please read the Terms and Conditions for the Dividend Reinvestment and Stock Purchase Plan below.
Terms and Conditions of Authorization for Dividend Reinvestment and Stock Purchase Plan
1. A shareholder must hold at least one full Abbott common share in order to become eligible to participate in the plan. Furthermore, the transfer agent reserves the right to terminate any participant's account that does not have at least one (1) share enrolled in the plan. Should the transfer agent exercise its right to terminate a participant's account, the transfer agent will issue a check for any fractional share.
2. As participant's agent, Computershare Trust Co., NA will receive dividend cash from Abbott on common shares held by each shareholder participating in the Dividend Reinvestment and Stock Purchase Program unless the shareholder checked the "Cash deposits only" block on the authorization card. Those full and fractional shares acquired under the plan - and all additional cash investments - will be applied toward the purchase of common shares on the open market for the participant's account. Such purchases may be made on any securities exchange where such shares 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 the transfer agent may determine. The transfer agent will reinvest dividends promptly after receipt and in no event later than 30 days after receipt except when necessary to comply with applicable provisions of federal securities laws.
3. In order to avoid delays prior to investment, you are advised to send your cash remittances as outlined. This procedure may be varied if necessary to comply with applicable provisions of federal securities laws and rules and practice thereunder. Participants have unconditional right to obtain the return of any additional cash investments up to five business days before investment, when the request is submitted in writing. Cash deposits may be made from time to time in amounts of not less than $10 each up to a maximum of $20,000 annually. In the event that any check is returned unpaid for any reason (e.g., insufficient funds), the agent will consider the request for investment of such money null and void and shall immediately remove from a shareholder's account any shares purchased upon the prior credit of such payment. The transfer agent shall then be entitled to those shares at the current market price to satisfy any amount of such uncollected payments, the transfer agent will be entitled to sell additional shares from the shareholder's account to satisfy the uncollected balance. Any deposit returned unpaid will be subject to a $25 return funds fee, which will be deducted from the shareowner's account.
4. In making purchases for the participant's account, the transfer agent may commingle the participant's funds with those of other shareholders of the company participating in the plan. The price at which the transfer agent shall be deemed to have acquired shares for the participant's account shall be the weighted average price of all shares purchased by it as agent for all participants in the plan with the proceeds of a single cash dividend of the company together with any additional cash investments being concurrently invested or with the proceeds of any voluntary cash investments being invested other than concurrently. The transfer agent may hold the shares of all participants on deposit in its name or in the name of its nominee. The transfer agent shall have no responsibility as to the value of the common shares of the company acquired for the participant's account. It is understood that for a number of reasons including observance of the Rules and Regulations of the Securities and Exchange Commission requiring temporary curtailment or suspension of purchases, it is possible that the whole amount of funds available in the participant's account for the shares of the company might not be applied to the purchase of such shares on or before the next ensuing dividend payment date. The transfer agent shall not be liable when conditions prevent the purchase of shares or interfere with the timing of such purchases. No participant shall have any authority or power to direct the time or price at which common shares may be purchased.
5. As soon as practicable after the purchases of shares have been completed, the transfer agent will send each participant a statement of account confirming the transaction and itemizing any previous reinvestment activity for the calendar year. Certificates will not be issued to the participant under the plan unless he so requests in writing or unless his account is terminated. Certificates for fractional shares will not be issued in any case.
6. It is understood that shareholder authorization for dividend reinvestment must be received by the transfer agent not later than seven business days prior to the dividend record date. Otherwise, such authorization shall not be effective until the next dividend record date.
7. It is understood that the reinvestment of dividends does not relieve the participant of any income tax which may be payable on such dividends. The transfer agent will report to each participant for tax purposes the dividends credited to his account, as well as agent fees and brokerage commissions paid by the company.
8. The transfer agent will not vote shares that it holds for a participant's account except as directed by the participant.
9. The participant may deposit common shares of the company with the transfer agent for safekeeping. The transfer agent will credit the number of shares deposited to the participant's account and will treat them in all respects in the same manner as shares purchased for the participant's account. It is recommended that the certificates be sent via registered mail, return receipt requested, and insured for 3 percent of their value (with a minimum of $20) to Computershare Trust Co., NA, P.O. Box 43078, Providence, Rhode Island, USA 02940-3078.
10. A participant may terminate his account at any time by writing to the transfer agent. A withdrawal/termination form is provided on the reverse side of the account statement for this purpose. This notice should be addressed to Computershare Trust Co., NA, P.O. Box 43078, Providence, Rhode Island, USA 02940-3078. The transfer agent must receive a termination notice at least seven business days prior to the dividend payable date in order for the participant to receive the dividend in cash; otherwise, the notice may not be effective until after the dividend is reinvested and the shares have been credited to the participant's account. All dividends with a record date after timely receipt of notice for termination will be sent directly to the participant. The transfer agent may terminate the account by notice in writing mailed to the participant. Once termination has been effected, the transfer agent will issue to the participant, without charge, certificates for the full shares held in his account or, if he so requests, sell the full shares (within 5 business days) held under the plan, and deliver the proceeds to him. The participant's interest in any fractional share held in his account at termination will be paid in cash at the then current market value of common shares. No participant shall have the authority or power to direct the date or sales price at which common shares may be sold. Requests must indicate the number of shares to be sold and not the dollar amount to be attained. Any such request that does not clearly indicate the number of shares to be sold will be returned to the participant with no action taken.
11. It is understood that any stock dividends or stock splits distributed by the company on all shares participating in the plan, whether they are held by the transfer agent or held by the participant, will be credited to the participant's account. In the event the company makes available rights to purchase additional shares or other securities, the participant will receive a subscription warrant for all such rights directly from the transfer agent.
12. The transfer agent shall not be liable hereunder for any act done in good faith, or for any good faith omission to act, including, without limitation, any claims of liability (1) arising out of failure to terminate any participant's account upon such participant's death prior to receipt of notice in writing of such death and (2) with respect to the prices at which shares are purchased for the participant's account and the times such purchases are made.
13. These terms and conditions may be amended or supplemented by the transfer agent or the company at any time or times but, except when necessary or appropriate to comply with law or the rules or policies of the Securities and Exchange Commission or other regulatory authority, only by mailing appropriate written notice at least 30 days prior to the effective date thereof to each participant. The amendment or supplement shall be deemed to be accepted by the participant unless, prior to the effective date thereof, the transfer agent receives written notice of the termination of participant's account. Any such amendment may include an appointment by the transfer agent in its place and stead of a successor bank or agent under these terms and conditions, in which event the company is authorized to pay such successor bank or agent for the account of the participant, all dividends and distributions payable on the company's common shares held by the participant, subject to the plan, for application by such successor bank or agent as provided in these terms and conditions.
14. The terms and conditions of this authorization shall be governed by the laws of the Commonwealth of Massachusetts
