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Documentation_Pension General_Tab 04_11/03/2008
i ~~. 'I. I- J. 1"' '!. it I T .r n 00 O O N O M N ^~~ 7~~+-r T~ V 1 U z x 0 Q Q ~. z w F- w z z Q Q N ~~ O O U W N 'C c~ ~. ,-~ . ~ , U ..-, Q~ ~ F--i bA N ~ ~"' . ~ ~ ~ ~ F9R ~ Is ~ ~ T/ -~ 1 M ~ y ~-I ~' (_~ .: a~ O ~ ~ U ~ ~ ~ ~I ~ ~ ~ U ~ c~ ~ " ' ~ ~ ~ .. ~ $., p r ~ ~ ~ _ ~ ~ 'd ~ ~ • -~ O O Q~ ~ .-~ ~ ~ oo ~ o~ ~ t~ O '--~ '--~ N N M M ~ c~ `r' ' ~' ~, v~ o~ ~n o ~n ~ M ~ `O ~--~ '--i ~--+ N M M z vi a 0 Ca Q z w w z Q z Q M U 'x ~ ~ 0 N O O ~ . . ~ ro O 0. ~ 0.. U °~ ~ :JJ b o ~s .~ ~ ~ ~ ~ ~ ~" C ~ v~ C%] W ~ p O O ~ O 'O ~ > ~ p X o Li. 'n A "~~ ~ bA w .p ~ ~ ^ O X V O w ~ N LL] N p O a~-~ O ~ 4-. c ~ ~ ~ O O ~ o O N o z o N a ~ ~ ~ o ~ ~ ~. ~ ~ X N '~ y N ~ N O N o_ .a o °' ~ O ~ ~ ~ ~ _' N 'x O y T U y . ,~ ti ~ bhp ~ ~ .¢ F N ~ ~ ^ N ~ O . ~ ~ ~ O ~ e O N M ~ ~ P^ ~ ~ ti ~ o O U > N .--. ~ O ° >.., O ti N T O C~ c^ \ 3 ~ M ~ ~ cC ~ ~r~ ~ c ~ ~ ~ CL ~ ~ ~ ^O ~ ~ U ~ ~ .9 '3 a~ U ~ 4-, X O N _N U RS N ~ ~ ~^ N C." "' ~ N ~ O ~ T ~ OU 7 ~ O U y~y.~ '-" O 3 ~ -o O ~ ~ ~ N U F ~ p aXi O ~- U rn ~ ~ o. ~; .a~ ~ o ~ ,_. o ~ o C7 ~ ~ A ~ T YO U ~ '~ ~ c ~ T O 4, '' ~ '~ .--. '~ N ~ ~ ~ \ ~ N ~ ~ O .. ~ ~ ~ ~ ~ O _ ~ cOC C7 ~ ~' ~ 0. . L1 N ~ ~ O v'i ~ O ~~ M ~ ~ O OU F ~ ~ N O o c ° o a i Z ., ~ o > N ~ ~ O 'O U ~ -~ ~ i O ~ w y J v I ~ O ~ . ^. ~ p O O U N M .gyp '"" '.y Vl O `° °~ U .--. M '-" ~ .~ Q ~ O O '~ W ., a ~ ~ O O _ ~ '"i ~ O N O ^' ~ 1 i u-~ 5., ~ 0 0 ~ ~ N ~ o -G V1 ~ 1 M M I c. ~ .p O ~ s O O . ~ .. ~.. GD ~ ~ O ~ ~ N ~ ~ .--.r ~ ~ ,.., 1 N 1 ~ ~ :.+ o F, ~ ~' ._ ~ O O ~ M O ~ M „~ cv 7 ~ pp 1 -+ M 1 "C3 ~ O O ~ O O ~+ O ~ ~ ~ v ~ ri 't3 c f?, 0 ~ ~ N o 0 ~ ~ ...i d ~ ~ .-r N "~ O ,_~ I v >> o .~' a ~ ~ W ~ ~ R y ~ '-' C o 0 ° V o V~ o U a ~ o~ .~ a ~ ~ ~ ~ ~j o o a M U z vi a O q Q z b ~ .~ F- ~ w ~ z a z * Q Y C (0 _~ _~ (0 C O C C .~ (6 Q ~_ L ~r M i rr~~ ~ ~1"~1 O C~ _~ /CC$ I--I r..+ 0 U U '~ Q~ C _~ U 0 . ~ Q ~ O ~ ~ ~ > M M W O t1. U p o ~ b0 ~ N N ~: ~ ~ ~ J Q 0 _~ ~ `~" ti .~ ~ .~ ~ ~ ~ Y ~ 'C Q ~ ~ ~ ~ ~ ~ V +~ cd - Q Q Q W W u U ~ ~ ~ ~ u ~, o °y' C7 v -~ 0 W 5 ~ o ~ m ~ '~ o m o o _ ~ M U ~' M ' J a~ 3 J ~~ ~ c N N bA O ~ ~-" v. 'J o ~ O p~ ~ a - x -o 'U ~ x ~ M w ~ - ~ N ~, 0 C7 c ~ ~ T ~ ... o ~ ~ i Q ~ L~ ~L,: ~, o ~~~ ~ ~a~~ _ _ b 0 _ ~~ a ~ u - ,~. ~_ .-1 ~ v 0 z x 0 Q Q ~- w H w z z >, 0 .~ c .~ m Q Q M i 4--+ /'~ Q U U '~ O U 0 0 0. 0 w ~i 0 a _~ UI 0 0 0 0 0 0 0 0 00 N O~ ~O M O N 0 H .~ U Q O ~d m ti .~ m w F-~ ~° 3 0 ~. C7 0 0 0 v 0 ~° 0 0 0 0 0 0 0 O N O ~ O v~ O 0 E-~ .y ti U c3 Lt U Q C O U :~9 C m c c 0 U ro U F- «°. U z v~ x 0 Q Q F z w H w z z Q Q a~ >, m 0 .~ c .~ m c~ a PORTFOLIO APPRAISAL Village of Tequesta General Employees' Pension Funds September 30, 2008 Quantity Security Price Market Value Pct. Assets CASH AND EQUIVALENTS Cash -Money Fund 21,603.76 2.0 causDANA 0.00 0.0 21,603.76 2.0 COMMON STOCK 184 AT&T Inc. 27.92 5,137.28 0.5 88 Abbott Laboratories 57.58 5,067.04 0.5 126 Accenture Ltd. Class A 38.00 4,788.00 0.5 167 Aegon NV ADR 8.78 1,465.93 0.1 69 Airgas Inc. 49.65 3,425.85 0.3 133 Allianz SE ADR 13.71 1,823.43 0.2 239 Altera Corporation 20.68 4,942.52 0.5 243 Amphenol Corp Class A 40.14 9,754.02 0.9 87 Apache Corp 104.28 9,072.36 0.9 31 Apple Computer Inc. 113.66 3,523.46 0.3 165 Autodesk Inc. 33.55 5,535.75 0.5 146 BMC Software Inc 28.63 4,179.98 0.4 158 Bank of America Corporation 35.00 5,530.00 0.5 125 Bank of New York Co. Inc. 32.58 4,072.50 0.4 124 Becton Dickinson & Co 80.26 9,952.24 0.9 111 Best Buy Inc. 37.50 4,162.50 0.4 240 Bristol-Myers Squibb Co. 20.85 5,004.00 0.5 257 CVS Corporation 33.66 8,650.62 0.8 67 Canon ADR 37.75 2,529.25 0.2 123 Cemex ADR 17.22 2,118.06 0.2 179 Charles Schwab Corp. 26.00 4,654.00 0.4 59 Cia Cervecerias Unidas-Adr 32.11 1,894.49 0.2 454 Cisco Systems 22.56 10,242.24 1.0 88 Coca-Cola Company 52.88 4,653.44 0.4 66 Conocophillips 73.25 4,834.50 0.5 76 Cummins Inc 43.72 3,322.72 0.3 145 DIRECTV Group Inc. 26.18 3,796.10 0.4 184 Danske Bank A/S - Unspons ADR 12.05 2,217.20 0.2 72 Deere & Company 49.50 3,564.00 0.3 64 Diageo PLC 68.86 4,407.04 0.4 147 Disney Walt Company Holding Company 30.69 4,511.43 0.4 27 E.ON AG ADR 50.00 1,350.00 0.1 100 EDISON INTERNATIONAL 39.90 3,990.00 0.4 94 Ecolab Inc. 48.52 4,560.88 0.4 103 Emerson Electric Co. 40.79 4,201.37 0.4 71 Endurance Holdings ADR 30.92 2,195.32 0.2 70 Express Scripts Inc 73.82 5,167.40 0.5 68 Exxon Mobil Corporation 77.66 5,280.88 0.5 87 FPL Group 50.30 4,376.10 0.4 61 General Dynamics 73.62 4,490.82 0.4 98 General Mills Inc. 68.72 6,734.56 0.6 64 Genzyme Corp. 80.89 5,176.96 0.5 107 Gilead Sciences Inc 45.63 4,882.41 0.5 30 Goldman Sachs 128.00 3,840.00 0.4 11 Google Inc. Class A 400.52 4,405.72 0.4 237 Halliburton Co. 32.39 7,676.43 0.7 93 Harsco Corp 37.19 3,458.67 0.3 78 Hartford Financial Services 40.99 3,197.22 0.3 85 Helmerich & Payne 43.19 3,671.15 03 41 Henkel AG & Co. 36.00 1,476.00 0.1 238 Hewlett Packard Company 46.24 11,005.12 1.0 133 Infosys Technologies - SP ADR 33.31 4,430.23 0.4 PORTFOLIO APPRAISAL Village of Tequesta General Employees' Pension Funds September 30, 2008 Market Pct. Quantity Security Price Value Assets 490 Intel Corporation 18.73 9,177.70 0.9 45 International Business Machines Corp. 116.96 5,263.20 0.5 126 J. P. Morgan Chase & Company 46.70 5,884.20 0.6 82 Johnson & Johnson 69.28 5,680.96 0.5 274 Johnson Controls Inc. 30.33 8,310.42 0.8 168 KT Corporation ADR 16.79 2,820.72 0.3 93 Kimberly-Clark Corp. 64.84 6,030.12 0.6 51 Lockheed Martin Corporation 109.67 5,593.17 0.5 80 Lubrizol Corp. 43.14 3,451.20 0.3 171 Marks & Spencer Group PLC ADR 7.25 1,239.75 0.1 66 McDonald's Corporation 61.70 4,072.20 0.4 96 McKesson Corp. 53.81 5,165.76 0.5 92 MetLife Inc 56.00 5,152.00 0.5 156 Microchip Technology Inc. 29.43 4,591.08 0.4 412 Microsoft Corporation 26.69 10,996.28 1.0 224 NTT DoCoMo ADR ] 5.90 3,561.60 0.3 64 National Oilwell Varco Inc 50.23 3,214.72 0.3 138 Nike Inc. Class B 66.90 9,232.20 0.9 68 Noble Energy 55.59 3,780.12 0.4 65 Occidental Petroleum Corporation 70.45 4,579.25 0.4 92 Omnicom Group 38.56 3,547.52 0.3 499 Oracle Corporation 20.31 10,134.69 1.0 85 PNC Global Investment Servicing 74.70 6,349.50 0.6 88 PPG Industries Inc. 58.32 5,132.16 0.5 67 Parker Hannifin Corp. 53.00 3,551..00 0.3 67 Pepsico Inc 71.27 4,775.09 0.5 204 Philip Morris International 48.10 9,812.40 0.9 61 Praxair Inc. 71.74 4,376.14 0.4 71 Procter & Gamble Company 69.69 4,947.99 0.5 104 Ross Stores Inc. 36.81 3,828.24 0.4 419 Royal Bank of Scotland Spon ADR 3.20 1,341.52 0.1 157 Safeway Inc. 23.72 3,724.04 0.4 246 Saint Jude Medical 43.49 10,698.54 1.0 73 Sanofi Aventis ADR 32.87 2,399.51 0.2 98 Sempra Energy 50.47 4,946.06 0.5 130 State Street Corp. 56.88 7,394.40 0.7 501 TD Ameritrade 16.67 8,351.67 0.8 65 TNT NV-ADR 28.00 1,820.00 0.2 178 Telecom Italia S.P.A. CL A ADR 11.35 2,020.30 0.2 80 Telefonos de Mexico ADR 25.75 2,060.00 0.2 80 Terex Corp. 30.52 2,441.60 0.2 87 Textron Inc. 29.28 2,547.36 0.2 177 Thermo Fisher Scientific Inc. 55.00 9,735.00 0.9 29 Toyota Motor Corp -Spon ADR 85.80 2,488.20 0.2 77 Transocean Inc. 109.84 8,457.68 0.8 133 Union Pacific Corp. 71.16 9,464.28 0.9 158 United Technologies Corp 60.06 9,489.48 0.9 62 V F Corporation 77.31 4,793.22 0.5 128 Verizon Communications 32.09 4,107.52 0.4 106 Wal-Mart Stores Inc. 59.89 6,348.34 0.6 57 Woori Finance Holdings ADR 31.57 1,799.49 0.2 100 XTO Energy Inc. 46.52 4,652.00 0.4 26 Yara International ADR 34.60 899.60 0.1 71 Zurich Financial Svcs -ADR 28.00 1,988.00 0.2 131 iShares MSCI EAFE Growth Index 56.60 7,414.47 0.7 530,032.85 50.1 PORTFOLIO APPRAISAL Village of Tequesta General Employees' Pension Funds September 30, 2008 Market Pct. Quantity Security Price Value Assets CORPORATE BONDS 5,000.00 CSX Corp 99.99 4,999.74 0.5 6.250% Due 10-15-08 6,000.00 Deutsche Bank Financial 99.61 5,976.87 0.6 7.500% Due 04-25-09 5,000.00 Target Corp. 101.10 5,055.00 0.5 5.375% Due 06-15-09 5,000.00 Intl Lease Finance Corp 77.00 3,850.00 0.4 5.000% Due 04-15-10 5,000.00 Capital One Bank 85.79 4,289.50 0.4 5.750% Due 09-15-10 5,000.00 Kohls Corporation 100.16 5,007.90 0.5 6.300% Due 03-01-11 5,000.00 Bank One Corp 97.58 4,878.86 0.5 5.900% Due 11-15-11 5,000.00 Mercantile Safe Dep & Tr 99.51 4,975.70 0.5 5.700% Due 11-15-ll 5,000.00 Avon Products Inc. 98.77 4,938.68 0.5 4.620% Due OS-15-13 5,000.00 Goldman Sachs Group [nc. 84.27 4,213.35 0.4 5.250% Due 10-15-13 5,000.00 Rockwell Collins 95.51 4,775.50 0.5 4.750% Due 12-01-13 5,000.00 US Bank NA 100.22 5,010.85 0.5 6.300% Due 02-04-14 5,000.00 HSBC Finance Corp. 89.60 4,480.16 0.4 5.250% Due 04-15-15 5,000.00 Lowe's Companies Inc. 98.33 4,916.60 0.5 5.000% Due 10-15-15 5,000.00 Wachovia Bank NA 52.50 2,625.00 0.2 5.600% Due 03-15-16 5,000.00 Kimberly Clark 94.64 4,732.20 0.4 6.125% Due 08-01-17 5,000.00 J.P. Morgan & Co. Inc. 96.59 4,829.50 0.5 6.000%Due 10-01-17 79,555.40 7.5 FEDERAL AGENCY SECURITIES 10,000.00 Federal National Mortgage Association 100.40 10,040.20 0.9 5.250% Due 01-15-09 10,000.00 Federal Home Loan Mortgage Corp. 100.94 10,094.00 1.0 5.750% Due 03-15-09 10,000.00 Federal National Mortgage Association 101.89 10,189.20 1.0 5.375% Due 08-15-09 10,000.00 Federal National Mortgage Association 102.22 10,222.40 1.0 4.250%Due 08-15-10 5,000.00 Federal National Mortgage Association 103.38 5,169.25 0.5 4.750% Due 12-15-10 7,000.00 Federal National Mortgage Association 105.17 7,362.04 0.7 5.500% Due 03-15-11 10,000.00 Federal National Mortgage Association 104.31 10,431.50 1.0 5.000% Due 10-15-11 10,000.00 Federal Home Loan Mortgage Corp. 102.07 10,207.10 1.0 4.350% Due 04-27-12 3,000.00 Federal Home Loan Mortgage Corp. 102.51 3,075.33 0.3 4.500% Due 01-15-13 10,000.00 Federal Home Loan Mortgage Corp. 102.59 10,259.00 1.0 4.500% Due 07-15-13 PORTFOLIO APPRAISAL Village of Tequesta General Employees' Pension Funds SeptembeY 30, 2008 Market Pct. Quantity Security Price Value Assets 5,000.00 Federal Home Loan Mortgage Corp. 103.90 5,195.20 0.5 4.875% Due 11-15-13 8,000.00 Federal National Mortgage Association 103.77 8,301.60 0.8 5.000% Due 04-15-15 8,000.00 Federal National Mortgage Association 102.31 8,184.64 0.8 5.000% Due 05-11-17 108,731.46 10.3 GOVERNMENT BONDS 10,000.00 U.S. Treasury Notes 102.33 10,232.81 1.0 5.500% Due OS-15-09 15,000.00 U.S. Treasury Notes 100.14 15,021.09 1.4 2.000% Due 02-28-10 15,000.00 U.S. Treasury Notes 104.73 15,710.16 LS 4.250% Due 10-15-10 10,000.00 U.S. Treasury Notes 106.75 10,675.00 1.0 4.625% Due 10-31-11 15,000.00 U.S. Treasury Notes 99.56 14,934.37 1.4 2.750% Due 02-28-13 10,000.00 U.S. Treasury Notes 106.25 10,625.00 1.0 4.250% Due 08-15-13 5,000.00 US Treasury Notes 105.55 5,277.34 0.5 4.125% Due OS-15-15 5,000.00 U.S. Treasury Notes 105.89 5,294.53 0.5 4.250% Due 08-15-15 5,000.00 U.S. Treasury Notes 110.20 5,510.16 0.5 5.120% Due OS-15-16 15,000.00 U.S. Treasury Notes 106.42 15,963.28 1.5 4.625% Due 02-15-17 7,000.00 U. S. Treasury Notes 103.67 7,257.03 0.7 4.250% Due 11-15-17 116,500.78 11.0 FIXED RATE MORTGAGE POOLS 10,488.92 FHLMC C90939 12-1-OS 100.40 10,530.98 1.0 5.500% Due 12-01-25 10,322.31 FHLMC GOLD C90978 7-1-06 101.87 10,514.90 1.0 6.000% Due 07-01-26 12,192.50 FHLMC C90983 8-1-06 100.31 12,230.60 1.2 5.500% Due 08-01-26 11,671.92 FNMA 884093 5-1-06 101.42 11,837.27 1.1 6.000% Due OS-O1-36 45,113.76 4.3 Bond Funds 311 iShares Lehman 1-3 year Treasury Bond Fund 83.56 25,987.16 2.5 1,100 iShares Lehman 3-7 Year Treasury 108.83 119,713.00 11.3 50 iShares Lehman Intermediate 99.95 4,997.50 0.5 150,697.66 14.3 Accrued Income 4,280.76 0.4 Dividends Receivable 693.58 0.1 Interest Receivable 56.57 0.0 TOTAL ACCRUED AND RECEIVABLE 5,030.92 0.5 PORTFOLIO APPRAISAL Village of Tequesta General Employees' Pension Funds September 30, 2008 Quantity Security TOTAL PORTFOLIO Market Pct. Price Value Assets 1,057,266.60 100.0 The market prices shown on these pages represent the last reported sale on the valuation date as to listed securities or the bid price in the case ofover-the-counter yuotations. Prices on bonds and some other investments are based on round lot price yuotations and are for evaluation purposes only and may not represent actual market values. Bonds sold on an odd lot basis (less than $1 million) mcry have a dollar price lower than the round lot quote. Where no regular market exists, prices shown are estimates by sources considered reliable by Dana Investment Advisors, Inc While the prices are obtained from sources we consider reliable, we cannot guarantee them. 0 a~ >, 0 .~ a~ c .~ a> m a H • ~~ HMO Mil VV O O N 4J c~ d ~, M v. :-~ f. =-_- i ~~ ~ ~'1. ~ ~~ _ ~. ~. 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"'' ~ '~ l~ Q~ ~ ~ 00 M d1 M 00 O M ~ O ~ 3 M -~ N M ~ ~'~,~ ~ o ~ y ~+ ~ \ ~ ~ CSC ,--I ~ ~ ~ ~O M O~ ~ ~ Q O ~ ~ ~ N M M ~' $~-~ O D \ 7--I ~ ~' U ~ ~ ~ ~ •,.~ ~ ~y ~ ~ N ~ N ~ '" ~" ~~~. ~ ~ ~ ~ N ~ O O .~ U 1 ~ 4~ a N c~ v~ ~ ~~ ~' o ~, 3 '~ o .~ . ~ ~, 'CS bA ~. ~ ~ .~ ~" ~ i-I F-I U z z 0 z z 4 a~ ~, a~ 3 v~ ~ ~ ~ . o ~ ~ ~ ~ ~ ~ ~' ~ ~ M ~, ~ O ~ `n ~ .,~ O ~ ~ i ~ ~ ~ .--. ~ ~ ~ ~ 3 ti ~ ~ ~~ • ,~ U ~ O ~ U O ~ L~. 40 ~~ ~ ~ ~--~ •~ ' ~--~ Q ~ v~ ~; A. M ~ ~ d 3 ~ ~ U ~' ~ ~~ ~)- ~-II i~-1 ~~--1I S-i d j ~ Q i--1 O y ,, ~(~ Va/ . .~ ~ 3 ~ ~ -~ o ~ ~ ~ I r-I 0 ~ C~ Uj .~-1 ~ ~ ~ ~ 3 ° ~ ~ ~, ~ ~ ~~ ~ o ~ ~ ~ + ~ ~ ~ ~ ~ Q~ M W ~ • 5--1 ~ ~..yI iti O e ~° ~' ~ ~ 3 N ~ ~ ~~ ~ Q~ " ~ ~ ~ ~ ~ H ~ I ~ N ~ I ~ y ~ o ~ Q. ~ ~ s •~ ~ i ~~ a,~ ~ `~ ~ ~ ~ ~ c V w Q Q~ ~Q~.~yI i~-1 ...y ~, cd 0 N O 4. ~- o 0 0 T ~ [~ O ~ p O O~ ~J ~ M 00 `D ~D ~-- N o 0 0 ~' d' N N O ~ - ~p V N O r ~ ~ o 0 0 0 ~. 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Bernanke Stabilizing the Financial Markets and the Economy October 15, 2008 Speech Chairman Ben S. Bernanke At the Economic Club of New York, New York, New York October 15, 2008 Stabilizing the Financial Markets and the Economy Good afternoon. I am pleased once again to share a meal and some thoughts with the Economic Club of New York. I will focus today on the economic and financial challenges we face and why I believe we are well positioned to move forward. The problems now evident in the markets and in the economy are large and complex, but, in my judgment, our government now has the tools it needs to confront and solve them. Our strategy will continue to evolve and be refined as we adapt to new developments and the inevitable setbacks. But we will not stand down until we have achieved our goals of repairing and reforming our financial system and restoring prosperity. The crisis we face in the financial markets has many novel aspects, largely arising from the complexity and sophistication of today's financial institutions and instruments and the remarkable degree of global financial integration that allows financial shocks to be transmitted around the world at the speed of light. However, as a long-time student of banking and financial crises, I can attest that the current situation also has much in common with past experiences. As in all past crises, at the root of the problem is a loss of confidence by investors and the public in the strength of key financial institutions and markets. The crisis will end when comprehensive responses by political and financial leaders restore that trust, bringing investors back into the market and allowing the normal business of extending credit to households and firms to resume. In that regard, we are, in one respect at least, better off than those who dealt with earlier financial crises: Generally, during past crises, broad- based government engagement came late, usually at a point at which most financial institutions were insolvent or nearly so. Waiting too long to respond has usually led to much greater direct costs of the intervention itself and, more importantly, magnified the painful effects of financial turmoil on households and businesses. That is not the situation we face today. Fortunately, the Congress and the Administration have acted at a time when the great majority of financial institutions, though stressed by highly volatile and difficult market conditions, remain strong and capable of fulfilling their critical function of providing new credit for our economy. This prompt and decisive action by our political leaders will allow us to restore more normal market functioning much more quickly and at lower ultimate cost than would otherwise have been the case. Moreover, we are seeing not just a national response but a global response to the crisis, commensurate with its global nature. This financial crisis has been with us for more than a year. It was sparked by the end of the U.S. housing boom, which revealed the weaknesses and excesses that had occurred in subprime mortgage lending. However, as subsequent events have demonstrated, the problem was much broader than subprime lending. Large inflows of capital into the United States and other countries stimulated a reaching for yield, an underpricing of risk, excessive leverage, and the development of complex and opaque financial instruments that seemed to work well during the credit boom but have been shown to be fragile under stress. The unwinding of these developments, including a sharp deleveraging and a headlong retreat from credit risk, led to highly strained conditions in financial markets and a tightening of credit that has hamstrung economic growth. The Federal Reserve responded to these developments in two broad ways. First, following classic tenets of central banking, the Fed has provided large amounts of liquidity to the financial system to cushion the effects of tight conditions in short-term funding markets. Second, to reduce the downside risks to growth emanating from the tightening of credit, the Fed, in a series of moves that began last N September, has significantly lowered its target for the federal funds rate. Indeed, last week, in an unprecedented joint action with five other major central banks and in response to the adverse implications of the deepening crisis for the economic outlook, the Federal Reserve again eased the stance of monetary policy. We will continue to use all the tools at our disposal to improve market functioning and liquidity, to reduce pressures in key credit and funding markets, and to complement the steps the Treasury and foreign governments will be taking to strengthen the financial system. Notwithstanding our efforts and those of other policymakers, the financial crisis intensified over the summer as mortgage-related assets deteriorated further, economic growth slowed, and uncertainty about the financial and economic outlook increased. As investors and creditors lost confidence in the ability of certain firms to meet their obligations, their access to capital markets as well as to short- term funding markets became increasingly impaired, and their stock prices fell sharply. Prominent companies that experienced this dynamic most acutely included the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, the investment bank Lehman Brothers, and the insurance company American International Group (AIG). The Federal Reserve believes that, whenever possible, the difficulties experienced by firms in financial distress should be addressed through private-sector arrangements--for example, by raising new equity capital, as many firms have done; by negotiations leading to a merger or acquisition; or by an orderly wind-down. Government assistance should be provided with the greatest reluctance and only when the stability of the financial system, and thus the health of the broader economy, is at risk. In those cases when financial stability is broadly threatened, however, intervention to protect the public interest is not only justified but must be undertaken forcefully and without hesitation. Fannie Mae and Freddie Mac present cases in point. To avoid unacceptably large dislocations in the mortgage markets, the financial sector, and the economy as a whole, the Federal Housing Finance Agency put Fannie and Freddie into conservatorship, and the Treasury, drawing on authorities recently granted by the Congress, made financial support available. The government's actions appear to have stabilized the GSEs, although, like virtually all other firms, they are experiencing effects of the current crisis. We have already seen benefits of their stabilization in the form of lower mortgage rates, which will help the housing market. The difficulties at Lehman and AIG raised different issues. Like the GSEs, both companies were large, complex, and deeply embedded in our financial system. In both cases, the Treasury and the Federal Reserve sought private-sector solutions, but none was forthcoming. Apublic-sector solution for Lehman proved infeasible, as the firm could not post sufficient collateral to provide reasonable assurance that a loan from the Federal Reserve would be repaid, and the Treasury did not have the authority to absorb billions of dollars of expected losses to facilitate Lehman's acquisition by another firm. Consequently, little could be done except to attempt to ameliorate the effects of Lehman's failure on the financial system. Importantly, the financial rescue legislation, which I will discuss later, will give us better choices. In the future, the Treasury will have greater resources available to prevent the failure of a financial institution when such a failure would pose unacceptable risks to the financial system as a whole. The Federal Reserve will work closely and actively with the Treasury and other authorities to minimize systemic risk. In the case of AIG, the Federal Reserve and the Treasury judged that a disorderly failure would have severely threatened global financial stability and the performance of the U.S. economy. We also judged that emergency Federal Reserve credit to AIG would be adequately secured by AIG's assets. To protect U.S. taxpayers and to mitigate the possibility that lending to AIG would encourage inappropriate risk-taking by financial firms in the firture, the Federal Reserve ensured that the terms of the credit extended to AIG imposed significant costs and constraints on the firm's owners, managers, and creditors. AIG's difficulties and Lehman's failure, along with growing concerns about the U.S. economy and other economies, contributed to extraordinarily turbulent conditions in global financial markets in recent weeks. Equity prices fell sharply. Withdrawals from prime money market mutual funds led them to reduce their holdings of commercial paper--an important source of financing for the nation's nonfinancial businesses as well as for many financial firms. The cost of short-term credit, where such credit has been available, jumped for virtually all firms, and liquidity dried up in many markets. By restricting flows of credit to households, businesses, and state and local governments, the turmoil in financial markets and the funding pressures on financial firms pose a significant threat to economic growth. The Treasury and the Fed have taken a range of actions to address financial problems. To address illiquidity and impaired functioning in commercial paper markets, the Treasury implemented a temporary guarantee program for balances held in money market mutual funds to help stem the outflows from these funds. The Federal Reserve put in place a temporary lending facility that provides financing for banks to purchase high-quality asset-backed commercial paper from money market funds, thus reducing their need to sell the commercial paper into already distressed markets. Moreover, we soon will implement a new, temporary Commercial Paper Funding Facility that will provide a backstop to commercial paper markets by purchasing highly rated commercial paper directly from issuers at a term of three months when those markets are illiquid. To address ongoing problems in interbank funding markets, the Federal Reserve has significantly increased the quantity of term funds it auctions to banks and accommodated heightened demands for temporary fiunding from banks and primary dealers. Also, to try to mitigate dollar funding pressures worldwide, we have greatly expanded reciprocal currency arrangements (so-called swap agreements) with other central banks. Indeed, this week we agreed to extend unlimited dollar funding to the European Central Bank, the Bank of England, the Bank of Japan, and the Swiss National Bank. These agreements enable foreign central banks to provide dollars to financial institutions in their jurisdictions, which helps improve the functioning of dollar funding markets globally and relieve pressures on U.S. funding markets. It bears noting that these arrangements carry no risk to the U.S. taxpayer, as our loans are to the foreign central banks themselves, who take responsibility for the extension of dollar credit within their jurisdictions. The expansion of Federal Reserve lending is helping financial firms cope with reduced access to their usual sources of funding and thus is supporting their lending to nonfinancial firms and households. Nonetheless, the intensification of the financial crisis over the past month or so made clear that a more powerful, comprehensive approach involving the fiscal authorities was needed to address these problems more effectively. On that basis, the Administration, with the support of the Federal Reserve, asked the Congress for a new program aimed at stabilizing our financial markets. The resulting legislation, the Emergency Economic Stabilization Act, provides important new tools for addressing the distress in financial markets and thus mitigating the risks to the economy. The act allows Treasury to buy troubled assets, to provide guarantees, and to inject capital to strengthen the balance sheets of financial institutions. The act also raises the limit on deposit insurance from $100,000 to $250,000 per account, effectively immediately. The Troubled Asset Relief Program (TARP) authorized by the legislation will allow the Treasury, under the supervision of an oversight board that I will head, to undertake two highly complementary activities. First, the Treasury will use the TARP funds to help recapitalize our banking system by purchasing non-voting equity in financial institutions. Details of this program were announced yesterday. Initially, the Treasury will dedicate $250 billion toward purchases of preferred shares in banks and thrifts of al] sizes. The program is voluntary and designed both to encourage participation by healthy institutions and to make it attractive for private capital to come in along with public capital.. We look to strong institutions to participate in this capital program, because today even strong institutions are reluctant to expand their balance sheets to extend credit; with fresh capital, that constraint will be eased. The terms offered under the TARP include the acquisition by the Treasury of warrants to ensure that taxpayers receive a share of the upside as the financial system recovers. Moreover, as required by the legislation, institutions that receive capital will have to meet certain standards regarding executive compensation practices. Second, the Treasury will use some of the resources provided under the bill to purchase troubled assets from banks and other financial institutions, in most cases using market-based mechanisms. Mortgage-related assets, including mortgage-backed securities and whole loans, will be the focus of M N the program, although the law permits flexibility in the types of assets purchased as needed to promote financial stability. Removing these assets from private balance sheets should increase liquidity and promote price discovery in the markets for these assets, thereby reducing investor uncertainty about the current value and prospects of financial institutions. Unclogging the markets for mortgage-related assets should put banks and other institutions in a better position to raise capital from the private sector and increase the willingness of counterparties to engage. With time, the provision of equity capital to the banking system and the purchase of troubled assets will help credit flow more freely, thus supporting economic growth. These measures will lead to a much stronger fmancial system over time, but steps are also necessary to address the immediate problem of lack of trust and confidence. Accordingly, also announced yesterday was a plan by the Federal Deposit Insurance Corporation (FDIC) to provide a broad range of guarantees of the liabilities of FDIC-insured depository institutions, including their associated holding companies. The guarantee covers all newly issued senior unsecured debt, including commercial paper and interbank funding, and it will also cover all funds held in non-interest-bearing transactions accounts, such as payroll accounts. This broad guarantee will be effectively immediately, and fees for coverage will be waived for 30 days. After the 30-day grace period, banks may continue to participate in the guarantee program by paying reasonable fees. I would like to stress once again that the taxpayers' interests were very much in our minds and those of the Congress when these programs were designed. The costs of the FDIC guarantee are expected to be covered by fees and assessments on the banking system, not by the taxpayer. In the case of the TARP program, the funds allocated are not simple expenditures, but rather acquisitions of assets or equity positions, which the Treasury will be able to sell or redeem down the road. Indeed, it is possible that taxpayers could turn a profit from the program, although, given the great uncertainties, no assurances can be provided. Moreover, the program is subject to extensive controls and to oversight by several bodies. The larger point, though, is that the economic benefit of these programs to taxpayers will not be determined primarily by the financial return to TARP funds, but rather by the impact of the program on the financial markets and the economy. If the TARP, together with the other measures that have been taken, is successful in promoting financial stability and, consequently, in supporting stronger economic growth and job creation, it will have proved itself a very good investment indeed, to everyone's benefit. Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away. Economic activity had been decelerating even before the recent intensification of the crisis. The housing market continues to be a primary source of weakness in the real economy as well as in the financial markets, and we have seen marked slowdowns in consumer spending, business investment, and the labor market. Credit markets will take some time to unfreeze. And with the economies of our trading partners slowing, our export sales, which have been a source of strength, very probably will slow as well. These restraining influences on economic activity, however, will be offset somewhat by the favorable effects of lower prices for oil and other commodities on household purchasing power. Ultimately, the trajectory of economic activity beyond the next few quarters will depend greatly on the extent to which financial and credit markets return to more normal functioning. Inflation has been elevated recently, reflecting the steep increases in the prices of oil, other commodities, and imports that occurred earlier this year, as well as some pass-through by firms of their higher costs of production. However, expected inflation, as measured by consumer surveys and inflation-indexed Treasury securities, has held steady or eased, and prices of imports now appear to be decelerating. These developments, together with the recent declines in prices of oil and other commodities as well as the likelihood that economic activity will fall short of potential for a time, should lead to rates of inflation more consistent with price stability. This past weekend, the finance ministers and central bank governors of the Group of Seven industrialized countries met in Washington. We committed to work together to stabilize financial markets and restore the flow of credit to support global economic growth. We agreed to use all available tools to prevent failures that pose systemic risk. We affirmed we will ensure our deposit insurance programs instill confidence in the safety of savings. We agreed to ensure that our banks and other major financial intermediaries, as needed, can raise capital from public as well as private sources. We further agreed that we would take all necessary steps to unfreeze interbank and money markets, and that we will act to restart the secondary markets for mortgages and other securitized assets. Finally, we recognized that we should take these actions in ways that protect taxpayers and avoid potentially damaging effects on other countries. I believe that these are the right principles for action, and I see the steps announced by our government yesterday as fully consistent with them. I have laid out for you today an extraordinary series of actions taken by policymakers throughout our government and around the globe. Americans can be confident that every resource is being brought to bear to address the current crisis: historical understanding, technical expertise, economic analysis, financial insight, and political leadership. I am not suggesting the way forward will be easy, but I strongly believe that we now have the tools we need to respond with the necessary force to these challenges. Although much work remains and more difficulties surely lie ahead, I remain confident that the American economy, with its great intrinsic vitality and aided by the measures now available, will emerge from this period with renewed vigor. N Closer to the Bottom By JACQUELINE DOHERTY Monday, October 13, 2008 FEATURES MAIN Closer to the Bottom By JACQUELINE DOHERTY There's reason to believe that the stock-market averages will hit bottom someti>'ne in the nextfeiu months, even if the economy is still in the middle of a recession, 'lhe~ buu-and-hold a~~proach still applies. FOR THE TENS OF MILLIONS OF INVESTORS WHO HAVE been nervously watching the U.S. stock market's 40% decline in the past 12 months, and it's 18% drop in the past week alone, history holds some solace: There is a case to be made that the averages will hit bottom sometime in the next few months, even if the economy is in the middle of a recession. Indeed, stocks showed some signs of finding a bottom late Friday, with the Dow Jones industrial average closing down just 128 points on the day, after having plummeted about 700 points earlier in the session. The Nasdaq Composite even managed a small gain on the day. Investors will be watching for a possible market bounce that could occur early this week, especially if any new measures to ease the global economic crisis emerge from the weekend's meeting in Washington of the finance ministers of the so-called G-7 industrial nations. The lesson of history is this: The average U.S. recession since the late 1940s has lasted 10 months, and stocks typically hit their low point about three months before the recession ends. So, if the U.S. entered a recession on July 1, as many economists now suggest, and the recession was to last until April 2009, a typical bottom for stocks would occur some time in the next few months. kr°rearr°', Granted, much depends on the ability of the Federal Reserve and the U.S. Treasury to put rescue measures in place that will unlock today's frozen capital markets. And there are nagging concerns that the next disaster may lurk in the unregulated $60 trillion market for credit-default swaps. But the fear that sent the market down so sharply last week may have driven stocks close to their ultimate lows. "I don't think this is the end of America as we know it," says Byron Wien, chief investment strategist at Pequot Capital Management. "I think it's conceivable that the markets will bottom before year end." Wien cites a number of positive events in recent weeks. The Treasury now has the ability, through the $700 billion Troubled Asset Relief Program (TARP), to start buying distressed assets from banks. There is speculation the federal government will come up with yet another program to help the housing market. Oil prices have fallen below $80 a barrel from levels above $140, a slide that on its own should boost economic growth. And smart investors have started buying at what they hope are good prices. Barclays (ticker: BCS) purchased Lehman Brothers' investment-banking operations in the U.S. Warren Buffett took stakes in General Electric (GE) and Goldman Sachs (GS). Citigroup (C) and Wells Fargo (WFC) actually fought over the right to buy Wachovia (WB). Recessions certainly have been both shorter and longer than the 10-month average. On a positive note, five recent recessions were shorter. The 1980 recession lasted a mere six months, and there were four recessions that lasted only eight months, according to data from Bespoke Investment Group. But a mild recession wasn't what the market feared last week. Investors were worried the current economic slump will be "different" from those in the past. American consumers are carrying more debt this time around, and the banking system is in much more fragile shape. THOUGH A TYPICAL RECESSION would end by next spring, economists are paying increasing attention to longer downturns, specifically the two recessions since 1940 that each lasted 16 months. The November 1973 to August 1975 downdraft was sparked by the Arab oil embargo, while the July 1981 to November 1982 recession was triggered by the Federal Reserve hiking interest rates dramatically to curtail runaway inflation. In each case stocks bottomed about three months before the recession ended. Boo-Ho0 This year's rn+~rnentous dacline in st~_~cl;s already' s~~ruasses the a~'erage tsar-rnarket slide ~?r 3Q9~o Since 1940. Recent YTb Prlce Return P/E« rein 6451.19 -3~.3~X~ ra.a. SB.P 500 899.22 -.38.8 17.1 Nasdaq 1849.51 -37.8 19.E Base9 on 33rninb5 35kim3t?S f:r the pr>=t~us fire qu8rt?re.. N.A.-N~t aprlicaGF?. Sd~ro?s: 6ilinff AssxiBtes;'A'SJ h1.3MEt C~3ta The good news today is that stocks appear to have gotten out ahead of any recession, falling so sharply that they might already have priced in pretty horrible times ahead. The Dow is down almost as much in the past year as the 45% it fell in the 1973-1975 recession, and its 12-month decline far exceeds the 24% it lost in the period leading up to and during the 1981-1982 recession, according to Birinyi Associates. Today's 40% drop also far surpasses the average bear-market slide of 30% since 1940. Markets that decline for more than a year average a loss of 42%, says Paul Desmond, President of Lowry Research Corp. The Dow has fallen by more than 40% 10 other times, with all but one such drop occurring between 1900 and 1930. It slid by more than 50% only once, between 1929 and 1932, when it shed 89%. That bear was r` cV bracketed by the Great Depression, which lasted for 44 months. A recession is labeled a depression when economic activity shrinks by 10% or more. From August 1929 to March 1933 U.S. economic output contracted by more than 30%. That's what made it "Great." Table: Stocks and Recessions: What History But back in the 'Thirties, the financial markets lacked many of Tells us on Last Page today's safety nets, like deposit insurance, and the Federal Reserve didn't loosen the purse strings quickly, as the Fed lately has done. Also, the stock-market rally leading up to the Depression was much more frenzied. From 1921 to 1929, the market rose almost 500%. In the rally from 1987 to 2000, stocks jumped 574%, but did so over a much longer period. From 2002 to the market's peak in October 2007, the Dow rose 94%. Given stocks' swoon in the past 12 months, prices look much more reasonable today. The companies in the Standard & Poor's 500 trade for an average of 11.6 times the profits that analysts expect them to earn next year. And the index trades at 17.1 times the companies' most recent earnings. That's only slightly below the market's 60-year average price/earnings multiple of 17.8, according to Birinyi Associates. The current P/E is still high compared to the low P/Es of previous major recessions. During the '74, '80 and '82 recessions, the S&P's trailing P/E dropped to between 6.8 and 7.2. But in the '70, '90 and 'O1 economic downturns, the P/E ranged from 12.9 to 23.5. One person who fears further market declines is Wayne Nordberg, chairman of Hollow Brook Associates. "This is the end of the great credit supercycle," he says. "It takes a very long time to unwind." Or, as Doug Cliggott, manager of the Dover Management Long- Short Sector Fund, put it with regard to the TARP, "we're fighting a forest fire with a garden hose." The Bottom Line Though dangers aplenty still lurk for the economy and the market, studies of stock- market performance through recessions suggest the Dow could see its low shortly. But such gloomy sentiments aren't a reason to get out of the stock market. It could be quite the opposite, in fact. Consider that $1 invested in stocks from February 1966 through May 2007 would have grown to $16.58 in that period. That's a 7% annual return. By contrast, investors who were out of the market in the five best days each year during that span were left with only 11 cents. That's a pretty good case for the buy and hold philosophy, or, if you're out of the market, for getting back in soon. 0 ~ 0 ~ Vj N T N ~. O. 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N V ~ c°i33coi3 3 Q C N r N V icoi3c°1i3 ~' ~p d N a+ m U 3c°7i3c°i3 ~c°c°~c° ~ ~ c°~c°~c° 8 c°~c°~c° O N U N Q `m m ~`- U N °o m a 0 C7 E N n m <°n 0 0 U O nD 0 of O N a m U Z II Z m 0 0 m to n II ¢co V O 0 iu z° m T (6 C O .~ C .~ t6 Q L O M Sorry, Chicken Little By GENE EPSTEIN Monday, October 20, 2008 BARROWS COVER Sorry, Chicken Little By GENE EPSTEIN Iy may feel as if the sky is falling, but things aren't as bad as they seem. Our sauiors: cheap oil. stron4 exhorts and inuentoru rebuildin_q. THESE ARE HARDLY THE BEST OF TIMES FOR THE U.S. ECONOMY. But they may not be as bad as you think. The credit crisis, stock-market crash and fall in home prices have raised legitimate fears of a nasty and protracted recession. Yet the economy has often proved more resilient than is commonly thought -- and constructive factors that have gotten scant attention should help the U.S. skirt a deep recession. In fact, it's possible that the downturn could prove to be one of the briefest and mildest on record. The main positive is the huge boost to consumer spending that will come from the decline in energy costs. Although the run-up in oil, which punished consumers in the spring and summer, made front-page news, far less attention has been paid to the benefits of petroleum's recent slide. The wide swing in both the percentage and sheer dollar magnitude of prices has been unprecedented. Over the past 14 months, the bellwether price of crude oil has made a stunning round trip, rising from around $70 a barrel in mid-August 2007 to $147 by mid-July, and falling below $70 Thursday. Natural gas has also slid about 50% from its early-July peak. If oil's price averages around $80, consumers will get a big dose of relief. Soaring energy costs had body-slammed them in July, August and September. Hence the dismal performance of retail sales over that stretch. But beginning with the current month, the energy payback will be enormous. This economic shock absorber should help offset the cruel blows of the credit crunch and declining wealth from equities and homes. The cavalry hasn't exactly swept in to rescue the economy. But the energy benefit could keep a significant recession at bay until reinforcements -- particularly inventory rebuilding -- arrive early next year, and as credit starts to flow more freely. What's the most likely scenario? We're now in the roughest patch. Real -- that is, inflation-adjusted -- gross domestic product probably grew at an annual rate of 0% to 1% in the three months ended Sept. 30 and will do no better in the current quarter. Growth should then accelerate, to an annualized pace exceeding 1% by 2009's first quarter and 2% by the second. By the third and fourth quarters, something resembling a recovery will have begun, with annual GDP growth topping 3%. However, the unemployment rate will N M continue to rise through mid-2009. This reflects the reality that, since mid-2007, real GDP hasn't risen fast enough to prevent joblessness from climbing and won't until the end of 2009. Such forecasts may sound surprisingly upbeat, given all the scare headlines. But they're roughly in line with the consensus of the 10 most optimistic forecasts in the latest survey published by Kansas City-based Blue Chip Economic Indicators. This organization, which surveys 50 forecasts each month, reported in its Oct. 10 release that the overall consensus now believes a recession began in this year's third quarter and will persist through 2009's first three months. However, the average of the 10 most optimistic predictions put economic expansion at an annual rate of 0.6% in both 2008's third and fourth quarters. DOW JONES REPRINTS Weak, Not Terrible The 10 most optimistic forecasts from Blue Chip Economic In,:licators saa ccrosumer spanning wringing from a negati':e in the thlr~~ Cllkart9r t~ ~ Ii~JSltft'@ In the ~~1117ant one. vrith nU ~~uarteis of declining economi~~ gr~~wth betw'?an Hour and the end of 200x... ~~;„ 5 C 1~ zc r5 je D.5 uc -o.s r r Real GDP Personal Consumption Expenditures Un~rnpltayrnent Rate 6.Q'.•'o 6.1`Yu 6.4'~u 6 6°•~ 6.6ao 6.5?'0 ~ yc._ 5 3~r2. In a story last month ("And Now Some Good News -- Courtesy of Oil," Sept. 22), I noted that a bellwether crude price of $90 would produce an estimated overall energy savings of $150 billion over about six months. If the price holds at $80, the energy dividend could be closer to $170 billion. Assume that $75 billion of that is spent in the fourth quarter and another $75 billion is spent in 2009's first quarter, and the boost to real consumer spending from the energy dividend alone would run at an annual rate of 3.5% in each period. Unfortunately, declining credit and decreased wealth in homes and stocks will drain away most of the gains from energy in both quarters. In fact, the net contribution from energy will be quite small when the full debit from credit-and-wealth woes is applied. tc} ,,, fi; act ~U Icy ., sc~ What, then, will help boost real consumer Zoos 1009 spending? For one thing, labor income ,,,~~~,., c.,;..,,_.r~,,.~, ~ ^.~.,~~,~~ ;.•..~, „~~_,f,- 5,,,,.~~, ~~,•• ;...,,;~,~ ~„~~ ,~_, should rise. The projected jobless rate of 6.2% is still fairly low by historical standards, and should be enough to lift wages and salaries. With energy prices falling and food tabs moderating, the headline consumer price index may even go negative for a few months. It should certainly be low enough to permit an increase in real wages and salaries. ~~:~ lra '~a era ~r~ zc~ 3Q a~ 2008 2009 What this comes down to, after due allowance for credit-and-wealth shocks, is projected growth in real consumer spending of only 0.9% in the fourth quarter and 1.5% in the first. Since consumer spending accounts for 70% of gross domestic product, this should push GDP into plus territory. And by next year, in addition to the freer flow of credit, other reinforcements should begin to arrive. The expansion phase of this business cycle produced relatively modest increases in capital investment. Thus, there's no capital overhang to work off. Manufacturing capacity, in high-tech and other industries, grew at a subdued rate. Sometime in 2009, then, capital investment could start contributing to growth. EARLY IN 2009, inventory rebuilding could resume, to remedy the inventory liquidation that started late last year and that has pushed inventory-to-sales ratios unusually low. The only inventory overhang currently is in vehicles, and is partly attributable to a scarcity of auto loans. But as the credit crunch eases, auto sales probably will pick up. If gasoline prices don't rise, consumers may be more willing to buy the now-unwanted cars that are less than fuel-efficient. In any case, the stage could be set for inventory rebuilding of all other manufactured goods. In addition, exports, which boost GDP growth, are rising faster than imports, which reduce it. The slowdown in the growth of foreign markets will trim export gains, as will the appreciation of the trade-weighted dollar. But net exports should keep boosting gross domestic product growth through 2009, although at a diminished rate. A comparison with the economic landscape after 9/11 is constructive. Reflecting the general pessimism at the time, one Wall Street economist observed on Oct. 22, 2001, that with "layoffs mounting, debt burdens elevated, saving rates low, wealth effects tapped out and year-end bonuses likely to be very disappointing, I find it hard to envision a prompt rebound in consumer demand over the next couple of months." Yet, the rebound in demand was not only Reo~ons for Hope b't+hy a major recessi:~n seems crnlikely: 1. 5tartinq in the curient ciuart?r, consumer spending, .•.~hic17 accounts fc~r 70^..~ of gross domestic product, is likeh, to post ~~ains, I~olstered 17; Ir~svei en?rgy prices. 2. Inventory-to-sales ratios are already lean, haldin~J out thr ~:hance of ii~ventor,~ ielauilding by early next year. 3. Capital spending aras subdtreci during th? r?c?nt expan- sinit, I?n~:inq no n?rd to ~.vurk off excess ind~_~strial capacir;. 4. Net exi~orts are lik?h; to continue to beast ctio.•.th. prompt, it was virtually off the charts. After rising at an annualized 1.8% in 2001's third quarter, real consumer spending soared at a 7% clip in the fourth. By 2002's first quarter, consumption was up by 1.4%; by the second, 2.4%. True, as scary a month as October 2001 was for the U.S. economy, October 2008 seems far worse. For one thing, while the decline in wealth was quite large seven years ago, it was far smaller than it is now. But, remember, I'm not looking for anything like a 7% jump in consumer spending coming on top of a previous 1.8% gain. As mentioned, the projected increase in this year's fourth quarter is a mere 0.9%, against a probable 1% decline in the previous quarter. (Third-quarter estimates won't arrive until Oct. 30.) MORE TO THE POINT, why didn't consumers fiercely tighten their belts after 9/11? A March 2005 staff report from the New York Federal Reserve seems to have the answer: "While consumption responds to permanent changes in wealth in the expected manner, most changes in wealth are transitory with no effect on consumption." M In October 2001, then, consumers must have viewed the change in their wealth as transitory, rather than permanent. How do they view the current decline? No one knows yet. I assume that there will be a substantial blow to consumption. But I don't assume that it will be nearly as great as do those who believe that all large drops in wealth, however temporary, hurt consumption. If I'm right, then, the only quarter of contraction this time around (barring revisions) will have been 2007's fourth, in which GDP fell at an annualized 0.2%. The economy won't be great through the end of 2009, but it should do far better than the gloom-mongers expect. URL for this article: http://online.barrons.com/article/SB 122428335256346205.html Copyright 2008 Dow Jones & Company, Inc. All Rights Reserved m a~ T (0 C O .~ N C .~ (0 Q N L H M ~l~e ~icty alark Z~iuics Buy American. I Am. By WARREN E. BUFFETT c~:.tlr ;~c~« ~ lurk c~:ii~ics October i~, 2008 Buy American. I Am. By WARREN E. BUFFETT Omaha THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary. So ... I've been buying American stocks. This is my personal account I'm talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be ioo percent in United States equities. Why? A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation's many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, io and 20 years from now. Let me be clear on one point: I can't predict the short-term movements of the stock market. I haven't the faintest idea as to whether stocks will be higher or lower a month - or a year -from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over. A little history here: During the Depression, the Dow hit its low, 4i, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933• BY that time, the market had already advanced 3o percent. Or think back to the early days of World War II, when things were going badly for the United States in Europe and the Pacific. The market hit bottom in April 1942, well before Allied fortunes turned. Again, in the early i98os, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investor's best friend. It lets you buy a slice of America's future at a marked-down price. Over the long term, the stock market news will be good. In the loth century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow M rose from 66 to u,497• You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy. Today people who hold cash equivalents feel comfortable. They shouldn't. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts. Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky's advice: "I skate to where the puck is going to be, not to where it has been." I don't like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I'll follow the lead of a restaurant that opened in an empty bank building and then advertised: "Put your mouth where your money was." Today my money and my mouth both say equities. Warren E. Buffett is the chief executive of Berkshire Hathaway, a diversified holding company. Copyright 2008 The New York Times Comoanv _T (6 C O .~ C .~ m (6 Q _~ L sr^^r^s^r~~~^trr^a^~^^r~^^^^r~•~sr^ Village of Tequesta General Employees' Pension Funds Investment Policy and Corporate Governance Compliance Section ~;~ ~. I~.~:v.~a hv~~~~r~I~?~r Ah~~lsc~[~5, I~~. As of September 30, 2008 DANA INVESTMENT ADVISORS, INC. r~~~r~~~~~~t~~~~~~~~~r~r^~+~~r~~r~~ Table of Contents `;r;< ~~;,;. ,F,~.~ ,.~*. Peres 3-6 Value Line Ratings, Corporate Governance Rankings, Corporate Bond Ratings 7-44 Proxy Vote Summary Report DANA INVESTMENT ADVISORS, INC. 2 I. Value Line Ratings and Corporate Governance Rankings ~~>~~ Value Line Safety Rating ~~; - Stocks are broken into 5 groups ~~: ..~t - The Value Line universe is comprised of approximately 1,700 stocks ~t ,? - Value Line Safety Ranking equally weights a Companies Financial Strength & Stocks Price Stability - Group 1 contains those that are expected to have the best Company Financial Strength & Stock Price Stability in the next 6-12 months - Group 5 contains those expected to have the worst Company. Financial Strength & Stock ,Price Stability in the next 6-12 months - Stocks with a Value Line Safety ranking of 6 have not yet been rated Corporate Governance - Institutional Shareholder Services (ISS) has been retained to vote proxy statements - ISS also provides a Corporate Governance Quotient (CGQ) rating - 100 is the highest, 1 is the lowest - Stocks are rated on a relative basis - Rating is based on Shareholder Advocacy issues and not on financial strength or investment potential - Stocks with an "n/a" rating have not yet been analyzed for corporate governance by ISS DANA INVESTMENT ADVISORS, INC. S s Security Symbol COMMON STOCK Materials arg ecl henoy lz PPg px Industrials cmi de emr gd hsc lint ph entry tex txt unp utx LQ11Q 111VNJL111Li11L Al1V 1JV1J VALUE LINE SAFETY RATINGS ISS CORPORATE GOVERNANCE RATINGS Village of Tequesta General Employees' Pension Funds September 30, 2008 Value Line ISS Corp Gov Market Security Safety Rating Index Rating Value Airgas Inc. Ecolab Inc. Henkel AG & Co. Lubrizol Corp. PPG Industries Inc. Praxair Inc. Cummins Inc Deere & Company Emerson Electric Co. General Dynamics Harsco Corp Lockheed Martin Corporation Parker Hannifin Corp. TNT NV-ADR Terex Corp. Textron Inc. Union Pacific Corp. United Technologies Corp Percent of 3 52 3,425.85 0.65 2 26 4,560.88 0.86 n/a n/a 1,476.00 0.28 3 85 3,451.20 0.65 2 31 5,132.16 0.97 2 84 4,376.14 0.83 22,422.23 3 73 3,322.72 0.63 2 45 3,564.00 0.67 1 2 4,201.37 0.79 1 95 4,490.82 0.85 2 58 3,458.67 0.65 2 16 5,593.17 1.06 3 45 3,551.00 0.67 n/a n/a 1,820.00 0.34 3 75 2,441.60 0.46 3 66 2,547.36 0.48 5 98 9,464.28 1.79 1 80 9,489.48 1.79 53,944.47 2 75 5,137.28 0.97 2 65 4,107.52 0.77 Telecommunication Services t AT&T Inc. vz Verizon Communications 9,244.80 Consumer Discretionary bby Best Buy Inc. dtv DIRECTV Group Inc. dis Disney Walt Company Holding Company jci Johnson Controls Inc. mcd McDonald's Corporation nke Nike Inc. Class B omc Omnicom Group rost Ross Stores Inc. vfc V F Corporation Consumer Staples cvs ko deo gis kmb pep pm 3 33 4,162.50 0.79 3 22 3,796.10 0.72 3 98 4,511.43 0.85 2 61 8,310.42 1.57 1 53 4,072.20 0.77 2 5 9,232.20 1.74 3 46 3,547.52 0.67 3 21 3,828.24 0.72 3 70 4,793.22 0.90 46,253.83 CVS Corporation 3 69 8,650.62 1.63 Coca-Cola Company 1 66 4,653.44 0.88 Diageo PLC n/a n/a 4,407.04 0.83 General Mills Inc. 1 88 6,734.56 1.27 Kimberly-Clark Corp. 1 85 6,030.12 1.14 Pepsico Inc 1 92 4,775.09 0.90 Philip Moms 3 n/a 9,812.40 1.85 International r ^ r L411CL 111 V V J L111Li11L AU V 1J V l J VALUE LINE SAFETY RATINGS ISS CORPORATE GOVERNANCE RATINGS Village of Tequesta General Employees' Pension Funds September 30, 2008 Security Value Line ISS Corp Gov Market Percent of Symbol Security Safety Rating Index Rating Value Equities bmc csco goog hpq infy intc ibm mchp msft orcl BMC Software Inc 3 68 Cisco Systems 3 42 Google Inc. Class A 3 7 Hewlett Packard 3 52 Company Infosys Technologies - 3 n/a SP ADR Intel Corporation 3 50 International Business 1 23 Machines Corp. Microchip Technology 3 18 Inc. Microsoft Corporation 2 99 Oracle Corporation 3 44 4,179.98 0.79 10,242.24 1.93 4,405.72 0.83 11,005.12 2.08 4,430.23 0.84 9,177.70 1.73 5,263.20 0.99 4,591.08 0.87 10,996.28 2.07 10,134.69 1.91 102,969.99 Health Care abt Abbott Laboratories 1 58 5,067.04 0.96 bdx Becton Dickinson & Co 1 24 9,952.24 1.88 bmy Bristol-Myers Squibb 3 86 5,004.00 0.94 Co. esrx Express Scripts Inc 3 58 5,167.40 0.97 gent Genzyme Corp. 3 23 5,176.96 0.98 gild Gilead Sciences Inc 3 53 4,882.41 0.92 jnj Johnson & Johnson 1 44 5,680.96 1.07 mck McKesson Corp. 3 81 5,165.76 0.97 stj Saint Jude Medical 3 62 10,698.54 2.02 tmo Thermo Fisher 3 30 9,735.00 1.84 Scientific Inc. 66,530.31 International Dana ADR Strategy aeg Aegon NV ADR 3 n/a 1,465.93 0.28 az Allianz SE ADR n/a n/a 1,823.43 0.34 caj Canon ADR 2 n/a 2,529.25 0.48 cx Cemex ADR 3 n/a 2,118.06 0.40 ccu Cia Cervecerias n/a n/a 1,894.49 0.36 Unidas-Adr dnsky Danske Bank A/S - n/a n/a 2,217.20 0.42 Unspons ADR eongy E.ON AG ADR n/a n/a 1,350.00 0.25 enh Endurance Holdings n/a n/a 2,195.32 0.41 ADR ktc KT Corporation ADR n/a n/a 2,820.72 0.53 maksy Marks & Spencer n/a n/a 1,239.75 0.23 Group PLC ADR dcm NTT DoCoMo ADR n/a n/a 3,561.60 0.67 sny Sanofi Aventis ADR 1 n/a 2,399.51 0.45 ti/a Telecom Italia S.P.A. n/a n/a 2,020.30 0.38 CL A ADR tmx Telefonos de Mexico 3 n/a 2,060.00 0.39 ADR tm Toyota Motor Corp - 1 n/a 2,488.20 0.47 Spon ADR t i L CL11Q 111V LJJL111Li11L Al1V 1J V1J CORPORATE BOND RATINGS Village of Tequesta General Employees' Pension Funds September 30, 2008 Market Security Quantity Value S & P Moody CORPORATE BONDS CSX Corp 5,000.00 4,999.74 BBB- Baa3 6.250% Due 10-15-08 Deutsche Bank Financial 6,000.00 5,976.87 A+ Aa2 7.500% Due 04-25-09 Target Corp. 5,000.00 5,055.00 A+ A2 5.375% Due 06-15-09 Intl Lease Finance Corp 5,000.00 3,850.00 A- Baal 5.000% Due 04-15-10 Capital One Bank 5,000.00 4,289.50 A- A2 5.750% Due 09-15-10 Kohls Corporation 5,000.00 5,007.90 BBB+ Baal 6.300% Due 03-01-11 Bank One Corp 5,000.00 4,878.86 A+ Aa3 5.900% Due 11-15-11 Mercantile Safe Dep & 5,000.00 4,975.70 AA- NA Tr 5.700% Due 11-15-11 Avon Products Inc. 5,000.00 4,938.68 A A2 4.620% Due OS-15-13 Goldman Sachs Group 5,000.00 4,213.35 AA- Aa3 Inc. 5.250% Due 10-15-13 Rockwell Collins 5,000.00 4,775.50 A Al 4.750% Due 12-01-13 US Bank NA 5,000.00 5,010.85 AA Aa2 6.300% Due 02-04-14 HSBC Finance Corp. 5,000.00 4,480.16 AA- Aa3 5.250% Due 04-15-15 Lowe's Companies Inc. 5,000.00 4,916.60 A+ Al 5.000% Due 10-15-15 Wachovia Bank NA 5,000.00 2,625.00 A+ Aa3 5.600% Due 03-15-16 Kimberly Clark 5,000.00 4,732.20 A A2 6.125% Due 08-01-17 J.P. Morgan & Co. Inc. 5,000.00 4,829.50 AA- Aal 6.000% Due 10-01-17 79,555.40 TOTAL CORPORATE BONDS 79,555.40 ^r^^rr^^^r^^^^r^^^^^^r^^r~^^^r^-~^ II. Proxy Vote Summary ~, ~~ - - Identifies each company that had a shareholder proxy vote during the most recent calendar quarter. ,- y Y: a+. , - Summarizes each proxy item by company. - Identifies whether vote was cast for or against. DANA INVESTMENT ADVISORS, INC. Q Vote Summary Report (Short) C 10-01-07 to 09-30-08 I: ~ ~ L 1 Elect Director R.S. Austin 4/25/2008 2/26/2008 For ~10 Elect Director S.C. Scott, III 4/25/2008 2/26/2008 For ~11 Elect Director W.D. Smithburg 4/25/2008 2/26/2008 For 12 Elect Director G.F. Tilton 4/25/2008 2/26/2008 For ~13 Elect Director M.D. White 4/25/2008 2/26/2008 For ] .2 Elect Director W.M. Daley 4/25/2008 2/26/2008 For ~ 3 Elect Director W.J. Farrell 4/25/2008 2/26/2008 For Elect Director H.L. Fuller 4/25/2008 2/26/2008 For 1.5 Elect Director W.A. Osborn 4!25/2008 2/26/2008 For ~6 Elect Director D.A.L. Owen 4/25/2008 2/26/2008 For ~7 Elect Director $. Powell, Jr. 4/25/2008 2/26/2008 For 1.8 Elect Director W.A. Reynolds 4/25!2008 2/26/2008 For Elect Director R.S. Roberts 4/25/2008 2/26/2008 For Ratify Auditors 4/25/2008 2/26/2008 For Amend Human Rights Policy to Address Access to Medicines 4/25/2008 2/26/2008 Against Advisory Vote to Ratify Named Executive Officers' Compensation 4/25/2008 2/26/2008 For Meeting for ADR Holders 4/23/2008 3/25/2008 APPROVAL OF THE ADOPTION OF THE ANNUAL ACCOUNTS 2007. 4/23/2008 3/25/2008 For 10 APPROVAL TO APPOINT MR. D.P.M. VERBEEK TO THE SUPERVISORY BOARD. 4/23/2008 3/25/2008 For APPROVAL TO APPOINT MR. B. VAN DER VEER TO THE SUPERVISORY BOARD. 4/23/2008 3/25/2008 For APPROVAL TO AUTHORIZE THE EXECUTIVE BOARD TO ISSUE COMMON SHARES OF THE COMPANY. 4/23/2008 3/25/2008 For APPROVAL TO AUTHORIZE THE EXECUTIVE BOARD TO RESTRICT OR EXCLUDE PRE-EMPTIVE RIGHTS 4/23/2008 3/25/2008 For UPON ISSUING COMMON SHARES OF THE COMPANY. APPROVAL TO AUTHORIZE THE EXECUTIVE BOARD TO ISSUE COMMON SHARES RELATED TO INCENTIVE 4/23/2008 3/25/2008 For PLANS. 23 2008 3/25/2008 APPROVAL TO AUTHORIZE THE EXECUTIVE BOARD TO ACQUIRE SHARES OF THE COMPANY. 4/ / For APPROVAL OF THE FINAL DIVIDEND 2007. 4/23/2008 3/25/2008 For 3 APPROVAL TO RELEASE THE MEMBERS OF THE EXECUTIVE BOARD FROM LIABILITY FOR THEIR DUTIES. 4/23/2008 3/25/2008 For . APPROVAL TO RELEASE THE MEMBERS OF THE SUPERVISORY BOARD FROM LIABILITY FOR THEIR DUTIES. 4/23/2008 3/25/2008 For Ratify Auditors 4/23/2008 3/25/2008 For APPROVAL TO CANCEL 99,769,902 COMMON SHARES, REPURCHASED IN 2007. 4/23/2008 3/25/2008 For APPROVAL TO RE-APPOINT MR. LW. BAILEY, II TO THE SUPERVISORY BOARD. d/23/2008 3/25!2008 For 8 APPROVAL TO APPOINT MS. C. KEMPLER TO THE SUPERVISORY BOARD. 4/23/2008 3/25/2008 For ^ 08 008 / APPROVAL TO APPOINT MR. R.J. ROUTS TO THE SUPERVISORY BOARD. 25/2 4/23/20 3 For 1.1 Elect Director William O. Albertini 8/5/2008 6/12/2008 For 0 0 Elect Director Lee M. Thomas 8/5!20 8 6/12/20 8 For Elect Director John C. Van Roden, Jr. 8/5/2008 6/12/2008 For Ratify Auditors 8/5/2008 6/12/2008 For ^ Amend Executive Incentive Bonus Plan 8/5/2008 6/12/2008 For 1.1 Elect Director David W. Kenny 5/20/2008 3/31/2008 For ~. Elect Director Peter J. Kight 5/20/2008 3/31/2008 For Elect Director Frederic V. Salerno 5/20/2008 3/31/2008 For Ratify Auditors 5/20/2008 3/31/2008 For . Reference: http:i/www. Votex.com/ Vote Summary Report (Short) 10-O1-07 to 09-30-08 Jl~ e-etinn/Record Date Vote Cast 1 Elect Director Elizabeth E. Bailey 5/28!2008 4/4/2008 For Advisory Vote to Ratify Named Executive Officers' Compensation 5/28/2008 4/4/2008 For Provide for Cumulative Voting 5/28/2008 4/4/2008 For Adopt the Marketing and Advertising Provisions of the U.S. Master Settlement Agreement Globally 5/28/2008 4/4/2008 Against Cease Advertising Campaigns Oriented to Prevent Youth Smoking 5/28/2008 4/4/2008 Against 14 Implement the "Two Cigarette" Marketing Approach 5/28/2008 4/4/2008 Against Adopt Principles for Health Care Reform 5/28!2008 4/4/2008 Against Elect Director Gerald L. Baliles 5/28/2008 4/4/2008 For 3 Elect Director Dinyar S. Devitre 5/28/2008 4/4/2008 For Elect Director Thomas F. Farrell II 5/28/2008 4!4/2008 For Elect Director Robert E. R. Huntley 5/28/2008 4/4/2008 For Elect Director Thomas W. Jones 5/28/2008 4/4!2008 For ^ Elect Director George Munoz 5/28/2008 4/4/2008 For 8 Elect Director Michael E. Szymanczyk 5/28/7008 4/4/2008 For ~ ° Ratify Auditors 5/28!2008 4/4/2008 For 1.1 Elect Director Mary C. Baskin 5/ 19/2008 3/20/2008 For Elect Director Neil M. Hahl 5/19/2008 3/20!2008 For Elect Director Philip R. Harper 5/19/2008 3/20/2008 For 1.4 Elect Director John A. Koskinen 5/19/2008 3/20/2008 For Elect Director Stan Lundine 5/19/2008 3/20/2008 For ~6 Elect Director Kenneth D. Peterson 5/19/2008 3/20/2008 For 7 Elect Director Alvin N. Puryear 5/19/2008 3/20/2008 For Elect Director Malon Wilkus 5/19/2008 3/20/2008 For 2 Adopt Majority Voting for Uncontested Election of Directors 5/19/2008 3/20/2008 For Approve Stock Option Plan 5/19/2008 3/20/2008 For Amend Incentive Bonus Plan 5/19!2008 3!20/2008 Against 5 Approve Issuance of Convertible Debt Securities or Preferred Stock 5/19/2008 3/20/2008 For . Change Company Name 5!19/2008 3/20/2008 For Rarify Auditors 5/19/2008 3/20/2008 For Other Business 5/19/2008 3/20/2008 Against Refeiance: http;//www.Votex.com/ ^ Vote Summary Report (Short) 10-O1-07 to 09-30.08 1.1 Elect Director Robert H. Brust 3/11/2008 1/18!2008 ~10 Elect Director Willem P.Roelandts 3/11/2008 1/18/2008 i11 Elect Director Michael R. Splinter 3/11/2008 1/18/2008 1.2 Elect Director Deborah A. Coleman 3/11/2008 1/18/2008 ~i Elect Director Aart J. de Geus 3/11/2008 1/18/2008 1.4 Elect Director Philip V. Gerdine 3/11/2008 1/18/2008 ~ 5 Elect Director Thomas J. Iannotti 3/11/2008 1/18/2008 ^6 Elect Director Charles Y.S. Liu 3/11/2008 1/18/2008 1.7 Elect Director James C. Morgan 3/11/2008 1/18/2008 Elect Director Gerhazd H. Pazker 3/11/2008 1/18/2008 Elect Director Dennis D. Powell 3/11/2008 1/18/2008 2 Ratify Auditors 3/11/2008 1/18Y2008 Elect Director Randall L. Stephenson 4/25/2008 2!27/2008 10 Elect Director John B. McCoy 4/25/2008 2/27/2008 ^ Elect Director Mary S. Metz 4/25/2008 2/27/2008 Elect Director Joyce M. Roche 4/25/2008 2/27/2008 Elect Director Laura D' Andrea Tyson 4/25/2008 2/27/2008 Elect Director Patricia P. Upton 4/25!2008 2/27/2008 15 Ratify Auditors 4/25/2008 2/27/2008 Report on Political Contributions 4/25/2008 2/27/2008 Exclude Pension Credits from Earnings Performance Measure 4/25/2008 2/27/2008 Require Independent Lead Director 4/25/2008 2/27/2008 Establish SERP Policy 4/25/2008 2/27/2008 2 Elect Director William F. Aldinger III 4/25/2008 2/27/2008 Advisory Vote to Ratify Named Executive Officers' Compensation 4/25/2008 2/27/2008 Elect Director Gilbert F. Aurelio 4/25/2008 2/27/2008 4 Elect Director Reuben V. Anderson 4/25/2008 2/27/2008 Elect Director James H. Blanchard 4/25/2008 2/27/2008 Elect Director August A. Busch III 4/25/2008 2/27/2008 Elect Director James P. Kelly 4/25/2008 2/27/2008 Elect Director Jon C. Madonna 4/25/2008 2/27/2008 9 Elect Director Lynn M. Martin 4/25/2008 2!27/2008 ^ Reference: http:%%www.Votex.comi Vote Summary Report (Short) ~ 10-O1-07 to 09-30-08 ~ 1.1 Elect Director B. Garland Cupp 7/22/2008 5/27/2008 For Elect Director Robert E. Beauchamp 7/22/2008 5/27/2008 For ~3 Elect Director Jon E. Barfield 7/22/2008 5!27/2008 For 4 Elect Director Gary Bloom 7/22/2008 5/27/2008 For ~5 Elect Director Meldon K. Gafner 7/22/2008 5/27/2008 For 1.6 Elect Director P. Thomas Jenkins 7/22/2008 5/27/2008 For ~7 Elect Director Louis J. Lavigne, Jr. 7/22/2008 5/27f2008 For Elect Director Kathleen A. ONeil 7/22/2008 5/27/2008 For 1.9 Elect Director Tom C. Tinsley 7/22/2008 5/27/2008 For ^ Ratify Auditors .7/22/2008 5/27/2008 For 1 Elect Director Lewis B. Campbell 5/6/2008 3/10/2008 For Elect Director R. Sanders Williams 5/6/2008 3/10/2008 For Ratify Auditors 5/6/2008 3/10/2008 For Increase Disclosure of Executive Compensation 5/6/2008 3/10/2008 Against ^ Elect Director James M. Cornelius 5/6/2008 3/10/2008 For 3 Elect Director Louis J. Freeh 5/6/2008 3/10/2008 For 5/6/2008 3/10/2008 F Elect Director Laurie H. Glimcher or Elect Director Michael Grobstein 5/6/2008 3/!0/2008 For 6 Elect Director Leif Johanson 5/6/2008 3/10/2008 For ^ Elect Director Alan J. Lacey 5/6/2008 3/10/2008 'For Elect Director Vicki L. Sato 5/6/2008 3/10!2008 For Elect Director Togo D. West, Jr. 5/6/2008 3/10/2008 For Meeting for ADR Holders 7/16!2008 6/6/2008 6!2008 6/6/2008 / F REPORTS AND ACCOUNTS 1 7 or Ratify Auditors 7/16/2-008 6/6/2008 For 11 REMUNERATION OF AUDITORS 7/16/2008 6/6/2008 For AUTHORITY TO ALLOT SHARES 7/lb/2008 6/6/2008 For AUTHORITY TO ALLOT SHARES FOR CASH 7/16/2008 6/6/2008 For 14 AUTHORITY TO PURCHASE OWN SHARES 7/16!2008 6/6/2008 For AUTHORITY FOR POLITICAL DONATIONS 7/16/2008 6/6/2008 For REMUNERATION REPORT 7/16/2008 6/6/2008 For FINAL DIVIDEND 7/16/2008 6/6/2008 For . RE-ELECT HANIF LALANI 7/16/2008 6/6/2008 For 5 RE-ELECT CARL SYMON 7/16/2008 6/6/2008 For ELECT SIR MICHAEL RAKE 7/16/2008 6/6/2008 For ELECT GAVIN PATTERSON 7/16!2008 6/6/2008 For 8 ELECT J ERIC DANIELS 7/16/2008 6/6/2008 For ELECT RT HON PATRICIA HEWITT MP 7/16/2008 6/6/2008 For r ^ ^ Reference: http:iiwww. Votex.comi Vote Sammary Report (Short) ~ ~ 10-O1-07 to 09-30-08 . .--. 1 Elect Director Caro] A. Bartz 11/15/2007 9/17/2007 For Elect Director Michae] K. Powell 11/15/2007 9/17/2007 For Elect Director Steven M. West 11/15/2007 9/17/2007 For Elect Director Jerry Yang 11/15/2007 9/17/2007 For Amend Omnibus Stock Plan 11/15/2007 9/17/2007 For 14 Approve Executive Incentive Bonus Plan 11/15/2007 9/17/2007 For Ratify Auditors 11/15/2007 9/17/2007 For Amend Bylaws to Establish a Board Committee on Human Rights 11/15/2007 9/17/2007 Against 17 Pay For Superior Performance 11/15!2007 9/17/2007 For Advisory Vote to Ratify Named Executive Officers' Compensation 11/15/2007 9/17/2-007 For Report on Internet Fragmentation 11/15/2007 9/17/2007 For Elect Director M. Michele Burns 11/15/2007 9/17/2007 For ^ Elect Director Michael D. Capellas 11/15/2007 9/17/2007 For 4 Elect Director Larry R. Carter 11/15/2007 9/17/2007 For Elect Director John T. Chambers 11/15/2007 9/17/2007 For Elect Director Brian L. Halla 11/15/2007 9/17/2007 For 7 Elect Director Dr. John L. Hennessy 11/15/2007 9/17/2007 For Elect Director Richard M. Kovacevich 11/15/2007 9/17/2007 For Elect Director Roderick C. McGeary 11/15/2007 9/17/2007 For t~~~ ^1 Elect Director Stephen M. Dow Elect Director Godfrey R. Sullivan Elect Director Mark B. Templeton ^ Amend Omnibus Stock Plan 3 Require a Majority Vote for the Election of Directors ^ Elect Director Harold W. McGraw III 10 Adopt Greenhouse Gas Emissions Goals for Products and Operations Report on Community Environmental Impacts of Operations Report on Environmental Damage from Drilling in the National Petroleum Reserve 13 Report on Environmental Impact of Oil Sands Operations in Canada S Report on Global Warming Elect Director James J. Mulva Elect Director Bobby S. Shackouls ^ Declassify the Board of Directors 5 Ratify Auditors Require Director Nominee Qualifications Report on Indigenous Peoples Rights Policies 8 Advisory Vote to Ratify Named Executive Oflcers' Compensation ^ Report on Political Contributions 10/18/2007 8!30/2007 Withhold 10/18/2007 8/30/2007 Withhold 10/18/2007 8/30/2007 For 10/18/2007 8/30/2007 For 10/18/2007 8/30/2007 For 5/14/2008 3/17/2008 For 5/14/2008 3/17/2008 For 5/14/2008 3/17/2008 Against 5/14/2008 3/17/2008 For 5/14/2008 3/17/2008 For 5/14/2008 3/17/2008 Against 5/14/2008 3/17/2008 For 5/14/2008 3/17/2008 For 5/14/2008 3/17/2008 For 5/14/2008 3/17/2008 For 5/14/2008 3/17/2008 Against 5/14/2008 3/17!2008 Against 5/14/2008 3/17/2008 For 5/14/2008 3/17/2008 For Reference: http:i/www. Votez.comi Vote Summary Report (Short) 10-O1-07 to 09-30-08 ~ ~Ieetiu„/Record Date Vote Cast 1.1 Elect Director Douglas M. Baker, Jr. 5/2/2008 3/11/2008 For ~2 Elect Director Barbara J. Beck 5/2/2008 3/11/2008 For i3 Elect Director Stefan Hamelmann 5/2/2008 3/11/2008 For 1.4 Elect Director Jerry W. Levin 5/2!2008 3/].1/2008 For ~5 Elect Director Robert L. Lumpkins 5/2/2008 3/11/2008 For 2 Ratify Auditors 5/2/2008 3/11/2008 For Declassify the Board of Directors 5/2/2008 3/11/2008 For 1.1 Elect Director John E. Bryson 4/24/2008 2/25/2008 For ~ 10 Elect Director Richazd T. Schlosberg, III 4/24/2008 2/25/2008 For ~11 Elect Director Thomas C. Sutton 4/24/2008 2/25/2008 For 1.12 Elect Director Brett White 4/24/2008 2/25/2008 For Elect Director Vanessa C.L. Chang 4/24/2008 2/25/2008 For ~3 Elect Director France A. Cordova 4/24/2008 2/25/2008 For 4 Elect Director Theodore F. Craver, Jr. 4/24/3008 2/25/2008 For ^5 Elect Director Charles B. Curtis 4/24/2008 2/25/2008 For 1.6 Elect Director Bradford M. Freeman 4/24/2008 2/25/2008 For ~7 /2008 2/25/2008 4/2 F Elect Director Luis G. Nogales 4 or ~8 Elect Director Ronald L. Olson 4/24/2008 2/25/2008 For 1.9 Elect Director James M. Rosser 4/24/2008 2/25/2008 For Rafify Auditors 4/24/2008 2/25/2008 For Advisory Vote to Ratify Named Executive Officers' Compensation 4/24/2008 2/25/2008 For ^ w ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Reference: http:iiwaw.Votex.eom/ Vote Summary Report (Short) 10-O1-07 to 09-30-08 1.1 Elect Director Michael J. Boskin 5/28!2008 4/4/2008 ^ 10 Elect Director Rex W. Tillerson 5/28/2008 4/4/2008 11 ~ Elect Director Edward E. Whitacre, Jr. 5/28/2008 4/4/2008 2 Elect Director Larry R. Faulkner 5/28/2008 4/4/2008 .3 Elect Director William W. George 5/28/2008 4/4/2008 1.4 Elect Director James R. Houghton 5/28/2008 4/4/2008 ~ 5 Elect Director Reatha Clark King 5/28/2008 4/4/2008 ~6 Elect Director Marilyn Carlson Nelson 5/28/2008 4/4/2008 1.7 Elect Director Samuel J. Palmisano 5/28!2008 4/4/2008 ^8 Elect Director Steven S Reinemund 5/28/2008 4/4/2008 ~9 Elect Director Walter V. Shipley 5/28/2008 4/4/2008 Review Anti-discrimination Policy on Corporate Sponsorships and Executive Perks 5/28/2008 4/4/2008 Report on Political Contributions 5/28/2008 4/4/2008 12 Amend EEO Policy to Prohibit Discrimination based ou Sexual Orientation and Gender Identity 5/28/2008 4/4/2008 Report on Community Environmental Impacts of Operations 5/28/2008 4/412008 Report on Potential Environmental Damage from Drilling in the Arctic National Wildlife Refuge 5/28/2008 4/4/2008 15 Adopt Greenhouse Gas Emissions Goals for Products and Operations 5/28/2008 4/4/2008 Report on Carbon Dioxide Emissions Information at Gas Stations 5/28/2008 4/4/2008 Report on Climate Change Impacts on Emerging Countries 5/28/2008 4/4/2008 Report on Energy Technologies Development 5/28/2008 4!4/2008 Adopt Policy to Increase Renewable Energy 5/28/2008 4!4/2008 2 Ratify Auditors 5/28/2008 4/4/2008 Amend Bylaws to Prohibit Precatory Proposals 5/28/2008 4/4/2008 Require Director Nominee Qualifications 5/28/2008 4/4/2008 5 Require Independent Board Chairman 5/28/2008 4/4/2008 Approve Distribution Policy 5/28/2008 4/4/2008 Advisory Vote to Ratify Named Executive Officers' Compensation 5!28!2008 4/4!2008 Compare CEO Compensation to Company's Lowest Paid U.S. Workers 5/28/2008 4/4/2008 ^ Claw-back of Payments under Restatements 5/28/2008 4/4/2008 .1 Elect Director Claude C. Lilly 6/18/2008 4/25/2008 Elect Director Robert S. Lilien 6/18/2008 4/25/2008 1.3 Elect Director Thomas F. Gilbane, Jr. 6/18/2008 4/25/2008 Ratify Auditors 6/18/2008 4/25/2008 Approve Omnibus Stock Plan 6/18/2008 4/25/2008 4 Approve Executive Incentive Bonus Plan 6/18/2008 4/25/2008 ~1 Elect Director Nicholas P Constantakis 3/18/2008 1/18/2008 1.2 Elect Director J. Christopher Donahue 3/18/2008 1/18/2008 Elect Director R. James Nicholson 3/18/2008 1/18/2008 4 Elect Director Thomas M. O'Neill 3/18/2008 1/18/2008 .5 Elect Director James F. Will 3/18/2008 1/18/2008 ^ Other Business 3/18/2008 1/18/2008 ^ Reference: http:ihvww.Votez.com/ Vote Summary Report (Short) N 10-O1-07 to 09-30-08 1 Elect Director Douglas A. Berthiaume 5/22/2008 3/31/2008 For Elect Director Gail K. Boudreaux 5!22/2008 3/31/2008 For Elect Director Robert J. Carpenter 5!22/2008 3/31 /200$ For Elect Director Charles L. Cooney, Ph.D. 5/22/2008 3/31/2008 For ^ Elect Director Richard F. Syron 5/22/2008 3/31 /2008 Against 6 Amend Omnibus Stock Plan 5/22/2008 3/31/2008 For Amend Non-Employee Director Omnibus Stock Plan 5/22/2008 3/31!2008 .For Ratify Auditors 5/22/2008 3/31/2008 For .1 Elect Director Eric Schmidt 5/8/2008 3/11/2008 For ~10 Elect Director Shirley M. Tilghman 5!8/2008 3/11/2008 For 1.2 Elect Director Sergey Brin 5/8/2008 3/11/2008 For X .3 Elect Director Larry Page 5/8/2008 3/11/2008 For ~4 Elect Director L. John Doerr 5/8/2008 3/11/2008 For 5 Elect Director John L. Hennessy 5/8/2008 3/11/2008 For ~6 Elect Director Arthur D. Levinson 5/8/2008 3/11/2008 For 1.7 Elect Director Ann Mather 5/8/2008 3/11/2008 For ~8 Elect Director Paul S. Otellini 5/8/2008 3/11/2008 For Elect Director K. Ram Shriram 5/8/2008 3/11/2008 For 2 Ratify Auditors 5/8/2008 3/11/2008 For . Amend Omnibus Stock Plan 5/8/2008 3/11/2008 Against Adopt Internet Censorship Policies 5/8/2008 3/11/2008 For Amend Bylaws to Establish a Board Committee on Human Rights 5/8/2008 3/11/2008 Against Elect Director Alan M. Bennett 5/21/2008 3/24/2008 For Elect Director Debra L. Reed 5/21/2008 3/24/2008 For Ratify Auditors 5/21/2008 3/24/2008 For 12 Amend Omnibus Stock Plan 5/21/2008 3/24!2008 For 0 Adopt Human Rights Policy 5/21/20 8 3/24/2008 For Report on Political Contributions 5/21/2008 3/24/2008 For 15 Amend Bylaws to Establish a Board Committee on Human Rights 5/21/2008 3/24/2008 Against Elect Director James R. Boyd 5/21/2008 3/24/2008 For Elect Director Milton Carroll 5/21/2008 3/24/2008 For Elect Director Kenneth T. Derr 5/21/2008 3/24/2008 For ^ Elect Director S. Malcohn Gillis 5/21/2008 3/24/2008 For 6 Elect Director James T. Hackett 5/21/2008 3/24/2008 For 5 2 /2008 Elect Director David J. Lesar 1 / 3/24/2008 For Elect Director J. Landis Martin 5/21/2008 3/24!2008 For 9 Elect Director Jay A. Precourt 5/21/2008 3/24/2008 For Elect Director Thomas A. Dattilo 10/26/2007 8/31/2007 For 2 Elect Director Howard Lance 10/26/2007 8/31/2007 For ^ Elect Director James C. Stoffel 10/26/2007 8!31/2007 For Ratify Auditors 10/26/2007 8/31/2007 For Reference: hrip:%/www.Votex.comi Vote Summary Report (Short) N ^ 10-O1-07 to 09-30-08 1 Elect Director Craig R Barrett 5/21/2008 3/24/2008 For Elect Director John L. Thornton 5!21/2008 3/24/2008 For Elect Director David B. Yoffie 5/21/2008 3/24/2008 For Ratify Auditors 5/21/2008 3/24/2008 For Amend Bylaws to Establish a Board Committee on Sustainability 5/21/2008 3/24/200$ Against 2 Elect Director Charlene Barshefsky 5/21/2008 3/24/2008 For Elect Director Carol A. Bartz 5/21/2008 3/24/2008 For Elect Director Susan L. Decker 5/21/2008 3/24/2008 For 5 Elect Director Reed E. Hundt 5/21/2008 3/24/2008 For . Elect Director Paul S. Otellini 5/21/2008 3/24/2008 For Elect Director James D. Plummer 5/21/2008 3/24/2008 For Elect Director David S. Pottruck 5/21!2008 3/24!2008 For ^ Elect Director Jane E. Shaw 5/21/2008 3/24/2008 For .1 Elect Director C. Black 4/29/2008 2/29/2008 For ^10 Elect Director S. Taurel 4/29/2008 2/29/2008 For 1.11 Elect Director L.H. Zambrano 4/29/2008 2/29/2008 For 4/29/2008 2/2 / 008 F Elect Director W.R. Brody 2 or 9 Elect Director K.I. Chenault 4/29/2008 2/29/2008 For 1.4 Elect Director M.L. Eskew 4/29/2008 2/29/2008 For ^5 Elect Director S.A. Jackson 4/29/2008 2/29/2008 For Elect Director L.A. Noto 4/29/2008 2/29/2008 For Elect Director J.W. Owens 4/29/2008 2/29/2008 For Elect Director S.J. Palmisano 4/29/2008 2/29/2008 For 1.9 Elect Director J.E. Spero 4/29/2008 2/29/2008 For 4/29/2008 2/29/2008 F Ratify Auditors or Restore or Provide for Cumulative Voting 4/29/2008 2/29/2008 For 4 Review Executive Compensation 4/29!2008 2/29/2008 For ^' Amend Bylaws to Establish a Board Committee on Human Rights 4/29/2008 2/29/2008 Against Amend Bylaw -- Call Special Meetings 4/29!2008 2/29/2008 For Advisory Vote to Ratify Named Executive Officers' Compensation 4/29/2008 2/29/2008 For Elect Director J. William Burdett 5/6!2008 3/10/2008 For Elect Director Robert C. Gasser 5/6/2008 3/10/2008 For ^3 Elect Director Timothy L. Jones 5/6/2008 3/10/2008 For 1.4 Elect Director Robert L. King 5/6/2008 3/10/2008 For ' /6 2008 3/10/2008 F Elect Director Kevin J.P. O Hara 5 or / Elect Director Maureen O'Hara 5/6!2008 3/10/2008 For 1.7 Elect Director Brian J. Steck 5/6!2008 3/10/2008 For . Ratify Auditors 5/6/2008 3/10/2008 For Amend Executive Incentive Bonus Plan 5/6/2008 3/10!2008 For LJ . Reference: httpanvww. Votex.com/ ^ Vote Summary Report (Short) ~ 10-O1-07 to 09-30-08 N 1 Elect Director John R. Alm 4/17/2008 2/18/2008 For Amend Articles/Bylaws/Charter --Call Special Meetings 4/17/2008 2/18!2008 For Provide for Cumulative Voting 4/17/2008 2/18/2008 For Amend Bylaws to Establish a Board Committee on Sustainability 4/17/2008 2/18/2008 Against ^ Elect Director John F. Bergstrom 4/17/2008 2/18/2008 For 3 Elect Director Robert W. Decherd 4/17/2008 2/18/2008 For 4/17/2008 2/18/2008 F Elect Director Ian C. Read or Elect Director G. Craig Sullivan 4/17/2008 2/18!2008 For 6 Ratify Auditors 4/17!2008 2/18/2008 For Eliminate Supermajority Vote Requirement 4/17/2008 2/18/2008 For Require Director Nominee Qualifications 4/17/2008 2/18/2008 Against Adopt ILO Based Code of Conduct 4/17/2008 2/18/2008 Against Meeting for ADR Holders 2/29/2008 12/31/2007 Elect Nam Joong-Soo as President 2/29/2008 12/31/2007 For Approve Appropriation of Income and Dividend of KRW 2,000 Per Share 2/29/2008 12/31/2007 For 3 Elect Oh Kyu-Taek as Independent Non-Executive Director (Outside Director) for Audit Committee 2/29/2008 12/31/2007 For ~ 1 Elect Yoon Jong-Lok as Executive Director (Inside Director) 2/29/2008 12/31/2007 For Elect Suh Jeong-Soo as Executive Director (Inside Director) 2/29/2008 12/31!2007 For 4.3 Elect Kim Choong-Soo as Independent Non-Executive Director (Outside Director) 2/29/2008 12/31/2007 For ~- Elect Koh Jeong-Suk as Independent Non-Executive Director (Outside Director) 2/29/2008 12/31/2007 For Approve Remuneration of Executive Directors and Independent Non-Executive Directors 2/29/2008 12/31/2007 For Approve Employment Contract for Management 2/29/2008 12/31/2007 For Amend Terms of Severance Payments for Executives 2/29/2008 12/31/2007 For ^ Reference: http:/iwww.Votex.com! ^ Vote Summary Report (Short) C 10-01-07 to 09-30-OS K' 1.1 Elect Director Steve Sanghi 8/15/2008 6/19/2008 For ~2 Elect Director Albert J. Hugo-Martinez 8/15/2008 6/19/2008 For 3 ~ Elect Director L.B. Day 8/15/2008 6/19/2008 For 4 Elect Director Matthew W. Chapman 8/15/2008 6/19/2008 For ^5 Elect Director Wade F. Meyercord 8/15/2008 6/19/2008 For 2 Ratify Auditors 8/15/2008 6/19/2008 For ~1 Elect Director William H. Gates, III 11/13/2007 9/7/2007 For 1.10 Elect Director Jon A. Shirley 11/13/2007 9/7/2007 For Elect Director Steven A. Ballmer 11/13/2007 9/7/2007 For ~3 Elect Director James I. Cash, Jr. 11/13/2007 9/7/2007 For 1.4 Elect Director Dina Dublon 11/13/2007 9/7/2007 For ~5 Elect Director Raymond V. Gilmartin 11/13/2007 9/7/2007 For 6 ~ Elect Director Reed Hastings 11/13/2007 9/7/2007 For 7 Elect Director David F. Marquardt 11/13/2007 9/7/2007 For ^8 Elect Director Charles H. Noski 11/13/2007 9/7/2007 For 1.9 Elect Director Helmut Panke 11/13/2007 9/7/2007 For 07 9/7/2007 / F Ratify Auditors 11 13/20 or Adopt Policies to Protect Freedom of Access to the Internet 11/13/2007 9/7/2007 Against 4 Amend Bylaws to Establish a Board Committee on Human Rights 11/13/2007 9/7/2007 Against ~1 Elect Director Robert E. Beauchamp 5/14/2008 3/27/2008 For 1.2 Elect Director Jeffery A. Smisek 5/14/2008 3/27/2008 For Ratify Auditors 5/14/2008 3/27/2008 For Approve Executive Incentive Bonus Plan 5/14/2008 3/27/2008 For ~1 Elect Director Jill K. Conway 9/22/2008 7/25/2008 For Elect Director Alan B. Graf, Jr. 9/22!2008 7/25/2008 For Elect Director Jeanne P. Jackson 9/22/2008 7/25/2008 For Ratify Auditors 9/22!2008 7/25/2008 For .1 Elect Director Jeffrey L Berenson 4/22!2008 3/11/2008 For ^2 Elect Director Michael A. Cawley 4/22/2008 3/11/2008 For 1.3 Elect Director Edward F. Cox 4/22/2008 3/11/2008 For 08 /11/2008 F Elect Director Charles D. Davidson 4/22/20 3 or Elect Director Thomas J. Edelman 4/22/2008 3/11/2008 For 1.6 Elect Director Kirby L. Hedrick 4/22/2008 3/11/2008 For Elect Director Scott D. Urban 4/22/2008 3/11/2008 For Elect Director William T. Van Kleef 4/22/2008 3/11/2008 For Ratify Auditors 4/22/2008 3/11/2008 For Reference: http:i/www.Votex.comi . Vote Summary Report (Short) 10-O1-07 to 09-30-08 cN 1.1 Elect Director Linda S. Harty 10/24!2007 8/31/2007 Withhold ~2 Elect Director Candy M. Obourn 10/24/2007 8/31/2007 Withhold ~3 Elect Director Donald E. Washkewicz 10/24/2007 8/31!2007 Withhold Declassify the Board of Directors 10/24/2007 8/31/2007 For . Ratify Auditors 10/24/2007 8/31/2007 For .1 Elect Director I.M. Cook 5/7!2008 3/7/2008 For ^10 Elect Director L.G. Trotter 5/7/2008 3/7/2008 For 1.11 Elect Director D.Vasella 5/7/2008 3/7/2008 For ~ 5/ 2008 2008 F / 12 Elect Director M.D. White or 7/ 3 7! ~2 Elect Director D. Dublon 5/7!2008 3/7/2008 For 1.3 Elect Director V.J. Dzau 5/7!2008 3/7/2008 For ^4 Elect Director R.L. Hunt 5/7/2008 3/7/2008 For 5 ~ Elect Director A.Ibarguen 5/7!2008 3/7/2008 For 6 Elect Director A.C. Martinez 5/7/2008 3/7/2008 For ~7 Elect Director LK. Nooyi 5/7!2008 3/7/2008 For 1.8 Elect Director S.P. Rockefeller 5/7!2008 3/7/2008 For ~9 5/7!2008 3/7/2008 F Elect Director J.J. Schiro or Ratify Auditors 5/7/2008 3/7/2008 For 3 Report on Recycling 5/7/2008 3/7/2008 Against Report on Genetically Engineered Products 5/7!2008 3/7/2008 Against Report on Human Rights Policies Relating to Water Use 5/7/2008 3/7/2008 Against Report on Global Warming 5/7/2008 3/7/2008 Against . Advisory Vote to Ratify Named Executive Officers' Compensation 5/7/2008 3/7/2008 For Meeting for ADR Holders 4/4/2008 3/17/2008 ELECTION OF ONE MEMBER OF THE BOARD OF DIRECTORS 4/4/2008 3/17/2008 For 2 ELECTION OF ONE MEMBER OF THE AUDIT COMMITTEE AND HIS/HER RESPECTIVE SUBSTITUTE 4/4/2008 3/17!2008 For ~1 Elect Director Hugh Grant 4!17/2008 2/22/2008 For 1.2 Elect Director Michele J. Hooper 4/17/2008 2/22/2008 For ~ 3 Elect Director Robert Mehrbian 4/ 17/2008 2/22/2008 For Ratify Auditors 4/17/2008 2/22/2008 For bleetinglRecord Date ~~ote Cast ~1 Elect Director Nance K. Dicciani 4/22/2008 2/28!2008 For Elect Director Edward G. Galante 4/22/2008 2/28/2008 For 1.3 Elect Director Ira D. Hall 4/22/2008 2/28/2008 For ~1 Elect Director Raymond W. LeBoeuf 4/22/2008 2/28/2008 For ~5 Elect Director Larry D. McVay 4/22/2008 2/28/200$ For 6 Elect Director Wayne T. Smith 4/22/2008 2/28/2008 For ^7 Elect Director H. Mitchell Watson, Jr. 4/22/2008 2/28/2008 For 1.8 Elect Director Robert L. Wood 4/22/2008 2/28/2008 For 4/22/2008 2/28/2008 F Require Majority Vote for Non-Contested Election or Ratify Auditors 4/22!2008 2/28/2008 For ^ Reference: http:%!www.Votex.com( Vote Summary Report (Short) 10-O1-07 to 09-30-08 1.1 Elect Director Richard R. Devenuti 5/9/2008 3/12/2008 Elect Director Stuart M. Essig 5/9/2008 3/12/2008 ~3 Elect Director Thomas H. Garrett III 5/9/2008 3/12/2008 4 Elect Director Wendy L. Yarno 5/9/2008 3/12/2008 Amend Omnibus Stock Plan 5/9!2008 3/12/2008 3 Adopt Majority Voting for Uncontested Election of Directors 5/9/2008 3/12/200$ Ratify Auditors 5/9/2008 3/12/2008 1.1 Elect Director K. Burnes 4/30/2008 3/7/2008 ~10 4/ 0/2008 3/ /2008 Elect Director R. Serge] 3 7 ~11 Elect Director R. Skates 4/30/2008 3/7/2008 1.12 Elect Director G. Summe 4/30/2008 3/7/2008 ~13 Elect Director R. Weissman 4/30/2008 3/7/2008 Elect Director P. Coym 4/30/2008 3/7/2008 .3 Elect Director N. Darehshori 4/30!2008 3!7/2008 Elect Director A. Fawcett 4/30/2008 3/7/2008 1.5 Elect Director D. Gruber 4/30/2008 3/7/2008 4/30/2008 3/7/2008 Elect Director L. Hill ~7 Elect Director C. LaMantia 4/30!2008 3/7/2008 1.8 Elect Director R. Logue 4/30!7008 3!7/2008 Elect Director M. Miskovic 4/30/2008 3!7/2008 Ratify Auditors 4/30/2008 3/7/2008 Limit Auditor from Providing Non-Audit Services 4/30/2008 3/7/2008 ~1 Elect Director Ronald M. DeFeo 5/15/2008 3/18/2008 10 Elect Director David C. Wang 5/15/2008 3/18/2008 ~11 Elect Director Helge H. Wehmeier 5/15/2008 3/18/2008 1.2 Elect Director G. Chris Andersen 5/15/2008 3/18/2008 5/2008 3/18/2008 5/ Elect Director Paula H.J. Cholmondeley 1 Elect Director Don DeFosset 5/15/2008 3/18/2008 LS Elect Director William H. Fike 5/15/2008 3/18/2008 ^G Elect Director Thomas J. Hansen 5/15!2008 3/18/2008 Elect Director Donald P. Jacobs 5/15/2008 3/18/2008 Elect Director David A. Sachs 5/15/2008 3/18/2008 Elect Director Oren G. Shaffer 5/15/2008 3/18/2008 2 Ratify Auditors 5/15/2008 3/18/2008 ^ Elect Director Paul E. Gagne 4/23/2008 2/29/2008 2 Elect Director Dain M. Hancock 4/23/2008 2/29/2008 4/23/2008 2/29/2008 Elect Director Lloyd G.1Yotter Elect Director Thomas B. Wheeler 4/23/2008 2/29/2008 5 Ratify Auditors 4/23/2008 2/29/2008 ^ Report on Foreign Military Sales 4/23/2008 2/29/2008 Adopt A ti Gross-up Policy 4/23/2008 2/29/2008 ^ Reference: http://www.Votex.comi Vote Summary Report (Short) ~ ~ 10-01-07 to 09-30-08 ~ c~ 1 Elect Director Ramani Ayer 5/21/2008 3/24/2008 For Elect Director H. Patrick Swygert 5!21/2008 3/24/2008 For Ratify Auditors 5/21/2008 3!24/2008 For Elect Director Ramon de Oliveira 5/21 /2008 3/24/2008 For ^ Elect Director Trevor Fetter 5/21/2008 3/24/2008 For 4 Elect Director Edward J. Kelly, III 5/21/2008 3/24/2008 For 5/21/2008 3/24/2008 F Elect Director Paul G. Kirk, Jr. or Elect Director Thomas M. Marra 5/21/2008 3/24/2008 For 7 Elect Director Gai17. McGovern 5/21/2008 3/24/2008 For ^ Elect Director Michael G. Moms 5/21/2008 3/24/2008 For Elect Director Charles B. Strauss 5/21/2008 3/24/2008 For ^ -Elect Director Linda G. Alvarado 5/28/2008 3/31/2008 For Elect Director Cynthia M. Trudell 5/28/2008 3/31/2008 For Adopt Plurality Voting for Contested Election of Directors 5/28/2008 3/31/2008 For Amend Omnibus Stock Plan 5/28/2008 3/31/2008 Against 13 Ratify Auditors 5/28/2008 3/31/2008 For 008 F Elect Director Barry H. Beracha 5/28/2008 3/31 /2 or Elect Director John C. Compton 5/28/2008 3/31/2008 For 4 Elect Director Eric J. Foss 5/28!2008 3/31/2008 For ^ Elect Director Ira D. Hall 5/28!2008 3/31!2008 For Elect Director Susan D. Kronick 5/28/2008 3/31/2008 For Elect Director Blythe J. McGarvie 5/28/2008 3/31/2008 For Elect Director John A. Quelch 5/28/2008 3/31/2008 For 9 Elect Director Javier G. Teruel 5/28/2008 3/31/2008 For ^1 Elect Director Susan E. Arnold 3/6/2008 1/7/2008 For 1.10 Elect Director Robert W. Matschullat 3/6/2008 1/7/2008 For ~1 F 1 Elect Director John E. Pepper, Jr. 3/6/2008 1/7/2008 or ~12 Elect Director Orin C. Smith 3/6/2008 1/7/2008 For 1.2 Elect Director John E. Bryson 3/6/2008 1/7/2008 For ^3 Elect Director John S. Chen 3/6/2008 1/7/2008 For Elect Director Judith L. Estrin 3/6/2008 1/7/2008 For Elect Director Robert A. Iger 3/6!2008 1/7/2008 For ~` Elect Director Steven P. Jobs 3/6/2008 1/7/2008 Against 1.7 Elect Director Fred H.Langhammer 3/6/2008 1/7/2008 For 6 08 0 8 / F Elect Director Aylwin B. Lewis 3/ /20 1 7/2 0 or Elect Director Monica C. Lozano 3/6/2008 1/7/2008 For 2 Ratify Auditors 3/6/2008 1/7/2008 For Amend Omnibus Stock Plan 3/6/2008 1/7/2008 For Amend Executive Incentive Bonus Plan 3/6/2008 1/7!2008 For ^ ^ ^ Reference: http:%/www.Votex.com/ Vote Sammary Report (Short) 10-O1-07 to 09-30.08 1.1 Elect Director Louis R. Chenevert 4/9/2008 2/12/2008 ~10 Elect Director H. Patrick Swygert 4/9/2008 2/12/2008 ~11 Elect Director Andre Villeneuve 4/9/2008 2/12/2008 1.12 Elect Director Christine Todd Whitman 4/9/2008 2/12/2008 Elect Director George David 4/9/2008 2/12/2008 1.3 Elect Director John V. Farad 4/9/2008 2/12/2008 ~ 4!9/2008 2/12/2008 4 Elect Director Jean-Pierre Gamier Elect Director Jamie S. Gorelick 4/9/2008 2/12/2008 1.6 Elect Director Charles R. Lee 4/9/2008 2/12/2008 Elect Director Richazd D. McCormick 4/9/2008 2/12/2008 Elect Director Harold McGraw III 4!9/2008 2/12/2008 1.9 Elect Director Richard B. Myers 4/9/2008 2/12/2008 ^ Ratify Auditors 4/9/2008 2/12/2008 3 Amend Omnibus Stock Plan 4/9!2008 2/12/2008 4/9!2008 2/12/2008 Adopt Principles for Health Care Reform . Improve Human Rights Standards or Policies 4/9/2008 2/12/2008 6 Pay For Superior Performance 4/9/2008 2/12/2008 ^ Report on Foreign Military Sales 4/9/2008 2/12/2008 1.1 Elect Director William C. Ballard, Jr. 6/5/2008 4/9/2008 Elect Director Richard T. Burke 6/5/2008 4/9/2008 Elect Director Robert J. Darretta 6/5%2008 4/9/2008 1.4 Elect Director Stephen J. Hemsley 6/5/2008 4/9/2008 ^5 Elect Director Michele J. Hooper 6/5!2008 4/9/2008 1.6 Elect Director Douglas W. Leatherdale 6/5/2008 4/9/2008 Elect Director Glenn M. Renwick 6/5/2008 4/9/2008 Elect Director Gail R. Wilensky 6/5/2008 4/9/2008 2 Amend Omnibus Stock Plan 6/5/2008 4/9/2008 Amend Qualified Employee Stock Purchase Plan 6/5/2008 4/9/2008 Ratify Auditors 6/5/2008 4/9/2008 Advisory Vote to Ratify Named Executive Officers' Compensation 6!5/2008 4/9!2008 ^ Performance-Based Equity Awards 6/5/2008 4/9/2008 .1 Elect Director W.E_ Bill Bradford 5/1/2008 3/3/2008 Elect Director Ronald K. Calgaard 5/1/2008 3/3/2008 1.3 Elect Director Irl F. Engelhardt 5/1/2008 3/3/2008 Ratify Auditors 5/1/2008 3/3/2008 Share buyback holding period 5/1/2008 3/3/2008 4 Advisory Vote to Ratify Named Executive Officers' Compensation 5/1/2008 3/3/2008 Report on Political Contributions 5/1/2008 3/3/2008 r Reference: http:iiwww. Votez.con>/ Vote Summary Report (Short) O 10-01-07 to 09-30-OS ~ Meeting/Record Date A~ute Cact 1.1 Elect Director Aida M. Alvarez 6/6/2008 4/10/2008 For ^10 Elect Director H. Lee Scott, Jr. 6/6/2008 4/10/2008 For 11 Elect Director Arne M. Sorenson 6/6/2008 4/10/2008 For ~'12 Elect Director Jim C. Walton 6/6/2008 4/10/2008 For ^13 Elect Director S. Robson Walton 6!612008 4/10/2008 For 1.14 Elect Director Christopher J. Williams 6/6/2008 4/10/2008 For ~1 6 6 2 08 4/ 0/2008 F 5 Elect Director Linda S. Wolf 1 / / 0 or Elect Director James W. Breyer 6/6/2008 4/10/2008 For 1.3 Elect Director M. Michele Bums 6/6/2008 4/10/2008 For X ~+ Elect Director James I. Cash, Jr. 6!6/2008 4/10/2008 For 5 ~ Elect Director Roger C. Corbett 6/6/2008 4/10/2008 For 6 Elect Director Douglas N. Daft 6/6/2008 4!10/2008 For .7 Elect Director David D. Glass 6/6/2008 4!10/2008 For 1.8 Elect Director Gregory B. Penner 6!6/2008 4/10/2008 For ~ 6 2008 4/ 0/2008 F 9 Elect Director Allen I. Questrom 1 /6/ or Report on Social and Reputation Impact of Failure to Comply with ILO Conventions 6/6/2008 4/10/2008 Against 11 Amend Articles/Bylaws/Charter --Call Special Meetings 6/6/2008 4/10/2008 For ^ Approve Executive Incentive Bonus Plan 6/6!2008 4/10/2008 For Ratify Auditors 6/6/2008 4/10/2008 For Amend EEO Policy to Prohibit Discrimination based on Sexual Orientation and Gender Identity 6/6!2008 4/10/2008 Against ^ Pay For Superior Performance 6/6/2008 4/10/2008 For 6 Claw-back of Payments under Restatements 6/6/2008 4/10/2008 Against 6/6 2008 4/10/2008 A i Amend Bylaws to Establish a Board Committee on Human Rights / ga nst Advisory Vote to Ratify Named Executive Officers' Compensation 6!6/2008 4/10/2008 For 9 Report on Political Contributions 6/6/2008 4/10/2008 For ^ Meeting for ADR Holders 11/28/2007 10/22/2007 1 TO RECEIVE AND ADOPT THE DIRECTORS ANNUAL REPORT AND ACCOUNTS AND THE AUDITORS REPORT 11/28/2007 10/22/2007 For TO GIVE LIMITED POWERS TO THE DIRECTORS TO ALLOT EQUITY SECURITIES FOR CASH 11/28/2007 10/22/2007 For TO GIVE RENEWED LIMITED AUTHORITY FOR THE DIRECTORS TO REPURCHASE ORDINARY SHARES 11/28/2007 10/22/2007 For TO GIVE LIMITED AUTHORITY TO INCUR POLITICAL EXPENDITURE AND TO MAKE POLITICAL DONATIONS 11/28/2007 10/22/2007 For TO AMEND THE ARTICLES OF ASSOCIATION OF THE COMPANY IN RESPECT OF NON EXECUTIVE 11/28/2007 10/22/2007 For DIRECTORS FEES TO AMEND THE ARTICLES OF ASSOCIATION OF THE COMPANY IN RESPECT OF ELECTRONIC 11/28/2007 10/22/2007 For COMMUNICATIONS TO AMEND THE ARTICLES OF ASSOCIATION OF THE COMPANY **VOTING CUT-OFF DATE: NOVEMBER 21, 11/28/2007 10/22/2007 For 2007 2 TO RECEIVE AND ADOPT THE DIRECTORS REMUNERATION REPORT 11/28/2007 10/22/2007 For /28/200 0!22/200 F TO DECLARE A FINAL DIVIDEND 11 7 1 7 or TO RE-ELECT MR ANDREW DUFF A5 A DIRECTOR (NON EXECUTIVE DIRECTOR CHAIRMAN OF THE 11/28/2007 10/22/2007 For REMUNERATION AND MEMBER OF THE NOMINATIONS) TO RE-ELECT MR CLAUDE CHIP HORNSBY AS A DIRECTOR (GROUP CHIEF EXECUTIVE) 11/28/2007 10/22/2007 For 6 TO RE-ELECT MR JIM HURRAY AS A DIRECTOR (NON EXECUTIVE DIRECTOR, CHAIRMAN OF THE AUDIT 11 /28/2007 10/22/2007 For COMMITTEE) Ratify Auditors 11/28/200710/22/2007 For ^ TO AUTHORISE THE DIRECTORS TO DETERMINE THE AUDITORS REMUNERATION 11/28/2007 10/22/2007 For 9 TO GIVE LIMITED POWERS TO THE DIRECTORS TO ALLOT EQUITY SECURITIES 11/28/2007 10/22/2007 For . Re ference: http:/iwww.Votex.conv ^ Vote Summary Report (Short) 10-O1-07 to 09-30-08 1.1 Elect Director R.S. Austin 4/25/2008 2/26/2008 ~10 Elect Director S.C. Scott, III 4/25/2008 2/26/2008 11 ~ Elect Director W.D. Smithburg 4/25/2008 2/26/2008 12 Elect Director G.F. Tilton 4/25/2008 2/26/2008 ^13 Elect Director M.D. White 4/25/2008 2/26/2008 1.2 Elect Director W.M. Daley 4/25!2008 2/26/2008 ~ 3 Elect Director W.J. Farrell 4/25/2008 2/26/2008 ~4 Elect Director H.L. Fuller 4/25/2008 2/26/2008 1.5 Elect Director W.A. Osborn 4/25/2008 2/26!2008 ^6 Elect Director D.A.L. Owen 4/25!2008 2/26/2008 7 ~ Elect Director B. Powell, Jr. 4/25/2008 2/26/2008 8 Elect Director W.A. Reynolds 4/25/2008 2/26/2008 ^9 Elect Director R. S. Roberts 4/25/2008 2/26!2008 2 Ratify Auditors 4/25!2008 2/26/2008 Amend Human Rights Policy to Address Access to Medicines 4/25!2008 2/26/2008 Advisory Vote to Ratify Named Executive Officers' Compensation 4/25/2008 2/26/2008 Meeting for ADR Holders 4/23/2008 3/25/2008 APPROVAL OF THE ADOPTION OF THE ANNUAL ACCOUNTS 2007. 4/23/2008 3/25/2008 10 APPROVAL TO APPOINT MR. D.P.M. VERBEEK TO THE SUPERVISORY BOARD. 4/23/2008 3/25/2008 APPROVAL TO APPOINT MR. B. VAN DER VEER TO THE SUPERVISORY BOARD. 4/23/2008 3/25!2008 APPROVAL TO AUTHORIZE THE EXECUTIVE BOARD TO ISSUE COMMON SHARES OF THE COMPANY. 4/23/2008 3/25/2008 APPROVAL TO AUTHORIZE THE EXECUTIVE BOARD TO RESTRICT OR EXCLUDE PRE-EMPTIVE RIGHTS 4/23/2008 3/25/2008 UPON ISSUING COMMON SHARES OF THE COMPANY. APPROVAL TO AUTHORIZE THE EXECUTIVE BOARD TO ISSUE COMMON SHARES RELATED TO INCENTIVE 4/23/2008 3/25/2008 PLANS. APPROVAL TO AUTHORIZE THE EXECUTIVE BOARD TO ACQUIRE SHARES OF THE COMPANY. 4/23/2008 3/25/2008 APPROVAL OF THE FINAL DIVIDEND 2007. 4/23/2008 3/25/2008 APPROVAL TO RELEASE THE MEMBERS OF THE EXECUTIVE BOARD FROM LIABILITY FOR THEIR DUTIES. 4/23/2008 3/25/2008 ^ APPROVAL TO RELEASE THE MEMBERS OF THE SUPERVISORY BOARD FROM LIABILITY FOR THEIR DUTIES. 4/23/2008 3/25/2008 5 Ratify Auditors 4/23!2008 3/25!2008 APPROVAL TO CANCEL 99,769,902 COMMON SHARES, REPURCHASED IN 2007. 4/23/2008 3/25!2008 . APPROVAL TO RE-APPOINT MR. LW. BAILEY, II TO THE SUPERVISORY BOARD. 4/23/2008 3/25/2008 8 APPROVAL TO APPOINT MS. C. KEMPLER TO THE SUPERVISORY BOARD. 4/23/2008 3/25/2008 APPROVAL TO APPOINT MR. R.J. ROUTS TO THE SUPERVISORY BOARD. 4/23!2008 3/25/2008 1.1 Elect Director William O. Albertini 8/5/2008 6/12/2008 Elect Director Lee M. Thomas 8/5/2008 6/12/2008 Elect Director John C. Van Roden, Jr. 8/5/2008 6/12/2008 Ratify Auditors 8/5/2008 6/12/2008 . Amend Executive Incentive Bonus Plan 8/5/2008 6/12/2008 .1 Elect Director David W. Kenny 5/20/2008 3/31!2008 Elect Director Peter J. Kight 5/20/2008 3/31/2008 1.3 Elect Director Frederic V. Salerno 5/20/2008 3/31/200$ 5/20/2008 3/31/2008 Ratify Auditors ^ Reference: htlp:iiwww.Votex.comi ^ Vote Summary Report (Short) ~ 10-O1-07 to 09-30-08 ~t 1 Elect Director Elizabeth E. Bailey 5/28/2008 4/4/2008 For Advisory Vote to Ratify Named Executive Officers' Compensation 5/28/2008 4/4/2008 For Provide for Cumulative Voting 5/28/2008 4/4/2008 For 12 Adopt the Marketing and Advertising Provisions of the U.S. Master Settlement Agreement Globally 5/28/2008 4/4/2008 Against Cease Advertising Campaigns Oriented to Prevent Youth Smoking 5/28/2008 4/4/2008 Against 14 Implement the "Two Cigarette" Marketing Approach 5/28/2008 4/4/2008 Against Adopt Principles for Health Care Reform 5/28/2008 4/4/2008 Against Elect Director Gerald L. Baliles 5/28!2008 4/4/2008 For 3 Elect Director Dinyar S. Devitre 5/28/2008 4/4/2008 For Elect Director Thomas F. Farrell II 5/28/2008 4/4/2008 For Elect Director Robert E. R. Huntley 5/28/2008 4/4/2008 For Elect Director Thomas W. Jones 5/28/2008 4/4!2008 For Elect Director George Munoz 5/28/2008 4/4!2008 For 8 Elect Director Michael E. Szymanczyk 5/28/2008 4/4/2008 For Ratify Auditors 5/28/2008 4/4/2008 For 1.1 Elect Director Mary C. Baskin 5/19/2008 3/20/2008 For Elect Director Neil M. Hahl 5/19/2008 3/20/2008 For Elect Director Philip R. Harper 5/19/2008 3/20/2008 For 1.4 Elect Director John A. Koskinen 5/19/2008 3/20/2008 For Elect Director Stan Lundine 5/19/2008 3/20/2008 For Elect Director Kenneth D. Peterson 5/19/2008 3/20/2008 For 1.7 Elect Director Alvin N. Puryear 5/19/2008 3/20/2008 For ^8 Elect Director Malon Wilkus 5/19/2008 3/20/2008 For 2 Adopt Majority Voting for Uncontested Election of Directors 5/19/2008 3/20/2008 For Approve Stock Option Plan 5/19/2008 3/20/2008 For Amend Incentive Bonus Plan 5/19/2008 3/20/2008 Against 5 Approve Issuance of Convertible Debt Securities or Preferred Stock 5/19!2008 3/20/2008 For Change Company Name 5/19/2008 3/20/2008 For Rafify Auditors 5/19/2008 3/20/2008 For Other Business 5/19/2008 3/20/2008 Against ^ Reference: http:%hvwtiv.Votex.comi Vote Summary Report (Short) 10-O1-07 to 09-30-08 1.1 Elect Director Robert H. Brust 3/11/2008 1/18/2008 ~10 Elect Director Willem P. Roelandts 3/11/2008 1/18/2008 11 ~ Elect Director Michael R. Splinter 3/11/2008 1/18/2008 2 Elect Director Deborah A. Coleman 3/11/2008 1/18/2008 ^3 Elect Director Aart J. de Geus 3/11/2008 1/18/2008 1.4 Elect Director Philip V. Gerdine 3/11/2008 1/18/2008 ~ 5 Elect Director Thomas 7. Iannotti 3/11/2008 1/18/2008 Elect Director Charles Y.S. Liu 3/11!2008 1/18/2008 1.7 Elect Director James C. Morgan 3/11/2008 1/18/2008 Elect Director Gerhard H. Parker 3/11/2008 1/18/2008 Elect Director Dennis D. Powell 3/11/2008 1/18/2008 Ratify Auditors 3/11!2008 1/18/2008 Elect Director Randall L. Stephenson 4/25/2008 2/27/2008 Elect Director John B. McCoy 4/25/20'08 2/27/2008 Elect Director Mary S. Metz 4!25!2008 2!27/2008 12 Elect Director Joyce M. Roche 4/25/2008 2/27/2008 Elect Director Laura D' Andrea Tyson 4/25/2008 2/27!2008 Elect Director Patricia P. Upton 4/25/2008 2/27!2008 15 Ratify Auditors 4/25/2008 2!27/2008 Report on Political Contributions 4/25/2008 2/27/2008 Exclude Pension Credits from Earnings Performance Measure 4!25!2008 2/27/2008 Require Independent Lead Director 4/25/2008 2/27/2008 Establish SERP Policy 4/25/2008 2/27/2008 2 Elect Director William F. Aldinger III 4/25/2008 2/27/2008 Advisory Vote to Ratify Named Executive Officers' Compensation 4/25!2008 2/27/2008 Elect Director Gilbert F. Aurelio 4/25/2008 2/27/2008 4 Elect Director Reuben V. Anderson 4/25/2008 2/27/2008 Elect Director James H. Blanchard 4/25/2008 2/27/2008 Elect Director August A. Busch III 4/25/2008 2/27/2008 Elect Director James P. Kelly 4/25/2008 2!27/2008 ^ Elect Director Jon C. Madonna 4/25/2008 2/27/2008 9 Elect Director Lynn M. Martin 4/25/2008 2/27/2008 . Reference: http://www.Votet.com/ ® Vote Summary Report (Short) 10-01 07 t 09 30 08 pp ~ - o - - ~ ~ 1.1 Elect Director B. Garland Cupp 7/22/2008 5/27/2008 For ~2 Elect Director Robert E. Beauchamp 7/22/2008 5/27/2008 For ~3 Elect Director Jon E. Barfield 7/22/2008 5/27/2008 For 4 Elect Director Gary Bloom 7/22/2008 5/27/2008 For ^5 Elect Director Meldon K. Gafner 7/22/2008 5/27/2008 For 1.6 Elect Director P. Thomas Jenkins 7/22!2008 5/27/2008 For 7/22/2008 5/27/2008 F Elect Director Louis J. Lavigne, Jr. or ~8 Elect Director Kathleen A. ONeil 7/22/2008 5/27/2008 For 1.9 Elect Director Tom C. Tinsley 7/22/2008 5/27/2008 For Ratify Auditors 7/22/2008 5/27/2008 For 1 Elect Director Lewis B. Campbell 5/6/2008 3/10!2008 For Elect Director R. Sanders Williams 5/6/2008 3/10/2008 For Ratify Auditors 5/6/2008 3/10/2008 For Increase Disclosure of Executive Compensation 5/6/2008 3/10/2008 Against Elect Director James M. Cornelius 5/6/2008 3/10/2008 For 3 Elect Director Louis J. Freeh 5/6/2008 3/10/2008 For 5/6/2008 3/10/2008 F Elect Director Laurie H. Glimcher or Elect Director Michael Grobstein 5/6/2008 3/10/2008 For 6 Elect Director Leif Johanson 5/6/2008 3/10/2008 For Elect Duector Alan J. Lacey 5/6!2008 3/10/2008 For Elect Director Vicki L. Sato 5/6!2008 3/10/2008 For Elect Director Togo D. West, Jr. 5/6/2008 3/10/2008 For Meeting for ADR Holders 7/16/2008 6/6/2008 08 6 2008 F REPORTS AND ACCOUNTS 7/16/20 6/ / or Ratify Auditors 7/16/2008 6/6/2008 For 11 REMUNERATION OF AUDITORS 7/16!2008 6!6/2008 For AUTHORITY TO ALLOT SHARES 7/16/2008 6/6!2008 For AUTHORITY TO ALLOT SHARES FOR CASH 7/16/2008 6/6/2008 For 14 AUTHORITY TO PURCHASE OWN SHARES 7/16/2008 6/6/2008 For AUTHORITY FOR POLITICAL DONATIONS 7/16/2008 6/6/2008 For REMUNERATION REPORT 7/16/2008 6!6/2008 For FINAL DIVIDEND 7/16/2008 6/6/2008 For RE-ELECT HANIF LALANI 7/16/2008 6/6/2008 For 5 RE-ELECT CARL SYMON 7/16/2008 6/6/2008 For ELECT SIR MICHAEL RAKE 7/16/2008 6/6/2008 For ELECT GAVIN PATTERSON 7/16/2008 6/6/2008 For 8 ELECT J ERIC DANIELS 7/16/2008 6/6/2008 For . ELECT RT HON PATRICIA HEWITT MP 7/16!2008 6/6/2008 For ^ Reference: http:/iwww.Votex.comi . Vote Summary Report (Short) 10-O1-07 to 09-30-OS O ~ ~ ~ 1 Elect Director Carol A. Bartz 11/15/2007 9/17/2007 For Elect Director Michael K. Powell 11/15/2007 9/17/2007 For Elect Director Steven M. West 11/15/2007 9/17!2007 For Elect Director Jerry Yang 11/15/2007 9/17/2007 For Amend Omnibus Stock Plan 11/15/2007 9/17/2007 For 14 Approve Executive Incentive Bonus Plan 11/15/2007 9/17/2007 For Ratify Auditors 11/15/2007 9/17/2007 For Amend Bylaws to Establish a Board Committee on Human Rights 11/15/2007 9/17/2007 Against 17 Pay For Superior Performance 11/15/2007 9/17/2007 For Advisory Vote to Ratify Named Executive Offcers' Compensation 11/15/2007 9/17/2007 For Report on Internet Fragmentation 11/15!2007 9!17/2007 For Elect Director M. Michele Burns 11/15!2007 9/17/2007 For Elect Director Michael D. Capellas 11/15/2007 9/17/2007 For 4 Elect Director Larry R. Carter 11/15/2007 9/17/2007 For Elect Director John T. Chambers 11/15/2007 9/17/2007 For Elect Director Brian L. Halla 11/15!2007 9/17/2007 For 7 Elect Director Dr. John L. Hennessy 11/15/2007. 9/17/2007 For Elect Director Richard M. Kovacevich 11/15/2007 9/17/2007 For 9 Elect Director Roderick C. McGeary 11/15/2007 9/17/2007 For ^1 Elect Director Stephen M. Dow 10/18/2007 8!30/2007 Withhold 1.2 Elect Director Godfrey R. Sullivan 10/18/2007 8/30/2007 Withhold ~ 3 Elect Director Mark B. Templeton 10/18/2007 8/30/2007 For '^ Amend Omnibus Stock Plan 10/18/2007 8/30/2007 For 3 Require a Majority Vote for the Election of Directors 10/18/2007 8/30!2007 For Elect Director Harold W. McGraw III 5/14/2008 3/17/2008 For 10 Adopt Greenhouse Gas Emissions Goals for Products and Operations 5/14/2008 3/17/2008 For Report on Community Environmental Impacts of Operations 5/14/2008 3/17/2008 Against Report on Environmental Damage from Drilling in the National Petroleum Reserve 5/14/2008 3/17/2008 For 13 Report on Environmental Impact of Oil Sands Operations in Canada 5/14/2008 3/17/2008 For Report on Global Warming 5/14/2008 3/17/2008 Against 2 Elect Director James J. Mulva 5/14/2008 3/17!2008 For 5/14/2008 3/17/2008 F Elect Director Bobby S. Shackouls or ^ Declassify the Board of Directors 5/14!2008 3/17/2008 For 5 Ratify Auditors 5/14/2008 3/17/2008 For Require Director Nominee Qualifications 5/14/2008 3/17/2008 Against Report on Indigenous Peoples Rights Policies 5/14/2008 3/17/2008 Against Advisory Vote to Ratify Named Executive Officers' Compensation 5/14/2008 3/17/2008 For ^ Report on Political Contributions 5/14/2008 3/17/2008 For Reference: http:/iwww.Votex.comi Vote Summary Report (Short) 10-O1-07 to 09-30-08 ~ 1.1 Elect Director Douglas M. Baker, Jr. ~2 Elect Director Barbara J. Beck 3 Elect Director Stefan Hamelmann .4 Elect Director Jerry W. Levin .5 Elect Director Robert L. Lumpkins 2 Ratify Auditors Declassify the Board of Directors 1.1 ~10 ~11 1.12 3 .4 ^5 1.6 ~7 ~8 1.9 ~~ ~_~ i ^ ^ i ^ ^ ^ Elect Director John E. Bryson Elect Director Richard T. Schlosberg, III Elect Director Thomas C. Sutton Elect Director Brett White Elect Director Vanessa C.L. Chang Elect Director France A. Cordova Elect Director Theodore F. Craver, Jr. Elect Director Charles B. Curtis Elect Director Bradford M. Freeman Elect Director Luis G. Nogales Elect Director Ronald L. Olson Elect Director James M. Rosser Ratify Auditors Advisory Vote to Ratify Named Executive Officers' Compensation 5/2/2008 3/11!2008 5/2/2008 3/11/2008 5/2/2008 3/11/2008 5/2/2008 3/11/2008 5/2/2008 3/11/2008 5/2/2008 3/11/200$ 5/2/2008 3/11/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2/25/2008 4/24/2008 2!25/2008 4/24!2008 2/25/2008 Reference: http:/iwww.Votex.com/ For For For For For For For For For For For For For For For For For For For For For Vote Summary Report (Short) ~ 10-O1-07 to 09-30-08 . ~ ~ L 1 Elect Director Michael J. Boykin 5/28/2008 4/4!2008 For .10 Elect Director Rex W. Tillerson 5/28/2008 4/4/2008 For 1.11 Elect Director Edward E. Whitacre, Jr. 5/28/2008 4/4/2008 For ~ 2 Elect Director Lany R. Faullrner 5/28/2008 4/4/2008 For ^3 Elect Director William W. George 5/28/2008 4/4/2008 For 1.4 Elect Director James R. Houghton 5/28/2008 4!4/2008 For Elect Director Reatha Clark King 5/28/2008 4/4/2008 For ~6 Elect Director Marilyn Carlson Nelson 5/28/2008 4/4/2008 For 7 Elect Director Samuel J. Palmisano 5/28/2008 4/4/2008 For Elect Director Steven S Reinemund 5/28/2008 4/4/2008 For 1.9 Elect Director Walter V. Shipley 5/28/2008 4/4/2008 For Review Anti-discrimination Policy on Corporate Sponsorships and Executive Perks 5/28/2008 4/4!2008 Against Report on Political Contributions 5/28/2008 4/4/2008 For 12 Amend EEO Policy to Prohibit Discrimination based on Sexual Orientation and Gender Identity 5/28/2008 4/4/2008 For Report on Community Environmental Impacts of Operations 5/28!2008 4/4/2008 Against Report on Potential Environmental Damage from Drilling in the Arctic National Wildlife Refuge 5/28/2008 4/4/2008 Against Adopt Greenhouse Gas Emissions Goals for Products and Operations 5/28!2008 4/4/2008 For Report on Carbon Dioxide Emissions Information at Gas Stations 5/28/2008 4/4/2008 Against 17 Report on Climate Change Impacts on Emerging Countries 5/28/2008 4!4/2008 Against Report on Energy Technologies Development 5/28/2008 4/4/2008 Against Adopt Policy to Increase Renewable Energy 5/28/2008 4/4/2008 For 2 Ratify Auditors 5/28/2008 4/4/2008 For Amend Bylaws to Prohibit Precatory Proposals 5/28/2008 4/4/2008 Against Require Director Nominee Qualifications 5/28/2008 4/4/2008 Against Require Independent Board Chairman 5/28/2008 4/4/2008 For ^ Approve Distribution Policy 5/28!2008 4/4/2008 Against 7 Advisory Vote to Ratify Named Executive Officers' Compensation 5/28/2008 4/4/2008 For Compare CEO Compensation to Company's Lowest Paid U.S. Workers 5/28/2008 4/4!2008 Against Claw-back of Payments under Restatements 5/28/2008 4/4/2008 Against .1 Elect Director Claude C. Lilly 6/18/2008 4/25/2008 For Elect Director Robert S. Lilien 6/18/2008 4/25/2008 For 1.3 Elect Director Thomas F. Gilbane, Jr. 6/18/2008 4/25/2008 For Ratify Auditors 6/18/2008 4/25/2008 For Approve Omnibus Stock Plan 6/18/2008 4/25/2008 For Approve Executive Incentive Bonus Plan 6/18!2008 4/25/2008 For 1 ~ Elect Director Nicholas P Constantakis 3/18/2008 1/18/2008 For 2 Elect Director J. Christopher Donahue 3/18/2008 1/18/2008 For ^3 Elect Director R. James Nicholson 3/18/2008 1/18/2008 For 1.4 Elect Director Thomas M. ONeill 3/18/2008 1!18/2008 For 08 1/18/2008 /18/2 F Elect Director James F. Will 3 0 or Other Business 3/18/2008 1/18/2008 Against Reference: http:i/www.Votex.comi Vote Summary Report (Short) 10-O1-07 to 09-30-08 ~ v 1 Elect Director Douglas A. Berthiaume 5/22/2008 3/31/2008 For ^ Elect Director Gail K. Boudreaux 5!22/2008 3/31/2008 For Elect Director Robert J. Carpenter 5/22/2008 3/31/2008 For Elect Director Chazles L. Cooney, Ph.D. 5/22/2008 3/31/2008 For ^ Elect Director Richard F. Syron 5/22/2008 3/31/2008 Against 6 Amend Omnibus Stock Plan 5/22/2008 3/31/2008 For Amend Non-Employee Duector Omnibus Stock Plan 5/22/2008 3!31/2008 For Ratify Auditors 5/22/2008 3/31/2008 For 1 Elect Director Eric Schmidt 5/8/2008 3/11/2008 For ~10 Elect Director Shirley M. Tilghman 5/8/2008 3/11/2008 For 1.2 Elect Director Sergey Brin 5/8/2008 3/11/2008 For .3 Elect Director Larry Page 5!8/2008 3/11/2008 For 1.4 John Doerr Elect Director L 5/8/2008 3/11/2008 For ~ . 5 Elect Director John L. Hennessy 5/8/2008 3/11/2008 For Elect Director Arthur D. Levinson 5/8/2008 3/11!2008 For 1.7 Elect Director Ann Mather 5/8!2008 3/11/2008 For Elect Director Paul S. Otellini 5/8!2008 3/11/2008 For Elect Director K. Ram Shriram 5/8/2008 3/11/2008 For 2 Ratify Auditors 5/8/2008 3/11/2008 For ^ Amend Omnibus Stock Plan 5/8/2008 3!11/2008 Against Adopt Internet Censorship Policies 5/8/2008 3/11/2008 For Amend Bylaws to Establish a Board Committee on Human Rights 5/8/2008 3/11/2008 Against Elect Director Alan M. Bennett 5/21 /2008 3/24/2008 For Elect Director Debra L. Reed 5/21/2008 3/24/2008 For Ratify Auditors 5/21/2008 3/24/2008 For 12 Amend Omnibus Stock Plan 5/21/2008 3/24/2008 For Adopt Human Rights Policy 5/21!2008 3/24/2008 For Report on Political Contributions 5/21/2008 3/24/2008 For 15 Amend Bylaws to Establish a Board Committee on Human Rights 5/21/2008 3/24/2008 Against ^ Elect Director James R. Boyd 5/21/2008 3/24/2-008 For Elect Director Milton Carroll 5/21/2008 3!24/2008 For Elect Director Kenneth T. Derr 5/21/2008 3/24/2008 For Elect Director S. Malcolm Gillis 5/21/2008 3/24/2008 For 6 Elect Director James T. Hackett 5/21/2008 3/24/2008 For Elect Director David J. Lesar 5/21/2008 3/24/2008 For Elect Director J. Landis Martin 5/21/2008 3/24/2008 For Elect Director Jay A. Precourt 5/21/2008 3/24/2008 For Elect Director Thomas A. Dattilo 10/26/2007 8/31/2007 For Elect Director Howard Lance 10/26/2007 8/31/2007 For r Elect Director James C. Stoffel 10/26/2007 8/31/2007 For 4 Ratify Auditors 10/26!2007 8/31/2007 For ^ Reference: http:/hvww.Votez.com/ Vote Summary Report (Short) ~ 10-01-07 to 09-30-08 ~ 1 Elect Director Craig R. Barrett 5/21/2008 3/24/2008 For Elect Director John L. Thornton 5/21/2008 3/24/2008 For Elect Director David B. Yoffie 5/21/2008 3/24/2008 For Ratify Auditors 5/21/2008 3/24!2008 For Amend Bylaws to Establish a Board Committee on Sustainability 5/21/2008 3/24!2008 Against 2 Elect Director Charlene Barshefsky 5/21/2008 3/24/2008 For 5/21/2008 3/24/2008 F Elect Director Carol A. Bartz or Elect Director Susan L. Decker 5/21/2008 3/24/2008 For 5 Elect Director Reed E. Hundt 5/21/2008 3/24/2008 For ^ Elect Director Paul S. Otellini 5/21/2008 3/24/2008 For Elect Director James D. Plummer 5/21/2008 3/24/2008 For Elect Director David S. Pottruck 5/21!2008 3/24/2008 For ^ Elect Director Jane E. Shaw 5!2112008 3!2412008 For .1 Elect Director C. Black 4/29/2008 2/29/2008 For ^10 Elect Director S. Taurel 4/29/2008 2/29/2008 For 1.11 Elect Director L.H. Zambrano 4/29/2008 2/29/2008 For ~2 Elect Director W.R. Brody 4/29/2008 2!29/2008 For ~3 Elect Director K.I. Chenault 4/29/2008 2/29/2008 For 1.4 Elect Director M.L. Eskew 4/29/2008 2/29/2008 For Elect Director S.A.Jackson 4/29/2008 2/29/2008 For 6 ~ Elect Director L.A. Noto 4/29/2008 2/29/2008 For 7 Elect Director J.W. Owens 4/29/2008 2/29/2008 For Elect Director S.J. Palmisano 4/29/2008 2/29/2008 For 1.9 Elect Director J.E. Spero 4/29/2008 2/29/2008 For 4/29/2008 2/29/2008 F Ratify Auditors or Restore or Provide for Cumulative Voting 4/29/2008 2/29/2008 For 4 Review Executive Compensation 4/29/2008 2/29/2008 For Amend Bylaws to Establish a Board Committee on Human Rights 4/29/2008 2/29/2008 Against Amend Bylaw -- Call Special Meetings 4/29/2008 2/29!2008 For Advisory Vote to Ratify Named Executive Officers' Compensation 4/29/2008 2/29/2008 For 1 ~ Elect Director J. William Burdett 5/6/2008 3/10/2008 For 2 Elect Director Robert C. Gasser 5/6/2008 3/10!2008 For .ii Elect Director Timothy L. Jones 5/6!2008 3/10/2008 For 1.4 Elect Director Robert L. King 5/6/2008 3/10/2008 For ~5 Elect Director Kevin J.P. O'Hara 5/6/2008 3/10/2008 For Elect Director Maureen O'Hara 5/6/2008 3/10/2008 For 1.7 Elect Director Brian J. Steck 5/6/2008 3/10/2008 For Ratify Auditors 5/6/2008 3/10/2008 For Amend Executive Incentive Bonus Plan 5/6/2008 3!10/2008 For Reference: http:/hvww.Votex.com/ Vote Summary Report (Short) 10-O1-07 to 09-30-08 C ~C 1 Elect Director John R. Alm 4/17/2008 2/18/2008 For Amend ArticlesBylaws/Charter -- Call Special Meetings 4/17/2008 2/18/2008 For Provide for Cumulative Voting 4/17/2008 2/18/2008 For Amend Bylaws to Establish a Board Committee on Sustainability 4/17/2008 2/18/2008 Against Elect Director John F. Bergstrom 4/17/2008 2/18/2008 For 3 Elect Director Robert W. Decherd 4/17/2008 2/18/2008 For Elect Director Ian C. Read 4/17/2008 2/18/2008 For Elect Director G. Craig Sullivan 4/17/2008 2/18/2008 For 6 Ratify Auditors 4/17/2008 2/18/2008 For . Eliminate Supermajority Vote Requirement 4/17/2008 2/18/2008 For Require Director Nominee Qualifications 4/17/2008 2/18/2008 Against Adopt ILO Based Code of Conduct 4/17/2008 2/18/2008 Against Meeting for ADR Holders 2/29/2008 12/31/2007 /200 F Elect Nam Joong-Soo as President 2/29/2008 12/31 7 or Approve Appropriation of Income and Dividend of KRW 2,000 Per Share 2/29/2008 12/31/2007 For 3 Elect Oh Kyu-Taek as Independent Non-Executive Director (Outside Director) for Audit Committee 2/29/2008 12/31/2007 For ~1 Elect Yoon Jong-Lok as Executive Director (Inside Director) 2/29/2008 12/31/2007 For ~2 Elect Suh Jeong-Soo as Executive Director (Inside Director) 2/29/2008 12/31/2007 For 3 Elect Kim Choong-Soo as Independent Non-Executive Director (Outside Director) 2/29/2008 12/31/2007 For Elect Koh Jeong-Suk as Independent Non-Executive Director (Outside Director) 2/29!2008 12/31/2007 For 5 Approve Remuneration of Executive Directors and Independent Non-Executive Directors 2/29/2008 12/31/2007 For Approve Employment Contract for Management 2!29/2008 12/31/2007 For Amend Terms of Severance Payments for Executives 2/29/2008 12/31/2007 For r ^ ^ ^ ^ ^ ^ s ^ ^ ^ ^ ^ Reference: hrip://www. Votex-com/ Vote Summary Report (Short) tV 10-O1-07 to 09-30-08 ~ 1.1 Elect Director Steve Sanghi 8/15/2008 6/19/2008 For ~2 Elect DirectorAlbertLHugo-Martinez 8/15/2008 6/19/2008 For 3 ~ Elect Director L.B. Day 8/15/2008 6/19/2008 For 4 Elect Director Matthew W. Chapman 8/15/2008 6/19/2008 For ~5 Elect Director Wade F. Meyercord 8/15/2008 6/19/2008 For 2 Ratify Auditors 8/15/2008 6/19/2008 For ~1 Elect Director William H. Gates, III 11/13/2007 9/7/2007 For 1.10 Elect Director Jon A. Shirley 11/13/2007 9/7!2007 For Elect Director Steven A. Balhner 11/13/2007 9/7/2007 For ~3 Elect Director James I. Cash, Jr. 11/13/2007 9/7/2007 For 1.4 Elect Director Dina Dublon 11/13/2007 9/7!2007 For ^5 Elect Director Raymond V. Gilmartin 11/13/2007 9/7/2007 For 6 ~ Elect Director Reed Hastings 11/13/2007 9/7/2007 For 7 Elect Director David F. Marquardt 11/13/2007 9/7/2007 For .8 Elect Dsector Charles H. Noski 11/13/2007 9/7/2007 For l.9 Elect Director Helmut Panke 11/13/2007 9/7/2007 For /200 9/ 200 / F Ratify Auditors 11 13 7 7/ 7 or Adopt Policies to Protect Freedom of Access to the Internet 11 /13/2007 9/7/2007 Against 4 Amend Bylaws to Establish a Board Committee on Human Rights 11/13/2007 9/7/2007 Against ~1 Elect Director Robert E. Beauchamp 5/14/2008 3/27!2008 For 1.2 Elect Director Jeffery A. Smisek 5/14/2008 3/27/2008 For Ratify Auditors 5/14/2008 3/27/2008 For Approve Executive Incentive Bonus Plan 5/14/2008 3/27/2008 For .1 Elect Director Jill K. Conway 9/22/2008 7/25!2008 For 2 ~ Elect Director Alan B. Graf, Jr. 9/22/2008 7/25/2008 For 3 Elect Director Jeanne P. Jackson 9/22/2008 7/25/2008 For Ratify Auditors 9/22/2008 7/25/2008 For .1 Elect Director Jeffrey L. Berenson 4/22/2008 3/11!2008 For Elect Director Michael A. Cawley 4/22/2008 3/11/2008 For 1.3 Elect Director Edward F. Cox 4/22/2008 3/11/2008 For 4/22/2008 3/1 /2008 F Elect Director Charles D. Davidson 1 or Elect Director Thomas J. Edelman 4/22/2008 3/11!2008 For 1.fi Elect Director Kirby L. Hedrick 4/22/2008 3/11/2008 For ~1 Elect Director Scott D. Urban 4/22/2008 3/11/2008 For ~8 Elect Director William T. Van Kleef 4/22/2008 3/11!2008 For Ratify Auditors 4/22/2008 3!11/2008 For i ^ Reference: http://www.Votex.com/ Vote Summary Report (Short) ~ 10-O1-07 to 09-30-08 ~~ 1.1 Elect Director Linda S. Harry 10/24/2007 8/31/2007 Withhold ~2 Elect Director Candy M. Obourn 10/24/2007 8/31/2007 Withhold ~3 Elect Director Donald E. Washkewicz 10/24/2007 8/31!2007 Withhold Declassify the Board of Directors 10/24/2007 8/31/2007 .For ^ Ratify Auditors 10/24/2007 8/31/2007 For .1 Elect Director I.M. Cook 5/7/2008 3/7!2008 For !10 Elect Director L.G. Trotter 5/7/2008 3/7/2008 For 1.11 Elect Director D.Vasella 5/7!2008 3/7/2008 For ~ 5/ /2008 3/ /2008 F 12 Elect Director M.D. White 7 7 or ~2 Elect Director D. Dublon 5/7/2008 3/7/2008 For 1.3 Elect Director V.J. Dzau 5/7/2008 3/7/2008 For Elect Director R.L. Hunt 5/7/2008 3/7/2008 For ~5 Elect Director A. Ibarguen 5/7/2008 3/7/2008 For 6 Elect Director A.C. Martinez 5!7/2008 3/7/2008 For ^7 Elect Director LK. Nooyi 5/7/2008 3/7/2008 For 1.8 Elect Director S.P. Rockefeller 5/7/2008 3/7/2008 For ~ 5/7/2008 3/7/2008 F 9 Elect Director J.J. Schiro or Ratify Auditors 5/7/2008 3/7/2008 For 3 Report on Recycling 5/7/2008 3/7/2008 Against ^ Report on Genetically Engineered Products 5/7/2008 3/7/2008 Against Report on Human Rights Policies Relating to Water Use 5/7/2008 3/7/2008 Against Report on Global Warming 5/7!2008 3/7/2008 Against . Advisory Vote to Ratify Named Executive Officers' Compensation 5/7!2008 3/7/2008 For Meeting for ADR Holders 4/4/2008 3/17(2008 ^ ELECTION OF ONE MEMBER OF THE BOARD OF DIRECTORS 4/4/2008 3/17/2008 For 2 ELECTION OF ONE MEMBER OF THE AUDIT COMMITTEE AND HIS/HER RESPECTIVE SUBSTITUTE 4/4/2008 3/17/2008 For ~1 Elect Director Hugh Grant 4/17/2008 2/22/2008 For 1.2 Elect Director Michele J. Hooper 4/17/2008 2/22/2008 For Elect Director Robert Mehrbian 4/17/2008 2/22/2008 For Ratify Auditors 4/17/2008 2/22/2008 For .1 Elect Director Nance K. Dicciani 4/22/2008 2/28/2008 For ~2 Elect Director Edward G. Galante 4/22/2008 2/28/2008 For 1.3 Elect Director Ira D. Hall 4/22/2008 2/28/2008 For ^4 Elect Director Raymond W. LeBoeuf 4/22/2008 2/28/2008 For ~5 Elect Director Larry D. McVay 4/22/2008 2/28/2008 For 6 Elect Director Wayne T. Smith 4/22/2008 2/28/2008 For ^7 Elect Director H. Mitchell Watson, Jr. 4/22/2008 2/28/2008 For 1.8 Elect Director Robert L. Wood 4/22/2008 2/28/2008 For 4/22/2008 2/28!2008 F Require Majority Vote forNon-Contested Election or Ratify Auditors 4/22/2008 2/28/2008 For . Reference: http:/iwww.Votex.com~ Vote Summary Report (Short) ^ 10-O1-07 to 09-30-08 1.1 Elect Director Richard R. Devenuti 5/9/2008 3/12/2008 ^2 Elect Director Stuart M. Essig 5/9/2008 3/12/2008 ~3 Elect Director Thomas H. Garrett III 5/9!2008 3/12/2008 4 Elect Director Wendy L. Yarno 5/9/2008 3/12/2008 ^ Amend Omnibus Stock Plan 5/9/2008 3!12/2008 3 Adopt Majority Voting for Uncontested Election of Directors 5/9/2008 3/12!2008 Ratify Auditors 5/9/2008 3/12/2008 1.1 Elect Director K. Burnes 4/30/2008 3!7/2008 ~ 4/30/2008 3/7/2008 10 Elect Director R. Serge! ~11 Elect Director R. Skates 4/30/2008 3/7/2008 1.12 Elect Director G. Summe 4/30/2008 3/7/2008 ^13 Elect Director R. Weissman 4/30/2008 3/7/2008 2 ~ Elect Director P. Coym 4/30/2008 3/7/2008 3 Elect Director N. Darehshori 4/30!2008 3/7/2008 Elect Director A. Fawcett 4/30/2008 3/7/2008 1.5 Elect Director D. Gruber 4/30!2008 3/7/2008 ~6 x/30/2008 3/7/2008 Elect Director L. Hill ~7 Elect Director C. LaMantia 4/30/2008 3/7/2008 1.8 Elect Director R. Logue 4/30/2008 3/7/2008 ,9 Elect Director M. Miskovic 4/30!2008 3/7/2008 Ratify Auditors 4/30/2008 3/7/2008 Limit Auditor from Providing Non-Audit Services 4/30/2008 3/7/2008 ~1 Elect Director Ronald M. DeFeo 5/15/2008 3/18/2008 10 Elect Director David C. Wang 5/15/2008 3/18/2008 ^11 Elect Director Helge H. Wehmeier 5/15/2008 3/18/2008 1.2 Elect Director G. Chris Andersen 5/15/2008 3/18!2008 ~3 5/15/2008 3/18/2008 Elect Director Paula H.J. Cholmondeley Elect Director Don DeFosset 5/15/2008 3/18/2008 1.5 Elect Director William H. Fike 5/15/2008 3/18/2008 Elect Director Thomas J. Hansen 5/15/2008 3/18/2008 7 ~ Elect Director Donald P. Jacobs 5/15!2008 3/18/2008 8 Elect Director David A. Sachs 5/15/2008 3/18/2008 ^9 Elect Director Oren G. Shaffer 5/15/2008 3/18/2008 2 Ratify Auditors 5/15/2008 3/18/2008 . Elect Director Paul E. Gagne 4/23/2008 2/29/2008 2 Elect Director Dain M. Hancock 4/23/2008 2/29/2008 4/23/2008 2/29/2008 Elect Director Lloyd G. Trotter Elect Director Thomas B. Wheeler 4/23/2008 2/29/2008 5 Ratify Auditors 4/23/2008 2/29/2008 Report on Foreign Military Sales 4/23/2008 2/29/2008 Adopt Anti Gross-up Policy 4/23/2008 2/29/2008 ^ Reference: http:%~vw.Votex.com/ Vote Summary Report (Short) « ~ 10-O1-07 to 09-30-08 ~ , ~ , ~C 1 Elect Director Ramani Ayer 5/21!2008 3/24/2008 For Elect Director H. Patrick Swygert 5/21 /2008 3/24/2008 For Ratify Auditors 5/21/2008 3/24!2008 For Elect Director Ramon de Oliveira 5/21/2008 3/24/2008 For ^ Elect Director Trevor Fetter 5/21/2008 3/24/2008 For 4 Elect Director Edward L Kelly, III 5/21/2008 3/24/2008 For Elect Director Paul G. Kirk, Jr. 5/21/2008 3/24/2008 For Elect Director Thomas M. Marra 5/21/2008 3/24/2008 For 7 Elect Director Gail J. McGovern 5/21/2008 3/24/2008 For . Elect Director Michael G. Moms 5/21/2008 3/24/2008 For Elect Director Charles B. Strauss 5/21/2008 3/24/2008 For ^ Elect Director Linda G. Alvarado 5/28/2008 3/31/2008 For Elect Director Cynthia M. Trudell 5/28/2008 3/31/2008 For Adopt Plurality Voting for Contested Election of Directors 5/28/2008 3/31/2008 For Amend Omnibus Stock Plan 5/28/2008 3/31/2008 Against 13 Ratify Auditors 5/28/2008 3/31/2008 For 5/28/2008 3/31/2008 F Elect Director Barry H. Beracha or Elect Director John C. Compton 5/28/2008 3/31/2008 For 4 Elect Director Eric J. Foss 5/28/2008 3/31!2008 For . Elect Director Ira D. Hall 5/28!2008 3/31/2008 For Elect Director Susan D. Kronick 5/28/2008 3/31/2008 For Elect Director Blythe 7. McGarvie 5/28/2008 3/31/2008 For Elect Director John A. Quelch 5/28/2008 3/31/2008 For 9 Elect Director Javier G. Teruel 5/28/2008 3/31/2008 For ^1 Elect Director Susan E. Arnold 3/6!2008 1/7/2008 For 1.10 Elect Director Robert W. Matschullat 3/6/2008 1/7/2008 For ~ 3/6 2008 1! /2008 F 11 Elect Director John E. Pepper, Jr. / 7 or ~12 Elect Director Orin C. Smith 3/6/2008 1/7/2008 For 1.2 Elect Director John E. Bryson 3/6/2008 1/7/2008 For Elect Director John S. Chen 3/6/2008 1/7/2008 For ~4 Elect Director Judith L. Estrin 3/6/2008 1!7/2008 For 5 Elect Director Robert A.Iger 3/6/2008 1/7/2008 For ~' Elect Director Steven P. Jobs 3/6/2008 1/7/2008 Against 1.7 Elect Director Fred H. Langhammer 3/6/2008 1/7/2008 For Elect Director Aylwin B. Lewis 3/6/2008 1/7/2008 For Elect Director Monica C. Lozano 3/6/2008 1/7/2008 For 2 Ratify Auditors 3/6/2008 1!7/2008 For ^ Amend Omnibus Stock Plan 3/6/2008 1/7/2008 For Amend Executive Incentive Bonus Plan 3/6/2008 1/7!2008 For ^ Reference: hrip:Uwaw.Votes.com/ Vote Summary Report (Short) C ~ 10-O1-07 to 09-30-08 ~ ~ .. ~ 1.1 Elect Director Louis R. Chenevert 4/9/2008 2/12/2-008 For 10 Elect Director H. Patrick Swygert 4/9/2008 2/12/2008 For ~11 Elect Director Andre Villeneuve 4/9!2008 2/12/2008 For 1.12 Elect Director Christine Todd Whitman 4/9!2008 2/12/2008 For ^2 Elect Director George David 4/9/2008 2/12/2008 For 1.3 Elect Director John V. Faraci 4/9/2008 2/12/2008 For ~4 Elect Director Jean-Pierre Gamier 4/9/2008 2/12/2008 For ^5 Elect Director Jamie S. Gorelick 4/9/2008 2/12/2008 For 1.6 Elect Director Chazles R. Lee 4/9/2008 2/12/2008 For .7 Elect Director Richard D. McCormick 4/9/2008 2/12/2008 For ~8 Elect Director Harold McGraw III 4/9!2008 2/12/2008 For 1.9 Elect Director Richard B. Myers 4/9!2008 2/12/2008 For ^ Ratify Auditors 4/9/2008 2/12/2008 For 3 Amend Omnibus Stock Plan 4/9/2008 2/12/2008 For 4/9/2008 2/12/2008 A i Adopt Principles for Health Care Reform ga nst Improve Human Rights Standards or Policies 4/9/2008 2/12/2008 For 6 Pay For Superior Performance 4/9/2008 2/12/2008 For Report on Foreign Military Sales 4/9/2008 2/12/2008 Against 1.1 Elect Director William C. Ballard, Jr. 6/5/2008 4/9/2008 For ~2 Elect Director Richard T. Burke 6/5/2008 4/9/2008 For ~3 Elect Director Robert J. Darretta 6/5/2008 4/9/2008 For 4 Elect Director Stephen J. Hemsley 6/5/2008 4/9/2008 For ^5 Elect Director Michele J. Hooper 6/5!2008 4/9/2008 For 1.6 Elect Director Douglas W. Leatherdale 6/5!2008 4/9/2008 For ~ 7 Elect Director Glenn M. Renwick 6/5/2008 4/9/2008 For ~8 Elect Director Gail R. Wilensky 6/5/2008 4/9/2008 For 2 Amend Omnibus Stock Plan 6/5!2008 4!9/2008 For Amend Qualified Employee Stock Purchase Plan 6!5/2008 4/9/2008 For Ratify Auditors 6/5/2008 4/9/2008 For Advisory Vote to Ratify Named Executive Officers' Compensation 6/5/2008 4/9/2008 For ^ Performance-Based Equity Awards 6/5/2008 4/9/2008 For .1 Elect Director W.E. Bill Bradford 5/1/2008 3/3/2008 For Elect Director Ronald K. Calgaard 5/1/2008 3/3/2008 For 1.3 Elect Director Irl F. Engelhardt 5/1/2008 3/3/2008 For Ratify Auditors 5/1/2008 3/3/2008 For Share buyback holding period 5/1/2008 3/3/2008 Against 4 Advisory Vote to Ratify Named Executive Officers' Compensation 5/1/2008 3/3/2008 For Report on Political Contributions 5/1/2008 3/3/2008 For Reference: http:%iwww.Votex.com/ . Vote Summary Report (Short) N 10-O1-07 to 09-30-08 ~ Meeting/Record Uate Vote Cast 1.1 Elect Director Aida M. Alvarez 6/6/2008 4/10!2008 For ^10 Elect Director H. Lee Scott, Jr. 6/6/2008 4/10/2008 For ~11 Elect Director Arne M. Sorenson 6/6/2008 4/10/2008 For 12 Elect Director Jim C. Walton 6/6/2008 4/10/2008 For ^13 Elect Director S. Robson Walton 6/6/2008 4/10/2008 For 1.14 Elect Director Christopher J. Williams 6!6/2008 4!10/2008 For ~15 Elect Director Linda S. Wolf 6/6/2008 4/10/2008 For Elect Director James W. Breyer 6/6/2008 4/10/2008 For 1.3 Elect Director M. Michele Burns 6/6/2008 4/10/2008 For Elect Director James I. Cash, Jr. 6/6/2008 4/10/2008 For ~5 Elect Director Roger C. Corbett 6/6/2008 4/10/2008 For ,.6 Elect Director Douglas N. Daft 6/6/2008 4/10/2008 For Elect Director David D. Glass 6/6/2008 4/10/2008 For 1.8 Elect Director Gregory B. Penner 6/6!2008 4/10/2008 For Elect Director Allen I. Questrom 6/6/2008 4/10/2008 For Report on Social and Reputation Impact of Failure to Comply with ILO Conventions 6/6/2008 4/10/2008 Against 11 Amend ArticlesBylaws/Charter -- Call Special Meetings 6/6/2008 4/10/2008 For ^ Approve Executive Incentive Bonus Plan 6/6/2008 4/10/2008 For Ratify Auditors 6/6!2008 4/10/2008 For Amend EEO Policy to Prohibit Discrimination based on Sexual Orientation and Gender Identity 6/6/2008 4/10/2008 Against ^ Pay For Superior Performance 6/6/2008 4/10/2008 For 6 Claw-back of Payments under Restatements 6/6/2008 4/10/2008 Against Amend Bylaws to Establish a Board Committee on Human Rights 6/6/2008 4/10/2008 Against Advisory Vote to Ratify Named Executive Officers' Compensation 6/6/2008 4/10/2008 For 9 Report on Political Contributions 6/6/2008 4/10/2008 For Meeting for ADR Holders 11/28/2007 10/22/2007 1 TO RECEIVE AND ADOPT THE DIRECTORS ANNUAL REPORT AND ACCOUNTS AND THE AUDITORS REPORT 11/28/2007 10/22/2007 For TO GIVE LIMITED POWERS TO THE DIRECTORS TO ALLOT EQUITY SECURITIES FOR CASH 11/28/2007 10/22/2007 For TO GIVE RENEWED LIMITED AUTHORITY FOR THE DIRECTORS TO REPURCHASE ORDINARY SHARES 11/2812007 10/22/2007 For TO GIVE LIMITED AUTHORITY TO INCUR POLITICAL EXPENDITURE AND TO MAKE POLITICAL DONATIONS 11/28/2007 10/22/2007 For TO AMEND THE ARTICLES OF ASSOCIATION OF THE COMPANY IN RESPECT OF NON EXECUTIVE 11/28/2007 10/22/2007 For DIRECTORS FEES TO AMEND THE ARTICLES OF ASSOCIATION OF THE COMPANY IN RESPECT OF ELECTRONIC 11/28/2007 10/22/2007 For COMMUNICATIONS TO AMEND THE ARTICLES OF ASSOCIATION OF THE COMPANY **VOTING CUT-OFF DATE: NOVEMBER 21, 11/28/2007 10/22/2007 For 2007 2 TO RECEIVE AND ADOPT THE DIRECTORS REMUNERATION REPORT 11/28/2007 10!22!2007 For 8/2007 10/22/2007 / F TO DECLARE A FINAL DIVIDEND 11 2 or TO RE-ELECT MR ANDREW DUFF AS A DIRECTOR (NON EXECUTIVE DIRECTOR CHAIRMAN OF THE 11/28!2007 10(22/2007 For REMUNERATION AND MEMBER OF THE NOMINATIONS) i TORE-ELECT MR CLAUDE CHIP HORNSBY AS A DIRECTOR (GROUP CHIEF EXECUTIVE) 11/28!2007 10/22/2007 For 6 TO RE-ELECT MR JIM HURRAY AS A DIRECTOR (NON EXECUTIVE DIRECTOR, CHAIRMAN OF THE AUDIT 11/28/2007 10/22/2007 For . COMMITTEE) Ratify Auditors 11/28/2007 10/22/2007 For . TO AUTHORISE THE DIRECTORS TO DETERMINE THE AUDITORS REMUNERATION 11/28/2007 10/22/2007 For 9 TO GIVE LIMITED POWERS TO THE DIRECTORS TO ALLOT EQUITY SECURITIES 11!28/2007 10/22/2007 For Reference: http:iiwww.Votex.comi